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EUROPE LAST week took its first decisive step towards creating a stronger, more cohesive and effective Union when it moved to set up a 105-member convention that will make concrete proposals on reforms including a Constitution for Europe.

The 75-year-old former French president, Mr. Valery Giscard d'Estaing, was chosen to lead the convention which will have a one-year mandate. However, since he was not the unanimous choice, Mr. Giscard d'Estaing, who had campaigned hard for the job, found himself saddled with two equally ambitious deputies, the former Italian Prime Minister, Mr. Giuliano Amato, and Belgium's former Prime Minister, Mr. Jean-Luc Dehaene.

Despite the excitement and interest generated by the 12-nation switch to a single currency, the Euro, slated for January 1 next year, the economic outlook remains morose with Euro-scepticism on the rise.

Recent E.U. meetings have been characterised by oneupmanship and petty squabbling and the Union's public image has taken a severe beating.

``They still haven't got their act together over Afghanistan, there is no defence or foreign policy to talk of and they want us to believe in their incredible pipe dreams,'' scoffed Mr. Janine Lemaire, an ardent supporter of France's leading Euro-sceptic, the former Socialist Minister, Mr. Jean-Pierre Chevenement.

According to opinion polls, just under half the E.U.'s 377 million citizens support their countries' membership of the Union, despite its status as the world's biggest single market.

The Declaration adopted at the Laeken summit however indicates that European leaders may have taken such criticism on board. There is a growing realisation of the widening chasm separating the ``Eurocracy'', as Brussels' burgeoning bureaucracy is often derisively called, and the public.

``The Union stands at a crossroads... the public is calling for a clear, open, effective, democratically-controlled, community approach,'' said the seven-page Laeken Declaration. European Union leaders indicated they wanted to build ``a democratic and globally engaged Europe'' that was less bureaucratic, more efficient and closer to its people.

``There can be no doubt that this will require Europe to undergo renewal and reform,'' the Declaration said.

Mr. Axel Krause, Contributing Editor of Europe magazine told The Hindu: ``This move for reform was essentially prompted by the realisation that an enlarged Europe of 25 nations would just not be able to function. Mr. Hubert Vedrine, French Foreign Minister, was the first to blow the whistle. Now with 15 members, Europe just about manages to function effectively. That will not be the case with more members joining in.''

The convention led by Mr. Giscard d'Estaing will have representatives from E.U. member-states, the European Commission, national legislatures and the European Parliament and start functioning on March 1 next year. It is expected to canvass opinions from all sections of European society and present its findings and recommendations for reform a year later.

``The 15 member-states, will then negotiate on power-sharing and decision-making roles between the European Commission, the Council of Ministers and the European Parliament,'' Mr. Krause said. ``While it is true that squabbles over where to locate newly created European institutions such as Europol and Eurojust showed the bad side of Europe, major decisions were taken at the Laeken summit.

Decisions within the E.U. are still largely taken on an inter-governmental basis by the member-states, represented by the Council of Ministers, although veto powers have been reduced and the role of the Commission and Parliament has grown over the decades. I feel Europe will truly become a political entity when its army is in place and that will take a while yet.''

The need to reform becomes urgent given that 10 of the 12 nations knocking on Europe's door for admission, including Poland, Hungary, the Czech Republic and Cyprus, could be ready to join by mid-2004. Turkey is also a candidate, but cannot start talks with Brussels before it makes progress on human rights and the country's all-powerful army subservient to civilian rule.

The three vital elements still missing from the European apparatus are: Europe's own armed forces, its own Constitution, and its own criminal justice system. A serious attempt was made at the summit to fill these gaps.

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