Provisions of the Treaty

The primary purpose of the Treaty of Nice was to reform the institutional structure to withstand the Enlargement of the European Union, a task which was supposed to have been carried out at the Amsterdam Inter-Governmental Conference (IGC), but the Treaty of Amsterdam failed to address most of the issues.

The Treaty adopted by the Nice European Council was attacked by many. Germany had demanded that its greater population be reflected in a higher vote weighting in the Council; this was opposed by France, who insisted that the symbolic parity between France and Germany be maintained. One proposal made by many, which would have greatly simplified the current system, was to introduce a double majority of both member states and population, to replace the current Qualified Majority Voting (QMV) system. This was also rejected by France for similar reasons. A compromise was reached, which provided for a double majority of Member States and votes cast, and in which a Member State could optionally request verification that the countries voting in favour represented a sufficient proportion of the Union's population.

The Treaty provided for an increase after enlargement of the number of seats in the European Parliament to 732, which exceeded the cap established by the Treaty of Amsterdam.

The question of a reduction in the size of the European Commission after enlargement was resolved to a degree — the Treaty providing that once the number of Member States reached 27, the number of Commissioners appointed in the subsequent Commission would be reduced by the Council to below 27, but without actually specifying the target of that reduction. As a transitional measure it specified that after 1 January 2005, Germany, France, the UK, Italy and Spain would each give up their second Commissioner.

The Treaty provided for the creation of subsidiary courts below the European Court of Justice and the Court of First Instance to deal with special areas of law such as patents.

The Treaty of Nice provides for new rules on closer co-operation, the rules introduced in the Treaty of Amsterdam being viewed as unworkable, and hence these rules have not yet been used.

In response to the failed sanctions against Austria following a coalition including Jörg Haider's party having come to power, and fears about possible future threats to the stability of the new member states to be admitted in enlargement, the Treaty of Nice for the first time adopted formal rules for the application of sanctions against a Member State.

The Treaty also contained provisions to deal with the financial consequences of the expiry of the European Coal and Steel Community (ECSC) treaty (Treaty of Paris (1951)).

It was widely accepted that the Treaty of Nice has failed to deal with the basic question of wide-ranging institutional reform, the European Union institutions being widely viewed as overly complicated, and hence the establishment of the European Convention, leading to a new IGC in 2004, was agreed at Nice.

The Commission and the European Parliament were disappointed that the Nice IGC did not adopt many of their proposals for reform of the institutional structure or introduction of new Community powers, such as the appointment of a European Public Prosecutor. The European Parliament threatened to pass a resolution against the Treaty; although it has no formal power of veto, the Italian Parliament threatened that it would not ratify without the European Parliament's support. However, in the end this did not come to pass and the European Parliament approved the Treaty.

Many argue that the pillar structure, which was maintained by the Treaty, is overly complicated, that the separate Treaties should be merged into one Treaty, and that the three (now two) separate legal personalities of the Communities should be merged, and that the European Community and the European Union should be merged with the European Union being endowed with legal personality. The German regions were also demanding a clearer separation of the powers of the Union from the Member States.

Nor did the Treaty of Nice deal with the question of the incorporation of the Charter of Fundamental Rights into the Treaty; that was also left for the 2004 IGC after the opposition of the United Kingdom.