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 I. 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 II. 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 III. 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 IV. 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!