The issue of EU representation in international organisations is both complex and sensitive but many Convention members agreed that a single representation in economic international organisations (IMF, WTO...) could enhance the power of the EU on the world stage.

1. The IMF: International Monetary Fund and the World Bank

The representation in the IMF is by currencies and not by countries. The representatives to the different bodies are the finance ministers and the governors of the central banks. This means that the Euro Zone’s drawing right are almost double of those of the USA. If the EU would speak with one voice, we could become the strongest power and have a veto right. Currently only the USA have a veto right.

Moreover, this could give us, at least a - theoretical - possibility to move the seat of IMF to Europe. The seat is not fixed, but “the principal office of the Fund shall be located in the territory of the member having the largest quota (or drawing right), and agencies or branch offices may be established in the territories of other members”. (IMF Agreement).

The Working Group should considerate and debate about the possibility of a single representation, keeping in mind that the Euro is already represented by the chief of the ECB (Duisenberg). The key question is whether the Commission should be representing the Euro countries or the chairman of the ECO.FIN Council.

The Union should work for changes to the statutes of international organisations. The Euro zone should consider a single representation of the Euro zone in the international organisations.

The collaboration of the EU with the World Bank is successful but the Working Group could examine ways to encourage and to strengthen this cooperation, in order to better fulfil the missions of the World Bank.

2. The European Union and the G8

Actually, the European Union hasn’t any power in the decision-making process of the G8. It only has an observer status. Only a few EU member states (France, Germany, Italy and the UK) are members of the G8 and they represent their own national interests. This means that the power of the European Union as such within the G8 organisation is very limited. The Working Group could examine ways to reinforce the power and the influence of the European Union within this organisation. If the European Union had a single representation, we would transform the G8 into a G5 (USA, Russia, Japan, Canada and Europe), and the EU would not have its observer status any more, but would be a real player in the decision making process and have a bigger role in setting the world economic and political agenda.

The Working Group will have to face with the problem of the national sovereignty of the EU members in the G8. Are they ready to cede their sovereignty in order the European Union be able to become a real member of the G8?

Again here the key issue is who would represent the Union at G8 meetings? (Should the President of the Commission (or/and the Chairman of the European Council) be an additional full member next to the British, French, German and Italian leader or should he replace them? 

3. The European Union as a participant in the WTO

The EU is firmly committed to the promotion of open and fair trade with all of its trading partners. This is why it has worked so hard at the successful establishment of the World Trade Organisation (WTO). As one of the world's major trading power, the EU can exercise considerable influence on global trade and investment, but it is vital that the EU does this together and in close co-operation with all of its other trading partners. The European Union is competent on Trade but the implementation of the GATS (General Agreement on Trade in Services) is much more problematic for the EU. Indeed, the EU agenda is to seek better access for European services exporters in foreign markets and to secure a more transparent and predictable regulatory environment for services.

In July 2002, the EU presented its requests for improved market access to WTO members. These requests seek a reduction in restrictions and expansion of market access opportunities for the European services industry. The services sector is the single most important economic activity in the EU accounting for over two thirds of GDP and employment. The EU is home to some of the world's leading companies in many service sectors, such as the telecom, financial, business, and environmental services sectors.

The Working Group should consider ways to improve the competence of the European Union in this area.

The decision making process in the WTO is also problematic for the European Union. Because of the principle of consensus, both in the WTO and within the EU (fortunately not in all matters), it is often very difficult for the EU to reach an agreement on a single position and is thus obliged to abstain in major decisions within the WTO. (Both a decision to approve and to dismiss a proposal within the WTO would need the agreement of all EU member states!) It’s potential power remains thus unused. The same applies in the case of sectoral organisations (e.g. tobacco organisation ). Many organisations which have been important for developing countries, were forced to close down, since they need a certain minimum number of participating countries. The EU can only be part of such organisations when all its member states agree. When one or two EU countries block an EU decision to participate (most of the times due to a respective influence by the USA) , no EU country is allowed to join thus creating huge problems for the developing countries. Obviously after enlargement the situation will become worse.

Even if the European Commission and Council spent much time and efforts examining and establishing “the overall aims to be pursued by the community and its member states”, the EU doesn’t always succeed in formulating agreed EU positions. Usually it happens because the national interests in the Council usually prevail over a wish to reach a common position in the interest of the Union as a whole. Unfortunately the European Parliament plays no role in the whole process. Thus the interests of trade unions (social rights), environment issues, issues on the equality of men and women or the question of democratic control of globalisation are often left out of the whole  process. Finally many concrete issues become part of the whole “oriental bazaar” at European Council meetings. So even if the European Council’s role would be to deliberate on general policy guidelines it gets involved in things that are better left top lower levels.

The key issues at stake for the Working Group are moving to majority vote in the Council on decisions over the mandate the Commission is given for negotiating international agreements, allowing the Commission to be the sole negotiator for all aspects (also services) of international trade agreements and giving to the European Parliament equal rights of co-deciding on the Commission’s mandate.