From its inception as the European Economic Community in 1957, with six founding members, the European Union has shown a remarkable capacity to adapt to changing circumstances. Having increased throughout successive enlargements to 15 member states and seen a significant extension in Union competences following the Maastricht and Amsterdam Treaties, the Union over the past decade has faced the task of responding to unprecedented change in central and eastern Europe. The Union has responded to these challenges with an imaginative strategy for enlargement, and a vigorous programme of internal reform.
The imperative now is to complete the transformation already under way, through the series of accession negotiations now in train with 12 countries and the process of adapting the Union's institutions to meet the demands of enlargement, through the work of the Intergovernmental Conference. The House will be aware that the Intergovernmental Conference is tackling a number of the key institutional issues left unresolved from Amsterdam, and the outcome will have an important bearing on the functioning of the Union well into the future. In this regard, I have emphasised repeatedly the importance we attach to ensuring that the balances which underpin the Union are fully maintained.
As is evident from recent statements by the German Foreign Minister, Mr. Fischer, President Chirac, and others, the central issue for the European Union at the moment is whether it can broaden and deepen at the same time. For our part, we are committed to enlargement on the basis agreed at Helsinki, and through our participation in EMU have shown ourselves ready to go down the road of deepening the Union. However, the concept of further deepening will require clear analysis of what is meant. In this regard, the concept of flexibility, or enhanced co-operation, has captured considerable attention of late. We are ready to consider proposals in this area, but will want to be assured that extending its use is in the best interests of the Union as a whole, and that adequate safeguards are in place to guard against fragmentation, for example, in regard to the Single Market. In raising these concerns, and pointing to the need for greater clarity in the debate, we are simply seeking to ensure that decisions are taken which will serve to maintain the coherence of the Union now and in the future.
The organic character of the European Union ensures that it will continue, as it has done in the past, to adapt to changing circumstances. As a Union of states and of peoples, it is required to respond to the wishes of the Governments and the citizens which make up the Union, to preserve both its credibility and its democratic legitimacy. While it is not possible, therefore, or, perhaps, even desirable, to pre-empt decisions which may be taken in the future on the further development of the Union, the essential point is that it should continue to build on the solid foundations already in place.