A DEMOCRATIC SOLUTION TO THE CRISIS -

1. A DEMOCRATIC SOLUTION TO THE CRISIS - REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE Prof. Dr. Dr. h.c. Ingolf Pernice / Dr. Mattias Wendel / Kristin Bettge, MLE / Martin Mlynarski / Lars S. Otto, LLM / Michael Schwarz Walter Hallstein-Institute for European Constitutional Law, Humboldt-University Berlin

2. A DEMOCRATIC SOLUTION TO THE CRISIS REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE • GENERAL INTRODUCTION • Key thesis: The financial and economic constitution of the European Union needs both to enhance its capacity to act and to reach a higher degree of democratic legitimacy: Greater democratic legitimacy may very well result in greater political capability.

3. A DEMOCRATIC SOLUTION TO THE CRISIS REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE • THE FISCAL TREATY - A CRITICAL REVIEW • 1. The road to Fiscal Treaty • 2. Criticism: disparity between the substance and the process of reform • 3. Prospects

4. A DEMOCRATIC SOLUTION TO THE CRISIS REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE • THE IMPORTANCE OF THE REFORM OF THE ECONOMIC AND MONETARY UNION FROM A FEDERAL-DEMOCRATIC PERSPECTIVE • 1. The thick network of European federal democracy • 2. Common European debate in European public sphere • 3. General ideas and examples to enhance federal- democratic participation • 4. Differentiated integration: opportunities and limits 5. Democratic added-value from increased capacity for action 6. Potential for transformation and new narratives - a European constitutional moment

5. A DEMOCRATIC SOLUTION TO THE CRISIS REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE • REFORM STEPS TO FURTHER DEVELOP THE EUROPEAN AND MONETARY CONSTITUTION • 1. The pillar of fiscal policy reform • 2. The pillar of economic policy reform • 3. The pillar of reform proposals with institutional and media focus

6. A DEMOCRATIC SOLUTION TO THE CRISIS REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE 1. THE PILLAR OF FISCAL POLICY REFORM • a) Consideration of external effects of fiscal policy decisions by Member States in connection with domestic budgets, and inter-parliamentary cooperation • b) Redefinition of the deficit procedure, particularly by strengthening the EP: • parliamentary control of the Commission’s monitoring activities • and parliamentary right of final decision on deficits • c) ‚Federalisation’ of fiscal policy within the Eurozone: institutional challenges

7. A DEMOCRATIC SOLUTION TO THE CRISIS REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE 2. THE PILLAR OF ECONOMIC POLICY REFORM • a) Aim: Closer collaboration in the areas of social, employment, labour market policy and banking regulation • b) Current state of integration, particularly banking regulation • c) Legal instruments available

8. A DEMOCRATIC SOLUTION TO THE CRISIS REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE 3. THE PILLAR OF REFORM PROPOSALS WITH INSTITUTIONAL AND MEDIA FOCUS • a) Combining the post of the President of the Commission and the President of the European Council • b) Genuine right of initiative for the EP in the legislative process • c) Creating a pan-European discourse amongst the people by creating a European Public Service Broadcaster

9. A DEMOCRATIC SOLUTION TO THE CRISIS REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE • CONSTITUTIONAL ASSESSMENT OF THE REFORM OF THE EUROPEAN UNION • 1. Options for implementing reforms under European constitutional law • 2. Scope for reforms under national constitutional law

10. A DEMOCRATIC SOLUTION TO THE CRISIS REFORM MODEL FOR A DEMOCRATICALLY BASED ECONOMIC AND FINANCIAL CONSTITUTION FOR EUROPE Thank you for your attention!