The white paper focuses on three main challenges facing the EU: Ensuring peace and stability in Europe through the enlargement, finding common solutions to common problems when confronted with globalisation, and improving the legitimacy of the EU.

In chapter 1 of the white paper the essence of these three challenges are explored. Why is the enlargement still the most important challenge? What is the nature of globalisation and why is it necessary to co-operate internationally to meet the challenges flowing from it? How should we understand legitimacy and how can the legitimacy of the EU be improved?

The white paper is structured around the three challenges.

• Chapter 2 deals with the enlargement.
• Chapter 3 deals with how the policies of the EU has developed and will develop as a response to globalisation.
• Chapter 4 deals with the question of legitimacy and focuses on the debate concerning the future of the EU that is the agenda defined in declaration no. 23 of the Treaty of Nice on the future of the Union.
• Chapter 5 deals with enhanced co-operation as a new way of co-operating in the EU.

The following chapters 6 to 8 contain the part of the white paper which focusses on Denmark. Here it is analysed what these expected future developments mean for Denmark. Focus is also on the Government's approach to the future development of the EU and what role Denmark should play in this process.

• Chapter 6 concerns the Danish role and position in the EU. Focus is on the possibilities of Danish influence and the consequences of the Danish opt-outs.
• Chapter 7 deals with the Danish Presidency in 2002.
• Chapter 8 concludes the white paper with the Governments thoughts on the prospects for Danish EU policy.

12 years after the break-down of the Berlin Wall important progress has been made in order to enlarge the EU. The 10 Central and Eastern European countries, Cyprus and Malta are close to membership. Other countries may join in a longer perspective.

Nevertheless, the enlargement is not yet accomplished. Difficult questions still remain to be answered. The candidate countries in varying degrees still need to implement reforms. And in the accession negotiations it is necessary to reach agreement on difficult issues such as possible transition periods on free movement of labour, environment and agricultural policies.

Despite these challenges it is realistic to expect that the candidate countries which are best prepared can join the EU in a not too distant future. If the Commission's Road Map of November 2001 stands, it will be possible to conclude the negotiations with the best prepared countries by the end of 2002 that is during the Danish Presidency.

The EU is prepared for the forthcoming enlargement. With the agreement on Agenda 2000 in 1999 important policies as well as the EU budget were reformed. With the Treaty of Nice the institutions have been reformed in order to ensure that they can function effectively with up to 27 Member States.

Nevertheless, the EU will also develop and change in the future in response to the enlargement. It is necessary once again to have a look at some of the common policies. This is especially true for the common agricultural policy and the cohesion and structural funds, which are closely related to the budget of the EU.

It is also expected that the working-methods of the EU will change. The increasing number of Member States must not hamper the EU's ability to make decisions.

3. Globalisation and the development of EU policies

Globalisation offers opportunities in terms of jobs, better products and increased welfare. But globalisation also brings risks e.g. the gap between rich and poor countries may widen and new social divides may develop in individual countries.

Globalisation therefore demands political action. In this context the EU plays an important role at all levels:

- National level

EU is a platform that makes it possible to exchange experiences on how Member States nationally can organise their economy and society in the best way in order to take account of globalisation. The Lisbon Process is crucial in this respect. Through this process Member States co-operate in order to create a dynamic economy without compromising the common European welfare objectives. Growth must be combined with social and environmental concerns.

- European level

Through the EU common policies are formulated at the European level in response to globalisation. In the coming years we will witness a particularly dynamic development when it comes to the Economic and Monetary Union, European Security and Defence Policy and Justice and Home Affairs. Interesting developments are also expected in four other areas: The single market, environment, consumer politics and food safety.

- Global level

The EU and its Member States are also confronted with big challenges when it comes to the global level. A common European global effort is envisaged not least in the following areas: Economic co-operation and trade, development assistance, environment and sustainable development. Furthermore, the Common Foreign and Security Policy will develop and allow the EU to play an increasingly significant role at global level. The EU is expected to play an important progressive role.

The debate on the future of the EU and Europe is well under way. The fundamental question is how to improve the democratic legitimacy of the EU.

With the declaration attached to the Treaty of Nice on the future of the Union a first agenda has been worked out. Until now there are four points on this agenda:

• how to establish and monitor a more precise delimitation of powers between the European Union and the Member States, reflecting the principle of subsidiarity,
• the status of the Charter of Fundamental Rights of the European Union,
• a simplification of the Treaties with a view to making them clearer and better understood without changing their meaning,
• the role of national Parliaments in the European architecture.

As regards the Charter of Fundamental Rights: Many Member States are attaching great significance to the Charter. There is no doubt that the question of the status of the Charter will be a very important issue in the debate on the future of Europe. It seems likely that the Charter will be attached to the Treaty in one way or the other. A reference to the Charter in the Treaty will probably be the easiest solution. Including the individual provisions of the Charter in the Treaty represents the most difficult solution. The relation between the EU and the European Convention on Human Rights is also expected to become part of the debate.

As regards a simplification of the Treaties: A renewed effort will be made in order to simplify the Treaties. This work will include a "tidying-up"; exercise, consolidation and re-structuring. Consolidation and not least re-structuring are difficult to accomplish without changing the legal situation. Whether agreement can be reached on separating the Treaties into a fundamental part and a more technical part remains an open question. A possible alternative or supplement could be a political "fundamental Treaty", which could serve as an easily accessible political text summarising the fundamental provisions of the existing legal Treaties. There will probably not be broad support for changing the existing amendment procedures of the Treaties.

As regards the role of national parliaments: There is broad agreement that the role of the national parliaments should be strengthened. Focus has been on how to better include the national parliaments at the European level. There will probably not be widespread support for establishing a full-fledged second chamber. A number of factors work against such a solution. But other options also exist, for example establishing a body of members from national parliaments with more specific functions, enhanced contacts between national parliaments and the European Parliament building on COSAC, or the use of Conventions like the one that prepared the Charter. The question of the day to day involvement of the national parliaments in EU matters is also expected to be on the agenda. It is an important question. These are good possibilities for improving the working conditions of the national parliaments. Such an improvement will contribute to making the EU more visible in the daily work of the national parliaments and EU policy more accessible to the citizens.

No doubt other points will be added to the agenda. So far proposed additions include the balance of responsibilities between the institutions. Other additions will follow the way is therefore open for a more general debate about the direction in which the EU should develop. Words like constitution, basic treaty and federalism will play an should develop. Words like constitution, basic treaty and federalism will play an important role in the context. But there is a broad consensus that the goal is not to replace the nation state. The aim is to devise an appropriate framework for a way ahead for Europe which maintains the nation states as the cornerstone.

5. Enhanced co-operation

It is not expected that enhanced co-operation in its present form as defined in the Treaties will constitute a dominant new way of co-operating in the EU. Partly because the existing provisions limit the application of enhanced co-operation. And partly because nothing prevents Member States from participating in closer co-operation outside the Treaty.

Nevertheless, the possibility of enhanced co-operation may have an indirect influence on the EU. The sheer existence of the provision on enhanced co-operation may in some cases be used as an instrument for putting pressure on more hesitant Member States. These countries run the risk of being “left behind”. On the other hand, more hesitant Member States can also utilise enhanced co-operation in order to renounce such pressure. More eager Member States can be called upon to proceed with enhanced co-operation among themselves if they wish to move ahead.

It cannot be ruled out that enhanced co-operation will play a more important role at a later stage.

6. Denmark's role and position

International co-operation and international stability is crucial to Denmark's security and economy and to the further development of the welfare state. Therefore, active participation in the EU is a core element in Danish foreign policy.

The developments in the EU as described in chapter 2 to 4 are basically in accordance with Danish interests. Old priorities such as the enlargement are about to become a reality. And other and newer priorities such as development of the welfare state, safety for the citizen, sustainable development and democratic legitimacy of the EU are now accorded highest priority.

Denmark's chances of influencing the future development of the EU are good. Denmark has much to offer and has demonstrated its ability to make use of the possibilities for influence in the past.

A special opportunity will exist when Denmark takes over the Presidency of the EU in the second half of 2002. This is further elaborated in chapter 7.

At the same time, Danish EU policy is characterised by special constraints. These constraints are not least due to the Danish opt-outs. Denmark looses influence on questions which also affect Danish interests.

This is obviously the case in the three areas which are covered by the opt-outs that is the common currency (the euro), European Security and Defence Policies and Justice and Home Affairs. In these areas Denmark is experiencing a real and tangible loss of influence.

It is also the case in a more general sense. The opt-outs may contribute to an image of Denmark as a Member State which does not participate whole-heartedly in the EU. This has an influence on the general position of Denmark and may reduce Danish influence on the overall development of the EU.

This underlines how important it is that Denmark makes use of the possibilities that exist and actively promotes Danish interests and points of view in those areas which are not covered by the opt-outs and where Danish influence therefore is bigger.

7. The Danish Presidency in the second half of 2002

The Danish Presidency will be a major task a task which has grown significantly in size since the last Danish Presidency in 1993.

The Danish Presidency will be facing a substantial agenda:

• Enlargement of the EU
• Mid term review of the Common Agricultural Policy
• Reform of the Common Fisheries Policy
• Environment
• Consumer affairs
• Food safety
• The Internal Market
• Economic and financial questions
• World Summit on Sustainable Development
• ASEM IV
• WTO negotiations
• Debate on the future of Europe
• Reform of the Commission
• The Northern Dimension.

The Presidency will also be important for the political position of Denmark in Europe.

8. Prospects for Danish EU policy

Denmark and the EU

The Danish Government rejects the idea of a “United States of Europe” replacing the nation states. This is not a realistic perspective. There are no serious political forces in Europe which strive for such a development.

But the Danish Government does not see any contradiction in the relationship between the EU and the nation states of Europe. More EU does not necessarily mean less Denmark. The Government wants the EU to continue to contribute to handling those challenges which the Member States cannot handle on their own.

It is in the interest of Denmark to be situated at the centre of the EU. There are good opportunities for promoting Danish priorities and for exercising influence in other areas of Danish interest. The Danish Government therefore intends to pursue an active approach in those areas where Denmark and the Danes have special interests.

The future of Denmark lies in Europe and the EU. It is therefore only natural that Denmark should assume its share of the responsibility. Denmark has much to offer and good opportunities for making itself heard.

This is especially the case in the second half of 2002 when Denmark takes over the Presidency of the EU.

The challenges facing Denmark and Europe

The enlargement a project of solidarity to the benefit of all

The Danish Government will further pursue the progress that has been made in the process of enlargement. The enlargement is to the benefit of all of Europe including Denmark.

The enlargement will therefore be accorded top priority during the Danish Presidency.

Enlargement adds to the need for a new common agricultural policy. The Danish Government aims for an ambitious reform. The reform process must not create difficulties for the timetable for enlargement.

Globalisation new opportunities and challenges for Denmark

Globalisation offers great opportunities for Denmark. Cross-border trade, investments and movement of capital are part of the foundations of the European social model the common European welfare ideal.

At the same time, globalisation requires political action so that its benefits may accrue to all. Otherwise there is a risk that the gap between poor and rich countries widens, that new social divides emerges and that there will more uncertainty in the daily lives of the citizens.

Globalisation cannot be handled by the countries of Europe alone. Therefore the EU is an instrument of central importance. It is through the EU that common solutions are found to common problems.

The Government will direct its efforts towards ensuring that globalisation leads to more not less security in the everyday life of the citizens. Consumers must be protected. A high level of food safety must be ensured. And cross-border organised crime must be combated. These objectives can only be achieved through the EU.

The Government will work for a sustainable development in Europe as well as globally. In Europe things are moving in the right direction. Globally an extra effort is needed. Recent developments illustrate that there is a need for an EU which is able to counterbalance the countries which do not accord the same priority to sustainable development.

The Danish Government wants the EU to constitute a progressive force ensuring that other considerations than purely financial and economic ones are taken into account. Market forces must be checked. There is a need for a socially, economically and environmentally sustainable development In Denmark, Europe and globally.

Democratic legitimacy towards a more transparent and open Europe

Much has already been done in order to improve the legitimacy of the EU. This work must be continued in the coming years.

The debate on the future of the EU is a step in the right direction. The Danish Government:

• will engage itself actively in the efforts to ensure a more precise division of labour between the EU and the Member States. More can be done to strengthen and clarify the wish that the EU only concerns itself with the issues and areas which the Member States cannot handle on their own. Decisions must be taken as closely to the citizens as possible. At the same time, we must avoid weakening the EU in the areas in which we and others share an interest in common action. And we must ensure that the EU can develop to meet the challenges that arise also in the future.
• wants the fundamental rights of the citizens to be given an even stronger position in the EU. The EU Charter of Fundamental Rights is a good text. It helps clarify the rights that citizens enjoy vis-ŕ-vis the institutions of the EU. Denmark will play an active and constructive role in future work in this area. We must search for ways in which the fundamental rights can be given an even stronger position in relation to the Treaty.
• underlines the importance of continuing the efforts of simplifying the treaties. This is a difficult task. However, this should not be an excuse for lack of effort. Simplification will help make the EU more transparent and comprehensible to the individual citizen. The Danish Government is open to proposals for separating the treaties into a fundamental part and a technical part, for the purpose of creating greater clarity. Alternative options should also be discussed.
• wants to strengthen the role of national parliaments. This may help provide better conformity between the wishes of the citizens and the decisions made by the EU. The Danish Government wants to see all models included in such discussions. We should not merely focus on which role the national parliaments might play at the EU level. Structuring the decision making process in the EU in a way which affords the national parliaments the best possible conditions for solving their own tasks within the individual Member States is from the Danish Government's point of view an important task as well.

Promoting a debate about Denmark and Europe

The future challenges, including the upcoming Intergovernmental Conference in 2004, underlines the need for a broad debate in Denmark. It is necessary to define the priorities for future Danish EU policy.

This debate should not only concern the future challenges. The Danish opt-outs must also be debated.

Following publication of the white paper the Government is planning various activities in order to promote a deep and wide debate about the future development of the EU:

• A summary of the white paper will also be published. This version will be distributed widely.
• A web site will be opened in parallel with the publication of the white paper (www.europasfremtid.dk). The web site will provide access to relevant information and will contain a discussion forum.
• The Government also calls for public hearings where the Danish people will be consulted on the future development of the EU.