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European Union leaders have come to a consensus that the bloc's treaty must be changed, although only in a limited fashion, in order to allow for the creation of a permanent bail-out fund for member states. "Today we took important decisions to strengthen the euro," European Council President Herman Van Rompuy told reporters at a press conference in the early morning hours of Friday (29 October).

Initially horrified at the Franco-German demand for a wholesale re-writing of the EU rulebook only a year after the Lisbon Treaty had been approved, the other EU leaders are now warming to the idea of a "limited" tweaking of the treaty in a way that they hope will avoid major political fall-out. "Heads of state and government agree on the need for member states to establish a permanent crisis mechanism to safeguard the financial stability of the euro area as a whole and invite the president of the European Council to undertake consultations with the members of the European Council on a limited treaty change required to that effect," the draft conclusions of a two-day summit in Brussels read.

"No country is opposed in principle to a moderate treaty change but they want to know what the political and legal consequences of this would be," said one source close to the discussions. Two moves have been tentatively agreed. EU Council President Herman Van Rompuy is to be tasked with exploring whether such a limited change can be done via a simplified revision procedure, in which EU leaders can make the change without having to call a full Intergovernmental Conference (IGC) - involving negotiations between the governments, consultations with the European Parliament and the participation of the European Commission, which could open a Pandora's Box of other new proposals. Mr Van Rompuy would also explore whether legally this can be done without the tweak having to be presented to national parliaments for approval, which would almost certainly grind down the process, or even further, whether such a move would provoke referendums in some countries, notably Ireland, which maintains a constitutional requirement that any shift in powers from Dublin to Brussels be approved in a vote by the people. He would report back to the European Council in December.

European Commission President Jose Manuel Barroso has sided with smaller member states in trying to restrict the role of the proposed president of the European Council, a new post created by the Lisbon Treaty. Addressing the European Parliament on Wednesday (7 October), Mr Barroso chastised MEPs for referring to the post as "president of Europe."

"I am sorry, there will not be a president of Europe. There will be, if we have Lisbon, the president of the European Council. It is important to understand that point because sometimes I think there are some ideas about certain derives institutionelles [institutional drifts]," he said.

The commission president has no formal powers in appointing the European Council president but he warned: "The European Commission will not accept the idea that the president of European Council is the president of Europe." Mr Barroso's remarks came shortly after a leaked paper on the new Lisbon Treaty posts by Belgium, the Netherlands and Luxembourg underlined the importance of maintaining the "institutional balance" of the union. The paper has been interpreted in some quarters as an anti-Blair move. Poland has also prepared a document on the role of the president of the European Council. Earlier this week, Polish Europe minister Mikolaj Dowgielewicz indicated to EUobserver the limited role that Warsaw foresees for the new president.

Less than one year after the watershed ruling from Germany’s Federal Constitutional Court that empowered Germany’s parliament to trump EU law, Germany is using the ruling to force the EU to conform to its will. The issue Germany has chosen to test this extraordinary power not given to any other EU member nation is Iceland’s bid to join the EU. The EU’s decision to consider Iceland as an official candidate was expected to be made in a late March summit, following a favorable recommendation from the EU commission. It was delayed, however, to give the German parliament time to examine the commission’s opinion. For Iceland to be considered as an official candidate for EU membership, several German parliamentary committees must consent to the move.

It is interesting that the first time Germany has forced the EU to consult the Bundestag in an expansion of EU power is in the matter of enlargement—not even if a nation will become an actual member, but in such a trivial matter as whether it will be considered an official candidate. Just look at Turkey’s bid for membership to see how meaningful being an official candidate is. This area of EU power typically doesn’t have a direct impact on any of the current EU members, and so Germany chose to try out its new power in an uncontroversial way. This is apparent by the lack of headlines devoted to Germany’s first use of its national “supremacy clause.” The other heavyweights of the EU, France and Britain, are not calling foul, and none of the other member nations seem concerned that the EU’s enlargement policy was just hijacked by Germany.

Czech President Vaclav Klaus has finally signed the Lisbon Treaty, ending a highly drawn out ratification process that left many wondering whether the document's provisions would ever see the light of day. "I signed the Lisbon Treaty today at 15.00 (CET)," Klaus told reporters on Tuesday (3 November).

As well as appointing a new set of commissioners, the EU can now move ahead with the planned overhaul of its institutions and the appointment of several new positions intended to increase the bloc's standing on the world stage. All of these decisions had been held up by the political uncertainty in Prague, with Mr Barroso saying he can only assemble his commission team when it is clear who will become EU foreign minister, a new post that will see the person also act as vice-president of the commission.

Ahead of an EU summit opening today (28 October), Liberal group leader Guy Verhofstadt warned that the European Parliament was determined to use its new powers under the Lisbon Treaty and would not let economic governance plans be "diluted" by Germany and France.

But Verhofstadt, who leads the Parliament's Liberal group, warned that such backroom deals were now over. The European Parliament, he said, would have full co-decision powers on legislative proposals that will come out later in the year to flesh out the EU's new economic governance. His warnings were echoed by other political groups in Parliament, including the centre-right European People's Party (EPP), which commands the largest number of seats in the Strasbourg assembly. Iñigo Mendez De Vigo, a Spanish MEP in charge of institutional issues at the EPP, said he welcomed the Task Force's proposals. But he added that "they should take into account that the European Parliament is now co-legislator and will play its full part in defining the reforms to come".  "I regret that the French-German proposal does not even mention the European Commission, which also has a say on this issue," De Vigo said, adding the Parliament should also be more involved. The Greens, the fourth largest group in Parliament, also backed the Liberals and the EPP, in a move which could herald a long battle with member states over the economic reform plans. The Parliament "will be a co-legislator on four of the six legislative proposals" on economic governance, said Belgian MEP Philippe Lamberts, saying his group was "in favour of a more ambitious and broader economic framework than the Commission and Council". Verhofstadt said he hoped this new battle would not take nine months, referring to the time it took to pass a recent package of financial supervision laws through the assembly.

In a statement, Verhofstadt detailed the three key areas where the Task Force had diluted the Commission's initial proposal and on which he said Parliament was ready to pick a fight. First, the Commission had proposed to impose sanctions on member countries with excessive deficits or severe imbalances at an earlier stage, without delay. By contrast, the Task Force argues that a political decision should be taken on the proposed sanctions, meaning that they could be blocked by a country capable of putting together a blocking minority. The result is that there will be no preventive procedure and therefore no sanctions, the liberal group leader warned. Second, the Task Force foresees a "double filter" for decision-making, involving a political recommendation by the Council before the Commission can take action. In practice, this means the Commission will be allowed to take sanctions only after a certain period, Verhofstadt said. Finally, while the EU executive had proposed that corrective action or sanctions be initiated directly by its own services, the Task Force called instead for a recommendation that would need subsequent backing by the bloc's 27 finance ministers. "It's easy to change a recommendation, and far more difficult to change a proposal by the Commission, because in that case you need unanimity," Verhofstadt explained.

Foreign relations chief Catherine Ashton will turn her attention to choosing the top officials and the main building for the European External Action Service (EEAS) after the EU Parliament approved the legal blueprint for the new body. MEPs in a landslide result in Strasbourg on Thursday (8 July) backed the final EEAS set-up by 549 votes against 78 with 17 abstentions.

The EEAS today boils down to Ms Ashton and a team of 30-or-so officials in one corridor on the 12th floor of the European Commission building in Brussels, struggling to work with EU experts in the commission's Charlemagne building next door, the EU Council building across the road and dozens of other bureaus. From 1 December, she will take command of some 1,500 officials housed under one roof in the heart of the EU quarter in Brussels, as well as 800 EU diplomats in the EEAS' 136 foreign embassies.

In a sign of tension in the Lisbon-Treaty-era EU, French Prime Minister Francois Fillon and Spanish foreign minister Miguel Angel Moratinos defended member states' prerogatives in Strasbourg on Tuesday. Mr Fillon reportedly said it is a "red line" for Paris that member states will take foreign policy decisions, while Ms Ashton will simply "implement" them. Mr Moratinos said that in some cases, such as human rights in Cuba, bilateral diplomacy is more effective than EU-level action. For his part, the leader of the Liberal group in the parliament, Belgian MEP Guy Verhofstadt, on Wednesday attacked the "19th century" mentality of "nation states." "What century are we living in? Terrorism, does that stop at borders? Climate change? Migration?" he said.

The new European Commission (2010-2014), in action since February 2010, has created – for the first time in the Union’s history - a new portfolio that was explicitly dedicated to issues of justice, fundamental rights and citizenship. Thus, it has become a strong symbol of the new Commission's determination to create a strong Europe of justice for its citizens. The role of the EU Justice Commissioner (Viviane Reding), who is at the same time Commission’s vice-president, is to ensure that the Charter of Fundamental Rights – which is now part of the Lisbon Treaty – is fully respected and becomes an integral part of all other EU policies. Citizens should now enjoy the results of this new emphasis on justice and fundamental rights.

The birth of the European External Action Service, one of the most anticipated innovations of the Lisbon Treaty, will be a difficult one, admitted a top European Commission official yesterday (4 March).

Implicitly, he appeared to confirm that the blueprint, already drafted by Ashton's committee, was encountering difficulties in some member countries. A "long discussion" had taken place at the level of EU member-state ambassadors (Coreper) yesterday, he said, and talks were due to continue at the informal foreign ministers' meeting in Cordoba, Spain, tomorrow (5 March). The European Parliament will also have a say, he added. But recruiting staff from the member countries will take time, Vale de Almeida said, adding that upgrading the European Commission's existing network of foreign delegations will also take "a few months". Speaking to EurActiv, Vale de Almeida said that if the decision was taken by the end of April as planned, he expected the service to start work by the end of the year.

Digital Agenda Commissioner Neelie Kroes said yesterday (11 January) that the European Commission would not make any compromise and would make sure EU law is implemented fully in the case of the controversial Hungarian media law.

But Kroes made clear that the directive was "an instrument to find the issues to tackle" and that if problems were identified, Reding would be called into play, in respect of Article 7 of the Lisbon Treaty. Article 7 reads that after a reasoned proposal by one third of EU member states, by the European Parliament or by the European Commission, the Council, acting by a majority of four fifths of its members after obtaining the consent of the European Parliament, may determine that there is a clear risk of a serious breach by a member state of the EU values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities.

Member states are considering taking the EU Parliament to court if it does not back down on demands for new powers on EU foreign policy and international agreements, EUobserver has learnt. Ambassadors representing member states at a meeting in Brussels on Wednesday (13 October) signaled their discontent over an inter-institutional agreement between the European Commission and the EU legislature which may give fresh powers to euro-deputies, especially when it comes to international negotiations on behalf of the EU.

The draft report, according to an analysis by the council of ministers' legal services, could lead to a stand-off between EU institutions if adopted as such next week in Strasbourg. "The court option is not off the table," one EU source said. Ambassadors will come back to the matter in their meeting next Wednesday, following the MEP's vote in the plenary. The crux of the matter is to what extent MEPs can be part of EU delegations to multilateral and bilateral meetings and negotiations with other countries. According to the draft, the Parliament wants to have its representatives guaranteed participation in all multilateral, but also bilateral agreements "of particular political importance" - for instance on trade or fisheries.

Catherine Ashton, the EU's High Representative for Foreign Affairs and Security Policy, will at last have the right to speak at the United Nations General Assembly, following a vote held yesterday (3 May).

A vote in the 192-nation General Assembly saw 180 countries come out in favour of granting the EU 'super observer' status, which does not give the bloc voting rights but will allow the High Representative to speak on behalf of the European Union.

With this resolution, the General Assembly acknowledges that since the entry into force of the Lisbon Treaty, the president of the European Council, Herman Van Rompuy, the High Representative of the Union for Foreign Affairs and Security Policy, Catherine Ashton, the European Commission and the EU Delegations have represented the Union externally in accordance with the Treaties, Van Rompuy stated.

It is meant to be the most clear democratising feature of the EU's new rulebook, the Lisbon Treaty, but implementation of the "citizen's initiative" is a political minefield and is prompting much discussion about the danger of the tool turning into a mockery of democracy. EU politicians are keen to talk up the European citizens' Initiative (ECI), a clause in the EU treaty obliging the European Commission to consider legislating on any idea supported by 1 million European citizens.