On 4 September 2015, the Council adopted by unanimity its position on the draft 2016 EU budget. This confirms a political agreement reached by the Permanent Representatives Committee in July.
The Council's position constitutes the basis on which the European Parliament will decide by the end of October whether it adopts amendments. In this case, the Council's position will serve as a mandate to the Luxembourg presidency for subsequent negotiations with the Parliament.
"I am pleased that today the Council formally adopted its position on the draft EU budget for 2016. The unanimous support provides the presidency with a particularly strong mandate for the negotiations with the European Parliament in the autumn which we wish to hold in a spirit of loyalty and good inter-institutional cooperation. The current economic situation requires resources to be focused on jobs, investments and growth while respecting budgetary discipline and sound financial management. I am convinced that the Council's position strikes the right balance between Europe's priority investment needs and member states' economic and budgetary constraints", said Pierre Gramegna, minister for Finance of Luxembourg and President of the Council.
Balanced position, adequate fundingThe Council's position provides for €153.27 billion in commitments and €142.12 billion in payments. Taking into account both past implementation rates and likely future absorption capacities, these are realistic amounts which will allow for proper policy implementation and allow the EU to ensure adequate financing of its priority areas. These include measures to stimulate economic growth, create jobs, and manage migratory flows. The Council's position reflects the payment plan agreed with the Parliament on the phasing out of outstanding payment claims for the 2007-2013 cohesion programmes. And it respects the deal reached with the Parliament on the European fund for strategic investments.
Substantial payment increases for priority areasThe policy areas with the largest payment increases compared to the 2015 EU budget (as amended) include external policy (+22.4%), action in the area of security and citizenship, including migration (+15.4%) as well as research and other measures aimed at increasing competitiveness (+8.6%).
Sufficient marginsThe Council's position foresees a reduction of €563.6 million in commitments and €1.4 billion in payments compared with the Commission's original proposal. This shows that the Council is determined to avoid placing unnecessary burdens on member state budgets at a time of fiscal consolidation. At the same time it means that the EU will have sufficient margin within the budget to react to unforeseen events and needs.
A summary of the Council's position is set out in the table below:
Appropriations by headingbillion €commitmentspayments1. Smart and inclusive growth:
a) Competitiveness for growth and jobs
b) Economic, social and territorial cohesion
69.6
18.8
50.8
65.9
17.1
48.8
2. Sustainable growth: natural resources:
of which market related expenditure and direct payments
62.9
42.7
55.6
42.7
3. Security and citizenship:2.62.24. Global Europe:8.79.15. Administrative expenditure (for all EU institutions): 8.9 8.9 Special instruments:0.50.4Total appropriations153.3142.1In % of EU-28 GNI1.040.97 Next stepsIf the European Parliament adopts amendments to the Council's position, a three-week conciliation period will start on 29 October 2015. The aim of this conciliation process is to arrive at a joint position of both institutions on the budget. This should happen by 18 November 2015 at the latest.
Good morning. Prime Minister Orbán has requested to see me and other leaders of the European institutions to discuss the situation in Hungary as a matter of urgency. Not everyone is a fan of the controversial solutions proposed by Prime Minister Orbán and I can understand why. However, one thing is clear, Prime Minister Orbán took action to strengthen the protection of the EU borders.
But in light of the huge and increasing number of refugees, European countries need to do more. Everyone realises that EU countries will not change their migratory policies overnight. But everyone should also realise that today our attitude to refugees is in fact an expression of European solidarity inside of Europe. The countries that are not directly affected by this crisis and have experienced solidarity from the EU in the past should show it to those in need. Today it is truly a paradox that the biggest countries in Europe, like Germany and Italy, need our solidarity. So does Hungary.
At the same time we should seriously address the containment of the wave of migration by strengthening the borders and getting the keys to our Europe back from the hands of smugglers and murderers. The two approaches of solidarity and containment must not be mutually exclusive. It would be unforgivable if Europe split into advocates of containment symbolised by the Hungarian fence and advocates of full openness voiced by some politicians as the policy of open doors and windows.
Now are times of a major test for all EU members. Therefore I call on all EU leaders to re-double their efforts, when it comes to solidarity with the members who face this unprecedented migratory wave. Accepting more refugees is not the only but an important gesture of real solidarity. Fair distribution of at least 100.000 refugees among the EU States is what we need today.
If leaders do not demonstrate good will, solidarity will become an empty slogan and will be replaced by political blackmail, divisions and a new blame game.
Reception centres where asylum requests are handled should be built closer to conflict areas outside Europe, where refugee camps already exist. These centres should be a way to get to the European Union for all asylum seekers. The EU should increase our assistance to the countries bordering with conflict areas in ensuring protection to those who are in danger. We are talking about Turkey, Jordan, Lebanon, Morocco and other partners in the region.
It will also demand an enormous effort of all institutions. Humanitarian efforts to contain migratory flows will require much greater engagement of Europe. It means a major increase in spending. When we talk about the new reception centres, better protection of borders or the economic development aid for countries outside the EU, much more money will be needed. Therefore leaders will need to decide on this as well when we meet in October.
Finally let me make a personal comment with reference to PM Orbán's article in Frankfurter Allgemeine Zeitung . I want to underline that for me, Christianity in public and social life carries a duty to our brothers in need. Referring to Christianity in a public debate on migration must mean in the first place the readiness to show solidarity and sacrifice. For a Christian it shouldn't matter what race, religion and nationality the person in need represents. Thank you.
I am very happy to be here with you today. The more difficult the times, the more important it is to be in good company. The timing could not be better. Nor could you have chosen a more fitting theme for your annual conference: "The European Union in a changing global environment". The Union's representatives, delegations and missions abroad are our eyes and ears - and our voice - on the ground. Perhaps it sounds like a slogan but I really mean it. And I know it not only in theory or from documents and articles but also from my own experience. You are an indispensable part of Europe's response to a global environment that has grown more challenging and you will have an even more crucial role to play in the coming months. I will speak in more detail about the priorities in a minute.
First, I would like to thank you sincerely for the help you have given me since I took up the responsibility as President of the European Council, to represent the Union externally. Whether it has been hosting summits, visiting third countries, from Washington to Tbilisi, Yerevan to Baku, Tunis to Kiev, Tokyo to Chisinau, or engaging with foreign leaders, I have felt completely supported every step of the way. Thank you very much, from my heart, not only an official compliment, I was really impressed.
When I took up office last December, my external priorities were:
To protect the fundamental values of the European Union from external threats;
To make the Union strong internationally, starting with securing our borders and supporting those in the neighbourhood who share our values;
To prioritise strengthening the transatlantic relationship since the ties between Europe and the United States are absolutely essential to both our futures.
You will find that nothing has changed in my thinking since then except that these priorities are more urgent than ever and the consequences of failure more apparent.
When President Poroshenko visited Brussels last week, it was an opportunity to review the ongoing conflict in Ukraine and our response. The new call to respect the ceasefire, in place since Tuesday, and the vitally important deal on debt reduction for Ukraine are very welcome. Let us hope for the proper implementation of the Minsk agreement, which has come dangerously close to falling apart over the past few months. The latest dramatic events in Kiev only prove how difficult the process has been.
Of course, I am pleased that the Union has maintained its unity on the sanctions imposed on Russia after the illegal annexation of Crimea. The way forward is to re-double our efforts to support the reform process in Ukraine and to resist attempts to destabilize the country. Ukraine's case is a test of Europe's fundamental values in the neighbourhood. Countries in the region are watching to see whether sovereign borders can be violated, because this has huge implications for their own security. They want to know whether the future is the rule of law, or the mix of muscle and corruption they have known in the past. Ukraine's future is a mirror image of the European Union's future as a global actor.
Securing our borders is the most immediate and toughest test facing us. It is safe to assume that we will see over half a million irregular arrivals at Europe's external border this year, who are in part genuine asylum seekers from Syria and elsewhere. To rise to this challenge, the Union must mobilise all available tools - internal and external. We are fulfilling and will fulfil our responsibilities under the UN refugee convention. But that cannot be done if we sacrifice public order in the process. I am now working with the Presidency and with leaders to build a new consensus between governments on how the Union responds to sudden influxes of asylum seekers. After the last European Council, we have moved slightly closer to achieving a common position among the Member States, but there is still a long way ahead of us. We take note of some tensions between the countries, sorry to use a something like a simplification, of a divide between the East and West of the EU. Some member States are thinking about containing the wave of migration, symbolized by the controversial Hungarian fence. Others expect greater solidarity in advocating inter alia a so-called obligatory basis for quotas. Therefore the key challenge is to find for them all a common yet an ambitious denominator.
Coping with mass population movements must become a de facto theme of both Europe's neighbourhood policy and its global agenda. First, we need new strategic alliances in our wider neighbourhood on migration and asylum. I recall that the European Council, already in June 2014, agreed that the key to dealing with many of our migration challenges "lies in relations with third countries, which calls for improving the link between the EU's internal and external policies." I want to impress upon you that this means working intimately with your host governments on migration and asylum matters and then making the link back to colleagues on the home affairs and development side here.
Our first goal is to ensure that people in need of international protection receive it, preferably as close to their home country as possible. Second, we must gain more control over mass population flows. To achieve both of these goals, it is necessary to have a successful outcome to both the Valetta and possible Budapest conferences in the coming months. Words are no longer enough in this matter. We need to deliver.
I have just returned from the Balkans, which has become the new route for the people smugglers. We should accelerate the parts of the enlargement process related to immigration and asylum so that these countries have a better infrastructure for handling migration challenges. And there is a clear need to revitalize links with Turkey so that we are once again confident friends and partners on this and in other matters.
Men, women and children are fleeing to our borders as a result of insecurity and economic decay in our immediate neighbourhood and the countries in neighbouring regions: Syria, Iraq, Afghanistan and so on. Europe's limited ability to stabilise the situation is not just a result of the shortcomings of the Union's neighbourhood policy. The regions in question are facing unprecedented threats like the rise of ISIS, which controls an area larger than the country of Britain on Turkey's border. This needs to be a matter of reflection for the democracies of the West and the international community more generally. The Gulf countries could do more to help stabilise the refugee situation, for example. This is a point I will be making at the UN General Assembly later this month.
While everyone is momentarily focused on the situation at our south-eastern frontier, the situation in Libya remains extremely serious. The Union continues to support the efforts of Bernardo Leon, the UN special representative, and we earnestly hope that a Government of National Accord can be agreed over the next weeks. Can I just say here that I particularly appreciated the speed at which our new naval mission in the Mediterranean was designed and deployed by our military staff last July. It is important to move to the next phase of the EUNAVFOR mission quickly.
In three months, Paris will see one of the most important international events of the year: the UN climate conference, whose goal is to adopt a new climate change agreement. Climate change may put at risk not only the environment, but also prosperity, poverty reduction or even more broadly stability and security. It is also having an impact on migration flows that we know is real, even if hard to quantify at the present time.
The European Union was the first major economy to submit its contribution in March - a binding, emissions reduction target of at least 40% by 2030, compared to 1990 levels. This is the most ambitious contribution presented to date. It is important that other major economies make similar commitments, not least for our future competitiveness. Some G20 countries such as Argentina, Brazil, India, Indonesia, Saudi Arabia, South Africa and Turkey did not do it. EU diplomacy should encourage these countries to come forward with ambitious contributions without delay.
I know the negotiations are advancing too slowly. But it is clear to me from recent meetings I attended, for example the G7 in June where we agreed on long-term objectives, the EU-China summit or the EU-CELAC summit that there is political will to reach an ambitious global climate agreement.
This topic will be on the agenda of the forthcoming United Nations General Assembly in September and the G20 in Turkey in November, which I will attend. With your help we need to prepare the ground well to avoid the traps of the past. I would like to wish France bon courage for the preparations ahead of December.
I want to stress again that I see the speedy agreement of TTIP as important. This is especially pressing now after the new economic uncertainty in Asia and since the Trans-Pacific Partnership, the world's biggest trade agreement for many years, will soon be concluded.
There are many other issues that I would like to discuss with you. But let me just say a brief word on the eurozone since I know that you have been facing many questions on this from your interlocutors on the ground over the past year. I will not give you a blow-by-blow account of events from January, as we worked to settle Greece's future in the eurozone. I am grateful that the authorities in Athens are now really showing their commitment to working constructively with the institutions following the agreement of a new ESM programme in August. Decisive and swift implementation by the incoming government will allow the Greek economy to return to a sustainable growth path based on sound public finances, enhanced competitiveness, high employment and financial stability. In the meantime, the eurozone as a whole is moving on to take the next steps towards strengthening economic and monetary union following on from the publication of the so-called 5 Presidents' report.
"May you live in interesting times": you know this Chinese curse. Indeed, we live in sobering - shocking - times. But this needs to be a spur to action, rather than the easy indulgence of apocalyptic thinking. I can never remember a time in politics when the world wasn't supposedly in chaos. So I tend to take declarations of existential crises with a pinch of salt.
As we move forward as a team to prove that Europe remains a serious force in the world in our time, I can only recall the words of an ancient European, Virgil: Olim meminisse juvabit ("It will be pleasant to remember former troubles.")
I wish you fruitful discussions and I look forward to achieving much together over the next few months. I am sure however that we are going to meet sooner rather than later in the countries of your daily work. Thank you very much again for your help and engagement.
Good afternoon. Let me begin by thanking Prime Minister Milanović for his hospitality and welcoming me in Zagreb. Today, we had a very fruitful discussion about the policy challenges facing Europe in the coming months.
We talked at length about the ongoing migration crisis. We had a good exchange on what the European Union is already doing and how we can better and more effectively target our efforts. Especially on how to support front-line EU countries under the greatest migratory pressure. In two weeks the European Union's justice and home affairs ministers will meet in an emergency council to assess the situation on the ground and discuss the next steps. This will include Frontex, the EU border agency, the European Asylum Office, more work on our return policy, international cooperation as well as how to fight and prevent the trafficking and smuggling of migrants. Migration will also be on the agenda of the European Council in October. And later this autumn, European and African leaders will meet in Valletta to discuss cooperation with the countries of transit and origin. Likewise is a high-level conference on migration routes in the Western Balkans being organised. Migration is a shared European challenge, and therefore we need a common European answer in a spirit of unity, solidarity, and responsibility.
The migration crisis is not Europe's fault, but we need to do more at European level to respond. I look forward to Croatia's constructive collaboration, as we implement a European response.
We have gone through the agenda of the October European Council and discussed the economic situation and Greece, as well as the UK's future in the EU. In the next months we will need to take further steps to strengthen our Economic and Monetary Union. The 5 Presidents' Report has given a new impetus to the debate. We might have an opportunity to come back to this issue in October. In Greece, irrespective of the political situation, it is imperative that the new programme is implemented as agreed. As for the UK, we should consider British concerns, but only in a way which will be safe for all of Europe. We will come back to this in December.
We also discussed the situation in the Western Balkans and how the European Union can help the countries in the region on their path to greater stability and prosperity. I firmly believe that the enlargement perspective is still our strongest leverage to promote reforms and EU values. We will continue to do all we can to help the countries of the region on their European path. History has taught us that a stable Balkan is not only good for the people here in the Balkans but for all of Europe. Thank you.
Let me first thank President Kolinda Grabar-Kitarović for her kind invitation to Zagreb, the warm welcome I have received, and the good exchange of views we had. Equally, I look forward to meeting Prime Minister Milanović later today.
Our discussions focused on challenges facing Europe both within our continent and beyond. Many challenges stand out. I have no doubt that creating and keeping unity within the European Union is key to responding to any of them.
We talked about the ongoing migration crisis on our borders and what the European Union can do to help to solve it. Europe's priority remains preventing migrants from losing their lives when trying to reach Europe. Whatever the challenges migration might bring, there is never a justification for hostile, racist or xenophobic reactions to migrants.
Another important issue that I had a chance to discuss with the President is the situation in the Western Balkans. I came here to listen. I am always very happy to hear first-hand from countries like Croatia how you see the situation in our neighbourhood. We agreed that enlargement, despite the prevailing mood of some kind of enlargement fatigue, should remain a strong priority for the European Union. This is also my personal deep belief. In this context, I thank the Presidents of Croatia and Slovenia for their joint letter on enlargement that I received yesterday. Good cooperation between your two countries on regional cooperation and European integration is a promising sign. For sure we need it, especially in this region.
We also discussed Russia and the crisis in Ukraine. We are rapidly approaching the deadline for the complete implementation of the Minsk agreements. It is critical that everyone makes every effort to ensure that this deadline is respected. Let me add that I am concerned about the violence in Kiev yesterday. In a sense this shows the strong determination of the Ukrainian government and parliament to honour their obligations and implement the Minsk agreements, also on very sensitive issues such as granting special status for parts of Ukraine. It shows Ukraine is ready to pay a high price for peace.
To conclude. All of these challenges are very serious. All of them can only be overcome by a united European response. And I strongly believe in the determination and political will of all EU countries to prevail. Thank you.
I have recently read an article by Ivan Krastev, which reminded me of a book I came across more than thirty years ago, written by Raymond Aron and entitled "In Defence of Decadent Europe." As a then editor of an illegal periodical, (it was the time of the Communist regime in Poland) I was looking for inspiration, something that would help me go beyond the simple division: the political power versus the underground opposition. The reflections on freedom of authors such as Raymond Aron, Michael Novak, Friedrich Hayek, Karl Popper or Isaiah Berlin formed a foundation for my personal and political optimism, mixed with cautious scepticism. Today, I feel duty-bound to undertake an effort, both intellectual and political, to once again defend the decadent Europe along with her old-fashioned values, above all freedom and democratic capitalism. By a fortunate coincidence, I am saying these words on the 35th anniversary of the birth of the Solidarity Movement, which was also my experience, maybe the most important in my life.
When Aron was writing his defence of Europe in the mid -1970s, the prevailing mood was one of pessimism and doubts about the future of democracy and free market, as well as about Europe itself. Religious violence ran riot, with geo-political consequences. Nationalists rose on the left and right; the energy crisis shook the European economy, discrediting mainstream politics. Terrorist groups emerged, particularly aggressive in Italy and Germany while the students' revolts and radical movements, often backed by Soviet secret services, shattered societies from within. Europe was losing clout on the world stage and many thought that they had found themselves at a crossroads of blind alleys, as Ivan Krastev so aptly described.
The voice of Raymond Aron, barely audible in the seventies and drowned out by the avant-garde outcry of radical intellectuals, proved to be the voice of reason and shrewdness. Europe and her traditional values which constitute liberal democracy, have not only survived, but have also become, once again, a universal positive model for millions of people, not only Europeans.
There exists a good number of reasons also to defend today´s decadent Europe. To every sensible observer of the global scene, Europe is still clearly the best place on Earth. In fact, migrants who put their lives at risk to find their way across to our continent know it better than anybody else, unintentionally becoming the most obvious proponents and advocates of the decadent Europe. One can´t help but notice the stark contrast to some of today's European intellectuals who are always outraged, ready to offer scathing criticism of their own community and at the same time being completely unable to find practical solutions. By the way, in the past the main task of intellectuals was to think while today it is to be outraged. They are too busy looking for an ideal, ready to abandon reality for destructive projects which look and sound creative and attractive. The last thing Europe needs today is new theories and grand visions. In fact what we really need today is sound judgment, determination in action and common sense.
For sure the European Union is not the best of all possible worlds. But surely it is the best of the existing ones and in all likelihood the best among those that human kind has seen across the centuries. Europe is safe and prosperous and shows respect for the rule of law and the rights of individuals. The poor are offered help, universal education and medical care are provided for. We are not perfect, but are still doing better than at any other time or anywhere else. Europe has also found a way how to durably substitute conflict and violence for dialogue and consensus. Isn`t this enough to defend her?
I often hear that what Europe lacks today is energy, vitality and bravery. We are surrounded by nations and civilizations powered by the energy that they draw from nationalisms, religious orthodoxies and ideologies. It is often poverty that lies at the source of this energy, which was also our experience in Europe`s remote past. Today however, the attractiveness of Europe stems partly from the fact that our continent is largely free from these potent and dangerous emotions. Europe is secular, multinational, tolerant, wealthy and pluralistic. In a sense she was conceived and designed as an alternative to the 20th century´s hell of nationalism and totalitarian ideologies. Surely no-one in their right mind would want us to return to those sources of energy.
In fact, the question if anybody would like to go back in time is irrelevant. It is simply impossible if we want to continue to think about Europe as a political entity, about Europe as a whole. No European nationalism, just like no one European nation will emerge. It is also unlikely for one religion or ideology to conquer the hearts and minds of most Europeans. This is why our energy and determination must be powered by other emotions.
One such emotion is pride. Today we need to feel more proud about our common Europe, simply because Europe deserves it. Pride about our culture, wealth and the political idea of solidarity. I have in mind the same kind of pride which the ancient Greeks felt for themselves and for the barbarians. Not because the barbarians were worse, but because the Greeks lived differently. Pride is this galvanising value which breeds the feeling of dignity and the need to fight for it. Incidentally, we Europeans must today restore the ability to distinguish between pride and hubris. All too often we show hubris to our neighbours, and weakness to the stronger, forgetting that hubris is accompanied by weakness while pride is accompanied by strength. In the history of politics an arrogant weakling has been a most pathetic figure.
We need to think about our Europe with greater tenderness and patience. We need to protect her not only against external threats when they appear, but also against internal temptations for revolutionary and total changes. The European Union certainly needs to adjust and improve itself, and it must do so constantly, but under no condition should we undermine the very essence of Europe or the political and legal norms of the Union.
There is more and more talk about the need for the new legitimacy of the European Union, as the historical reasons for its creation, the reaction to the tragedy of the Second World War and to the threats from the side of the Soviet Union will no longer suffice. New generations will look for new justifications but what will most certainly endure will be the positive legitimacy of who we are today and who we want to be in the future. And I have no doubt that we want to remain free, tolerant, wealthy and safe citizens of the national states organized in one European community.
If we stay true to our values we will win our future. To achieve this we need to be strong and smart, the most priceless assets in politics. Instead of concentrating on predictions about the distant future and long-term planning we need to stay in shape. As the saying goes: "If you want to make God laugh, tell him about your plans." More important than ambitious visions are therefore our prowess, resilience, courage and determination. If we are able to rebuild them, we won´t be afraid of the new challenges, even if they take us by surprise.
Pragmatic European leadership, both on the level of national states and pan-European institutions, must focus on practical solutions. Problems that we encounter presently can be overcome on condition that they do not become an excuse to turn Europe upside down. Equally important are mutual loyalty and solidarity among European players, in particular vis a vis external enemies. I don´t suppose anybody has any doubts that they exist.
On every issue on today´s agenda, the Greek crisis, war in Ukraine, migration, terrorism, potential Brexit, we take action, which - if only we are sufficiently loyal to one another and stand united - will bring about positive results. We will continue to live with the problems longer than we would like to - but this is not the reason to question our European principles.
Is global disorder the new global order? No. In fact disorder has existed since the beginning of time. And indeed, the moderator of our session, Mr Nik Gowing, who in his very long and amazing career as an international broadcaster covered such dramatic events as the terrorist attack on Twin Towers, the Gulf War, Kosovo, Mumbai, the death of Lady Diana, the financial meltdown, and the imposition of the Martial law in Poland, which is especially important to me, is living proof that disorder and chaos are an immanent part of our human existence. Perfect order has always been a dream, while the world around us has always been full of conflicts and surprises. The real challenge is not to change the status quo in search of the perfect order. It is beyond human reach. Therefore, the real challenge is to preserve and consolidate our imperfect order which we have enjoyed within the European community. Thank you.
Let me start by thanking Prime Minister Cerar for his invitation, hospitality and for welcoming me in Bled. This place is one of the most beautiful in Europe and the world. Unfortunately, the reality is not as nice as this place.
My visit to Slovenia, and later to Croatia, is the first one after the summer break. But the challenges facing Europe take no holidays. First of all, we talked at length about the ongoing migration crisis. This is the most important issue for Europe today. The summer has confirmed that migration will remain a key issue for Europe in the years to come.
The European Union cannot and should not be blamed for the migration crisis, but we need to do more at European level to solve it. We have to alleviate the unbearable human suffering and tragedies that have become almost daily news stories in Europe now. In short, the European Union has to help provide solutions to the major problems facing European citizens and countries today.
And this is exactly what we are trying to do. In April I called an emergency summit on the migration crisis in the Mediterranean. In June, the European Council agreed a new policy for relocation, resettlement and return that is now being implemented. In October the European Council is meeting again. In November, I will chair the Malta Conference where European and African leaders will meet and try to find practical solutions to this shared problem. Likewise will there be a high-level conference on migration along the Western Balkans route. And only yesterday, the Luxembourg Presidency of the Council called an emergency meeting of Justice and Home Affairs ministers to assess the situation on the ground, discuss next steps - to strengthen the European response. This will include Frontex, the EU border agency, the European Asylum Support Office and more work on our return policy, international cooperation as well as investigation and measures to prevent trafficking of migrants. Today this may be the most urgent challenge. As we have witnessed both in Austria and in the Mediterranean, human trafficking and smuggling of migrants are not only a dirty business, it is in fact mass murder. And smugglers today are potential mass murderers. We must do everything we can to stop it.
So a lot of work is ongoing. But the truth is that this is a very complex problem and requires a complex set of actions. There are no quick-fixes. Had there been, they would have been used long time ago. The reasons for the unprecedented levels of migration are war, conflict, failing states and poverty. I have no doubt that in the short term, we need to concentrate our efforts on containing the inflow of migrants - obviously in a humane way respecting all legal obligations.
Today, the Prime Minister and I had a good exchange on what the European Union is already doing - in terms of assistance and migration - and how we can target our efforts even more. This is as much a problem in the South as in the Western Balkans.
Finally, we also discussed the situation in the Western Balkans. Slovenia's experience and knowledge of the region is of great value. The Prime Minister and I shared ideas how the European Union can and should help create more stability and prosperity. And we agree that enlargement should remain a strong priority for the EU. Thank you.
Sunday 30 August 2015
Visit to Slovenia
16.00 Meeting with Prime Minister Miro Cerar
19.30 Working dinner hosted by Prime Minister Miro Cerar
Monday 31 August 2015
Visit to Slovenia
11.00 Meeting with Prime Minister Miro Cerar
11.45 Joint press conference
13.00 Meeting with President Borut Pahor followed by working lunch
16.00 Keynote address at the 2015 Bled Strategic Forum panel "Global Order: Confrontation or Partnership"
Tuesday 1 September 2015
Visit to Croatia
10.30 Meeting with President Kolinda Grabar-Kitarović
11.35 Joint press conference
12.10 Working lunch hosted by President Kolinda Grabar-Kitarović
14.00 Meeting with Prime Minister Zoran Milanović
15.15 Press statements
Wednesday 2 September 2015
12.00 Meeting with President of the European Commission Jean-Claude Juncker (Berlaymont)
Thursday 3 September 2015
09.00 Address at the annual EU Ambassadors' conference (Charlemagne building)
11.00 Meeting with Prime Minister of Hungary Viktor Orbán (photo opportunity)
Good afternoon. Let me begin by saying how pleased I am to have my first meeting of the autumn political season today with President Petro Poroshenko. Thank you, Petro, for your presence here. This for sure shows that EU-Ukraine relations take no holidays.
I am especially glad to see President Poroshenko on a day that started with good news for Ukraine: I very much welcome the deal that was reached between Ukraine and its creditors. In addition, the Contact Group for Ukraine has reached an agreement on a new ceasefire to start on 1 September. Both of these pieces of news are cause for optimism.
During our talks today we discussed three main topics.
First, President Poroshenko briefed me on the recent increases in violations of the Minsk ceasefire. I am especially worried about the targeting of the OSCE Special Monitoring Mission and call on all parties to make sure this does not happen again. Thank you for your information, Petro. After our meeting I am absolutely sure about your determination to help the Special Monitoring Mission in their duty. We are rapidly approaching the deadline for the complete implementation of Minsk so it is critical that everyone does their utmost to make it succeed. I hope that the new ceasefire agreed yesterday is a first step.
Second, we talked about the domestic situation in Ukraine, including the economic outlook, upcoming local elections and constitutional reforms. I welcome progress on amending the constitution to allow for greater decentralisation and encourage Ukraine to move more quickly on judicial reform.
Third, we discussed how Ukraine is implementing the Association Agreement, in particular those parts on visa liberalisation. We want to see free travel between Ukraine and Europe sooner rather than later. That is why I encouraged President Poroshenko to move quickly on this issue. As you know we are here in Brussels, both Jean-Claude Juncker and me, very engaged and supportive for this project. I am really satisfied when it comes to progress on your side.
I would also like to touch upon one more issue. Two days ago Oleg Sentsov was sentenced to twenty years in a labour camp in Russia. Sentsov protested against the annexation of Crimea, where he lived with his two children. Sentsov, Kolchenko, Savchenko and all other Ukrainians held illegally in Russia as well as EU citizens such as Eston Kohver are blatant acts of injustice. They are also symbolic of the cynicism that dominates Russian politics. As long as Oleg Sentsov and others stay in prison, all honest and decent people will not remain indifferent to their fate.
President Poroshenko and I agreed to be in contact early and often over these vital coming months. Thank you very much again, Petro.
Thursday 27 August 2015
Justus Lipsius building - Brussels
from 12.30 Arrival of President of Ukraine Petro Poroshenko
Welcome by the President of the European Council Donald Tusk
(VIP entrance, level 02 - photo/TV opportunity)
+/- 14.00 Press statement (VIP entrance, level 02)
Today, we, countries in the eurozone have mandated the ESM to make up to the maximum of €86 billion available to finance Greece. Of course this programme for the coming three years goes with strict conditions, aiming at:
I am glad to say that the Greek government has already taken some credible first steps. A lot of work will still have to be done to stabilize the economy in Greece for the return of confidence both in Greece and in within the eurozone.
We have a lot of work to do in the coming years but I think that the decisions taken in the last couple of weeks and especially today are a big step in that direction.
Good evening and welcome to this press conference. We have just finished the Eurogroup meeting and we've come to a positive conclusion on the proposals by the institutions. All the intense work of the last week has paid off and let me here also extend my thanks to the teams of the institutions and the team of the Greek government that had worked so hard these last months to reach an agreement. We also have reached agreement at the political level in the Eurogroup. We had a very constructive and good atmosphere. Of course there were differences, but we have managed to solve the last issues. We have issued a statement outlining the details of our agreement. I will therefore mention only the main elements.
First, we welcomed the agreement that was reached between Greece and the institutions on policy conditionality. It is to our mind in line with the key objectives set by the euro summit on 12 July, and if implemented with determination -- of course it always boils down to determination -- it will allow the Greek economy to return to sustainable growth.
Secondly, we commended the Greek authorities on the strong commitment shown in the last weeks in the normalisation of working methods with the institutions. I think that was very helpful to have a good and fruitful process and also we've seen important and determined legislative steps over the past weeks and days even, in Greece, and that has helped in the process of rebuilding trust; and many of the colleagues in the Eurogroup made that point.
Thirdly, on the policy conditionality, we welcomed the broad scope of the policy measures contained in the Memorandum of Understanding (MoU), as agreed. It's a comprehensive and ambitious reform package, it addresses the main challenges both on reaching sound public finances to return to growth, but also structural policy frameworks to enhance competitiveness. And finally it safeguards financial stability; it deals with the issues with the banks.
On the latter point, there will be later this year, this autumn, an asset quality review and stress test, and on the basis of that, recapitalisation will take place. In that process the bail-in instrument will apply for senior bondholders, whereas the bail-in of depositors is explicitly excluded. You will find this in our statement.
Fourthly, the Eurogroup underlined that a significantly strengthened privatisation programme is a part of the new ESM programme. Therefore it is important that the independent fund which will be set up will be established in Greece at the latest by end-2015. It will be under the supervision of the relevant European institutions. It will take on board the privatisation of state assets and the proceeds of this fund will, for the first €25 billion, completely be used to repay debt and for the second part of the target of €50 billion, it will be 50/50: 50% to repay debt and 50% can be reinvested. This fund will be set up before the end of the year. Proposals have to be made already at the latest by end October 2015. The ownership of this fund will be transferred as soon as possible after the recapitalisation of the banks has taken place later this year.
Fifth, on prior actions. We welcomed, as I already said, the comprehensive set of prior actions that has been legislated by the Greek authorities. The most recent prior actions legislated have been positively assessed by the institutions and I think this demonstrates that programme ownership has been picked up seriously and constructively by the Greek government.
The overall financing envelope of the agreed ESM programme will amount to €86 billion. This includes a €25 billion bank buffer, which can be available if needed to address potential bank recapitalisation and resolution costs. This money will, later on, after the first review as I said, be transferred to segregated account in the ESM. Whether it is needed will be decided of course after the assessment of the banks and the stress test later this year.
On debt sustainability - and this is of course the key issue - a debt sustainability assessment has been provided by the Commission, in a strong liaison with the ECB. The analysis basically concludes that debt sustainability can be achieved through a far-reaching and credible reform programme -- I think we have that in front of us -- and debt-related measures without nominal haircuts, because that was made explicit in the euro summit statement of 12 July. The Eurogroup stands ready to consider, after the positive completion of the first programme review, possible additional measures to ensure gross financing needs remaining at a sustainable level. “Gross financing needs” is the debt service approach that we will take when we look at the debt sustainability. We will do that after the successful completion of the first review.
Finally, we welcomed the intention of the IMF Board to consider further financial support for Greece. They will do so in the autumn. We stressed that such IMF involvement for the Eurogroup is indispensable. We welcomed the positive assessment of IMF staff of the policy conditionality contained in the MoU. For the IMF Board to consider further financial support, there are two issues that are crucial and we realise and accept that. First of all there needs to be a full specification of fiscal, structural and financial sector reforms; and secondly that debt sustainability is ensured. On those reforms, just to mention one is the pension reform and we have again underlined that at the latest in October there has to be clarity on those pension reforms from the side of the Greek government, in agreement with the institutions.
Finally, as regards the next steps, the necessary elements are all in place now to launch the relevant national procedures to get the formal approval of the ESM financial assistance programme. We expect that the ESM Board of Governors which will take the formal decision will be in a position to approve the proposal on Wednesday, 19 August, by the end of the day; and that it would also unlock the initial fist tranche of the programme.
That will be all from me. I will now give the floor to Vice-President Dombrovskis and to Klaus Regling.
The Eurogroup welcomes the agreement that has been reached between Greece and the European Institutions, with input from the IMF, on the policy conditionality underlying the new ESM macroeconomic adjustment programme. The Eurogroup commends the Greek authorities for their demonstrated strong commitment as shown by the normalisation of the working methods with the Institutions and the conduct of the negotiations in a determined and swift manner. This agreement is in line with the parameters and key objectives set by the Euro summit on 12 July and provides a comprehensive framework for restoring the Greek economy to a sustainable path.
The Eurogroup welcomes the wide scope of the policy measures contained in the Memorandum of Understanding (MoU), which, if implemented with determination, will address the main challenges facing the Greek economy. We are confident that decisive and as swift as possible implementation of the reform measures as spelled out in the MoU will allow the Greek economy to return to a sustainable growth path based on sound public finances, enhanced competitiveness, high employment and financial stability.
Greece will target a medium-term primary surplus of 3.5% of GDP with a fiscal path of primary balances of -0.25% in 2015, 0.5% in 2016, 1.75% in 2017 and 3.5% in 2018 to be achieved notably through upfront parametric fiscal reforms supported by measures to strengthen tax compliance and fight tax evasion. Greece will undertake an ambitious reform of the pension system aimed at ensuring its sustainability, efficiency and fairness. It will specify policies to fully compensate for the fiscal impact of the Constitutional Court ruling on the 2012 pension reform and to implement the zero deficit clause or mutually agreeable alternative measures by October 2015. Greece has furthermore committed to key labour and product market reforms to open up the economy to investment and competition, as well as to modernise and depoliticise the public sector. With regard to the financial sector, Greece has committed to take decisive measures to safeguard stability, including a recapitalisation of the banks as required, measures to enhance the insolvency framework and a significant improvement of the governance of the banks and the Hellenic Financial Stability Fund (HFSF). Following the results of the Asset Quality Review and Stress Tests before the end of the year, the bail in instrument will apply for senior debt bondholders whereas bail in of depositors is excluded. The Eurogroup stresses that the agreed conditionality needs to be further specified as requested by the IMF a matter of priority, in particular in the areas of pension reforms and financial sector strategy and governance, in agreement with the three Institutions in time for the completion of the first review under the ESM programme. Moreover, Greece will take urgently needed steps to tackle the non-performing loan (NPL) problem in the banking sector. Given the magnitude of the problem, we urge the authorities to develop all necessary instruments to that end, including opening the market for NPL servicing and disposal with the appropriate safeguards to protect vulnerable debtors and exploring the possibility of a bad bank.
Compliance with the conditionality of the MoU will be monitored by the Commission in liaison with the ECB and together with the IMF, as foreseen in Article 13(7) of the ESM Treaty.
The Eurogroup stresses that a significantly strengthened privatisation programme is a cornerstone of the new ESM programme. The Eurogroup welcomes the Greek authorities' commitment to adopt new legislation to ensure transparent privatisation procedures and adequate asset sale pricing, according to OECD principles and standards on the management of State Owned Enterprises (SOEs). To ensure a more ambitious privatisation process, an independent fund will be established in Greece under the supervision of the relevant European institutions by end-2015 and encompass the privatisation of independently valuated state assets, while avoiding fire sales. The Eurogroup expects the Greek government to endorse the plan for this fund by the end of October 2015 so that it can be operational by the end of the year. Its task will be to quickly identify, transfer over the lifetime of the programme, and manage valuable Greek assets through privatisation and other means, including minority shareholdings and to increase their value on a professional basis. This will include the shares in Greek banks after their recapitalisation, thus also enhancing banks' governance. This should ensure that a targeted value of EUR 50 bn can be realised, by putting the assets on the market, of which EUR 25bn will be used for the repayment of recapitalization of banks and other assets and 50 % of every remaining euro (i.e. 50% of EUR 25bn) will be used for decreasing the debt to GDP ratio and the remaining 50 % will be used for investments. The legislation to establish the Fund shall be adopted in agreement with European institutions.
The Eurogroup appreciates that the Greek authorities have taken additional important legislative steps over the last few days. This supports the gradual process of rebuilding trust, demonstrating the authorities policy resolve and programme ownership. Those steps include notably additional fiscal measures on the tax and expenditure side, legislation on early retirement as well as an extensive set of actions in relation to the financial sector and product markets. In addition, in line with the Eurogroup statement of 16 July, the Greek authorities took measures to adjust and complete the legislation adopted on 15 July 2015. The authorities have also repealed a number of provisions backtracking on previous programme commitments.
The Eurogroup welcomes that the implementation of those prior actions has been assessed positively by the Institutions. The Greek authorities have confirmed their intention to complete by September the follow up actions identified by the Institutions, including the need to bring the adopted household insolvency law in line with the proposal of the Institutions.
Based on the assessment of the Institutions, the ESM financial assistance facility agreement will cover an amount of up to EUR 86 bn. This includes a buffer of up to EUR 25 bn for the banking sector in order to address potential bank recapitalisation and resolution costs.
The first tranche under the ESM programme of EUR 26 bn will consist of two sub-tranches. The first sub-tranche of EUR 10 bn will be made available immediately in a segregated account at the ESM for bank recapitalisation and resolution purposes. The second sub-tranche of EUR 16 bn will be disbursed to Greece in several instalments, starting with a first disbursement of EUR 13 bn by 20 August, followed by one or more further disbursements in the autumn subject to the implementation of key milestones based on measures outlined in the MoU and to be specified by the European Institutions and agreed by the EWG.
A second tranche for banking recapitalisation and resolution needs of up to EUR 15 bn can be made available after the first review and no later than 15 November, subject to the completion of the planned Asset Quality Review and Stress Test and the implementation of the financial sector deliverables of the review. These funds will initially be transferred to the segregated ESM account and can be released upon the agreement of the ESM Board of Directors.
The debt sustainability assessment was conducted by the Commission, in liaison with the ECB, as foreseen in Article 13(1) of the ESM Treaty. The analysis concludes that debt sustainability can be achieved through a far-reaching and credible reform programme and additional debt related measures without nominal haircuts. In line with the Euro summit statement of 12 July, the Eurogroup stands ready to consider, if necessary, possible additional measures (possible longer grace and repayment periods) aiming at ensuring that Greece's gross financing needs remain at a sustainable level. These measures will be conditional upon full implementation of the measures agreed in the ESM programme and will be considered after the first positive completion of a programme review. The Eurogroup reiterates that nominal haircuts on official debt cannot be undertaken.
The Eurogroup considers the continued programme involvement of the IMF as indispensable and welcomes the intention of the IMF management to recommend to the Fund's Executive Board to consider further financial support for Greece once the full specification of fiscal, structural and financial sector reforms has been completed and once the need for additional measures has been considered and an agreement on possible debt relief to ensure debt sustainability has been reached. Resulting policy conditionality will be a shared one as the policy conditionality underlying the ESM macroeconomic adjustment programme is developed in parallel to the one of the IMF. Once approved, the full re-engagement of the IMF is expected to reduce subsequently the ESM financing envelope accordingly. The Eurogroup welcomes the positive assessment of IMF staff of the policy conditionality contained in the MoU as confirmed by the IMF Managing Director and looks forward to an IMF programme based on the latter.
The Eurogroup considers that the necessary elements are now in place to launch the relevant national procedures required for the approval of the ESM financial assistance. The Eurogroup expects that the ESM Board of Governors will be in a position to authorise the European Commission signing the MoU on behalf of the ESM and approve the proposal for a financial assistance facility agreement by 19 August, subject to completion of national procedures, and thereby unlock the initial tranche of up to EUR 26 bn.
On 13 July 2015, the Council adopted Council Implementing Decision (CFSP) 2015/1142[1] implementing Council Decision 2012/642/CFSP.
The Decision amends the list of persons and entities subject to restrictive measures as set out in the Annex to Decision 2012/642/CFSP.
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 align themselves with this Decision.
* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.
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 14.7.2015 in the Official Journal of the European Union no. L 185, p. 20.
* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.
On 2 July 2015, the Council adopted Council Decision (CFSP) 2015/1066[1] amending Decision 2013/183/CFSP.
The Council Decision expands the list of persons and entities, as set out in Annex II to Decision 2013/183/CFSP.
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, the Republic of Moldova and Armenia align with this 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 3.7.2015 in the Official Journal of the European Union no. L 174, p. 25.
* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.
While we celebrate today the International Day of the World's Indigenous Peoples, we take stock of the progress achieved towards ending all forms of discrimination and in ensuring that indigenous peoples' rights are respected, protected and fulfilled.
In September of last year, the EU contributed to the success of the World Conference on Indigenous Peoples and promoted equal participation of indigenous peoples in preparation of this meeting. We supported the Outcome Document of the conference which serves as a blueprint for actions at international and national level, bringing positive changes to the lives of indigenous peoples.
As follow up to the World Conference, the EU is further developing its policy in line with the United Nations Declaration on the Rights of Indigenous Peoples and in close consultation with their representatives.
Despite the many positive examples of progress achieved around the world, indigenous peoples, particularly women and girls, continue to experience multiple forms of discrimination, vulnerability and marginalisation in their lives. We are therefore committed to their empowerment.
By reaffirming its support to the UN declaration on the Rights of Indigenous Peoples, the EU restates its determination to work closely with indigenous peoples, along with other partners and stakeholders in its endeavour to promote the recognition that human rights are equally guaranteed to all men and women.
On 4 August 2015, the Council approved a regulation amending the European Financial Stabilisation Mechanism (EFSM) in order to protect non-euro area member states from any risk arising from financial assistance given to a euro area country.
This principle was endorsed on 17 July 2015 by a joint statement of the Commission and the Council. It was agreed along with a decision to grant €7.16bn in short term financial assistance to Greece under the EFSM.
Specifically, the regulation ensures that financial assistance from the EFSM to a euro area member state will only be granted if legally binding provisions are in place guaranteeing that non-euro area member states are immediately and fully compensated for any liability they may incur as a result of a failure by the beneficiary to repay the financial assistance in accordance with its terms.
The regulation was adopted by written procedure.
EFSMThe EFSM provides financial assistance to EU member states in financial difficulties. It relies on funds raised by the Commission on the financial markets under an implicit EU budget guarantee.
The Council adopted the first legal acts implementing the Joint Comprehensive Plan of Action (JCPOA), the agreement reached on 14 July 2015 in Vienna on the Iranian nuclear issue.
On 20 July 2015, the United Nations Security Council adopted a resolution endorsing the JCPOA. This resolution provides for certain derogations from restrictions currently in place so as to allow:
- the shipment of certain nuclear-related equipment out of Iran, the modification of two cascades in Fordow and the modernization of the Arak reactor;
- transfers and activities necessary to implement certain nuclear-related commitments specified in the JCPOA or required for the preparation for the implementation of the JCPOA.
The legal acts adopted by the Council translate into EU law these provisions.
The legal acts are available in the Official Journal dated 1 August. They were adopted by the Council by written procedure.
On 22 June 2015, the Council adopted Decision (CFSP) 2015/973[1] implementing Council Decision 2013/255/CFSP.
The Decision removes one person from 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*, and the EFTA countries Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine, the Republic of Moldova and Georgia align themselves with this 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 23.6.2015 in the Official Journal of the European Union no. L 157, p. 52.
* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.
On 19 June 2015, the Council adopted Council Decision (CFSP) 2015/959[1]. The Council Decision extends existing measures until 23 June 2016.
The Candidate Countries Montenegro* and Albania*, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine and Georgia align themselves with this 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 20.6.2015 in the Official Journal of the European Union no. L 156, p. 25.
*Montenegro and Albania continue to be part of the Stabilisation and Association Process.