European Council

Good afternoon. First I would like to thank Prime Minister Jüri Ratas for having invited me to Tallinn today to participate in my first meeting with the Baltic Council. It's a real honour and pleasure. 

Prime ministers Ratas, Kučinskis and Skvernelis and I discussed the informal summit later this week in Malta. The result of the Malta Summit should be a determined push to significantly reduce the number of irregular migrants coming from Libya to Italy, the so-called central Mediterranean route. After we have virtually closed the eastern Mediterranean route, from Turkey to Greece and to Central Europe, and through that brought the overall number of irregular migrants to EU down to a 1/3, the central Mediterranean route is today the biggest point of illegal entry into our continent. It is fatal for too many people. It is a dirty, profitable business for the smugglers. It is unsustainable for Italy and Europe. In short, it has to stop. That is why in Malta we need to agree on concrete operational measures.

We have also discussed the future of the EU of 27 member states, which is another topic of our summit in Malta. I just sent my remarks to EU leaders but let me make a few comments now.

The challenges currently facing the European Union are more dangerous than ever before in the time since the signature of the Treaty of Rome 60 years ago. Today we are dealing with threats, which have previously not occurred, at least not on such a scale. Being here in Estonia let me focus on the external threat, which is related to the new geopolitical situation in the world and around Europe. An increasingly - let's call it - assertive China, especially on the seas, Russia's aggressive policy towards Ukraine and its neighbours, wars, terror and anarchy in the Middle East and in Africa, with radical Islam playing a major role, as well as worrying declarations by the new American administration all make our future highly unpredictable. For the first time in our history, in an increasingly multipolar external world, so many are becoming openly anti-European, or Eurosceptic at best. Particularly the change in Washington puts the European Union in a difficult situation; with the new administration seeming to put into question the last 70 years of American foreign policy.

In a world full of tension and confrontation, what is needed is courage, determination and political solidarity of Europeans. We must look to the future but we should never, under any circumstances, forget about the most important reasons why 60 years ago we decided to unite Europe. In Rome, we should strongly reiterate two basic, yet forgotten, truths: firstly, we have united in order to avoid another historic catastrophe, and secondly, that the times of European unity have been the best times in all of Europe's centuries-long history. It must be made crystal clear that the disintegration of the European Union will not lead to the restoration of some mythical, full sovereignty of its member states, but to their real and factual dependence on the great superpowers: the United States, Russia and China. Only together can we be fully independent.

We should use the change in the trade strategy of the US to the EU's advantage by intensifying our talks with interested partners, while defending our interests at the same time. The European Union should not abandon its role as a trade superpower which is open to others, while protecting its own citizens and businesses, and remembering that free trade means fair trade. We should also firmly defend the international order based on the rule of law. We cannot surrender to those who want to weaken or invalidate the Transatlantic bond, without which global order and peace cannot survive. We should remind today our American friends of their own motto: United we stand, divided we fall. Thank you.

Monday 30 January 2017
14.00 Meeting with President of Bulgaria Rumen Radev

Tuesday 31 January 2017
Tallin
12.00 Working lunch with Prime Minister of Estonia Jüri Ratas, Prime Minister of Latvia Māris Kučinskis and Prime Minister of Lithuania Saulius Skvernelis
14.10 Press conference
14.45 Bilateral meeting with Prime Minister of Estonia Jüri Ratas
15.20 Bilateral meeting with President of Estonia Kersti Kaljulaid

Wednesday 1 February 2017
Rome
12.45 Meeting with President Sergio Mattarella
13.15 Meeting with Prime Minister Paolo Gentiloni

Thursday 2 February 2017
Valletta
20.00 Dinner with Prime Minister Joseph Muscat, European Parliament President Antonio Tajani and Commission President Jean-Claude Juncker

Friday 3 February 2017
Valletta
Informal meeting of the EU heads of state or government
09.40 Joint welcome of the heads of state or government with Maltese Prime Minister Joseph Muscat and Commission President Jean-Claude Juncker
10.00 First working session
12.45 Family photo
13.45 Informal lunch
16.00 Press conference
17.15 Second working session

The Council (ECOFIN): 

1.     WELCOMES the Commission's sixth Alert Mechanism Report (AMR) which marks the starting point of the annual round of the Macroeconomic Imbalance Procedure (MIP) in the context of the 2017 European Semester. 

2.     BROADLY SHARES the Commission's horizontal analysis of the adjustment of macroeconomic imbalances in the EU and within the euro area. WELCOMES the further progress made by Member States in correcting their imbalances, thus contributing to the rebalancing in the EU and within the euro area. NOTES the continuing but still moderate recovery and low inflation, which continue to weigh on the reduction of imbalances and on macroeconomic risks. UNDERLINES that despite improvements the challenges and risks remain broadly unchanged and further progress on policy actions is needed to address imbalances, in particular the elevated levels of indebtedness, against the background of declining potential output and productivity growth and unemployment rates that remain historically high. At the same time, elevated current account surpluses in some euro area Member States with relatively low deleveraging needs persist and could under some circumstances indicate large savings and investment imbalances deserving progress on policy actions. NOTES that the rebalancing of deficits to surplus positions in many euro area countries coupled with persistent and high surpluses in others has implied an asymmetric adjustment leading to a large and increasing surplus position of the euro area as a whole whose consequences deserve further attention. Overall, AGREES on the need for additional decisive reform efforts to promote investment and unlock growth potential.  

3.     TAKES NOTE of the basic economic screening presented by the Commission in the AMR. RECOGNISES the need for further analysis through in-depth reviews (IDRs) of recent developments in the 13 Member States where imbalances were identified last year in order to assess whether the imbalances are unwinding, persisting or aggravating, taking into account the implementation of relevant measures to overcome the imbalances, including those previously recommended in the context of the European Semester. NOTES that vulnerabilities remain in some Member States for which IDRs are not warranted at this stage, and developments will need to be monitored. 

4.     WELCOMES the intention of the Commission to publish in February the IDRs embedded in the Country Reports, which also integrate the additional Commission analysis on other structural issues relevant for the European Semester. UNDERLINES the need to concentrate on addressing key challenges such as high private and foreign indebtedness, weak competitiveness and potential growth, risks linked to rising house prices, current account surpluses and deficits, adjustment issues reflected in high unemployment, while clearly distinguishing between Member States' challenges in terms of sources and severity of risks in order to highlight clear priorities and ensure swift action. UNDERLINES that the MIP procedure should be used to its full potential, with the corrective arm applied where appropriate. 

5.     WELCOMES the Commission's publication of a compendium on the MIP, which provides an overview of how the MIP framework functions and how its application has evolved over time. UNDERLINES that transparency and predictability of the MIP, in particular keeping the current categories of imbalances, is essential for ensuring Member States' ownership of the procedure, which in turn is central for the effectiveness of the MIP. HIGHLIGHTS the need to continue technical work to assess the appropriateness of the scoreboard and to further develop and improve analytical tools and frameworks for assessing developments and drivers behind the building up and unwinding of imbalances and related spillovers with a view of further improving the underlying analysis and results.  

6.     CONSIDERS that MIP specific monitoring helps fostering an effective implementation of measures to address macroeconomic imbalances. TAKES NOTE of the extension of specific monitoring to all Member States concerned by MIP surveillance and WELCOMES the streamlining of the procedure. UNDERLINES the importance of maintaining stable and transparent practices with respect to the implementation of specific monitoring. 

7.     AGREES in general with the assessment provided by the Commission in the specific monitoring reports concerning the action taken by Member States with imbalances in the context of the MIP and remaining policy gaps.  NOTES that the large majority of specific monitoring reports have been discussed already in Council committees, and that the remaining specific monitoring reports of Spain, Portugal and Ireland will be discussed in early 2017 in the context of their post programme surveillance reports. 

8.     INVITES the Commission to follow up on the findings from specific monitoring in a consistent and effective way for what concerns the implementation of the MIP, and INVITES Member States to address in an ambitious and concrete manner the policy gaps identified in the context of specific monitoring with a view to correct harmful imbalances. 

The Council (ECOFIN): 

I.       THE 2017 EUROPEAN SEMESTER 

1.       WELCOMES the Commission's Annual Growth Survey 2017, which sets out broad policy priorities for jobs and growth in the EU and its Member States, and marks the starting point of the 2017 European semester. 

2.       BROADLY SHARES the Commission's analysis of the economic situation and policy challenges in the EU. Structural and fiscal policies need to contribute to consolidating the recovery and take advantage of the current situation to tackle macroeconomic imbalances and to implement ambitious reforms and pursue responsible fiscal policies. Despite recent improvements, the global economic outlook is becoming more uncertain. Economic performance, as well as reform implementation, remains uneven across the EU. Even though employment is expected to grow many economies still face far-reaching structural challenges, including in the labour market. Although declining, still high private and public debt levels contribute to holding back investment. As confirmed by the Commission's Alert Mechanism Report growth and employment are also constrained by the risk of a number of macroeconomic imbalances. 

3.       Against this background, AGREES on the broad policy priority areas outlined by the Commission on which national and EU level efforts should concentrate in 2017; Boosting investment, pursuing structural reforms and responsible fiscal policies. These priorities should be implemented in an integrated manner in order to tackle the challenges effectively at both EU and Member State level to ensure inclusive growth and sustainable economic development. STRESSES that too little emphasis is placed on the need for product market reform in this Annual Growth Survey. Product market reforms should be prioritised because of their more direct boost to productivity and output regardless of economic conditions. AGREES with the importance of reforms to increase labour supply and foster equal opportunities on the labour market, such as increased female labour force participation and integrating disadvantaged groups as a way to increase growth potential and social progress. ACKNOWLEDGES that a comprehensive approach is required to integrate migrants and the recent influx of refugees and facilitate their access to the labour market. 

4.       AGREES with the Commission analysis that the track record on reform implementation needs to be improved and UNDERLINES the importance of monitoring performance and policy implementation, including implementation of the country specific recommendations, throughout the year. INVITES the Economic and Financial Committee and the Economic Policy Committee to actively engage in this work based on Commission input. LOOKS FORWARD to a substantial discussion in council in March 2017 on the implementation of the country specific recommendations based on thorough assessment by the Commission. 

5.       ENCOURAGES further efficient and open dialogue in the capitals between Member States and the Commission, and an improved involvement of national stakeholders. 

II.      FISCAL AND MACROECONOMIC POLICY ORIENTATIONS

Re-launching investment

6.       RECOGNISES that in the context of low interest rates, ample liquidity in financial markets and deleveraging by public and private actors, investment levels remain low. There is an urgent need to boost investment by improving the overall investment climate in order to strengthen the EU's economic recovery, and to increase productivity and growth potential. RECALLS the December ECOFIN 2016 Council conclusions on tackling bottlenecks to investment identified under the Third Pillar of the Investment Plan, which also underlines the close relation between investment and structural reforms. Member States are urged to tackle national and cross border investment barriers, to strengthen the single market and investment environment in the EU as a whole. 

7.       Lending conditions are improving but companies continue to face varying financing conditions depending on their location. Many Member States face the challenge of private debt overhang and non-performing loans that impede the functioning of financial intermediation and hold back investment decisions. SHARES the Commission analysis that well-functioning insolvency frameworks are crucial for investment decisions. 

8.       SUPPORTS the view that the efficiency of national insolvency frameworks has to be further improved in order to contribute to addressing the high level of non-performing loans and AGREES with the development and implementation of an effective strategy, both at a Member State and EU level, to complement prudential supervisory action to address viability risks within the banking sector in some Member States, including as regards the high level of non-performing loans, inefficient business models and overcapacity. STRESSES that such actions should be in line with the existing regulatory framework, notably the Bank Recovery and Resolution Directive. 

9.       RECALLS that more developed and more integrated capital markets could unlock investment for businesses and infrastructure projects, attract long-term foreign investment, and contribute to growth and job creation. To this end, SUPPORTS advances in the creation of a fully-fledged Capital Markets Union and in the removal of barriers to cross-border investment, as well as diversifying the sources of funding, thus supporting notably the financing of infrastructure and SMEs, and leading, together with measures on the tax side where appropriate, to a more balanced financing structure between equity and debt of EU businesses and further cross-border private risk-sharing. 

Pursuing structural reforms to modernise our economies

10.     BROADLY SHARES the Commission view that Member States need to invest more in creating supportive conditions for greater labour market participation, and effective training and upskilling. UNDERLINES the importance of product market reforms and the opening up of markets to increase growth potential, productivity and efficiency gains. This can also facilitate the success of labour market reforms. In addition product market reforms can improve the adjustment capacity in the face of shocks, contribute to a re-balancing, lessen the negative side-effects of deleveraging and of globalisation while enhancing their positive effects, and contribute to the prevention of macroeconomic imbalances. STRESSES that the European single market remains the most powerful engine of growth and completing the single market in both goods and services, and further work on the Digital Single Market, the Capital Markets Union and the Energy Union should be the priority. 

11.     EMPHASISES that social protection systems should be fiscally sustainable. Pension systems have been reformed in a majority of Member States to enhance their sustainability, efficiency and adequacy, but additional steps are needed to consolidate these reform efforts. AGREES with the Commission analysis that the effectiveness of such reforms is aided by flanking policies boosting retirement incomes by extending working lives, and by supporting other complementary means of retirement incomes. 

Responsible fiscal policies

12.     WELCOMES the progress with fiscal consolidation, but ACKNOWLEDGES that the aggregate picture hides large differences across the Member States and that public finance challenges remain. RECALLS that for the euro area a strong coordination of national fiscal policies, based on common rules, is essential to arrive at an appropriate aggregate fiscal stance and for the proper functioning of the monetary union. NOTES the Commission Communication and analysis of the fiscal stance calling for a positive fiscal stance for the euro area as a whole. RECALLS that the Eurogroup in July concluded, on the basis of Commission analysis, that the broadly neutral aggregate fiscal stance in 2017 strikes an appropriate balance. RECOGNISES the importance in the current juncture to aim for an appropriate balance between the need to ensure sustainability and the need to support investment to strengthen the recovery thereby contributing to an appropriate aggregate fiscal stance and a more balanced policy mix. 

13.     AGREES that it remains essential for Member States to continue to implement structural reforms to increase potential growth and that Member States' fiscal policy should be supportive to growth while ensuring longer term debt sustainability, including through increased focus on the quality and the composition of budgets towards investment and other expenditure and revenue categories that raise economic growth potential. REAFFIRMS that fiscal policies should be pursued in full respect of the Stability and Growth Pact. SHARES the Commission view that challenges in terms of fiscal sustainability remain in a number of countries where public debt is high, which may be a source of vulnerability to adverse shocks and therefore HIGHLIGHTS the need to secure long-term control over deficit and debt levels to build resilience through prudent fiscal policies in those Member States with high public debt, including by complying with the debt rule. CONCURS that some Member States have outperformed their medium-term objectives and could use their favourable budgetary situation to further strengthen their domestic demand and growth potential, depending on country specific circumstances, while respecting the medium-term objective, the national budgetary prerogatives and national requirements. 

14.     RECALLS that the SGP allows the automatic stabilizers to work around the agreed path of structural adjustments and provides significant flexibility to adjust fiscal policy to developments in Member States without endangering the overall aim to promote sound and sustainable public finances. STRESSES the importance that requests by Member States for flexibility under the SGP, including for exceptional spending linked to unusual events outside the control of the governments, are considered by the Commission in a consistent manner. 

Today, the Eurogroup discussed the 9 December update of the Draft Budgetary Plan (DBP) of Spain and the 15 December update of the DBP of Lithuania, based on the Commission Opinions of 17 January. We welcome the fact that these two Member States submitted full DBPs as requested in the Eurogroup statement of 5 December 2016.

We agree with the Commission Opinion that the budget of Spain is broadly compliant with the requirements of the Stability and Growth Pact (SGP). We invite Spain to ensure compliance with these provisions within the national budgetary processes and welcome Spain's commitment to take any measures, if necessary.

We agree with the Commission Opinion that the budget of Lithuania is at risk of non-compliance with the requirements of the SGP. The Commission's 17 January Opinion largely confirms its November assessment. The Eurogroup also notes that the Commission will assess the authorities' application for the flexibility clause for Lithuanian structural reforms this spring. If granted, this would result in a smaller deviation from the adjustment path towards the MTO. The Eurogroup reiterates its invitation to Lithuania to implement the measures necessary to ensure that the SGP requirements are met.

As stated on 5 December 2016 the Eurogroup will follow progress made with respect to the implementation of the DBPs and additional commitments, based on follow-up assessments from the Commission, currently planned for March 2017.

Good evening and welcome to this Eurogroup press conference. Today we welcomed to the Eurogroup the new Minister of Finance of Lithuania, Vilius Šapoka, who informed us of the new government's plan and priorities; we also welcomed Sabine Lautenschläger, Vice-Chair of the Supervisory Board of the Single Supervisory Mechanism (SSM). She came in specially to talk about the report of the European Court of Auditors on the FSM.

First let me say some words on the euro area economy. We had a good exchange today with the IMF on the findings of their interim mission relating to the Article IV consultations with the euro area.  Growth in the euro area is firming and broadering in many countries -for the first time since the crisis all euro area Member States are forecast to grow again. Of course there are risks: risks from the inside relating to political instability or possible instability, and risks from the outside related to a new government in the US and the BREXIT. We have achieved a lot in the last few years, and we have left the crisis behind but at this juncture, it seems particularly important to reaffirm our continuous support for global free trade and the deepening of our single internal market. Both of which can and should deliver higher potential growth. So we should keep driving for open markets, to achieve more growth, job creation and improvement of living standards.

Second let me talk about Greece. We were first debriefed by the ESM on the implementation of the short term debt measures. I am sure Klaus Regling would say more about that.

Then we were informed by the institutions on the state of play of the second review. The good news is that the Greek economy is recovering faster than anyone expected. There are also strong dynamics on the fiscal side, with better than expected revenues. We have also heard that Greece is set to over perform its 2016 fiscal target.

And there is a clear understanding that a quick finalisation of the second review is in everyone's interest and will continue to support the positive trend in the economy.

The institutions and the Greek authorities will remain engaged in constructive discussions to solve the outstanding issues. We have encouraged them to accelerate that work, with a view to a quick return of the mission to Athens and reach a staff level agreement as soon as possible.

Third, on post-programme surveillance, the institutions debriefed us on the main findings of their missions to Ireland and Portugal.

As regards Ireland, we were very pleased to hear about the excellent economic and fiscal performance, while also noting some risks associated with the economic environment, of course especially at the UK "leave" vote. I think Michael Noonan the Irish minister said with his welknown Celtic under statement: "We are in a pretty good shape", and that basically sums up the  mission to Ireland.

On Portugal, it was good to learn that the recovery is underway and progress achieved on the fiscal and financial sector front. However, there are important risks in the medium term and there is no room for complacency. It is crucial that Portugal commits and stays committed to the reform agenda, given the need to boost potential growth also in the context of the still high debt and volatile market conditions. The Portuguese government is aware of these challenges and determined to tackle them.

Fourth, we discussed the Draft Budgetary Plans (DBPs) of Spain and Lithuania. I can be brief here as we have issued a statement on this topic.

The Eurogroup agrees with the Commission's Opinion that the budget of Spain is broadly compliant with the requirements of the SGP and that the budget of Lithuania is at risk of non-compliance. We also noted that the Commission will assess the Lithuanian authorities' application, for the flexibility clause related to their structural reforms and Commission will come back to that in spring.

And as stated at our previous meeting the Eurogroup will follow progress made with respect to the implementation of the DBPs plans and additional commitments that were made by ministers, following-up on the  next assessments from the Commission, currently planned for March 2017. So we will come back to the budgetary plans in March.

We were informed by the Commission about the report on compliance with the Fiscal Compact. This report is almost finished and it will come available in the coming weeks.

Finally, we exchanged views on the recommendations of the European Court of Auditors' Special Report on the Single Supervisory Mechanism. We fully agree with the overall assessment of the Report. And I have to say that the ECB has been very effective in setting up the SSM in a very short period of time. Really great work. The Report does deliver a number of recommendations for further improvements  and the ECB has been very clear that they will take on those recommendations and work on those improvements and we will take stock of the follow-up in the coming months in the framework of our regular dialogue with the SSM.

That's my introduction.

On behalf of the European Council, I wish to congratulate you on your appointment as the Prime Minister of the Republic of Bulgaria.

I am confident that during your term Bulgaria will continue contributing constructively to the further development and improvement of the European Union. The many challenges facing the European Union, such as migration, economic recovery and geopolitical threats, are the same ones Bulgaria is confronted with. Bulgaria's dedication in addressing these challenges is an inspiration to the rest of Europe.

I look forward to working closely with you, and I wish you every success.

Good afternoon. Today I warmly welcome Prime Minister Duško Marković to Brussels. Let me use this opportunity to congratulate the Prime Minister on his appointment, I can assure you of my full support to Montenegro's Euro-Atlantic ambitions,  which are also in the strategic interest of the European Union.

The recent parliamentary elections in Montenegro under the new legislative framework, were competitive and respected fundamental freedoms.

In our meeting today, Prime Minister Marković updated me on the current political and economic situation in the country. I encouraged the Prime Minister to nourish a close dialogue with the opposition for the benefit of the whole country and to clarify some remaining questions surrounding the so-called coup attempt. This could help to restore trust and promote dialogue.

We also discussed bilateral relations: Montenegro remains a frontrunner in accession negotiations. I encouraged him  to re-double efforts so that recent reforms on the rule of law the fight against corruption and against organized crime are felt by ordinary people. It is an important benchmark by which our Member States and also Montenegrin citizens, will judge the success of this government. I know that with your personal experience and determination you will succeed.

In foreign policy, Montenegro is already a de-facto EU Member. You are steadfast in protecting our values and interests, your troops serve alongside ours off the coast of the Horn of Africa and soon in Mali and you apply our sanctions against Russia. I thank you for your loyalty and support.

As I said last May in Podgorica, you have built your independence wisely and patiently, without needless victims. And after gaining it, you pursued good relations with your immediate neighbours in a most mature way. I expressed the wish that  your neighbours could follow you on this peaceful track and turn towards the future.

Unfortunately, today, nationalistic rhetoric and populism is gaining ground across Europe, including in the Western Balkans. The enemies of liberalism despise  our freedoms and free trade, they promote national egoism, speak of violence and disregard the rights of their peers and neighbours. They stand against your Euro-Atlantic future, they  speak of alternatives to Europe.

Yet, there is no better alternative for the Western Balkans than the European Union and all that it represents. We know this from experience: the European Union  has the potential to unite countries and peoples in the region, to overcome the hatred of the past for the sake of a common future and to bring stability and reconciliation.

Thank you for your efforts, Mr Prime Minister. Not only for me, but in Brussels and in Europe, Montenegro is the best example that a positive scenario is still possible in our continent.

On 26 January 2017 the Council, led by the Maltese presidency, reached a preliminary political agreement with the European Parliament on a draft regulation defining the specifications of fishing vessels.

The new rules repeal and recast Council regulation No 2930/86 in line with the European Union's  commitment to simplify and clarify EU law in order to make it clearer and easier to understand. 

Hon. Roderick Galdes, Parliamentary Secretary for Agriculture, Fisheries, and Animal rights welcomed the agreement and said that 'such an early agreement under the Maltese Presidency, the first of the year, confirms Malta's commitment to the fisheries sector and is a demonstration of our determination to bring forward better regulation.' 

The new regulation keeps the content of its 1986 predecessor, which was amended several times, but brings it up to date and adapts it to the current legal framework. It also grants the Commission additional powers to bring  the requirements for determining continuous engine power in line with technical developments and possible changes in the international ISO standards. 

The agreement still needs to be approved by the Council's Permanent Representatives Committee (Coreper). After formal endorsement by the Council, the new  legislation will be submitted to the European Parliament for a vote at first reading and to the Council for final adoption.

This should enable the new regulation to enter into force by mid 2017.

Place:          Europa building, Brussels
Chair:         Edward Scicluna, Minister for Finance of Malta 

All times are approximate and subject to change. 

from 08.00 
Arrivals (live streaming) 

+/- 08.30    
Doorstepby Minister Scicluna 

+/- 09.00    
Ministerial breakfast (Roundtable) 

+/- 10.00    
Beginning of the Council meeting
Adoption of the agenda

VAT fraud - "reverse charge" mechanism (public session)
Presidency work programme (public session)
Approval of non-legislative A items
Economic governance - 2017 European Semester
Banking reform - Basel Committee
EU budgetary own resources                  

At the end of the meeting
Press conference (main press room JL building) (live streaming)

The President of the European Council, Donald Tusk received the letters of credentials of the following Ambassadors:

H.E. Mr Gonzalo GUTIERREZ REINEL, Ambassador, Head of the Mission of Republic of Peru to the European Union
H.E. Mr Lok Bahadur THAPA, Ambassador, Head of the Mission of Nepal to the European Union
H.E. Mr Mohammed Shahdat HOSSAIN, Ambassador, Head of the Mission of People's Republic of Bangladesh to the European Union
H.E. Mr Wali J. MONAWAR, Ambassador, Head of the Mission of Islamic Republic of Afghanistan to the European Union
H.E. Mr David HALES, Ambassador, Head of the Mission of  Cooperative Republic of Guyana to the European Union

On 27 January 2017, the Council extended until 31 January 2018 a freeze on the assets of 48 persons deemed to be responsible for the misappropriation of state funds in Tunisia and those persons and entities associated with them.

The sanctions were initially introduced on 31 January 2011, targeting former president Zine El Abidine Ben Ali, his wife and 46 other persons. The Council considered that the misappropriation of state funds is depriving the Tunisian people of the benefits of the sustainable development of their economy and society and undermining the development of democracy in the country. Those restrictive asset-freezing measures have been renewed every year since 2011.

The decision will be published in the Official Journal of the EU on 28 January 2017. It was adopted without debate by the Council of Ministers, meeting in the Economic and Financial Affairs Council (ECOFIN).

During the last four years, as president of the Eurogroup, I have spent many debates, interviews and Q&A sessions explaining what's actually going on in the Eurozone and what we are doing to fix it. During this time, I have seen the economic facts, figures and results improve. But much less so, the sentiment. A lack of trust perseveres. 

The topics changed over the course of time. Cyprus stepped into the spotlight in 2013 and has since recovered, leaving its support program already in 2016. Spain needed a much smaller banking program from the ESM than expected and left the program at the end of 2013. Ireland, badly hit by a credit-boom-bust cycle, left its program also end 2013. Portugal followed in 2014.

And all of these countries came out with improved competitiveness, with regained access to markets and with strong growth. Spain, Ireland, Cyprus are now among the fastest growing economies in the eurozone.

More and more countries have growth around 2 to 3%, the forecast for the Netherlands has been upgraded to 2,1%. The average growth is now 1.5%. Not enough, but it is improving.

Greece has more fundamental issues, economic and institutional, and here trust is still a key issue. Trust between euro member states but also trust of consumers and investors in the stability of the Greek economy. Since we hit rock bottom in the summer of 2015 we have entered into a constructive dialogue with the Greek authorities in the third programme.

Growth has returned and work is progressing, though not as fast as many would want, the Greek government included. The fiscal situation has also improved drastically since the depth of the crisis. When I came into office the average deficit in the Eurozone was below -4, now it is close to -1.5%. A deficit of -1,5% on average. And the divergence has been reversed. Austerity is no longer at the heart of our debate in the Eurogroup. The emphasis is much more on reforms and investments.

Investments are picking up, helped by the Juncker plan. And there is more space for public investments to supplement private investments. 
However, I believe more reforms in markets and institutions are needed to create more investment opportunities throughout the eurozone. 

In Europe we had to save many banks at a huge price. And we failed in the first years to recapitalize and clean up their balance sheets. But after the government leaders decided to create the Banking Union, mid 2012, we designed its structure and negotiated its authority in record period of time.

Only two years after this decision, at the end of 2014, the Banking Union was set in motion with the Asset Quality Review, a thorough check of the financial health of the balance sheets of the major banks. Many banks have since then been restructured and recapitalized, a process which is still continuing. Also, the legacy problems in Italian banks are being dealt with; finally some would say.

Solutions will have to be found within the setup of the Banking Union. A lot of attention is given, also in the media, to Banca Monte dei Paschi di Siena (MPS) but at the same time other banks are in the process of being restructured or recapitalized through private solutions. Unicredit, Italy's largest bank, much larger than MPS, is currently in the process of raising approximately 13 billion euro amongst private investors. In the case of MPS a solution should and will be be found in case of possible mis-selling of bank bonds to certain retail customers.

So, to sum up: 
1. All member states that needed financial help during the crisis - perhaps except one - are now standing on their own legs again.
2. The fiscal situation throughout the Eurozone has improved.
3. And the Banking Union has helped stabilizing and further strengthening the financial sector.

So it is fair to say the Eurozone has left the crisis behind. Still, the apocalyptic stories about the euro remain unchanged. I'd like to address three reasons for that.

First, as mentioned in the introductions, the political situation in this election year. Second, Brexit and its consequences. Third, inevitably the start of president Trump last week.

Elections always cause political uncertainty. And this year, with several important elections coming up, this uncertainty is even bigger, because populist parties rank high in most opinion polls. Coming from the Netherlands we have known a major extreme right populist party for 15 years now. With a constituency that fluctuates between 10 and 20% of Dutch voters. Due to our political system it is quite easy for new parties to enter parliament. At the same time, our system also results in many parties - big and small - in parliament and therefore coalition governments. And given the outspoken concerns many parties in the Netherlands have expressed, a coalition with the extreme right populists is very unlikely. So I'm convinced the next Dutch government will again be a coalition of the center or moderate parties.

In Germany the AfD will grow but remain a small group in the German parliament - also here due to the system - and will probably not be part of any thinkable coalition.

France will have the second round in its presidential election in May and it could turn out more surprising than many imagine. Fillon came up very quickly and beat Sarkozy. And former Minister of economic affairs Macron's star is rising very fast. Both Fillon and Macron are reformists with an ambitious agenda to modernize the French economy. And Macron, also a very outspoken pro-European, also pleads for economic reforms in Europe. Meanwhile in Italy, there is an interim government in place and it is for now uncertain when elections will take place.

My point is: where many may expect or fear a turn to the (far) right, the outcome of all these elections is unknown and could be, again, quite moderate. My best guess is that at the end of this year Germany, France and the Netherlands will still be governed by mainstream, sensible politicians. Then will also be a good moment to push ahead on a number of topics regarding the future of the EU and the Eurozone.

Second, let me make some remarks about Brexit. The UK decided to leave the EU and we have to accept that. Full stop. And let's be honest, the British have always been an uncomfortable member of the union for some time. Their attachment to their traditions, history and cultural heritage has always, over centuries, been very strong and the EU has been too intrusive for them.

This argument, or sentiment, is not unique but it is uniquely strong in the UK. And it was a major issue in the Brexit campaign, as was migration. Perhaps that wasn't strange, if you look at the way the UK has dealt with migration. Where the UK allowed migrant workers from central and eastern European immediately into their labour market without constraints, other countries like Germany and the Netherlands, protected their labour force for another 7 years. These were years where economic convergence took place between the east and west of Europe. Where the UK allowed migrants tax benefits other countries avoided this.

The discontent about the following migration influx fed into the persistent euro critical attitude, with the Brexit as a result. And I say that with great regret. My family history is so much intertwined with England that no one is more sorry to see them leave. To tell you one story, my father's home town in the south of the Netherlands, was liberated by British troops in 1944. He was 15, almost 16 years old at the time. Some of the British soldiers were only a few years older. And directly after the war at the age of seventeen, my dad got on his old pushbike, and cycled all across England and Wales to visit his liberators and to meet up with the English soldiers. They became lifelong friends. And that is how I will always see the British.

Notwithstanding we are lifelong friends, the current situation requires a fair settlement as soon as possible. The exit itself is already complex and costly, the future arrangement will be even more. In my mind it is inevitable that we will need a transition period to avoid a  disruptive process, equally damaging to both sides. Two topics have my special attention in the proces.

The first is the relationship between the City as the largest financial center in Europe, and the EU rules and regulations, standards and supervisors for the financial sector. It is unthinkable that the EU will allow UK based financial institutions full access to do business in the internal market without a sustainable coupling of future (dynamic) UK standards to the EU framework. At the same time I realize that, given the promise of full sovereignty, this will be a hard truth to accept for the British.

Secondly, we need to talk about taxes. We have made a lot of progress in pushing back tax avoidance in the last couple of years. 
The UK has played an active part in this. Yet, the work on this topic is far from finished.

In all of our countries - and the British are no exception - the people demand fair taxation, also for multinationals. And the only way to achieve this, is by far reaching international cooperation. The question now is, whether the UK will go the Trump-way or continue to work closely with its European partners. We have heard threats of going rogue and creating an offshore tax haven, just of the coast of Europe.
That would be a huge mistake. And it would certainly stand in the way of a fair trade deal that would suit us both.

Besides these possible pitfalls - and there are many more - I think the Brexit can also have a positive effect on continental Europe. I hope the Brexit will actually trigger a process of strengthening the EU. As chair of the Eurogroup I believe we should start a dialogue between all EU countries - including the non-euro member states - about stronger future relations and further integration, also for the monetary union.

Dear family of President Herzog, Excellencies, dear friends,

Shortly after taking office as President of the German Federal Republic in 1994, Roman Herzog was invited by the Polish President Lech Wałęsa to take part in a commemoration, on the fiftieth anniversary of the Warsaw Uprising. It was a time of heated historical debates and discussions about the wounds that could not heal. Not everybody in Germany thought that an inexperienced president should choose Poland, and specifically such a ceremony, as the destination of his first foreign visit. And not everybody in Poland accepted the participation of a German president in such a commemoration, in such a place. Newspapers published opinions of Polish citizens, both for and against. And then President Herzog came and offered Polish people words which were surprising, honest, bold and deep. He used language which won over many sceptics. Newspapers were now printing statements by Polish citizens, including veterans of the Warsaw Uprising, expressing respect for the President and taking back their earlier objections. We know that this doesn't often happen. This is one of the reasons why we consider Roman Herzog's Warsaw speech extraordinary and historic. And so, if today we refer to him as a president of 'open words', who did not like to 'beat about the bush', we in Poland understand this in a very specific way.

It is worth recalling this now, a few days before the Day of Remembrance for the Victims of National Socialism, which was initiated by President Herzog himself on the twenty-seventh of January, the anniversary of the liberation of Auschwitz.

Roman Herzog belonged to a generation that had a living memory of the bad past - which for them was a source of motivation to reinforce European integration. This generation knew how high the stakes were. That is why President Herzog made calls not to treat the unification of the continent in terms of a 'technique of living together', 'eine Technik des Zusammenlebens', but in terms of a political and cultural identity. Only then would Europe be able to survive in an increasingly diverse and volatile world - and to counter external threats. Those words from 1997 take on new substance and a sinister relevance today. It can be added, following President Herzog's argumentation, that Europe cannot remain only a project of older people, who have memory. What about the young ones, who do not remember? They will never produce this specific motivation to support a unified Europe. But since they do not remember, they should use their imagination.

It was already many years ago that Roman Herzog advised his compatriots to stimulate their imagination with the idea of freedom, that extraordinary experience from the Autumn of Nations of 1989. Freedom is our collective gift. Perhaps it is worth following his advice today, when we need to rebuild unity and trust in the European Union. If 1989 is considered the most European year since the Revolutions of 1848, known in some countries as the Spring of Nations, then perhaps it will provide a strong impulse for a discussion about why we must defend our community, its principles and institutions. And we will better understand that behind the often very technical debates in Brussels, there is actually much more at stake.

A prominent lawyer and a constitutionalist, Roman Herzog would be able to demonstrate to us for example that freedom is indispensable to the reconstruction of a European sense of community. Without it, any alternative attempts at unity, based purely on 'identity', would have no reference to civil liberties. They would not create sufficient justification or instruments to protect human rights or the rights of minorities. Roman Herzog chaired the First European Convention, which in the years 1999-2000, drafted the Charter of the Fundamental Rights of the European Union, of which I would like to quote - and stress - the following words:  "[…] the Union is founded on the indivisible, universal values of human dignity, freedom, equality and solidarity; it is based on the principles of democracy and the rule of law" With you, Mr President, it would be much easier to continue to uphold and defend these values. With the Charter, President Herzog equipped us with an important instrument in the fight against national egoisms and populism. Until his last days he spoke about fundamental issues of integration. And his words were always meaningful and carefully listened to.

At the same time, Roman Herzog was a sober pragmatist, a critic of a European construction struggling to free itself from excessive regulation and ambition to standardise everything. He made calls to focus on the issues that really mattered, to discourage any hard feelings from Europeans disappointed with a Union that interferes in issues that could be solved on a local or national level. He would certainly agree with the realistic approach that European politics will always be a matter played out between Member States and the EU institutions. There are enough roles and tasks for both sides in it. And there is no need to bring down all the partition walls of the European building to reinforce that integration.

As already mentioned here today, everyone in Germany remembers Roman Herzog's famous speech from 1997, about the need for a 'jolt', for a refreshing shock to inspire the country, which, as he said, should make better use of its obvious advantages. His diagnosis of the situation resonated far and wide also outside Germany. It can also be applied to a large extent to the present situation in the European Union. In a similar way to President Herzog in 1997 in Berlin, also in Brussels we say today that it is not the ideas we lack, but the determination to implement them. In a similar way to him, we seek more trust in our capabilities as well as recognition of our achievements. And we understand him well when he complained that the German word 'Angst' had appeared in other languages, as a symbol of a general mindset.

Today we should promise the President that we will take his message to heart and we will take advantage of the instruments he co-created for Europe. And that 'Angst' will not be an expression of our European mindset today. Yes, Mr President, 'auch durch Europa muss ein Ruck gehen'.

European Council meeting will take place on 9 and 10 March 2017 in the Europa building in Brussels. The press centre remains located in the Justus Lipsius building. 

• If this is your first registration, please make sure you have a recent ID-size photograph in JPEG format (.jpg) and the number of your passport or identity card ready before starting the online process.
• You will receive an acknowledgement of receipt by email. Please read it carefully as it includes the list of original documents you will be asked to provide when collecting your badge. Depending on your profile, the requested document will include: Passport or ID card, press card and/or a letter from your editor-in chief as well as the signed original of your authorisation for security screening (only for media representatives of Belgian nationality or resident in Belgium). The press centre may contact you to request additional information if necessary. No accreditation badge will be issued if you cannot provide all required documents.
• Under certain conditions it is possible to organise a group registration/collection of badges for journalists working for the same media. Select group registration at the beginning of the accreditation process and follow the instructions.
• Trainees with media organisations who do not possess a press card are not entitled to request accreditation

Journalists holding a 6-month badge (01.01.2017 - 30.06.2017) do not need to register

6-month badges can be collected at the accreditation centre of the LEX building during summits. Please ensure that you have all the required documents when collecting your badge.

Accreditation badges must be collected in person from the LEX building (145 rue de la Loi, Brussels)  

• Wednesday 8 March - 9.30 - 13.00 and 14.00 - 18.00
• Thursday 9 March - 8.30 - 20.00 
• Friday 10 March - from 08.00 to the end of the final press conference (max. 22.00)
  
  

Practical information on the press centre and the media programme will follow.

For more details on the European Council meeting, see the meeting page.

Tuesday 24 January 2017
Berlin
12.20 Speech at the State funeral in honour of former President Roman Herzog

Wednesday 25 January 2017
11.00 New Year's reception at the Royal Palace (Brussels)
14.00 Presentation of letters of credentials of ambassadors

Thursday 26 January 2017
15.00 Meeting with Prime Minister of Montenegro Duško Marković: press statements ±15.30 (Europa Building)

Friday 27 January 2017
13.00 Meeting with European Commission President Jean-Claude Juncker (Berlaymont)

A new set of rules to increase the financial transparency of ports and create clear and fair conditions for access to the port services market throughout Europe was formally adopted by the Council on 23 January 2017. 

The regulation will make it easier for new providers of certain port services to enter the market. It will create a more level playing field and reduce legal uncertainties for ports, port service providers and investors. This should encourage investment in ports, improve the quality of services provided to port users, and even help reduce prices. 

The new rules will ensure transparency of port charges and public funding of ports. This will lead to better use of public funds and the effective and fair application of EU competition rules in ports. At the same time the new rules are designed to take into account the diversity of the sector across Europe. 

Hon. Joe Mizzi, Minister for Transport and Infrastructure, said: "I welcome these reforms. The port sector is vital to the success of Europe's economy, and it stands to benefit from the increased transparency and clarity which these new rules bring." 

This final vote by the Council concludes the procedure at first reading. The European Parliament voted on 14 December 2016. The legal act will be signed by both institutions in mid-February and published in the EU Official Journal a few weeks later. It will enter into force 20 days after its publication. 

For more information, see our press release from 29 June 2016 (link below).

The EU is responding to the rising demand for wireless connectivity by opening a key frequency band for mobile broadband. At the same time, the new rules take account of the continuing need for adequate bandwidth for television broadcasting. On 20 January 2017 member states' ambassadors endorsed the deal concluded with the European Parliament on 14 December 2016.

Dr Emmanuel Mallia, the Maltese Minister for Competitiveness and Digital, Maritime and Services Economy, said: "Today's decision means faster and better internet access, which is good for businesses and individuals right across Europe. We are also paving the way for the introduction of 5G technology, which will allow for greater connectivity and innovation."

Under the agreement, EU countries will reassign the high-quality 700 MHz frequency band (694-790 MHz) to wireless broadband services by 30 June 2020. This coordinated use of airwaves will promote the take-up of 4G and help offer higher speeds and better coverage even in rural areas. It will also make it easier to roll out 5G (expected from around 2020), allowing for the large-scale introduction of innovative digital services such as telemedicine, connected cars and smart cities.

If member states are unable to meet the 2020 deadline, they may delay the reallocation by up to two years in duly justified cases. The agreed text sets out the possible reasons for such a delay. These include for example financial reasons and harmful interferences resulting from unresolved cross-border coordination issues.

The 470-790 MHz range is currently widely used for digital television broadcasting and wireless microphones, for instance in theatres, concerts and sporting events.

To give the audio-visual sector long-term regulatory predictability, broadcasting services will maintain priority in the sub-700 MHz band (470-694 MHz) at least until 2030, based on national needs. Member states will have the flexibility to use this range for other purposes, including mobile internet services, but this use must be compatible with broadcasting needs.

All EU countries must adopt a national roadmap by the end of June 2018, setting out how they will implement the decision. These roadmaps will be public.

Once the agreed text has undergone legal-linguistic finalisation, it must be formally approved first by the Parliament and then by the Council (agreement at first reading). The procedure is expected to be completed in spring 2017.

Place:        Europa building, Brussels
Chair:       Roderick Galdes, Parliamentary Secretary for Agriculture

All times are approximate and subject to change

+/- 09.00
Arrivals
VIP entrance, Europa building 

+/- 08.50
Doorstep by Roderick Galdes 

+/- 10.00
Beginning of the meeting (Roundtable TV/Photo opportunity)
Adoption of the agenda
Adoption of non-legislative A items 
Adoption of legislative A items (live streaming) 

+/- 10.15
Presidency work programme (live streaming) 

+/- 10.40
International trade issues
- Opening of trade negotiations with New Zealand 

+/- 12.25
Any other business
- Conference of directors of paying agencies
- Exceptions from rules on protected designation of origin for wine  

+/- 14.50
Market situation - milk package report
- Outbreak of avian flu 

+/- 17.00
Press conference in Justus Lipsius building (live streaming)

I want to congratulate you warmly on your election as President of the European Parliament, and to wish you and all the Members of the House well for 2017.

No-one can have any doubts that it will be an extraordinary year for Europe and the European Union. Last year, we managed to make progress on migration, security and the economy in spite of the unprecedented difficulties we faced. This was thanks, in great part, to your hard work and sense of responsibility in responding to events. Similarly,  I trust that we will rise together to meet the challenges of the next months.

I would now like to briefly outline the main results of the December European Council. Leaders discussed our efforts to regain control on migration. The radical drop in irregular migration on the Eastern Mediterranean route was possible thanks to our decision to get back to Schengen, the closure of the Western Balkan route and Turkey's co-operation. In this context, leaders stressed their commitment to implement the EU-Turkey Statement, which also requires efforts from the Turkish side.

As regards the Central Mediterranean route, High Representative Mogherini reported on the progress with African countries. Last year, one hundred and eighty thousand  migrants arrived irregularly to Italy. This is a situation that cannot continue. That is why Libya and our approach to the Central Mediterranean route will be the key point of the next informal summit in Malta.  As you know, the EU supports the Government of National Accord and its efforts to consolidate peace and stability in Libya. We stand ready to step up the EU's engagement to strengthen the capacity to address security issues and consolidate institutions, in full respect of Libyan sovereignty.

As for Ukraine, we adopted a legally-binding decision of the leaders to facilitate the ratification of the Association Agreement in the Netherlands. This decision addresses the concerns expressed by the Dutch voters last year. Now, the responsibility lies with the Netherlands. The ratification is important not only for Ukraine, but also for Europe's geo-political standing and credibility. We did what we could to help save the Association Agreement already ratified by 27 Member States and the European Parliament. Now the ball is in the court of the Dutch.

On the Minsk agreements, Chancellor Merkel and President Hollande gave their assessment of the Normandy process for resolving the conflict in eastern Ukraine. Their clear recommendation was, that since Russia has still not implemented the Minsk agreement, sanctions should be prolonged. They are now in place for a further six months.

The world has become a more dangerous place, whether we talk about open conflict, terrorism or so-called hybrid war in the form of cyberattacks and public disinformation. Therefore, leaders agreed to step up work on defence, in partnership with NATO. They have also agreed to increase co-operation on external security across the board - from research to how we develop military capabilities, right down to how we conduct our missions and operations. More resources will be needed, most importantly at the national level on defence spending, but also  through funds from the European Union. Your support to this work will be critical, given the institutional and financial questions involved. The objective is clear. European countries should do more in the face of immediate security threats facing our citizens, and so should the European Union.

Leaders also discussed internal security. The political agreement on the EU's Counter-Terrorism Directive, which criminalises foreign fighters and their activities throughout the European Union, is a right step forward, but we need more. Leaders called for the remaining decisions which can prevent future terror attacks to be swiftly finalised and implemented, such as for example tougher legislation on firearms. We have called on the co-legislators to agree by June on an Entry/Exit System, and by the end of 2017, on a European Travel Information and Authorisation System. This will ensure that visa-exempt travellers are screened systematically. These are tough deadlines, but the situation requires that we work more quickly than normally.

Leaders also discussed several initiatives aimed at making the European economy work for everyone. We had an exchange with President Draghi, who underlined that the improved economic situation still needs reform efforts. The statistics are better, but the important thing is for ordinary people and businesses to feel confident about the future. This is why the European Fund for Strategic Investment will be extended, our trade defence instruments will be modernised, and the Youth Guarantee will be continued. To strengthen our recovery, 2017 needs to be a year of great ambition for the Single Market, both in terms of deepening and modernisation. The Parliament's role is obviously vital here.

Finally, on Brexit. The EU27 had a short informal meeting where we agreed procedural arrangements and reconfirmed our principles, namely the indivisibility of the four freedoms, the balance of rights and obligations and our rule of 'no negotiations without notification'.

The European Council will maintain political control over the process, while ensuring that the Commission is the Union's chief negotiator. The leaders fully realise the important role of the European Parliament in the process. With this in mind, they invited the chief negotiator to keep the Parliament closely and regularly informed, and agreed how the European Council will interact with the Parliament throughout the coming months. With this work now done, the EU stands ready to start the negotiations when the UK notifies its departure.

Lastly, let me make one comment. Yesterday's speech by Prime Minister May proves that the unified position of 27 Member States on the indivisibility of the Single Market was finally understood and accepted by London. It would be good if our partners also understood that there will be no place for pick-and-choose tactics in our future negotiations. At the same time I want to underline, that we took note of the warm and balanced words of Prime Minister May on European integration, which were much closer to the narrative of Winston Churchill than that of the American President-elect Trump.