The heads of government meet in Amsterdam and draft a new
agreement which updates the Maastricht Treaty and starts to get the EU
ready for its eastward expansion.
Laws on employment and discrimination are strengthened and the social
chapter of the Maastricht treaty becomes an official part of EU law.
The Schengen agreement, scrapping border controls becomes part of EU
law though Ireland and the UK maintain their opt-outs. This gives the EU
more say on immigration and asylum.
Amsterdam aims to make the EU more democratically accountable and
extends the parliament's powers. Qualified majority voting is introduced
into new areas, reducing individual countries' powers to veto new
measures.
This is also the beginning of a two-speed Europe. The treaty allows for
"closer co-operation" or "flexibility" between countries which want to
forge ahead on certain issues.