The setting up of Zone 1 may start in parallel to the transition of the Eurozone into the EF. There will be no separate constitution for the EFCA. Instead, the EF constitution will cover the rights and obligations of the EFCA members, which in principle should become federated with the EF within 5 years. The rights of accepting new members, suspending, or expelling members will be the sole privilege of the EF State. EFCA members will have the right to sit in the EF Parliament but will not be have the same voting rights as the EF’s MPs.
Such a setup might initially create some tensions between the EF and EFCA. Tensions may arise because of the perceived benefits of the membership of the EF, not available to the EFCA member states. But that could only increase the motivation of the EFCA members to join the EF. The greatest benefit from this setup would be to show the EFCA members that the EF works and any problems it might have could be overcome. This is an optimistic assumption, I agree. It could also create some additional risks that are not present right now, and which might occur because of the changed political situation in the member countries of the EFCA. But at the same time, federalization of the Eurozone into EF and creating a separate EFCA zone for the remaining members could eliminate many more risks that threaten the unity of the EU today, like the looming Euro crisis, or different agenda in foreign policy, etc. Therefore, the EU would have to take up such a risk.
Any new member state joining the EFCA zone will have to accept the relevant articles of the EF Constitution and on that basis amend its own constitution.
Any new member state joining the EFCA zone will have to apply these rules:
- Constitutional relevance – Make all the necessary preparation to become federated with the EF State within 5 years; Once an EFCA member joins the EF State, its constitution will be replaced by the EF constitution; Support at times of utmost urgency the actions of the President or the Prime Minister of the EF State, if they have to react to events at national or global scale within a very short time (days or hours), even if it meant a temporary suspension of the EFCA member’s sovereignty rights; Strongly support the process of decision-making within their own government at all levels through consensus rather than arbitrarily impose the rule of the majority
- Respect the rulings of the European Constitutional Court and the European Court of Justice. Each member’s constitution will have to be approved by the European Constitutional Court for its adherence to the EF values
- The EFCA zone has its own Parliament. It consists of one chamber of representatives from individual states. The parliament term is five years. Candidates are elected for a maximum of two terms
- The EFCA has its own Commission similar to the EU Commission
- EFCA’s Commission is headed by its President who also presides over the EFCA Council of Ministers. He represents EFCA to EF State and external organizations
- The EFCA Electoral systems. This is identical as the electoral system for the EF state
- Foreign affairs area. Any state joining the EFCA will relinquish their right to carry out its foreign policy after two years of EFCA membership. From then on, the member state’s Foreign Minister will be an advisor to the EF Foreign Minister on the former member state’s foreign policy
- Defence area. This area will be the competency of a member state joining the EFCA for the first two years only. After that period, the member state’s Defence Minister will be an advisor to the EF Defence Minister on the former member state’s defence policy
- Single Market. All members benefit from a single market for all goods, services and capital as well as the freedom of movement, settlement, setting up businesses etc., for all citizens of the EFCA. However, there might be differences to the entitlements and benefits, such as unemployment benefit level among the EFCA’s members
- Customs Union. All EFCA members must also be members of the EF Customs Union
- Currency. Each country must adopt the Euro currency before joining the EFCA
- Fiscal policy and common budget. The EFCA members will contribute 10% of their budget to the EFCA central budget, from which some common EFCA projects will be financed, including projects in the contributing country
- Trading relationship with non–EF countries. No EFCA member state can enter into trading relationship with a non-EF country. Any foreign investment in a member country above the pre-authorized level is not allowed without the agreement with the EF state’s government
- State aid and Mergers & Acquisitions. Companies cannot get any state aid nor conclude any M&A transaction above the agreed level without a prior agreement with the EF Government
- Energy policy. The EFCA co-ordinates the energy policy with the EF, especially in the area of common energy supplies
- Opt-outs. There are no opt-outs allowed of any agreed policy of the EFCA in this zone
- EFCA Enlargement principles. The accession of new member candidates to the EF state, a membership suspension, or expelling of an existing EFCA member state, will be the sole prerogative of the EF state.