European Diary: It was another tough weekend for EU leaders promoting the union. A summit in Barcelona held to mark 10 years of Euro-Mediterranean group meetings didn't live up to the hype. Eight out of 10 Mediterranean leaders stayed away due to political problems or ill health, and squabbling over Britain's handling of talks on the next EU budget continued in the run-up to December's European Council.
So, once again it was only in the area of justice and security that any progress was reported as EU and Mediterranean leaders agreed a joint code of conduct on terrorism.
Back in Brussels another controversial element of the EU's fight against terrorism - which is a key plank of Britain's six-month EU presidency - is also back on the agenda.
A commission proposal on data retention, which involves firms retaining telephone and internet records for use in criminal and terrorist investigations, passed the European Parliament's committee for Civil Liberties, Justice and Home Affairs last Thursday.
The proposal has divided member states and the EU institutions, which are caught up in a power struggle that threatens to derail attempts to harmonise EU law.
Four member states - Ireland, Sweden, Britain and France - initially proposed legislation to harmonise laws on data retention at the council of ministers in April 2004, citing the need to bolster efforts to combat serious crime and terrorism.
Currently laws differ widely across the EU-25, with 15 states having no mandatory retention regime, while Ireland has the longest retention period of three years.
As EU president in the council, Britain has been pushing for tough legislation, giving states the ability to retain data for up to two years. However, the measure is controversial and is not popular with states such as Germany and Austria.
Crucially, it also faces strong opposition from the other EU pillars, the commission and parliament, which argue the council is intruding in the internal market- an area in which they are competent. Both institutions have also warned that the proposal could undermine citizens' civil liberties.
Last week the parliamentary committee passed a rival proposal on data retention prepared by the commission, which diverges sharply from that presented by British presidency. "The committee voted for six to 12 months for all communications, whereas the council wants six months for internet and six to 24 months for telephony," says Mr Alvaro, the German MEP who prepared the report on the proposal.
Key differences also include introducing penal sanctions for any misuse of people's data, forcing governments to reimburse telecoms firms for the cost of retaining data and setting limits on when law enforcement officers can use retained data.
The scene is now set for intense negotiation on the proposals, says Mr Alvaro.
Up to now, British home secretary Charles Clarke has threatened to bypass parliament if he is not happy with their proposal. But there are signs that he will have to tread carefully amid threats of legal action by the parliament if it is bypassed by the council.
Last week a key adviser to the European Court of Justice issued an opinion on a separate decision by the council and commission to provide EU airline passenger data to US authorities. He said it was not agreed under a correct legal base and should be nullified.
The advocate general's opinion - which is followed in 80 per cent of European Court of Justice cases - that parliament cannot be bypassed by the other two EU pillars may boost its strength in the negotiations on data retention. This sets up a power struggle between the EU institutions over the next week leading up to the justice council when the proposal will be discussed.
It also could threaten Ireland's three-year retention rule, which could become illegal under EU law if the parliament gets is way and imposes a limit on the retention of data.