European Council

The EU and the Community of Latin American and Caribbean States (CELAC) signed an agreement establishing the European Union - Latin America and the Caribbean Foundation, the EU-LAC Foundation, as an international organisation on 25 October in Santo Domingo, Dominican Republic. The agreement is a key deliverable of the meeting of the foreign ministers of EU and LAC countries.

The High Representative of the Union for Foreign Affairs and Security Policy Federica Mogherini, the Foreign Minister of the Dominican Republic Miguel Vargas as well as foreign ministers of the EU and of CELAC countries attended the signing ceremony. The President of the EU-LAC Foundation Leonel Fernández was also present.

The EU-LAC Foundation brings together the European Union and its 28 member states and the Community of Latin American and Caribbean States (CELAC) and its 33 member states with the following objectives:

- encouraging further mutual knowledge and understanding between both regions;

- strengthening the CELAC-EU bi-regional partnership process, with increased participation of the civil society;

- enhancing the mutual visibility between both regions, as well as of the bi-regional partnership itself.

The EU-LAC Foundation fulfils its objectives through activities such as encouraging debates through seminars, conferences and publications; promoting events related to the topics addressed in CELAC-EU Summits; launching bi-regional programmes and organising exchanges; encouraging studies and creating new contact opportunities.

The EU-LAC Foundation is headquartered in Hamburg (Germany). The transitional EU LAC Foundation established in 2011 will be dissolved.

On 15 September 2016, the Council adopted Council Decision (CFSP) 2016/1671[1]. 

The Council Decision extends the existing measures until 15 March 2017 and amends the list of persons and entities subject to restrictive measures as set out in the Annex to Decision 2014/145/CFSP. 

The Candidate Countries Montenegro* and Albania*, and the EFTA countries Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine align themselves with this Council Decision.

They will ensure that their national policies conform to this Council Decision. 

The European Union takes note of this commitment and welcomes it.

[1] Published on 16.9.2016 in the Official Journal of the European Union no. L 249, p.39. 

Contributions from the EU and its member states to help developing countries reduce their greenhouse gas emissions and cope with the impacts of climate change showed a sharp increase in 2015, particularly for adaptation finance. 

The total was confirmed on 24 October 2016 at a meeting of the EU Economic and Financial Committee, ahead of a UN climate change conference in Marrakesh. 

Total contributions from the EU and its member states amounted to €17.6 billion in 20151, a significant increase compared to 2014. The contributions were successfully channelled into climate change mitigation and adaptation initiatives in developing countries. 

The contribution is seen as an important step towards the implementation of the legally binding climate change agreement reached in Paris in December 2015. 

The latest figure demonstrates the EU's determination to scale up its international climate finance contribution towards the $100 billion per year goal set for industrialised countries by 2020 and through until 2025. Before 2025, the parties to the UN framework convention on climate change will set a new collective goal.

In response to the Paris conference, outcome in 2015, the member states also particularly welcome the concrete 'roadmap' prepared by developed countries, which illustrates the measures developed countries are taking to achieve the $100 billion goal. Contributions for mitigation and adaptation will be jointly mobilised from a wide variety of sources: public and private, bilateral and multilateral, including alternative sources of finance and with transparency of implementation.

1 - This figure includes climate finance sources from public budgets and other development financial institutions, as reported by member states in the context of article 16 of regulation 525/2013. It also includes €1.5 billion from the EU budget and €2.2 billion from the European Investment Bank. 

The European Union deeply regrets the Republic of South Africa's decision to initiate its withdrawal from the Rome Statute. We equally note with deep concern that Burundi has formalised steps to withdraw from the Rome Statute. Until now, no State has ever withdrawn from the Rome Statute.
 
South Africa played a significant role in the establishment of the ICC and was one of the first signatories of the Rome Statue. We will continue to engage with both countries on how they can remain partners to the Rome Statute.
 
The International Criminal Court (ICC) is a key institution to assist citizens achieve justice when confronted with the most serious crimes, where this is not possible at the national level. A majority of African situations were submitted by the national authorities concerned. The Court is also involved in situations all over the world.
 
We all have a shared interest in strengthening the rule of law and working together with the ICC, including along the lines suggested by the President of the Rome Statute's Assembly of States Parties.
 
The EU and its Member States remain staunch supporters of the ICC and are committed to full co-operation on the prevention of serious crimes falling under the jurisdiction of the Court.  Where concerns are raised within the framework of the Rome Statute, we remain open for constructive discussion.

On 29 September 2016, the Council adopted Decision (CFSP) 2016/1746[1] implementing Council Decision 2013/255/CFSP.

The Decision amends the list of persons and entities subject to restrictive measures as set out in Annex I to Decision 2013/255/CFSP.

The Candidate Countries the former Yugoslav Republic of Macedonia*, Montenegro*, Serbia* and Albania*, the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine and the Republic of Moldova align themselves with this Council Decision.

They will ensure that their national policies conform to this Council Decision.

The European Union takes note of this commitment and welcomes it.

[1] Published on 30.9.2016 in the Official Journal of the European Union no. L 264, p. 30.

* - The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process. 

 On 29 September 2016, the Council adopted Decision (CFSP) 2016/1745[1]. 

The Council Decision renews existing measures until 31 October 2017.

The Candidate Countries the former Yugoslav Republic of Macedonia*, Montenegro*, Serbia* and Albania*, the country of the Stabilisation and Association Process and potential candidate Bosnia and Herzegovina, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine and the Republic of Moldova align themselves with this Council Decision.

They will ensure that their national policies conform to this Council Decision.

The European Union takes note of this commitment and welcomes it. 

[1] - Published on 30.9.2016 in the Official Journal of the European Union no. L 264, p. 29.
* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.

Tuesday 25 October 2016
Strasbourg
18.00 Speech at the ceremony of the award of the Légion d'honneur to Joseph Daul, President of EPP

Wednesday 26 October 2016
Strasbourg
09.00 Report to the European Parliament on the European Council of 20-21 October

Today, we discussed trade policy. I will shortly pass the floor to Jean-Claude Juncker. But before I do that, let me make two remarks.

Firstly, our citizens are increasingly concerned about whether the trade deals we negotiate are in their best interests. And I am afraid that we won't be able to continue to negotiate Free Trade Agreements if we do not prove in practice that we are very serious about protecting European consumers, workers and companies.

Today we have made some progress in this regard. Leaders committed to reach an urgent agreement on the modernisation of all the EU's trade defence instruments. And we have tasked our trade ministers with breaking the deadlock.

Secondly on CETA let me just say that I remain concerned, for a good trade agreement with a close partner like Canada and for Europe's reputation. All member states but one endorsed the agreement and we will continue with the best will and full engagement of the Commission so I pass the floor to Jean-Claude. Thank you.

As you know we had a long agenda tonight. Let me start with migration.

Irregular flows on the Central Mediterranean route, that is from Africa to Italy, remain far too high and actually haven't changed for the last two years. That is why we discussed how to enhance our cooperation with Africa. The High Representative presented her diplomatic efforts with five priority countries, namely Senegal, Mali, Niger, Nigeria and Ethiopia. The goal is to prevent illegal migration to Italy and to the rest of Europe, and to ensure effective returns of irregular migrants. The High Representative was given our support and will assess progress in December.

When it comes to the Eastern Mediterranean route, the situation has improved, with a 98% drop in arrivals since last year. That is why leaders could discuss getting back to Schengen. We all agreed that the goal is to lift temporary border controls over time, which will be accompanied by the reinforcement of the external borders. Leaders also discussed the question of solidarity among Member States during this crisis. We will consider concrete proposals in December, but the important thing today was to agree that there would be no solidarity a la carte. We will be working on effective solidarity instead.

This evening we had a broad discussion about Russia. Leaders emphasised all sorts of Russian activities, from airspace violations, disinformation campaigns, cyber attacks, interference into the political processes in the EU and beyond, hybrid tools in the Balkans, to developments in the MH17 investigation. Given these examples, it is clear that Russia's strategy is to weaken the EU. We have a sober assessment of this reality, and no illusions. Increasing tensions with Russia is not our aim. We are simply reacting to steps taken by Russia. Of course the EU is always ready to engage in dialogue. But we will never compromise our values or principles. That is why leaders agreed to stay the course. And above all to keep the unity of the EU.

I want to make one specific point on the MH17 investigation. Leaders expressed their full support for the Dutch government in the ongoing investigation. All States that are in a position to assist the investigation and prosecution of those responsible, must do so.

Leaders also discussed Syria. They strongly condemned the attacks by the Syrian regime and its allies, notably Russia, on civilians in Aleppo. The EU is calling for an end to the atrocities and an immediate cessation of hostilities. It will consider all available options, if these atrocities continue. We have asked the High Representative to pursue further diplomatic and humanitarian efforts.

Finally, let me say that we were glad to welcome Prime Minister May to her first European Council. Prime Minister May confirmed that the UK will invoke Article 50 before the end of March next year. There will be no negotiations until Article 50 is triggered by the UK so we didn't discuss Brexit tonight. However, the basic principles and rules, namely the Single Market and indivisibility of the four freedoms, will remain our firm stance. Thank you. 

Good afternoon. Sorry, but I'll be very brief, because I still have a few preparatory meetings ahead of the Summit.

Let me start with CETA. The negotiations are still going on, as we speak. I hope that Belgium will once again prove that it is a true champion in compromise-making; and that on Friday we will have an agreement that will pave the way for signing CETA. But the question goes beyond CETA. If we are not able to convince people that trade agreements are in their interest, if we are not able to convince them that our representatives negotiate FTAs to protect people's interests, then we will have no chance to build public support for free trade. Which means, I am afraid, that CETA could be our last free trade agreement. That is also why we need effective tools to protect ourselves against unfair trade practices; and this is why the discussion on trade defence instruments is so important today.

We will also discuss Russia and its role in Europe and our neighbourhood. It is difficult, even impossible to talk about this, and not refer to the current attacks on civilians and hospitals in Aleppo. Today is not about decisions, but I want to underline that the EU should keep all options open, including sanctions, if the crimes continue.

Finally, let me say that I'll be very happy to welcome Prime Minister Theresa May today. Some media described her first meeting in the European Council as entering the lion's den. It's not true. It's more like a nest of doves. She'll be absolutely safe with us. And I hope that she will also realise that the European Union is simply the best company in the world. 

IV. EXTERNAL RELATIONS

20. The European Council strongly condemns the attacks by the Syrian regime and its allies, notably Russia, on civilians in Aleppo. It calls on them to bring the atrocities to an end and to take urgent steps to ensure unhindered humanitarian access to Aleppo and other parts of the country. The European Council calls for an immediate cessation of hostilities and for resumption of a credible political process under UN auspices. Those responsible for breaches of international humanitarian law and human rights law must be held accountable. The EU is considering all available options, should the current atrocities continue. Everything should be done to extend the ceasefire, bring in humanitarian aid to the civilian population and create the conditions for opening negotiations on a political transition in Syria.

21. The European Council invites the High Representative to continue, together with the Commission, pursuing the EU humanitarian initiative and medical evacuations in cooperation with the UN; and to reach out to key actors in the region on a political transition and on preparations for post-conflict reconciliation and reconstruction.

22. The European Council held a strategic policy debate on relations with Russia.

I. MIGRATION

1. The European Council took stock of the latest developments concerning the EU's comprehensive migration policy, highlighting the importance of implementation. The debate focused in particular on the external dimension.

Protecting the external borders

2. The entry into force of the European Border and Coast Guard Regulation on 6 October and national efforts are important steps in strengthening control of our external borders and getting 'back to Schengen' by adjusting the temporary internal border controls to reflect the current needs. Member States are now deploying staff and equipment to the European Border and Coast Guard, so as to reach full capacity for rapid reaction and returns by the end of the year.

3. The European Council calls for a swift adoption of the revised Schengen Borders Code enforcing systematic controls on all travellers crossing EU external borders and calls on the Council to establish its position on an entry/exit system before the end of 2016. It looks forward to the forthcoming Commission proposal for setting up a European Travel Information and Authorisation System (ETIAS), to allow for advance security checks on visa-exempt travellers and deny them entry where necessary.

Tackling migratory flows(a) Preventing illegal migration along the Central Mediterranean route

4. More efforts are needed to stem the flows of irregular migrants, in particular from Africa, and to improve return rates. Recognising the significant contribution, including of financial nature, made by the frontline Member States in recent years, the European Council:

• recalls the importance of continuing to work towards the implementation of a Partnership Framework of cooperation with individual countries of origin or transit, with an initial focus on Africa. Its objective is to pursue specific and measurable results in terms of preventing illegal migration and returning irregular migrants, as well as to create and apply the necessary leverage, by using all relevant EU policies, instruments and tools, including development and trade;

• recalls the need to tackle the root causes of migration in the region, including by supporting displaced persons in the region, thus helping to prevent illegal migration, and underlines the contribution of the Valletta Action Plan and the proposed External Investment Plan in this context. It welcomes the New York Declaration for Refugees and Migrants and calls on all global actors to shoulder their responsibilities in this respect;

• takes note of the Commission's "First progress report on the Partnership Framework with third countries under the European Agenda on Migration"; 

• calls on the High Representative, including in her role as Vice-President of the Commission, to present at the December European Council meeting progress with the five selected African countries and the first results achieved in terms of arrivals and returns. It will set orientations for further work on compacts and consider extending the approach to other countries;

• invites all actors to continue close cooperation on the compacts with a view to intensifying operational delivery, and Member States to reinforce national administrative processes for returns.

(b) Maintaining and tightening control of the Eastern Mediterranean route

5. A lasting stabilisation of the situation on the Eastern Mediterranean route requires the further implementation of the EU-Turkey statement and continued support for countries along the Western Balkans route. The European Council calls for:

• further efforts to accelerate returns from the Greek islands to Turkey, in line with the EU-Turkey statement, in particular by enhancing the efficiency and speed of asylum procedures;

• the rapid appointment of permanent coordinators in the Greek hotspots;

• Member States to respond in full to the calls for resources identified by the relevant EU agencies as being necessary to assist Greece;

• further progress on the full range of commitments vis-à-vis all Member States contained in the EU-Turkey statement, including as regards visa liberalisation. Co-legislators are invited to reach agreement within the next few weeks on the revision of the suspension mechanism applied to visas.

6. The European Council welcomes the progress made on developing compacts with Lebanon and Jordan to enhance support for refugees and host communities in both countries, and the signing of the "EU-Afghanistan Joint Way Forward on Migration Issues" on 2 October to tackle challenges linked to irregular migration and improve practical cooperation on returns, readmission and reintegration.

(c) Remaining vigilant about other routes

7. The EU will continue cooperation with other countries and closely monitor flows along other migration routes, including the Western Mediterranean, so as to be able to rapidly react to developments.

Addressing other elements of the comprehensive strategy

8. The European Council calls upon:

• EASO to ensure that the asylum intervention pool becomes operational as soon as possible to support at any time and in sufficient numbers frontline Member States. To that effect, Member States will communicate as soon as possible the necessary experts to EASO and EASO will complement Member States' efforts by providing the necessary training and by contracting as required additional experts or services, with the support of the Commission; 

• Member States to further intensify their efforts to accelerate relocation, in particular for unaccompanied minors, and existing resettlement schemes1;

• the Council to agree before the end of the year on its position on the External Investment Plan, which is aimed at boosting investments and job creation in partner countries, with a view to swift agreement with the European Parliament in the first half of 2017.

9. The European Council also calls for work to be continued on the reform of the Common European Asylum System, including on how to apply the principles of responsibility and solidarity in the future. The European Council will revert to the issue in December.

 

1 This is without prejudice to the position of Hungary and Slovakia, as contained in the Court proceedings launched relating to Council Decision n°2015/1601, and to the position of Poland, which has intervened in support of the applicants.

The European Council adopted conclusions on migration, trade, global and economic issues and external relations.

Today's Tripartite Social Summit could not have been better timed. We needed this meeting to hear from the social partners on major political issues including Brexit, trade policy and our work-plan for the months ahead reflected in the Bratislava Roadmap.

This was the first time the social partners met formally since the British referendum. There was whole-hearted agreement around the table as regards our approach to Brexit. I really appreciate social partners' strong and impartial position, especially when it comes to the support for our common rules and principles, namely the Single market and four freedoms. Today I saw that people who gathered here feel responsible not only for the interests of their organisations but also for Europe as a whole.

When it comes to the trade deal with Canada I would like to thank the social partners for their engagement and our rich discussion, during which I felt quite a wide support for CETA. On the other hand, it is clear for me and our social partners that in the age of globalisation, people expect trade agreements like TTIP or CETA to be safe for workers, consumers and companies. We have to understand all the doubts and reasons behind them in order to build public support for trade. Because, in the first place, these are the interests of our people that must be protected and respected, and I want to make it very clear.

As you know the challenge now is to find consensus to move forward with the CETA agreement, while addressing the concerns of Belgium. Negotiations are ongoing as we speak, because they have turned out to be politically more difficult than many expected. We know that some work is still needed and we fully respect that. Personally I hope that we will find a way forward on CETA during the European Council.

This week leaders will also discuss trade defence instruments. For trade to be free, it needs to be fair. And this is why making progress on our trade policy also means having the right tools to defend Europe from unfair trading practices. We will do our best to make it happen.  

Tomorrow we will also discuss migration. I am glad to say we are slowly turning the corner. Our actions are best seen on the Eastern Mediterranean route, where we observed a 98% drop in the influx of irregular migrants between September of last year and this year. Now we must reduce the flows across the Central Mediterranean route. To that end, we need to do more on returns of irregular economic migrants. Leaders will discuss this issue in more depth, while the High Representative will update us on the progress with the African countries. Concrete results are expected already in December.

Tomorrow we will also have a strategic discussion about Russia. The objective is to address our overall, long-term relations with this important neighbour. Looking ahead to the decisions we will need to take in December, our main asset in dealing with Russia remains our unity. To date, regardless of our differences, we have always managed to remain united. And we must continue to do so. This will also be crucial when it comes to Russia's role in Syria.  Thank you.

On behalf of the European Council, I would like to convey my warm congratulations on your nomination as Prime Minister of the Republic of Croatia.

I am confident that through your commitment and professionalism, Croatia will continue to build on its position as a reliable partner in tackling the many challenges that face Europe today. I have no doubt that your knowledge and understanding of the European Union from your previous roles will help you in this process, producing positive outcomes for your country, for Europe and beyond.

I would like to take this opportunity to wish you every success in your term as Prime Minister, and I look forward to welcoming you at the European Council tomorrow.

The Autumn Social summit held a discussion on "Addressing Europe's common challenges: generating growth, creating jobs and ensuring fairness". More particularly, participants at the Summit expressed their views on the following sub-themes: 

• the main challenges in view of the annual growth survey 2017;
• putting the New Skills agenda for Europe into practice: the key role of the social partners;
• the integration of refugees into the labour market and society: lessons learnt so far. 

In his opening statement, the President of the European Council, Donald Tusk, underlined that: " The Brexit referendum had some characteristics unique to Britain. But we would be foolish to dismiss what the vote told us about the popular view  of globalisation. It is a very negative assessment also widely shared across Europe. Responding to this is the key motivation behind the Bratislava declaration. Bratislava means a necessary shift of emphasis away from lecturing citizens about the benefits of European integration and taking far more seriously their genuine fears about security. Both in the hard sense of securing borders and public order, but also in a soft sense, of securing people's prosperity and way of life. We need a Europe that protects its citizens, a Europe which they can look to as a place of shelter. The summit was also clear that the European Union has a shared responsibility to create a promising economic future for all."

 The President of the European Commission, Jean-Claude Juncker stressed: "The EU has a clear roadmap and a strong commitment to deliver jobs, growth and social fairness in Europe. Many actions have been undertaken over the last two years - from the Investment Plan for Europe, the deepening of the Single Market based on clear and fair rules, the roll-out of the Youth Guarantee, the launch of a new Skills Agenda, to the ongoing consultation on a European Pillar of Social Rights. Unemployment is decreasing but there is still a long way to go. Social partners have a key role to play and the recent agreement on a "new start for social dialogue" should pave the way for further actions at EU and national level. We look forward to discussing EU priorities at this important point in time."   

From the side of the rotating presidency, Slovakia's Prime Minister, Robert Fico, said that "We need to improve the communication with each other - among Member States, with EU institutions, but most importantly with our citizens. We should inject more clarity into our decisions. Use clear and honest language. Focus on citizens' expectations, with strong courage to challenge simplistic solutions of extreme or populist political opposition in our countries. Social dialogue can contribute to social harmony and to implementation of the commitments which we set ourselves at the Bratislava Summit. We offer to our citizens in these months a vision of an attractive EU they can trust and support. Today's tripartite social summit will allow us to become familiar with the opinions of the social partners on this important subject. The social partners in particular are in direct contact with working people, employees, and they know the situation on the labour market as well as the business environment, which can help to address today's challenges". 

BusinessEurope's President, Emma Marcegaglia, representing employers, said " Europe is at a crossroad. We need strong and efficient EU institutions pulling in the same direction to strengthen the EU three key economic pillars:  the single market, the common international trade policy and the euro. Delivering trade agreements negotiated in compliance with the mandates given to the EU is essential for the credibility of the EU and for job creation. Productive private and public investment must increase. We therefore support the extension of the Juncker investment plan and urge the EU and all its member states to remove obstacles to investment. The EU social partners also underlined that companies and workers must not pay the price for Brexit. Our aim is to maintain as close as possible economic relations between the European Union and the United-Kingdom, while preserving the integrity of the Single Market. Cherry-picking between free movement of goods, services, capital and people is not an option". 

For the European Trade Union Confederation (ETUC) General Secretary, Luca Visentini, said “Trade unions and employers agree that European solutions are needed to the many crises facing Europe. We call for more public and private investment across Europe to drive growth and quality jobs. Such investment requires a golden rule to exclude it from EU deficit  and debt targets, and call on the European Commission to develop an ambitious industrial policy for Europe. We support the closest possible economic relations between the EU and the UK without compromising the single market and the free movement of people. We want to engage with the negotiators to find solutions that minimise the damage to companies and workers, and workers' rights. The EU needs to strengthen social protection, and give social Europe the same importance as the EU's economic governance.”     

The views cited in this text are those of the individual / organization concerned and do not collectively constitute the point of view of the Council or the European Council.

On 19 October 2016, the Slovak Presidency of the Council called on the European Parliament to take the most recent implementation figures for 2016 into consideration when adopting its amendments to the 2017 EU budget. 

"We have to face reality: the 2016 EU budget is way in excess of actual needs. We must learn from this and align the 2017 EU budget as closely as possible to the most realistic forecasts for expenditure next year", said Ivan Lesay, state secretary for finance of Slovakia and President of the Council after a trilogue-meeting with representatives of the Parliament and the Commission. 

On 30 September the Commission proposed to reduce payments in the 2016 EU budget by €7.27 billion to align it more closely to the latest estimates of needs. 

Outlook for 2017 

The lower than expected needs in 2016 are mainly due to the fact that some of the programmes of the 2014-2020 period are not yet fully up and running. This concerns in particular the area of economic, social and territorial cohesion, where the programmes are unlikely to reach cruising speed even in 2017. That is why in its draft 2017 EU budget the Commission estimated the payment needs  for this policy area to be more than 23% lower than in the 2016 EU budget as adopted. Even after bringing this year's budget in line with actual needs, the amounts proposed by the Commission for 2017 are still more than 10% lower than in 2016. 

With regard to the 2017 EU budget the presidency is concerned that the amendments currently being discussed by the Parliament go completely into the opposite direction. The Parliament is in particular considering to increase payments and commitments for almost all policy areas way beyond the expenditure ceilings of the EU's multiannual financial framework (MFF). This neither reflects current needs nor respects the MFF agreement. 

Focus on top priorities 

The presidency called on the Parliament to direct the available resources towards the EU's current two top priorities. These are measures to address the migration crisis and its root causes, such as strengthening  border controls, providing food, health and education to refugees stranded in Greece and Bulgaria and supporting countries of transit and origin. The other top priority is to help the EU economy to become more competitive and to create new jobs. 

The presidency also invited the other EU institutions to use EU taxpayers' money in the most responsible way, which includes reducing their staff by 5% by 2017 as committed in 2013. 

The presidency also recalled that the 2017 EU budget negotiations and the mid-term review of the MFF for 2014-2020 are two different exercises which should be dealt with separately. 

Next steps 

The Parliament is expected to vote on 26 October on its amendments to the Council's position for the 2017 EU budget. On 28 October a three-week conciliation period will start which is aimed at bridging the gap between the positions of the Council and Parliament by 17 November. 

Background 

The €7.27 billion reduction in the 2016 EU budget results in a payment level of €136.61 billion. This is significantly below the €146.46 billion that the Parliament asked for in last year's negotiations on the 2016 EU budget and also well below the €142.12 billion proposed by the Council at that time. 

 

The Cooperation Council under the EU-Iraq Partnership and Cooperation Agreement (PCA) between the European Union (EU) and the Republic of Iraq met for the second time in Brussels on 18 October 2016. The meeting was opened by the High Representative of the Union for Foreign Affairs and Security Policy, Federica Mogherini, who headed the EU delegation. The Iraq delegation was led by the Iraqi Minister of Foreign Affairs Ibrahim al-Jaafari, and also included the Kurdistan Region of Iraq's Head of Foreign Relations, Falah Mustafa Bakir. The European Commissioner for Humanitarian Aid and Crisis Management, Christos Stylianides, and the EU Special Representative for Human Rights, Stavros Lambrinidis took part in thematic discussions. 

With the campaign to liberate Mosul from Da'esh under way, ministers' discussions were initially focused on Iraq's immediate humanitarian and stabilisation challenges. Further into the meeting they also reflected on Iraq's longer term needs. 

During the meeting the EU commended the government of Iraq for its efforts to address the current crisis. It outlined the support it is providing for Iraq's immediate needs through humanitarian aid and assistance for displaced people, covering both short and longer term needs, including education for displaced children. It also discussed with the Iraqi representatives the priority areas of support for the stabilisation of liberated areas in Iraq, including the removal of "booby traps", so called improvised explosive device (IEDs), which is a precondition for the return of displaced people. 

Looking further ahead, the process of peacebuilding and reconciliation in a unified and inclusive Iraqi state are central and unavoidable themes to any discussion on Iraq. At the same time, in recognition of the fact that Iraq's present crisis and the country's longer term prospects for stability and prosperity are intricately interwoven, ministers gave considerable thought to Iraq's long-term prosperity and how EU-Iraq relations can help to unlock the country's full potential. The Cooperation Council thus reflected not just on the need for political, but also for economic and social inclusiveness. It discussed in particular the need to build up on parallel strands of effort by the EU and Iraq to strengthen  democracy and human rights, boost the economy and trade, and ensure that  Iraq makes the most of its energy potential. 

As well as reviewing existing cooperation, the meeting discussed further steps, including agreement to launch a working group to explore cooperation on energy issues, and the possibility of an informal dialogue on migration. 

Finally, the EU-Iraq Cooperation Council also addressed Iraq's regional relations with its neighbours. The EU reiterated that it fully supports Iraq's sovereignty and territorial integrity, and its right to preserve these. It also stressed the importance of fostering dialogue between Iraq and the countries in the region.

"1.             WELCOMES the Paris Agreement's objective to make finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. REITERATES that this requires action by all parties individually and collectively.

2.             REAFFIRMS that the EU and its Member States are committed to scaling up the mobilisation of climate finance, as part of a global effort, led by developed countries, in particular to assist developing countries with respect to mitigation and adaptation to implement their country driven strategies, notably the Nationally Determined Contributions. HIGHLIGHTS that the EU and some EU Member States, in Paris at the 21st Conference of the Parties to the UNFCCC, announced scaled up amounts of public climate finance foreseen in the coming years thereby also increasing predictability. HIGHLIGHTS that the EU and its Member States provide a substantial part of public climate finance and STRESSES the need for fair burden sharing amongst developed countries and the future participation of a broader range of contributors. EMPHASISES the importance of an outcome-oriented perspective on climate finance, ensuring the greatest possible impact of funds provided and mobilised.

3.             WELCOMES the work by developed countries to prepare a concrete roadmap to achieve the goal of jointly mobilising USD 100 billion per year by 2020 for mitigation and adaptation from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources of finance, in the context of meaningful mitigation actions and transparency of implementation. LOOKS FORWARD to the roadmap's finalisation ahead of the UNFCCC COP22.

4.             AFFIRMS that the EU and its Member States are committed to mobilise their share of the developed countries' goal to jointly mobilise USD 100 billion per year by 2020 and through to 2025 for mitigation and adaptation, from a wide variety of sources, instruments and channels.

5.             REITERATES that public climate finance will continue to play a significant role. CONFIRMS that the EU and its Member States will continue to provide public climate finance for mitigation and adaptation purposes.

6.             REQUESTS the Commission to provide an overview on climate finance from the EU and its Member States for 2015 for the Council to endorse this contribution prior to the UNFCCC COP22.

7.             STRESSES the importance of the scaling up of resources to support those developing countries that are particularly vulnerable to the adverse consequences of climate change and that have significant capacity constraints.

8.             Also WELCOMES the commitments made by most multilateral development banks (MDBs) to strengthen the integration of climate mitigation, adaption and resilience considerations throughout their portfolios and within their mandates, including their commitments to scale up their climate related investments. ENCOURAGES international and regional financial institutions and UN agencies to provide information to Parties through the UNFCCC secretariat on how they mainstream climate objectives and incorporate climate resilience measures into their development assistance and climate finance programmes.

9.             WELCOMES the important climate finance contributions by some emerging economies and developing countries. HIGHLIGHTS that the Paris Agreement encourages Parties other than those committed under the Convention to provide or continue to provide financial resources on a voluntary basis.

10.         RECOGNISES the private sector as a key source for climate finance and other relevant investment flows. ACKNOWLEDGES that private sector finance is complementary to, but not a substitute for public sector finance, where public finance is needed. NOTES that the EU has in place and will continue to develop a broad set of instruments to mobilise private sector finance for international climate actions including mobilised local private sector finance.

11.         WELCOMES that the Paris Agreement sends a strong signal to the private sector to re-orient financial flows to low-carbon, climate-resilient investments. NOTES ongoing efforts within the EU to align investment incentives to EU climate objectives e.g. through the Capital Markets Union and the Investment Plan for Europe; and in this context WELCOMES the work of the G20 and the Financial Stability Board, as important contributions to reorient private investment. UNDERLINES that carbon pricing is one of the key components of an enabling environment for shifting investments which can be achieved through a variety of tools, including regulation, emission trading and taxes. In this context, SUPPORTS carbon pricing initiatives as well as initiatives promoting the phasing out of environmentally and economically harmful subsidies and inter alia the phasing down of financing for emission intensive projects.

12.         HIGHLIGHTS the efforts of the EU and its Member States to scale up mobilised climate finance as set out in the 2016 submissions on strategies and approaches. RECALLS that scaling up climate finance is an iterative process which goes hand in hand with governments developing enabling environments, investment strategies, projects and programmes which should all include the engagement of private sector action. In this context WELCOMES the efforts undertaken by developing countries.

13.         HIGHLIGHTS the importance of supporting adaptation to help mainstreaming climate objectives into developing countries' development strategies and to build more climate resilient livelihoods. UNDERLINES the importance of achieving a balance between adaptation and mitigation finance in line with countries' own priorities and objectives, and HIGHLIGHTS that the EU and its Member States collectively are making, and will continue to make efforts to channel a substantial share of public climate finance towards adaptation, especially by addressing the needs of the poorest and particularly vulnerable developing countries such as Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

14.         HIGHLIGHTS that the transparency framework will be key to the successful implementation of the Paris Agreement by improving and accountability of climate finance. STRESSES that this framework should provide clarity on support provided, mobilised and received, including on the actions to make financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development, also with a view to informing the global stocktake. The framework should be accompanied by clear and common methodologies, building on existing methodologies and progress achieved in the preparation of the OECD/CPI study. SUPPORTS the development of accounting modalities on financial resources provided and mobilised through public interventions to reflect Parties' efforts of all relevant sources in a credible manner. LOOKS FORWARD TO the Biennial Assessment and overview of climate finance flows of the Standing Committee on Finance to guide further work on Measurement, Reporting and Verification (MRV) of support.

15.         STRESSES the importance of support for capacity building for mitigation and adaptation planning and efficient and effective implementation. Further STRESSES the need for development of a pipeline of attractive projects and programmes in order to maximise financial resources and effectiveness, as well as the importance of accessibility of available funds for developing countries and crowding in private finance. HIGHLIGHTS the EU and Member States' continued support for capacity building for developing countries in need, including in the field of technology cooperation. STRESSES the importance of ensuring efficient access to financial resources to support country-driven strategies through simplified approval procedures within the context of the Financial Mechanism and enhanced readiness support for developing countries, in particular LDCs and SIDS.

16.         RECOGNISES and SUPPORTS the importance of ambitious global implementation of Nationally Determined Contributions. HIGHLIGHTS that EU and Member States' development cooperation with third countries should fully take into account the synergies between climate objectives and the sustainable development goals as adopted by the 2030 Agenda for Sustainable Development, the Addis Ababa action agenda for financing for development, and other international agenda. HIGHLIGHTS that co-ordination between stakeholders on financing in support of Nationally Determined Contribution implementation will be essential: each institution will need to act in partnership and coordination with the others to maximise impact on the ground.

17.           WELCOMES that the Financial Mechanism of the Convention shall serve as the Financial Mechanism of the Paris Agreement. HIGHLIGHTS the role of the Green Climate Fund as a key multilateral vehicle to support developing countries in promoting the paradigm shift towards low carbon and climate resilient development pathways. WELCOMES the approval of further projects and programmes, and FURTHER WELCOMES the endorsement of the Green Climate Fund's Strategic Plan and its ambition to enhance the Fund's transformational impact. HIGHLIGHTS that a substantial share of the funds committed (47 per cent) and made available comes from EU Member States. WELCOMES contributions from developing countries to the Green Climate Fund and URGES all countries that are in a position to do so to contribute."

"The Council:

1.       RECOGNISES the progress made in pursuing the ambitious EU agenda for fairer, more transparent and more effective taxation and in strengthening the cooperation between fiscal authorities across the EU;

2.       CONFIRMS the importance of improving further the EU and international tax framework to prevent cross-border tax abuse and illicit financial activity;

3.       WELCOMES the Communication from the Commission of 5 July 2016 on further measures to enhance transparency and the fight against tax evasion and avoidance;

4.       AGREES that recent EU legislation to automatically exchange information on tax rulings and on tax related country-by-country reports of multinationals between Member States' competent authorities is an important step forward;

5.       CALLS for looking at options for enhancing the administrative cooperation between competent authorities within the EU even further, including through considering options inspired by the work of the OECD Joint International Taskforce on Shared Intelligence and Collaboration (JITSIC);

6.       CONSIDERS the proposals by the Commission for revision of the Directive on Administrative Cooperation and of the Anti-Money Laundering Directive in view of the synergies between these two areas as timely and INTENDS to work towards their swift adoption in accordance with the EU legislative process;

7.       CONFIRMS that there is a need for more effective and efficient cooperation between tax authorities and other agencies involved in the fight against tax evasion, money laundering and terrorist financing in line with the appropriate legal safeguards;

8.       STRESSES the need to prevent the large-scale concealment of funds which hinders the effective fight against tax evasion, money laundering and terrorist financing, and to ensure that  the identities of beneficial owners of companies, legal entities or legal arrangements are known;

9.       WELCOMES the initiative for the automatic exchange of information on ultimate beneficial owners whereby many jurisdictions, including all Member States, have agreed to exchange information on the beneficial owners of companies, legal entities and legal arrangements and LOOKS FORWARD to rapid international progress;

10.     INVITES the Commission to analyse the possibility for a  proposal on improving the cross-border access to information on ultimate beneficial owners on the basis of the ongoing work at international level;

11.     NOTES that at its October 2016 meeting the G20 heard initial proposals by OECD and FATF on ways to improve the implementation of the international standards on transparency, including on the availability of beneficial ownership information;

12.     RECALLS the need to increase oversight of enablers and promoters of aggressive tax planning and to introduce more effective disincentives for such activities;

13.     WELCOMES the intention of the Commission to launch in autumn 2016 a public consultation to gather feedback on the most appropriate approach to achieve greater transparency on the activities of intermediaries who assist in tax evasion or avoidance schemes;

14.     NOTES the intention of the Commission to explore possibilities for Mandatory Disclosure Rules inspired by Action 12 of the OECD BEPS project, drawing on the experiences in this area of some EU Member States, and to possibly come forward with a legislative proposal in 2017;

15.     ENCOURAGES the Commission to start reflecting on the possibility for future exchange of such information between tax administrations in the EU;

16.     STRESSES the need to work closely with the OECD and other international partners on a possible global approach to greater transparency in this area;

17.     SUPPORTS the promotion of higher tax good governance standards worldwide and NOTES that technical work in the Council has already started within the Code of Conduct on Business Taxation Group on establishing an EU list of non-cooperative third country jurisdictions to be ready in 2017, including on defining the criteria for listing jurisdictions and on exploring possible countermeasures;

18.     AGREES that the protection of whistle blowers is important and ENCOURAGES the Commission to explore the possibility for future action at EU level while respecting the principle of subsidiarity;

19.     RECOGNISES that improving tax certainty in the EU can contribute to further increase the competitiveness of EU businesses and TAKES NOTE of the intention of the Commission to present proposals aimed at fighting BEPS and tax avoidance while also ensuring a stable and predictable tax environment and eliminating double taxation, namely on improving dispute resolution and the relaunch of the CCCTB."