COUNCIL OF THE EUROPEAN UNION latest news

17/5/2017

	Report by President Donald Tusk to the European Parliament on the Special European Council (Art. 50) of 29 April
	I would like to report the outcome of the first formal meeting of the European Council of 27, which took place on 29th April. Our main purpose was to adopt political guidelines for the Brexit negotiations. A mandate that sets out the overall principles, objectives and process. And a mandate that the European Council will update as necessary, as the talks get under way. A key element of the guidelines is the need to conduct the talks on the basis of a 'phased approach'. This means simply that there will be no discussion of the framework for our future relations with Britain, before sufficient progress is made on ensuring an orderly withdrawal. Leaders fully supported this logic. To ensure an orderly withdrawal, we first and foremost need to address the situation of more than four million people, whose lives will be directly impacted by Brexit, on both sides. In a very real way, their futures depend on the outcome of these talks. It is our particular responsibility to secure the best guarantees for citizens - citizens of the Union - and for their families. That means guarantees that are effective, enforceable, non-discriminatory and comprehensive, accompanied by simple and smooth administrative procedures. There is a need to act quickly, and so we are ready. Now we must move from sharing objectives to actually ensuring that citizens get the necessary guarantees. That's also why I welcome the fact that the Commission has already listed a number of detailed requirements. The second priority in the first phase is the need to agree that all financial commitments undertaken by the EU of 28 will also be honoured by the UK. And thirdly, in order to protect the peace and reconciliation process described by the Good Friday Agreement, we must aim to avoid a hard border between the Republic of Ireland and Northern Ireland.  Only once there is sufficient progress on these priorities, can we proceed to the next phase of the negotiations about our future relations. And it will be for the European Council of 27 to assess and decide if - and when - we have achieved sufficient progress. When it comes to our future, the European Council shared the United Kingdom's desire to establish a close partnership. It is obvious, however, that a relationship between the European Union and a non-Member State cannot offer the same benefits as EU membership. It is clear that a free trade agreement between the EU and the UK, which is what the UK has chosen, even if it is ambitious and wide-ranging, cannot mean participation in the Single Market or its parts. And at the same time, the UK must be aware that any free trade agreement will have to ensure a level playing field, and encompass safeguards against unfair competitive advantages through, inter alia, tax, social, environmental and regulatory measures and practices. Today it is too early to tell much more about our common future, but we will make our guidelines more precise when the time comes, namely when sufficient progress in the first phase is achieved. Leaders responded with the urgency that the situation requires. There will be very little time to conclude withdrawal talks within the framework foreseen by the Treaty. Time is of the essence here, and much is at stake. Next Monday, the Council will adopt a set of negotiating directives, proposed by the chief negotiator, on the basis of the guidelines we adopted on April 29th. These cover the three issues I have just mentioned, plus a number of other matters that need to be addressed in the first phase of the negotiations. Since the referendum in June last year, we - the EU27 - have been united, consistent, and demonstrated solidarity with one another. What was - and remains - most important for me, is that our conduct in these talks will show the European Union at its best: in terms of unity, political solidarity and fairness towards the United Kingdom. Finally, I can only praise the European Parliament and its leaders for the role they have played. Sincere thanks and appreciation for your constructive assistance. This bodes well - not only for the future of the negotiations, but our future as a Union of 27. Thank you. European Union Military Committee (EUMC), EU Chiefs of Defence, 16/05/2017 European Union Military Committee (EUMC) Meeting n°255356 Justus Lipsius 16/05/2017 08:30 Room 50.1 Main results The EU Chiefs of Defence (CHODs) met in Brussels for their first Military Committee meeting of the year 2017.  The High Representative of the Union for Foreign Affairs and Security Policy Federica Mogherini, addressed the CHODs  with an update on the implementation of the Global Strategy on Foreign and Security policy. The Committee then had a more detailed exchange on   the main elements currently under discussion in the framework of the implementation of the Global Strategy in the area of security and defence, including permanent structured cooperation (PESCO), the coordinated annual review of defence (CARD), - EU Battle Groups and the military planning and conduct capability (MPCC). The EU CHODs received a detailed overview of current NATO activities by the Chairman of the NATO Military Committee, General Petr Pavel and the Supreme Allied Commander Europe (SACEUR), General Curtis Scapparrotti, who also shared views on EU-NATO cooperation. CHODs exchanged views on cyber defence with the Chief Executive of the European Defence Agency (EDA) Jorge Domecq. In a dedicated session, the Ukraine Chief of Defence, General Viktor Muzhenko, provided the 28 EU Chiefs of Defence with an overview on the current situation and the defence landscape in his country. CHODs from partner nations, namely, Albania, Bosnia and Herzegovina, Georgia, Moldova, Montenegro, Serbia, were present and participated in discussions with the Military Committee on topics of common interest. CHODs discussed EU training and advisory missions with the Director General of the EU Military Staff Esa Pulkkinen, as well as with the Commander US Africom, General U.S. Marine Corps Thomas Waldhauser and the Central Africa Republic Chief of Defence, Brigadier General Ludovic Ngaïfeï. A specific session was then dedicated to the EU Military Operations. General Sir James Everard, EUFOR ALTHEA Operation Commander and Deputy SACEUR, Major General Robert Magowan, EUNAVFOR ATALANTA Operation Commander, and Rear Admiral Enrico Credendino, EUNAVFOR MED Operation Commander, briefed the Committee on future developments and strategic issues. European Union Military Committee (EUMC) European Union Military Committee (EUMC) website EU cooperation on security and defence European Economic Area Council, 16/05/2017 Main results The 47th meeting of the European Economic Area (EEA)Council was held in Brussels, under the Presidency of Mr Louis Grech, Deputy Prime Minister and Minister for EU Affairs of Malta. The EEA EFTA side was led by Mr Frank Bakke-Jensen, Minister for EEA and EU Affairs of Norway. He was accompanied by Ms Aurelia Frick, Minister for Foreign Affairs of Liechtenstein, and Mr Guðlaugur Þór Þórðarson, Minister for Foreign Affairs of Iceland. The EEA Council assessed the overall functioning of the EEA agreement. In particular, it examined the cooperation between the EU and the EEA EFTA States (Iceland, Liechtenstein, and Norway) within the framework of the EEA agreement. The  EEA Council recognised that the close partnership between the EU and the EEA EFTA States was the best guarantee for long-term shared prosperity and stability. It also acknowledged the key role played by the EEA agreement for more than 20 years in advancing economic integration between the EU and the EEA EFTA States. The EEA Council acknowledged the positive contributions made by the EEA EFTA States to the decision-shaping process of EEA-relevant EU legislation and programmes through their participation in the relevant committees, expert groups, studies and agencies, as well as through the submission of EEA EFTA comments. The EEA Council also held a debate on joint fulfilment of the Paris Agreement and related GHG emissions reductions targets for 2030 European Economic Area (EEA) Council conclusions 1.             The forty-seventh meeting of the EEA Council took place in Brussels on 16 May 2017 under the Presidency of Mr Louis Grech, Deputy Prime Minister and Minister for EU Affairs of Malta, representing the Presidency of the Council of the European Union. The meeting was attended by Mr Frank Bakke-Jensen, Minister of EEA and EU Affairs of Norway, Mr Guðlaugur Þór Þórðarson, Minister for Foreign Affairs of Iceland, and Ms Aurelia Frick, Minister of Foreign Affairs of Liechtenstein, as well as by Members of the Council of the European Union and representatives of the European Commission and the European External Action Service. Political Dialogue 2.             The EEA Council recognised that the close partnership between the EU and the EEA EFTA States was the best guarantee of long-term shared prosperity and stability. In this context, the EEA Council noted that, within the framework of the Political Dialogue, the Ministers would discuss the implications for the EEA Agreement of the UK's withdrawal from the EU, and the Arctic. The EEA Council underlined the importance of continuing the practice of inviting officials from the EEA EFTA States to political dialogues held at the level of the relevant EU Council working parties. 3.             With regard to the UK's withdrawal from the EU, the EEA Council underlined the importance of safeguarding the EEA Agreement, and of ensuring the continuation of a well-functioning, homogenous Internal Market in Europe. The EEA Council called for a close dialogue and continuous exchange of information between the EU and the EEA EFTA States on the negotiations between the EU and the UK under Article 50 of the Treaty on European Union regarding the withdrawal of the UK from the EU, and on the future relations between the EU and the UK, as the withdrawal will also affect the EEA Agreement. Cooperation in the EEA 4.             The EEA Council acknowledged the key role played by the Agreement on the European Economic Area (EEA Agreement) for more than 20 years in advancing economic integration between the EU and the EEA EFTA States. The EEA Council highlighted that the Agreement had been robust and capable of adapting to changes in EU treaties and EU enlargements. The EEA Council recognised the positive contributions made by the EEA EFTA States to the decision-shaping process of EEA-relevant EU legislation and programmes through their participation in the relevant committees, expert groups, studies and agencies, as well as through the submission of EEA EFTA Comments. The EEA Council underlined the importance of inviting EEA EFTA Ministers to informal EU Ministerial meetings and Ministerial conferences relevant to EEA EFTA participation in the Internal Market, and expressed its appreciation to the current Maltese and incoming Estonian Presidencies for the continuation of this practice. 5.             The EEA Council emphasised the importance of a well-functioning Single Market as a driver in boosting economic growth and creating new jobs throughout Europe, and welcomed the steps already taken to implement the proposals contained in the strategies for a Digital Single Market and for upgrading the Single Market, both launched in 2015, with a view to exploiting in full its untapped growth and productivity potential. The EEA Council agreed that a holistic approach was required to tackle some of the main challenges facing the Single Market, and stressed the importance of the close involvement of the EEA EFTA States in the further design and development of Single Market policies and initiatives. Emphasising the fact that greater knowledge of the EEA Agreement throughout the EEA was in the interest of all Contracting Parties, the EEA Council urged the EU and the EEA EFTA States to ensure that information on the EEA Agreement was made readily and easily available. Orientation debate - energy and climate change 6.             An orientation debate was held on joint fulfilment of the Paris Agreement and related GHG emissions reductions targets for 2030. The EEA Council placed great importance on continued close cooperation between the EU and the EEA EFTA States in environmental, energy and climate change polices, particularly in light of the 2030 Framework for Climate and Energy and the Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy. The EEA Council noted that the EEA EFTA States remains a key partner of the EU as a reliable supplier of energy and underlined that the close cooperation should continue in the areas of the Internal Energy Market; energy security; emissions trading; the promotion of competitive, climate-resilient, safe and sustainable low carbon energy; energy efficiency; renewable energy resources; carbon capture and storage (CCS); and carbon capture and utilisation (CCU); as well as other environmental issues such as waste, chemicals, water resource management and industrial pollution. Financial Mechanism 7.             The EEA Council emphasised the importance of solidarity among the countries of Europe to overcome social and economic challenges and expressed concern regarding the continued high level of youth unemployment in some EEA Member States. The EEA Council commended the positive contribution made by the EEA and Norway Financial Mechanisms 2009-2014 and by their predecessors in reducing economic and social disparities throughout the EEA. Following the provisional application of the agreements on an EEA and a Norwegian Financial Mechanism for the 2014-2021 period, the EEA Council welcomed the progress made in the negotiations on Memoranda of Understanding between the EEA EFTA States and the Beneficiary States in the EU. Capital controls 8.             The EEA Council noted that free movement of capital is a fundamental internal market freedom and an integral part of the EEA acquis and acknowledged that restrictions can be implemented only temporarily on the basis of the provisions of Article 43 of the EEA Agreement. The EEA Council welcomed the progress of the comprehensive plan of the Icelandic Government for removal of capital controls without threatening economic and financial stability of the country, particularly the recent steps to lift capital controls on individuals, companies and pensions funds. EU programmes 9.             Acknowledging the contribution made by EU programmes to building a more competitive, innovative and social Europe, the EEA Council welcomed the participation of the EEA EFTA States in EEA-relevant programmes to which they contributed financially. The EEA Council recognised in particular the active participation and full integration of the EEA EFTA States in the European Research Area and the successful association of Norway and Iceland in Horizon 2020, the EU's flagship programme for Research and Innovation. The EEA Council would continue to place high importance on the integration and policy alignment of EEA EFTA States with the EU in the area of research and innovation. Incorporation of EEA-relevant EU acts 10.         Noting the Progress Report of the EEA Joint Committee, the EEA Council expressed its appreciation for the work of the Joint Committee in ensuring the continued successful operation and good functioning of the EEA Agreement. 11.         The EEA Council welcomed the ongoing efforts to reduce the number of EEA-relevant EU acts awaiting incorporation into the EEA Agreement and to accelerate the incorporation process, While commending all the steps undertaken in the course of the last years, the EEA Council noted that the number of acts awaiting incorporation was still too high. 12.         The EEA Council called for continued work in order to significantly and durably reduce the current backlog and thereby continue to ensure legal certainty and homogeneity in the EEA. This common goal can be achieved through political will and enhanced dialogue among the relevant experts and organs. The EEA Council urged all parties to engage constructively to find solution to pending difficult issues. 13.         The EEA Council welcomed in particular the incorporation into the EEA Agreement of the Third Package for the Internal Energy Market, the EU legal acts in the area of organic production, and the Regulation on Medicinal Products for Paediatric Use. It welcomed the progress made over the last months in the area of common rules and standards for ship inspection and survey organisations. 14.         The EEA Council also highlighted the high importance of promptly incorporating and applying outstanding legislation in the field of financial services - representing more than one third of the backlog - in order to ensure a level playing field throughout the EEA in this important sector. 15.         The EEA Council noted that progress was still needed on a number of important outstanding issues and looked forward to reaching a conclusion as soon as possible, in particular regarding the Third Postal Directive. 16.         The EEA Council further noted that there were a number of Joint Committee Decisions where the six-month deadline provided for in the EEA Agreement with regard to constitutional clearance had been exceeded. It encouraged the EEA EFTA States to strengthen their efforts to resolve the pending cases as soon as possible and to avoid such delays in the future. Agricultural trade 17.         The EEA Council acknowledged that the Contracting Parties had reaffirmed their commitment, in accordance with Article 19 of the EEA Agreement, to continue their efforts with a view to achieving the progressive liberalisation of agricultural trade. 18.         As regards the Agreement in the form of an Exchange of Letters between the European Union and Iceland concerning additional trade preferences in agricultural products, concluded in 2015, the EEA Council encourages the parties to finalize their internal procedures in order for the agreement to enter into force as soon as possible. 19.         The EEA Council welcomed the initialling, on 5 April 2017, of the Agreement between the European Union and Norway concerning additional trade preferences in agricultural products reached on the basis of Article 19 of the EEA Agreement and looked forward to its signing. 20.         The EEA Council encouraged the Contracting Parties to continue the dialogue on the review of the trade regime for processed agricultural products within the framework of article 2(2) and article 6 of Protocol 3 to the EEA Agreement in order to further promote trade in this area. In this regard, the EEA Council took note of the recent steps taken by the EU and Iceland to further liberalize trade in processed agricultural products, on reciprocal basis, within Protocol 3 of the EEA Agreement. The EEA Council noted the suspension of the negotiations between the EU and Norway on protection of geographical indications. Fish and fisheries products 21.         The EEA Council welcomed the provisional application of the Protocol on trade in fish and fisheries products between Iceland and the EU as of 1 August 2016 and of the Protocol on trade in fish and fisheries products between Norway and the EU as of 1 September 2016. Parliamentary cooperation 22.         Recognising the important role of parliamentary cooperation in the EEA, the EEA Council noted the Resolution of the EEA Joint Parliamentary Committee adopted at its meeting in Strasbourg on 14 December 2016 on the Annual Report of the EEA Joint Committee on the Functioning of the EEA Agreement in 2015. General Affairs Council, 16/05/2017 video: http://councilconnectcdn.streamamg.com/_resx/kaltura/partner/3000261/entry/0_9mnkx64e/time/13/version/16052017114431/width/640 Main results June European Council The Council started preparations of the European Council on 22 and 23 June 2017 by examining an annotated draft agenda covering the following items: Migration: the European Council will take stock of work on 1) the Central Mediterranean route, including the Partnership Framework 2) the Eastern Mediterranean route, including the EU-Turkey statement 3) reform of the Common European Asylum System and 4) the root causes of migration Security and defence: the European Council will review what has been achieved over recent months Jobs, growth and competitiveness: the European Council will assess progress towards completing the single market by 2018, the digital single market strategy, the capital markets union action plan and the energy union External relations: the European Council will address this item in the light of the most recent developments "The agenda of the June European Council is a reflection of the EU's current priorities: keeping migration under control and fighting its root causes, making the life of European citizens more secure, boosting growth and creating new jobs. Today's discussion was a first step towards ensuring that the June European Council is productive and successful". Louis Grech, Deputy Prime Minister of Malta and President of the Council. Future of the EU The Commission called for further reflection on the future of the EU on the basis of its white paper according to the following principles: using the full potential of the EU treaties moving forward together at 27 member states delivering on the promises "A successful completion of the reflection process will result in a stronger European Union, thereby securing European peace and prosperity for future generations. The future of the European Union will depend on our ability to respond effectively to the issues which are of concern to citizens". Louis Grech, Deputy Prime Minister of Malta and President of the Council. White Paper on the future of Europe The Council adopted rules on money market funds and on prospectuses for the issuing and offering of securities. The regulation on money market funds is intended to support the role that the €1 trillion money market plays in financing the economy. It follows initiatives by the G20 and the Financial Stability Board. The new prospectus rules are aimed at lowering one of the main regulatory hurdles that companies face when issuing equity and debt securities. It is a key component of the EU's capital markets union plan. Rule of law The Commission informed the Council on the state of play of its dialogue with Poland on the rule of law. Ministers emphasised the importance of continuing the dialogue between the Commission and Poland.