This WEEK in the European Union

As mid-June's summit is fast approaching, the Austrian presidency will this week concentrate on clearing away some pending legislation, while the effectiveness of the EU in the world is set to be discussed by commissioners in Brussels.

The bloc's finance ministers will gather in Luxembourg on Wednesday to debate the report by the European Commission on Slovenia and Lithuania's bid to join the eurozone in 2007.

The EU executive earlier announced it considered Ljubljana to be ready to switch to Europe's single currency but insisted Vilnius needs to curb the country's inflation first to meet the eurozone's criteria.

After initial discussion by ministers this week, the matter will be raised at the European Council - attended by the heads of states and governments - in Brussels on 15-16 June.

Finally, Slovenia's entry will be rubber stamped on 11 July by economic ministers who will also agree on the exchange rate between the country's tolar and the euro.

This Wednesday, the ministers are also set to adopt a package aimed at simplifying crossborder VAT obligations for business, and debate the current state of play concerning the common corporate tax base.

The move to harmonise the tax base remains a divisive issue, with some countries - mainly the UK, Ireland, Slovakia and Estonia - suggesting they would veto the plan, which needs unanimous consent.

Energy and transport

Also in Luxembourg, energy ministers will on Thursday debate the commission's green paper on security of gas and oil supply, plus the situation concerning the EU's internal energy market and the bloc's cooperation with Russia.

On Friday, transport ministers will try to agree on a draft regulation on public transport services for rail and road which seeks to boost competition in the area and provide the legal security to encourage investment by external operators in the public sector.

The ministers will also hear the presentation of the green paper on the EU's maritime policy which will be unveiled to journalists by fishery commissioner Joe Borg and the commission president Jose Manuel Barroso on Wednesday.

The EU executive will finish the week with a regular report on the quality of bathing water in Europe, to be published on Friday.

EU diplomatic service

Plans to create an EU diplomatic service will once again feature this week when commissioners are due to discuss measures to improve the EU's effectiveness in foreign policy.

The creation of a diplomatic service features in the EU constitution, which is currently on ice.

However, a paper presented by external relations commissioner Benita Ferrero-Waldner is expected to call for a series of steps that could lead to the creation of something similar to what is envisaged in the constitution, according to a report in the Brussels-based weekly, the European Voice.

Parliament gets ready for plenary

EU officials and MEPs will have a long weekend, as there is a holiday on Monday in Belgium.

The rest of the week will be relatively quiet for the parliamentarians who are supposed to get ready for next week's plenary session in Strasbourg.

Its agenda includes several green initiatives - for clean air and groundwater, as well as a final vote on the EU's research framework programme which will set criteria for the bloc's spending in the area in 2007-2013.

MEPs will also hear the commission's presentation of the draft 2007 budget.

The parliament's president Josep Borrell will this Wednesday meet the Bulgarian prime minister, Sergey Stanichev.

An on the same day, 70 Dutch secondary schools students will participate in the finals of the YOU4UROPE Reflection Tour at the parliament, an event organised this year in the Netherlands among 15 to 18 year-olds.

The students will debate their views on the future of Europe with parliamentarians and present their conclusions to European Parliament vice-president Alejo Vidal-Quadras and commissioner Margot Wallstrom.