In response to the air strike that hit the town of Khan Sheikhoun in Idlib province on 4 April 2017, with many victims displaying symptoms of gas poisoning, the EU (in its Declaration 193/17 of 6 April 2017) has been unequivocal in its condemnation of the use of chemical weapon: the use of chemical weapons or chemical substances as weapons amounts to a war crime and identified perpetrators must be held accountable for this violation of international law.
The US has informed the European Union that, based on their assessment that the Syrian regime has used chemical weapons, they launched a strike on Shayrat Airfield in Syria with the understandable intention to prevent and deter the spread and use of deadly chemical weapons. The US also informed us that these strikes are limited and focused on preventing and deterring further use of chemical weapons atrocities. The EU will continue to support the efforts and work of the OPCW, in particular in Syria, including the OPCW-UN Joint Investigative Mechanism, with regard to the investigation of the use of chemical weapons. Those found responsible should be sanctioned within the framework of the United Nations.
The EU firmly believes that there can be no military solution to the conflict and is committed to the unity, sovereignty, territorial integrity and independence of the Syrian State. Only a credible political solution, as defined in UNSCR 2254 and the 2012 Geneva Communiqué will ensure peace and stability in Syria and enable a decisive defeat of Da'esh and other UN-designated terrorist groups in Syria.
The EU reiterates its support to the UN-mediated intra-Syrian talks in Geneva to reach a political solution to the Syrian conflict. This is even more urgent now, as reaffirmed by the International Conference "Supporting the future of Syria and the region" that the European Union hosted in Brussels on 4-5 April 2017.
Good afternoon and welcome to this press conference, here after the Eurogroup in Valletta. I want, first of all, to thank the Maltese hosts for the excellent organisation and the wonderful venue for today's discussions. Today in the Eurogroup, we welcomed Danièle Nouy of the ECB Supervisory Board and Elke Koenig of the Single Resolution Board. They joined us to speak about their work, as they do on a regular basis.
Let me start with Greece. We have achieved significant progress on the second review since the last Eurogroup in March. As you remember, then, on my initiative, we had changed the strategy, we had changed the order of things and we had intensified talks to, first of all, reach an agreement between the institutions and the Greek government on the key elements, the overarching elements, of the policy package, let's say the big reforms, and once that was achieved, to finalise details and solve the remaining smaller issues. We have been successful in doing so. So that is the news I can bring you today. We have an agreement on those overarching elements of policy, in terms of size, timing and sequencing of the reforms, and on that basis, further work will continue in the coming days, with a view for the mission to return as soon as possible to Athens to complete the work.
Let me give you some headlines. We have agreed on a 2% reform package, 1% in 2019 mainly based on pensions, 1% in 2020 in principle, mainly based on personal income tax. And we agreed that the Greek government can also, in parallel, legislate expansionary measures, on the assumption that the economy is doing better and the fiscal path is doing better than expected, and using the fiscal space that then will be created by these additional reforms.
We invite the institutions and the Greek authorities to continue the work putting the last dots on the "i's" and to reach a full Staff Level Agreement as soon as possible.
Once a Staff Level Agreement is reached, the Eurogroup will come back to the issue of the medium-term fiscal path for the post-programme period and debt sustainability, building on what we have already agreed in May 2016, in order to reach that overall political agreement. And it is very important for Greece that we do this as soon as possible. But, as we said, the big blocks have now been sorted out and that should allow us to speed up and go for the final stretch.
Moving on to the banking sector. Danièle Nouy and Elke Koenig gave a timely update on recent developments in the financial sector, as well as on the key challenges and priorities that both institutions have in the coming months.
We welcomed the news that the banking sector in the Eurozone, or should I say in the banking union, is in a better shape. But, of course, some important legacy issues still remain; are being addressed; have been clearly identified and we will take the necessary decisive actions within the banking union framework. Overall, we commended them for the excellent work done by these still relatively new institutions and encouraged both them and the Commission to continue to work closely together. Looking forward to our next debrief by them in the autumn.
Third, we held one of our regular thematic discussions on growth and jobs, today on supporting investment in the euro-area. Investment in the euro-area is running still at lower levels than before the crisis, particularly in some member states. Addressing barriers to investment is therefore a clear priority for euro-area member states and the euro-area as a whole. If we address these weaknesses, we can also work on the convergence of member states' economies, and that element of convergence should be our top priority in economic terms.
We started this work with a first exchange of views in July 2016 and followed it up in February, with a discussion on ease of doing business, particularly looking at public administration and sector-specific bottlenecks.
Today, we were able to build on that previous work and agreed on three common principles. These cover, in general terms: first of all, promoting private investment; secondly, prioritising productivity-enhancing public investment; and third, developing market-based sources of finance, broadening the sources of finance throughout the Eurozone. A document has been prepared by the Commission and will be published. Our common principles and statement has been drawn up by the Eurogroup. Our common principles will help us to focus on these reforms, we will exchange best practices, the Commission will monitor these topics for us, allowing the Eurogroup to regularly take stock of the progress that is made.
Finally, the institutions briefed us on their post-programme surveillance of Cyprus, one year after the end of the programme. There is very good news on the economic recovery which, together with progress in previous years in fiscal consolidation, has led to a strong primary surplus. If we go back to the debt of the Cypriot crisis, you will remember that there was a contraction of, I believe, minus 6%. There is now a growth rate in Cyprus of, I believe, 3% or maybe even over 3%. Our Cypriot colleague commemorated that before the crisis of course, the Cyprus was also at high growth figures, but then it was based on over expenditure on the public side and over-crediting in the banking sector. Now, it is solid growth and not based on risky economic developments. So, very strong and very good performance in Cyprus, on which, of course, we complimented the Cypriot authorities. The Cypriot government also reconfirmed its commitment to the reform effort. The time that they still have will be used to the max to work further on dealing with some of the remaining vulnerabilities in Cyprus, as in the financial sector, NPLs and any budgetary challenges. So that was a good news to end with.
Anyone getting too comfortable with the idea that Paolo Gentiloni and his competently low-key Italian government can make it until 2018 was given quite a jolt this week. Mr Gentiloni, who took over as prime minister last December from Matteo Renzi, is in fact skating on pretty thin ice.
This week brought a vivid reminder of that reality. In Italian politics, there is an ever-present danger that even the smallest accidents can spiral out of control.
Read moreThe Eurogroup is fully committed to supporting economic growth and jobs and holds regular thematic discussions to explore and define common policy ambitions to this end.
Investment in the euro area still shows signs of weakness, especially in Member States heavily hit by the crisis. At its meeting on 11 July 2016, the Eurogroup highlighted that addressing barriers to investment is a clear priority for euro area Member States. Investment is explicitly addressed in the 2017 Council recommendation on the economic policy of the euro area as well as in the 2016 Country-Specific Recommendations for several euro area Member States.
The Eurogroup considers that addressing investment weaknesses can increase the convergence of Member States' economies and foster the rebalancing process, thereby improving the resilience of the economic and monetary union. In this regard, the Eurogroup acknowledges the importance of EU-level initiatives, which are of specific relevance for the euro area, inter alia the Investment Plan, further deepening the Single Market and building a fully-fledged Capital Markets Union. At national level, further efforts should be made to improve the conditions for investment, not least to reap the full benefits of these initiatives.
The Eurogroup thus endorses the following common principles, which should guide initiatives at Member State level when implementing reforms in this field:
Reforms should aim at promoting private investment and facilitating resource reallocation. Improving the business environment and the quality of public administration and addressing sector-specific bottlenecks will contribute to making product markets more reactive and flexible. These efforts should be complemented by labour market policies aiming at facilitating geographical, sectoral and occupational mobility.
Productivity enhancing public investment can play a crucial role and should be prioritised to boost growth in the short run as well as potential growth in the medium to long run, while ensuring full compliance with the SGP. In particular, investment in network infrastructure can have an important impact on growth and productivity. Public investment can also be mobilised to leverage private investment. In addition, fostering knowledge-intensive and sustainable growth, including via subsidies and incentives for investment in R&D and improvements in the quality of education can help increase the returns on investment.
Market-based sources of business financing should be developed to widen the range of available forms of financing. The availability of non-bank sources of financing - including venture capital, crowdfunding and market-based finance - can improve the resilience of euro area firms, and in particular SMEs, when confronted with an adverse shock and provide new opportunities for cross-border activities.
Reforms to support investment should be complemented by flanking policies aiming at improving the quality and governance of public institutions. This includes measures for an effective judicial system and insolvency framework, fighting corruption and promoting more transparent, open and efficient public procurement.
The Eurogroup also approves these common principles as a reference point for reviewing national reform efforts. These will help Member States identify examples of policy successes and also help address investment weaknesses for euro area Member States, whilst taking due account of country-specific situations. The Eurogroup thus invites the Commission to assess developments in this field within its usual surveillance processes, with a view to allowing periodic monitoring by the Eurogroup, including in the context of the discussions on the Council recommendation on the economic policy of the euro area. The Eurogroup also invites its preparatory committees and the Commission to develop an exchange of best practices across a selected number of relevant areas. The Eurogroup expects to revisit this workstream and examine the feasibility of developing appropriate benchmarking in this area on the basis of progress achieved at technical level.
The President of the European Council, Donald Tusk received the letters of credentials of the following Ambassadors:
H.E. Mr Od Och Head of the Mission of Mongolia to the European Union
H.E. Mr Abdulrahman bin Mohammed Sulaiman Al-Khulaifi, Head of the Mission of the State of Qatar to the European Union
H.E. Mrs Jacqueline Marie Zaba /Nikiema, Head of the Mission of Burkina Faso to the European Union
H.E. Mr Raúl Fernandez Daza, Head of Mission of Chile to the European Union
H.E. Mrs Julia Emma Villatoro Tario, Head of Mission of the Republic of El Salvador to the European Union
The EU condemns in the strongest terms the air strike that hit the town of Khan Sheikhoun in Idlib province on 4 April 2017, which has had horrific consequences, causing the deaths and injuries of scores of civilians including children and relief workers, with many victims displaying symptoms of gas poisoning.
The EU urges the United Nations Security Council to come together, strongly condemn the attack on Khan Sheikhoun and ensure a swift, independent and impartial investigation of the attack.
The OPCW's Fact Finding Mission (FFM) is in the process of gathering and analysing information from all available sources. While the investigation into this attack is ongoing, the EU is deeply worried to note that the Syrian regime has previously used chemical weapons in 2015, as identified in the August and October reports of the OPCW-UN Joint Investigative Mechanism, and which the EU strongly condemned at the time. In this context, the EU reiterates that as a party to the Chemical Weapons Convention, the Syrian regime has explicitly obligated itself to refrain from the use of chemical weapons and that the Syrian regime has the primary responsibility for the protection of the Syrian population. The EU therefore calls on the regime's allies, notably Russia, to exercise appropriate pressure on the Syrian regime to this end.
The use of chemical weapons or chemical substances as weapons amounts to a war crime. Their use in Syria, including by the regime and Da'esh, must stop and identified perpetrators must be held accountable for this violation of international law.
Those guilty of violations of international law and the use of chemical weapons have to be sanctioned accordingly. In March, the EU added 4 high-ranking Syrian military officials to the sanctions list for their role in the use of chemical weapons against the civilian population, in line with the EU's policy to fight the proliferation and use of chemical weapons.
The EU will continue to support the efforts of the OPCW in Syria with regard to the investigation of the use of chemical weapons and considers that such efforts have to be continued in the future by the international community.
This attack constitutes a flagrant violation of the ceasefire. It underlines the urgent need for a real and verified ceasefire. The EU calls on Russia, Turkey and Iran to live up to their commitments as guarantors in this regard.
Attacks of this kind only reinforce the urgent need for a genuine political transition in Syria and the EU's will to support UN efforts to broker a political solution to the Syrian conflict through the intra-Syrian talks in Geneva, as reaffirmed at the International Conference "Supporting the future of Syria and the region" that the EU hosted in Brussels on 5 April 2017.
Senegal and the EU have developped a close partnership which includes a structured political dialogue, strong trade relations, a fisheries agreement, and technical and financial cooperation in support of the country’s populations. It involves a sustained partnership as much with government authorities and public institutions as with civil society and the private sector.
EU Finance Ministers of the eurozone are meeting on 7 April 2017 in Valletta to be briefed on progress achieved in the second review of Greece's economic adjustment programme and on the second post-programme review in Cyprus. It is discussing how to boost investment in the euro area and hearing annual reports by the banking union's supervisory and resolution authorities.
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Few expected the professors of Budapest’s Central European University to push back so strongly when their turn came in the form of a bill rushed through parliament on Tuesday, which may force its closure.
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