Today's Date:

The traditional objectives of Franco-German cooperation include that of being an engine of European integration. As has already been the case in the history of European integration, France and Germany are determined, now that a debate on the EU's future is getting under way and looking ahead to the 2004 Intergovernmental Conference, to give fresh impetus to maintaining and stepping up the momentum of the European project.

The appalling terrorist attacks of 11 September 2001 presented the EU with new challenges. These are making it even more urgent for EU member States to shoulder more effectively their responsibilities at home - to their nationals - and also abroad - vis-à-vis global events.

Faced with the threat of global terrorism, the EU must reinforce its policies, particularly in the justice and home affairs spheres;

In its external relations, the EU must improve its instruments and structures so that it can fully assume its role in the world;

EU enlargement must be pursued resolutely and without delay;

At stake in the debate on Europe's future and realization of our common objective of a European Constitution are the achievement of an efficient, strong and democratic EU, with a clear leadership structure and responsibility.

1 - The work on creating an area of freedom, security and justice, set in train by the Tampere European Council, must be carried through with renewed energy to its successful conclusion. In response to the terrorist attacks of 11 September 2001, the European Council adopted on 21 September 2001 a plan of action comprising ambitious measures and objectives for fighting terrorism. This plan of action includes, inter alia, a common definition of terrorism, creation of a European arrest warrant, and measures to combat money laundering and the funding of terrorism, and to exchange information and ensure cooperation between authorities responsible for security. France and Germany are determined to combine their efforts so that the envisaged decisions are taken on schedule.

In the longer term, other ambitious initiatives should be considered in order to enhance our continent's security, such as establishing a European police force enabling better surveillance of the EU's external borders, strengthening Europol, with a view to the creation of an integrated police force responsible for fighting international terrorism and organized crime, in cooperation with the national administrations involved, reinforcing judicial cooperation, particularly of Eurojust, with a view to setting up a European prosecution service, and increasing cooperation between member States' consulates outside the EU.

2. - Today Europe is also confronted by new challenges in the field of foreign and security policy. Already the EU is playing a central role in south-east Europe and a growing one in the Middle East. The international situation is increasing still further the importance of its action to curb violence, prevent conflicts and ensure peace.

France and Germany consider that the European Union must augment its capabilities so that it can play its role in the world even more efficaciously. There's a need to improve the consistency between member States' foreign policies and that of the EU. Inter alia, the EU must mobilize more effectively the wide range of instruments at its disposal which constitute a valuable asset. To step up the EU's external action, increase its consistency and raise its profile, it is necessary to develop the synergy between the action of the High Representative for the Common Foreign and Security Policy and that of the External Relations Commissioner. France and Germany will be presenting proposals to this end.

The development and implementation of a European security and defence policy must also be energetically pursued and must take on a new dimension. France and Germany consider that the European defence project must not be confined to the "Petersberg tasks" and, in accordance with the Treaty on European Union, must be a step towards a common defence. The Atlantic Alliance remains the basis of its member States' collective defence. The ESDP must also put in place the capabilities required to fight international terrorism. Finally the industrial dimension of European defence must be a priority.

3. The economic challenges confronting Europe have also increased and demand convincing responses. With the introduction of euro coins and notes on 1 January 2002, the historic process of the creation of a European currency will reach its conclusion. Thanks to the euro, the EU can rely, even in the event of instability in the world economy, on a broader, more stable economic foundation. The single currency is increasing Europe's ability to make its voice more clearly heard on the international monetary scene.

Going beyond the existing common policies which will have to be pursued and stepped up, such as, for example, the coordination of member States' economic policies, our two countries consider it important to make progress in the following areas: harmonizing tax, and particularly corporate tax, establishing a genuine single financial market, improving and strengthening the European social model by maintaining, inter alia, services of general economic interest, and fighting exclusion and discrimination.

4. - Precisely because of the new international challenges which the EU has to confront, France and Germany are determined to hold, as energetically as ever, the course of the enlargement project, in line with the agreed timetable. With the entry into force of the Nice Treaty, the EU will be ready to admit new members. By actively pursuing the reform process, the candidates for accession must themselves create the conditions for a prompt accession, i.e. adopt the acquis communautaire and be able to apply it. It is not just the candidate countries, but also all the present EU member States which will benefit directly from the enlargement, at both political and economic level. It will make a fundamental contribution to the unity of a Europe which has too long been divided.

5. The aims of the 2004 Intergovernmental Conference and democratic debate preceding it will be greater integration and the efficient operation of a more transparent and accountable European democracy. The European Constitution sought by Germany and France will be an essential stage in the historic process of European integration.

France and Germany welcome the forthcoming establishment, at the Laeken European Council, of the Convention made up of representatives of the member States, national parliaments, the European Parliament and European Commission, who will closely involve the candidate countries in their discussions and organize a substantial dialogue with civil society. This Convention is an innovative instrument to prepare the necessary options for the reforms Europe needs. These reforms must, in particular, allow ordinary people to see more clearly where, at European level, the political responsibility for a decision lies and to exert a democratic influence on it.

It is in this broader framework that we need to discuss the four themes figuring in the Declaration on the Future of the Union: more precise delimitation of powers between the different levels where action is taken within the Union, role of national parliaments, simplification of the treaties and incorporation of the Charter of Fundamental Rights into them. These questions are leading to a more in-depth debate on the process of constitutionalizing the treaties and relations between the EU's institutions, including clarifying legislative and executive functions. Our two countries remain open to discussion of all matters to do with reforms affecting the EU's future. That also includes the extension of qualified majority voting.

Germany and France already share identical positions on a large number of these reforms such as, for example, incorporating the European Union Charter of Fundamental Rights into the future European Constitution, dividing the treaties into a constitutional section and a [policy] section to which changes can be made more easily [i.e. without requiring an amendment to the Constitution], and organizing a more comprehensible and more transparent institutional architecture.

We are determined to seek agreements, continuously and over the long term, on all the issues emerging from the Convention's proceedings and we are very confident that it will be possible to reach the requisite consensuses.

The Laeken European Council is taking place at a time of important political choices. It is up to the EU member States, which include France and Germany, to ensure its agenda allows us to give the appropriate answers to the challenges confronting the EU./.