European Union

Plenary sessions : Although fast and effective for plant growth, chemicals pesticides entail potential risks for human health, animals and the environment. About 45% of food we consume contains pesticide residues with 1.6% exceeding legal limits, according to the European Food Safety Authority. MEPs want to promote the use of more natural pesticides and to simplify and speed up the approval process. Check our video for more information.

Source : © European Union, 2017 - EP

Plenary sessions : Although fast and effective for plant growth, chemicals pesticides entail potential risks for human health, animals and the environment. About 45% of food we consume contains pesticide residues with 1.6% exceeding legal limits, according to the European Food Safety Authority. MEPs want to promote the use of more natural pesticides and to simplify and speed up the approval process. Check our video for more information.

Source : © European Union, 2017 - EP

The Malta Declaration, on the external dimension of migration, was adopted by the members of the European Council at an informal EU Summit in Valetta on Friday 3 February 2017. Its adoption represents the continuation of a ‘one-eyed’ security-oriented strategy which impedes a more holistic vision of EU migration law and policy.

A silver bullet?

Daily tragedies in the Mediterranean Sea, the ‘refugee crisis’ and the growing terrorist threat have created a sense of political emergency that has reinforced member states’ focus on border management and return policies. The security-orientated approach to migration issues is not new but has gained increasing traction. The main objective now is to ‘stem the migrant flows’.

In this context, the results of the EU-Turkey deal have been lauded as providing vindication for the methods used to pursue that objective. Thanks to financial support from the EU, as well as certain other inducements such as visa liberalisation, the Turkish authorities have agreed to improve their border management. Together with the closure of the Western Balkan route and the reintroduction of internal border checks in the Schengen area, the EU-Turkey Statement helped to decrease the number of arrivals to the EU via the Eastern Mediterranean.

In a result-driven world that cares little for costs and effects, the EU-Turkey Statement is perceived as being a silver bullet that could be transferred to that other major entrance point of maritime migration: the central Mediterranean route. As Donald Tusk stated after a meeting with the prime minister of Libya: ‘We have discussed the example of our cooperation with Turkey and other countries in this part of the region. Now it is time to close down the route from Libya to Italy’.

Unworkable and difficult

However, replicating the EU-Turkey Statement with Libya is unworkable. Unlike Turkey, the Libyan ‘Government of National Accord’ which the EU is cooperating with, does not have full control over its territory. Unlike Turkey, Libya cannot be offered inducements such as accession talks or visa liberalisation. And finally, as the amount of financial support that Libya could receive is far below that which has been accepted by Turkey, Libya may well decide to increase its asking price.

In addition, the EU may find that solely focusing on migration management issues in its relations with African countries will be difficult. While third countries may need political and financial support, helping the EU with better managing migration flows may not be in their interest. Most African states do not want to keep their young and unemployed generation at home. Locking them into the country would in the end lead to further irregular migration. Hence, more options like legal migration, resettlement solutions, external processing and actions to limit push factors have to be included in the discussions.

Overcoming a hypocritical policy

The declaration does not go that far. It attempts to convince citizens that strong border management and return policies will help to stem migrant flows and will disrupt the business model of smugglers. This is hypocritical and highly questionable. One reliable option to destroy smuggler networks resides in the ability to offer migrants the opportunity to move legally, and therefore safely, to the EU. As long as EU governments refuse to address this policy imbalance, they will contribute to the existence of criminal enterprises.

One complementary way of dealing with the issue would be in external processing. Such a mechanism under an EU perspective is threefold. First, to examine asylum claims in a third country. Second, to resettle people whose right to asylum has been recognised in the EU. Third, to (voluntary) return migrants to their country of origin. An implicit reference to this is made in the declaration where leaders agree to seek ‘to ensure adequate reception capacities and conditions in Libya for migrants, together with the United Nations Refugee Agency (UNHCR) and International Organization for Migration (IOM)’. While this reference is minimal, it shows that discussions are at least underway. But discussions are not enough if they do not lead to acceptable and fair solutions.

Ahead of the Malta summit, the IOM and the UNHCR have indicated that establishing extra-territorial processing of asylum seekers in Libya and in North Africa is not appropriate at this time. The implementation of such a mechanism requires that a series of conditions have to be met, including a stabilised political situation in Libya and the establishment of adequate reception capacities and conditions for migrants. Whatever the political priorities are, turning external processing facilities into closed and militarised centres will in no way be an acceptable answer. The process must consider the rights of migrants and refugees and be based on the full involvement of the UNHCR and the IOM.

There is no silver bullet solution for the challenges ahead. Instead, the EU must develop policies that look beyond the immediate political climate and produce a concrete set of proposals that are capable of addressing migration with a holistic and all-encompassing approach. The spirit that guided the Union’s founding fathers in 1957, a spirit grounded in hope, tolerance and freedom should inspire modern EU leaders to take bold decisions in order to fully respond to the challenges posed by migration to the EU. The 60th anniversary of the Rome Treaty could be just the occasion where the Union could make a serious effort to reconnect with that founding spirit in the context of migration. Unfortunately, for now, the Malta Declaration provides a stark warning that the EU is in danger of becoming a blind king.

The post EU external migration policy: the need for overcoming hypocrisy and adopting a holistic approach appeared first on Ideas on Europe.

Source : © European Union, 2017 - EP

Source : © European Union, 2017 - EP

Source : © European Union, 2017 - EP

On 28 February (17:00-18:00), High Representative/Commission Vice-President Federica Mogherini and Commission Vice-President Jyrki Katainen will present the draft European Fund for Sustainable Development (EFSD) at a joint meeting of the committees on Foreign Affairs, Development and Budgets. The EFSD aims at mobilising EUR 44 billion of investments in Africa and the Neighbourhood. The three committees plan to examine the proposal and adopt a report at the end of April.
Source : © European Union, 2017 - EP

The Council presidency, the European Central Bank and the European Commission met with European social partners on 21 February 2017 to discuss current economic conditions and the economic outlook, and the role of the fiscal stance in supporting growth.

In his opening statement, Edward Scicluna, minister for finance of Malta and president of the Council said:

"Economic activity in the EU is still moderate but improving.  However, the recovery is still characterized by uneven economic growth and significant differences in the state of public finances across the member states. This state of affairs raises the question of what role should fiscal policy play in supporting economic growth. Within this context, there is the need to find the right balance between the stabilization function and the sustainability aspect of fiscal policy."

Commission vice-president Valdis Dombrovskis said:

"The economic recovery in Europe continues for the fifth consecutive year. All EU member states are back to economic growth. In these uncertain times, however, it is important that European economies stay competitive and are able to adapt to changing circumstances. We need to continue our structural reform effort. We also need to make growth inclusive, ensuring that the recovery is felt by all, especially by most vulnerable members of society. Several countries with high deficit and debt levels should continue bringing them down to make their economies more resilient to domestic and external economic shocks. Several member states need to address persistent pockets of weakness in their banking sector, including a high level of non-performing loans."

European Trade Union Confederation (ETUC) general secretary Luca Visentini commented:

"The ETUC welcomes the Commission calling for expansionary fiscal policies. With the current low demand, low inflation and high unemployment, a fiscal stimulus is the right way to go. But the rules of the Stability and Growth Pact prevent member states from engaging in expansionary fiscal policies. The ETUC calls for a revision of the Stability and Growth Pact and improved economic governance, allowing our economies to recover and pave the way for sustainable growth. The ETUC calls for an increase in public investment and a pay rise for all workers across Europe, to increase domestic demand, growth and job creation. This would be the right policy for the EU to pursue."

Speaking on behalf of the Confederation of European Business, BusinessEurope, director general Markus J. Beyrer commented:

"It is clear that the EU economy has picked up momentum in recent months, with businesses having been responsible for the majority of the 3 million new jobs created in the EU in the last 12 months. But growth continues to be supported by a number of temporary factors. Our concern is that EU member states are doing too little to take advantage of the favourable economic conditions. Countries need to step up their reform effort to improve underlying growth prospects and increase the resilience of the EU economy in an uncertain global political environment."

For the CEEP, the European Centre of Employers and Enterprises providing Public Services, general secretaryValeria Ronzitti said:

"CEEP welcomes the proposal from the European Commission for defining a euro area fiscal stance. We see the recent EC communication as a call to responsibility for the member states, a call to start considering the euro zone as a whole and not just as the sum of its individual components. However, the Stability and Growth Pact alone cannot oblige countries with fiscal room for manoeuvre to make use of it. Hence this very good first step from the EC needs to be reinforced in the EMU's completion process. Indeed, there is enough evidence by now that when member states go for efficient investments in public infrastructures then they show a path for the whole EU and not just for themselves. This is a way with the means to fight the aftermath of the crisis while looking straight into the future of our European economy."

Speaking on behalf of Europe's SMEs, new European Association of Craft, Small and Medium-Sized Enterprises (UEAPME) secretary general Veronique Willems said:

"Currently SMEs benefit from internal demand driven growth, but we also see that this dynamic is fading-out. Therefore, Europe has to strengthen its efforts to increase public investments and attract more private investments. This requires fiscal policies supporting future growth and the implementation of all pillars from the investment plan."

On the debate about the fiscal stance of the euro area, Ms Willems stated: "We do not see that targeting a specific fiscal stance is the most important policy aim, priority should be given to the quality of spending, if future growth and employment is the aim".

For the future Estonian Presidency (July to December 2017), minister for finance Sven Sester remarked:

"The Stability and Growth Pact continues to be the cornerstone for the euro area co-ordination of EU fiscal policy and we have already stretched the interpretation limits of flexibility. In the context of the recovery taking hold and output gaps closing, we don't really see the need for more fiscal stimulus. Still high and elevated debt levels in many countries must be tackled in a sustainable way and the current low interest environment is giving its impetus for achieving this goal.  Therefore, growth-friendly fiscal policy should follow with a balanced policy mix. In this regard, structural reforms, investments and the quality of public finances should be prioritized."

For the future Bulgarian Presidency (January to June 2018), deputy minister for finance Marinela Petrova remarked:

"The European project has been undergoing both economic and political challenges that have been also marked by a degree of uncertainty over the future growth prospects. In the current macroeconomic situation with very low inflation and zero interest rates, public investments tend to be more efficient both for the surplus countries, which have fiscal space, and for the countries which examine the impact of these effects. For the small open economies, however, fiscal stability has to be the main policy goal as far as the fiscal multipliers tend to be of a less significance there. On the other hand, long term economic growth and sound fiscal policy go hand in hand. Hence, the approach of solving the policy dilemma for expansionary or contractionary fiscal policy should consider primarily the need to ensure the long term sustainability of public finance."

The Danish government is paying sickness and disability benefits to Danish citizens fighting in Syria for Islamic State. The PET (Danish Security and Intelligence Service) has identified 28 jihadis, Danish citizens fighting in Syria since 2014, who had been granted an early pension, or ‘førtidspension’, because they were judged too sick or disabled to work, and then gone to take part in the war in Syria.

It is a huge scandal that danish people disburse money from the welfare fund in Denmark for people who go to Syria, staying in a war zone and directly or indirectly taking part in military operations is not something that is in any way compatible with receiving disability benefits. PET provided the information as part of preparations for a parliamentary bill which aims to make it easier to cut off benefits to Danes fighting in Syria.
Last December the Ekstra Bladet newspaper reported that Danish municipalities and the country's state unemployment fund were attempting to claim back a total of 672,000 kroner ($100,000) in wrongfully disbursed payments from 29 of the 36 Danes PET then estimated were had been collecting benefits.

We know, since 2015, that ISIS fighters in Syria have been receiving also unemployment benefits from Denmark, according to the agency for Labour Market and Recruitment (STAR) via PET. Government data revealed that 32 Danish citizens have collected about 400,000 kroner ($57,000) in welfare from the government while fighting alongside the jihadist group in Syria.
Denmark’s unemployment insurance systems is one of the world’s most generous, as those on the dagpenge scheme can receive up to 801 kroner, around £78, per day for up to two years.

Denmark, congratulation! If you often refuse to financing EU CSDP missions/operations, please do not support our common enemies. After the scandal concerning the uneployment benefits, two additional years to unveil the abuse about disability benefits...

Source

Tag: ISISDenmark

The Netherlands kicks off what is bound to be an important and historic electoral year. With the French and the Germans also casting their ballots in 2017, Europe might look and feel very different by the end of the year.

13 million men and women are eligible to vote in the Netherlands. They must choose between 1,114 candidates, spread over 28 political parties.

But at first glance, there should be little reason to change course. The country is doing well: in 2016, the economy grew by 2.1% – it has grown for 11 quarters in a row. Consumer spending is growing. The unemployment rate is dropping and job growth is at its highest rate in five years.

The Netherlands is back to being an economically healthy country and one of the strongest economies in the world. The coalition of Liberals (VVD) and Labour (PvdA), led by Liberal Prime Minister Mark Rutte, is responsible for this success. The coalition was formed after the September 2012 election and it is the first cabinet this century to complete its full period.  Let’s make the Netherlands great again? Mission accomplished.

But the upcoming election is not about the economy. When you dig deeper, you find that the Dutch are in the midst of a severe identity crisis and an overall general feeling of discontent.

The Netherlands is a country once known and praised internationally for its entrepreneurial spirit, tolerance, solidarity and diversity. A country once known for looking beyond its borders – a big reason for its prosperity – is openly discussing rebuilding frontiers and looking more and more inward. Fear is leading the way; the Dutch are in desperate need of hope and change.

“The Dutch are in the midst of a severe identity crisis and an overall general feeling of discontent”

At this stage of the campaign, no-one seems to be able to address both the hopes and fears of the electorate. You are either pro-fear or pro-hope, and fear is currently winning. The polls show a country that is moving increasingly towards the Right, with the far-right PVV, led by Geert Wilders, leading the polls, followed closely by the Liberals.

Throughout history, the two biggest parties have included one from the Left and one from the Right. Having two right-wing parties leading the polls is unprecedented.

On the Left, there is no clear frontrunner. The Greens (GroenLinks) have a new party leader, Jesse Klaver, and stands at a record high in the polls. With grassroots and online campaigning inspired by the 2008 presidential campaign of Barack Obama, the party has organised so-called ‘meet-ups’ hoping to convince people to ‘vote for change’.

Labour, traditionally one of the biggest parties, is at a record low. They too have a new party leader: the current Deputy Prime Minister and Minister of Social Affairs, Lodewijk Asscher. The PvdA is being punished for joining the Liberals in government, but the party has also lost the loyalty of voters with a migrant background. For decades Moroccan Dutch and Turkish Dutch have backed the PvDA. For many of them, backing the party is no longer an option.

How migrants will vote is something to keep an eye on. Migrants are done with being ‘migrants’. In recent years these people, largely born and brought up in the Netherlands, have been raising their voices, (re)claiming their rights and questioning the Dutch status quo. The discussions, protests and arrests in recent years over the presence of ‘Zwarte Piet’ – a blackface companion of Saint Nicholas – is a prime example.

“Migrants are done with being ‘migrants’ – how they vote is something to keep an eye on”

The process of shedding off a solely ‘migrant’ identity and embracing and representing multiple identities has been reflected in politics as well. Denk (‘Think’), a new party formed by two former PvdA MPs, is attracting a large section of the bicultural Dutch people from the PvdA. But the pro-immigrant and anti-racism party is also attracting another group: bicultural people who have never voted before, but are motivated to do so for the first time.

According to the polls, Denk could get two seats in the parliament. But here’s the tricky part: the group Denk appeals to is not the group that gets polled. The party might become the game-changer of this election.

Most voters are yet to make up their minds. The post-election political landscape could be completely different to the one the polls are showing now. In recent years, the PVV’s support was inflated in the polls, but the party ended up with far fewer seats in parliament.

Even if the PVV does become the biggest party in this election, it is unlikely that Geert Wilders will become the next prime minister, as most parties have ruled him out as a coalition partner. It is more likely that we will get a third cabinet led by Mark Rutte – although he will need at least three, possibly four other parties to form a cabinet and reach a coalition agreement.

The current polls show that it won’t be quick and it won’t be easy. Forming a cabinet this time around may take a very long time. And new elections may even follow soon after.

Welcome to the new world of Dutch politics.

IMAGE CREDIT: Alexandru Nika/Bigstock

The post Migrants may be the game-changers in the new world of Dutch politics appeared first on Europe’s World.

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Ministers took a step towards resolving the splits with the IMF on the next stages of Greece’s bailout programme during a eurogroup meeting on Monday.

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Bonjour! And warm greetings from the University of Nantes, where the office of “Alliance Europa” is hosted. Alliance Europa is a new and – as we hope: innovative – regional consortium in European Studies. Initiated and supported by the authorities of the Pays-de-la-Loire, it brings together the researchers of 19 laboratories or centres based in higher education institutions between Le Mans, Angers and Nantes, in a common “Institute of European and Global Studies”. The new institute wishes to encourage interdisciplinary projects between its partner institutions, and both streamline and internationalise the rich offer in European Studies programmes and degrees provided by the different institutions of higher education across the region.

But Alliance Europa wants to be more than that. It was created in 2015-16 against the backdrop of a Europe in crisis, facing many political, societal and cultural challenges under the pressure of the globalisation process. More than ever, it is necessary to quit the Ivory Tower, join the debate, and build bridges between academic research and civil society.

Against this backdrop, Alliance Europa has launched “The Factory of European Ideas” (La fabrique des idées européennes), a laboratory of social innovation which has the vocation to be a “project nursery” where academics, civil society and socio-economic actors can join to test new ideas, from one-off events to larger associative initiatives. The first projects are under way – they concern cultural and pedagogical European projects, but also the association “European Migration Law”.

For the time being, Alliance Europa communicates mainly in French, on its website, on Facebook or Twitter. But thanks to “Ideas on Europe”, this is changing today. This blog will allow us to share a selection of articles previously published in French on the Alliance Europa multiblog named “L’Europe en jeu !” The first one is already scheduled for this week.

Stay tuned and feel free to get in touch!

The post Introducing Alliance Europa appeared first on Ideas on Europe.

Source : © European Union, 2017 - EP

Source : © European Union, 2017 - EP

Good afternoon everyone and sorry to surprise you with such a short Eurogroup. I guess half of your colleagues are out somewhere because they didn't expect us back already. 

I have a couple of sentences on the euro area economy, but I will let commissioner Pierre Moscovici say more on the basis of the winter forecast. 

We discussed the ease of doing business in the euro area. We had an interesting discussion where several colleagues told us what they were doing to improve the business climate in their countries - cutting red tape etc. - and this is all in our work stream on the investment climate and investments in the eurozone. We will continue work on that and come back to it in April. 

On the euro area economy, the recovery is clearly on track. There are lots of risks, downward risks also looming outside Europe and outside the euro area. Yet we are entering the fourth consecutive year of economic recovery and the recovery is gradually becoming stronger; real GDP grew steadily at 1.7% last year. 

Lots of positive signs coming from different euro area members states; the rate of unemployment is going down in most countries. I'll stop there and let the commissioner say more about that. 

Let me come quickly to the topic that probably interests you most today which is Greece. 

We have intensified talks in the last week, week and a half, with the institutions and the Greek government, to find enough common ground for the institutions to go back to Athens. The outcome of today is that they will go back to Athens in a very short time. They will work with the Greek authorities on the additional package of structural reforms; looking at the tax system, the pensions system, also labour market regulation. There will be a change in the policy mix, moving away from austerity and putting more emphasis on deep reforms, which has also been a key element for the IMF. So that is I think a good step and we have to realize that there is no agreement, there is no political agreement at this point, as that would be too early. It is a very positive and good step that the institutions have enough confidence and a common agreement to go back to Athens. 

A lot of work still needs to be done. I already mentioned the kind of reforms that it's about. In any country the combination of these topics would be difficult, so we will allow the institutions and the Greek government to do that work on the ground in more technical detail. 

And they will return to the Eurogroup if and when there is a staff level agreement and then we will have a final political discussion on the latest stages of the programme, on how to move forward. 

So, very happy with that outcome for today. Broad support, institutions willing and ready to go, and we hope to come back to you as soon as possible. 

On that element of time, because I know you will be asking about that, there is no liquidity issue in the short run for Greece. But I think we all feel a sense of urgency because of the key issue of confidence. If you want economic growth in Greece to continue and to start picking up, confidence is a key factor. That confidence has been returning in the last year and needs to strengthen, and we don't want to jeopardize that. So that would be a strong motivator to do the work as soon as possible.

I'll stop here and I'm sure you'll have lots of questions. Thanks, and lets listen to the commissioner.

Introduction

The Council considers that the budget for 2018 should provide adequate resources to continue supporting the traditional and evolving priorities within the Union, namely the recovery of the European economy, to address humanitarian and security challenges both within and outside the EU borders and to honour commitments already made under the current and previous programming periods.

The Council recalls the principle of solidarity and underlines that a transparent and an effective use of the EU budget will contribute to the materialisation of the Union's objectives and regain the credibility of the Union with the European citizens.

The budgetary procedure for 2018 is likely to take place in a context of budget constraints in several Member States. Therefore, the Council accentuates the need to improve the predictability of Member States' contributions to the Union's budget. The Council considers that the EU budget should seek to boost growth, promote employment and create new jobs, enhance effective EU cohesion, foster competitiveness and tackle the migration and security crises, while maintaining budgetary discipline at all levels. This can be achieved through the prioritisation of objectives, along with the allocation of available resources to programmes and actions that contribute the most towards achieving these aims.

The Council invites the Commission to present a budget in line with the aforementioned objectives, including a focus on areas that deliver EU added value.

Key elements of the budget for 2018

The Council reiterates the need for a realistic budget respecting the principles of sound financial management and annuality. The level of both commitment and payment appropriations should be kept under strict control and be based on real needs. The level of payment appropriations should be adequate and reflect the payment profiles of all programmes and with a clear focus on the expected needs for the current programming period.

The Council emphasises that the budget for 2018 and corrective budgetary tools shall strictly respect the relevant ceilings in accordance with the multiannual financial framework (MFF) Regulation for the period 2014-20201. Moreover, the Council reiterates the need to leave sufficient margins under the ceilings in order to be able to deal with unforeseen events.

The Council welcomes the phasing out of the backlog of unpaid bills from the previous programming period. It calls on the Commission to continue monitoring the implementation of the 2014-2020 programmes in order to ensure an orderly progression of payment appropriations consistent with the authorised commitment appropriations, thereby pre-empting future accumulation of outstanding unpaid bills.

The Council expects the Commission to make every effort to implement the budget within the allocations agreed in the annual budget, including the recourse to redeployments when appropriate. Corrective budgetary tools, such as amending budgets, should be kept to the strict minimum and in line with the Financial Regulation2 . The Council encourages the Commission to continue to rationalise the submission of draft amending budgets thereby contributing to increase the predictability within the budgetary cycle. If corrective measures prove to be necessary, the Council reaffirms its commitment to take a position on draft amending budgets as soon as possible.

As in the previous years, the Council calls on the Commission to deliver high-quality forecasts concerning both revenue and expenditure in its draft budget and during the whole budgetary process, together with timely, precise and transparent information on the underlying assumptions and budgetary figures3 . Reliable and accurate forecasts on all sources of revenue and on past and expected implementation are crucial in order to avoid either under- or over-budgeting, as well as unjustified and excessive carry-overs. It also allows the European Parliament and the Council to assess any possible requests for additional appropriations or redeployment of existing resources.

An accurate draft budget is essential to allow Member States to anticipate the level of their contributions to the Union's budget with a high degree of precision. In this context, the Council calls upon all actors, and notably the Commission, to undertake appropriate measures in order to avoid unexpected calls for additional contributions from the Member States, especially when the impact on national budgets could be high.

The Council recalls the principle of unity of the budget and calls on the Commission to cater for the necessary financial means in order to implement the Union's policies within the EU budget. The Council believes that full transparency with respect to assigned revenues is crucial for the sound financial management of Union funds. It calls on all institutions, agencies and other bodies to continue providing all the relevant information promptly and on a regular basis.

The Council recalls that all fines, penalties and accrued interest imposed by the Commission shall be transparently recorded as budgetary revenue in line with the provisions of the Financial Regulation.

The Council will continue to oversee the level of outstanding commitments (RAL)4 . It calls on the Commission to continue monitoring the evolution of the RAL by heading and by programme on a regular basis and to settle or decommit them in a timely manner and in line with the relevant rules. In preparing the draft budget, the Commission should take into account the close relationship between commitment and payment levels, the volume of outstanding commitments, the need to respect the MFF ceilings, the absorption capacity and past implementation rates.

Specific issuesComprehensive budgetary documents

The Council encourages the Commission to continuously improve the content of its budgetary documents in order to make them simpler, concise and transparent, clearly justifying the requested appropriations, including their repercussion in terms of payment profiles for the following years until 2020 and beyond. In this context, the Council invites the Commission to accompany any proposal modifying the agreed level of commitment appropriations with the corresponding impact in terms of payments over the current and next programming periods.

The Council acknowledges the usefulness of the Commission's "Active Monitoring and Forecast of Budget Implementation" system, with a view to, inter alia, prevent the possible build-up of an excessive backlog. It recalls that this reporting exercise should include regularly updated payment forecasts to be discussed at dedicated interinstitutional meetings, in line with point 36§3 of the Annex to the Interinstitutional Agreement on budgetary discipline, on cooperation in budgetary matters and on sound financial management (IIA)5 .

The Council invites the Commission to annex to the draft budget a comprehensive list of Commission proposals not yet adopted and which have a potential impact on the budget, including the level of appropriations concerned, by budget line.

The Council also invites the Commission to accompany the draft budget with a comprehensive table for the year 2018 consolidating an estimate of all types of internal assigned revenues by budget line, as well as an overview of the fines likely to be recorded as budgetary revenue.

The Council welcomes the good practice of accompanying every proposal for a transfer of appropriations related to a mobilisation of the European Globalisation Adjustment Fund and the Emergency Aid Reserve with an update of the level of implementation of the maximum annual amounts set for the special instrument in the financial year. Likewise, the Council invites the Commission to provide a regular update on the level of implementation of the advance payments related to the European Union Solidarity Fund.

When proposing the mobilisation of a special instrument, the Council invites the Commission to include in its proposal an update of the level of implementation of both commitment and payment appropriations of the respective special instrument.

The Council underlines that high quality programme statements and timely financial information on spending proposals are crucial for the European Parliament and the Council to establish, confirm or modify budgetary priorities. Programme statements should, in particular, focus on performance information and ways to improve it, including the results achieved, the justification for the level of appropriations requested, and on the added value of EU activities. This analysis should be clearly linked to the relevant budget lines in order to support the budgetary decision-making process.

Interinstitutional cooperation during the budgetary procedure

The Council encourages all institutions to collaborate efficiently and constructively, allowing for a smooth budgetary procedure and the establishment of the budget for 2018 within the deadlines set by the Treaty on the Functioning of the European Union (TFEU) and in line with the provisions of the IIA.

The Council calls on the Commission to ensure the timely presentation of the statement of estimates for 2018, allowing each institution enough time to undertake a detailed technical analysis of the disseminated estimates and to prepare thoroughly its position in accordance with an agreed pragmatic calendar.

The Council stresses the need to preserve the annual character of the budgetary procedure and to avoid discussions on issues not directly linked to the annual budget negotiations. It recalls that the purpose of the Conciliation Committee, convened in respect of Article 314 TFEU, is to establish the budget for 2018.

Furthermore, the Council calls on the Commission to ensure the timely and equal access to transparent and objective information and documents at all the stages of the conciliation negotiations.

Administrative expenditure

In the context of fiscal consolidation in Member States, national administrations are obliged to optimise the use of limited resources. There is also a need for rationalisation of EU's administrative expenditure. Therefore, the Council urges all institutions, bodies and agencies to reduce or freeze their administrative expenditure as much as possible and to request financing only for justified needs.

The Council calls on every institution and EU body to timely provide the Commission with clear, comprehensive and consolidated information of their administrative expenditure. In line with the Financial Regulation, the Commission shall attach to the draft budget the documents allowing the European Parliament and the Council to evaluate the situation and take well-founded decisions on the allocation and use of resources. Due attention should be paid to the comprehensibility and comparability over time and between institutions of the information provided.

The Council considers that the level of staff in all institutions, bodies and agencies needs to be kept under continuous monitoring. The Council recalls that 2017 is the last year to comply with the target, as stated in Point 27 of the IIA, to progressively reduce by 5 % the staff across all institutions, bodies and agencies. In this context, the Council proposes that an independent evaluation of the results is undertaken by the European Court of Auditors, covering all institutions, bodies and agencies. On the basis of the conclusions of this evaluation, the Council invites the Commission to present an appropriate follow-up proposal.

Decentralised agencies

While recognising the multiannual character of the actions carried out by some decentralised agencies, the Council recalls that over-budgeting has often led to a substantial and unjustified level of carry-overs. It reiterates the importance of keeping their funding under firm control and limiting it only to substantiated needs. The Council calls on the Commission, when establishing its draft budget for 2018, to continue taking into account unused appropriations and excessive accumulated cash-balances in order to bring down their annual surpluses. It also calls on the Commission to carefully check, and if necessary revise, the requests for funds and posts proposed by the agencies taking into account past implementation, vacancy rates, as well as the compliance with the 5 % staff reduction target.

In this context, the Council takes note of the work of the interinstitutional working group aiming at closer and more permanent scrutiny on the development of decentralised agencies.

The Council expects the Commission to continue providing the European Parliament and the Council with a comprehensive picture concerning agencies, including their building policy, together with the draft budget for 2018.

Conclusion

The Council considers that the EU budget should be prudent while providing sufficient resources in order to strengthen smart and inclusive growth and jobs, and to effectively respond to current and forthcoming challenges, including the measures to tackle the migration and security crises and to contribute to the political and economic stability in the EU's neighbouring countries. It underlines that a transparent, accurate and accountable use of Union's resources is an overarching principle to bring the EU citizens closer to the European project.

As in preceding years the Council will support a realistic budget for 2018, striking the right balance between fiscal prudence and new investments conducive to growth and jobs. It underlines that a timely, predictable, transparent and accurate assessment of needs based on comprehensive budgetary information is an essential tool to reach this objective.

The Council reiterates the need to leave sufficient margins under the ceilings in order to be able to deal with unforeseen circumstances while providing an adequate level of funding and respecting the commitments already made. Moreover, the Council emphasises on the importance of providing reliable and precise forecasts of revenue, allowing Member States to assess in a timely manner their expected contributions to the EU budget.

The Council reiterates the great importance it attaches to these guidelines and expects them to be duly taken into account when preparing the draft budget for 2018.

These guidelines will be forwarded to the European Parliament and the Commission, as well as to the other institutions."

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(1) Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p.884).

(2) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

(3) As shown in the graph contained in the Annex, the provisional implementation of payment appropriations has considerably dropped in 2016.

(4) According to the Commission's implementation report of 18 January 2017, the level of Commission's outstanding commitments (RAL) amounted to EUR 237.5 billion at the end of 2016.

(5) Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (OJ C 373, 20.12.2013, p. 1).

On 21 February 2017, the Council agreed its position on rules aimed at closing down 'hybrid mismatches' with the tax systems of third countries.

The draft directive is the latest of a number of measures designed to prevent tax avoidance by large companies.

It seeks to prevent them from exploiting disparities between two or more tax jurisdictions to reduce their overall tax liability. Such arrangements can result in a substantial erosion of the taxable bases of corporate taxpayers in the EU.

The directive will contribute to implementation of 2015 OECD recommendations addressing corporate tax base erosion and profit shifting.

“The EU is at the forefront of the fight against tax avoidance. We want to ensure coherent implementation in EU law of the OECD's BEPS action plan.”

Edward Scicluna, Minister for Finance of Malta, and President of the Council.

The proposal addresses hybrid mismatches with regard to non-EU countries, given that intra-EU disparities are already covered by the 'anti-tax-avoidance directive' adopted in July 2016. It complements and amends that directive accordingly.

The Council reached a compromise on the following issues:

• for hybrid regulatory capital, a carve-out from the rules is established for the banking sector. The carve-out will be limited in time, and the Commission will be asked to present a report assessing the consequences;
• for financial traders, a delimited approach is followed in line with that followed by the OECD;
• as regards implementation, a longer timeline is foreseen than that set for the July 2016 directive. Implementation is set for 1 January 2020 (one year later), and for 1 January 2022 as concerns one specific provision.

Next steps

The directive is one of a package of corporate taxation proposals presented by the Commission in October 2016.

Agreement was reached at a meeting of the Economic and Financial Affairs Council. The Council will adopt the directive once the European Parliament has given its opinion.

Member states will have until 31 December 2019 to transpose the directive into national laws and regulations.

The directive requires unanimity within the Council, after consulting the Parliament. (Legal basis: article 115 of the Treaty on the Functioning of the European Union.)

General : Ceta passed a crucial hurdle on 15 February when MEPs voted to back the landmark EU-Canada trade deal. The agreement removing more than 99% of tariffs can provisionally enter into force as early as April. Speaking following the vote, Artis Pabriks, Parliament's lead MEP on Ceta, said: “Europe cannot survive without free and fair trade and high-quality interaction with other global players.” He also described Ceta as “the gold standard for future trade deals”.

Source : © European Union, 2017 - EP

General : Ceta passed a crucial hurdle on 15 February when MEPs voted to back the landmark EU-Canada trade deal. The agreement removing more than 99% of tariffs can provisionally enter into force as early as April. Speaking following the vote, Artis Pabriks, Parliament's lead MEP on Ceta, said: “Europe cannot survive without free and fair trade and high-quality interaction with other global players.” He also described Ceta as “the gold standard for future trade deals”.

Source : © European Union, 2017 - EP

General : How well do you know Europe? Find out by taking part in our winter challenge! See how many European capitals you can identify correctly.

Source : © European Union, 2017 - EP