The veto reflected two difficult problems that the EU is facing. The first is economic issues. Due to rocketing food and oil prices, as well as the influence of the U.S. subprime mortgage crisis, EU economic growth has obviously slowed down, while its inflation rate keeps increasing. In May, the inflation rate of the eurozone reached 3.7 percent, the highest in 16 years, exceeding the 2 percent caution line of the European Central Bank. Protests over fishery and transportation issues also arose. For now, the EU has not yet found a solution to the low growth rate and high inflation. The second is the decreasing cohesion inside the EU that appears rudderless. In the past, France and Germany had played the roles of "engine" in the integration for a long time. However, subsequent domestic puzzles in the two nations now prevent them from playing their former roles. Along with the enlargement of the EU, the self-identity of European countries is obviously decreasing. New members have brought many troubles together with their entries.

Integration scuppered again

It has been seven years since the EU started its constitution-making process, during which European political elites have made remarkable efforts. Two years after the EU Constitution was vetoed, a tough negotiation process resulted in the Lisbon Treaty in 2007, which is expected to break the standstill of the integration. The Irish veto against the Lisbon Treaty struck a heavy blow not only to the architects of the plan, but also to the European integration process.

The direct result is the treaty cannot take effect as scheduled. Although the EU held emergent meetings to discuss the issue after Ireland publicized the referendum result on June 13, it has not yet found a practical solution. The EU leaders came to a common understanding that the treaty cannot be re-negotiated, and Ireland should find a solution. As the Lisbon Treaty needs the approval of all EU members to take effect, and Ireland cannot possibly hold another referendum soon, there is little chance that the treaty can take effect on the scheduled date of January 2009. Ireland also expressed that the country needed more time to figure the whole thing out.

Another scenario is the EU institutional reformation will be shelved. The EU absorbed 12 new members through two enlargements in 2004 and 2007, even though it was not prepared on an institutional level. The enlarged EU sat with a problem of low decision-making efficiency and poor implementation capability. The core of both the EU Constitution and the Lisbon Treaty is to carry on reformation of the EU as an institution. For example, vote principles in some fields should replace the current system with the principle of majority rules, so as to pass a resolution more easily and effectively. Some believe that the EU should also get rid of the rotating presidency and elect an EU president, in order to keep the continuity of EU policies.

The veto against the Lisbon Treaty also will influence the EU's concentration on other issues, because the EU has to focus on the treaty problem for some time. EU leaders had planned to discuss other urgent matters such as rising oil and food prices during the EU Summit on June 19 and 20, but this was shelved because of the Irish referendum. On July 1, France took over the EU presidency. French President Nicolas Sarkozy had been preparing to make a worthwhile contribution to settle