European Union

Plenary sessions : Council President Donald Tusk and Commission President Jean-Claude Juncker briefed MEPs on the political conclusions of the latest EU summit in Wednesday’s plenary debate. Political group leaders focused on the proposed EU-Canada Comprehensive Economic and Trade Agreement (CETA) recently rejected by Wallonia’s parliament, EU-Russia relations, trade defence instruments and migration.

Source : © European Union, 2016 - EP

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Plenary sessions : Migrant children, and especially those travelling alone, are among the most vulnerable people on earth. MEPs will discuss how the EU can guarantee their rights and protection in a debate with Commissioner Dimitris Avramopoulos on Wednesday afternoon at around 16.00. The consequences of the dismantlement of the Calais “jungle”, where there were several unaccompanied asylum-seekers, are likely to be raised.

Source : © European Union, 2016 - EP

Plenary sessions : Migrant children, and especially those travelling alone, are among the most vulnerable people on earth. MEPs will discuss how the EU can guarantee their rights and protection in a debate with Commissioner Dimitris Avramopoulos on Wednesday afternoon at around 16.00. The consequences of the dismantlement of the Calais “jungle”, where there were several unaccompanied asylum-seekers, are likely to be raised.

Source : © European Union, 2016 - EP

General : The UK's decision to leave the Union will already affect the EU's budget for next year. "There has already been an unforeseeable situation and now we have to deal with this problem," said Jens Geier, the MEP who will negotiate on behalf of the Parliament regarding the bulk of the EU's budget for 2017. MEPs will vote on Parliament's position in plenary on 26 October. We talked to the German S&D member about how Brexit is affecting the budget and the upcoming negotiations with the Council

Source : © European Union, 2016 - EP

General : The UK's decision to leave the Union will already affect the EU's budget for next year. "There has already been an unforeseeable situation and now we have to deal with this problem," said Jens Geier, the MEP who will negotiate on behalf of the Parliament regarding the bulk of the EU's budget for 2017. MEPs will vote on Parliament's position in plenary on 26 October. We talked to the German S&D member about how Brexit is affecting the budget and the upcoming negotiations with the Council

Source : © European Union, 2016 - EP

Plenary sessions : MEPs welcomed the EU Commission proposal for a common consolidated corporate tax base (CCCTB) in a debate with Commissioner Pierre Moscovici on Tuesday evening.

Source : © European Union, 2016 - EP

Plenary sessions : MEPs welcomed the EU Commission proposal for a common consolidated corporate tax base (CCCTB) in a debate with Commissioner Pierre Moscovici on Tuesday evening.

Source : © European Union, 2016 - EP

On 26 October 2016, the Council informed the European Parliament that it cannot accept all its amendments for the 2017 EU budget, adopted the same day.

This triggers a three-week conciliation period starting on 28 October to allow the Council and the Parliament to bridge their differences by 17 November.

"I'm pleased to see that the Council and Parliament share the same objectives for the 2017 EU budget: to enable the EU to address the migration crisis, reinforce security, boost growth and create jobs. This makes me confident that we will be able to agree on the best possible EU budget - a budget that benefits EU taxpayers, European citizens and companies", said Ivan Lesay, state secretary for finance of Slovakia and President of the Council.

In the Council's view the main challenges in reaching a deal on the 2017 EU budget are related to the respect of:

• the EU's multiannual financial framework (MFF) for 2014-2020; the Parliament wants the level of commitments to be way above the MFF expenditure ceilings; this would seriously hamper the EU's ability to react to unforeseen needs
• the estimates of payments needs for 2017; the Parliament wants the level of payments to be above the needs estimates; this would force member states to provide contributions to the EU budget over and above what is necessary at a time when they are struggling to consolidate their public finances
• the agreement reached with the Council in 2015 on financing the European fund for strategic investments; the Parliament asks that this agreement be reopened; this would reduce the EU's financial leeway for meeting unexpected needs for research and other future orientated expenditure
• the EU institutions' commitment to reduce their staff by 5% by 2017; the Parliament wants to limit the reduction of its staff to a level that falls well short of this target; this risks undermining the credibility of the Parliament and of the European Union, as a whole
• the scope of the conciliation talks; the Parliament wants to discuss the annual EU budget and the mid-term review of the MFF as a package; this would have the effect of merging two files that are subject to very different decision procedures, and should therefore be dealt with as two separate sets of negotiations

Background

In its draft budget for 2017 the Commission proposed setting the total level of commitments at €157.66 billion and of payments at €134.90 billion.

The Council's position, adopted on 12 September, amounts to €156.38 billion in commitments and €133.79 billion in payments.

The Parliament asks for total commitments to be increased to €162.42 billion and total payments to €138.03 billion. This is €3.26 billion in commitments above the MFF ceilings.

As regards staff numbers, according to the methodology applied equally by the Commission to all institutions, the Council and the Commission will have reduced their establishment plan posts by 5.0% between 2013 and 2017; by contrast, the Parliament's staff reduction will amount to 1.8% during the same period. The three institutions undertook in December 2013 to decrease their staff numbers by 5% between 2013 and 2017.

Conciliation will also cover amending letter no 1 for 2017 which aims at increasing support to boost growth, create jobs and address the root causes of migration and at updating its draft budget to the most recent needs estimates for agriculture. Neither the Council nor the Parliament have yet taken a position on the amending letter.

Next steps

The conciliation committee will meet on 8 November and on 16 November. At the latter date an Ecofin/Budget Council will meet to provide the presidency guidance for the talks with the Parliament. If no deal is found by the end of the conciliation period on 17 November the Commission has to present a new draft budget for 2017.

DEI v Alouminion tis Ellados and Commission
State aid
The extension of the period of validity of existing State aid must be regarded as the alteration of that aid and, therefore, as new aid

‘Send not to know for whom the bell tolls, it tolls for thee.’

Ernest Hemingway borrowed the title of his celebrated Spanish civil war novel from 16th century English metaphysical poet John Donne. Now, the words are fast becoming a solemn knell for the European Union.

There is a sense of complacency enveloping much of Europe, contrasting uncomfortably with the resentful anger that is fuelling Eurosceptic populism. Unfortunately, when it comes to policymaking, complacency has the upper hand.

The warning bells that tell of Europe’s decline in terms of global influence, solidarity between EU governments and economic wellbeing have so far been little heeded. But they must be – or they risk becoming akin to Donne’s funeral chimes.

As I noted in my last column, the European project’s achievements over half a century still far outweigh its present shortcomings. But in a global economy and European political climate undergoing such rapid change, this is no time for the EU to rest on its laurels.

“We Europeans need to take a long, hard look at our current position and future prospects. They’re not encouraging”

We Europeans need to take a long, hard look at our current position and future prospects. They’re not encouraging. Quite apart from the ‘live’ issues pressing in on the EU – Brexit, the refugee influx and propping up the eurozone – Europe has deep and unresolved structural problems.

Generalisations are difficult. What’s defined as poverty or social progress in one EU country may not be perceived in the same way in others. Average figures, nevertheless, have the value of pointing to overall weaknesses.

Take demographic patterns. Patchy as they are in some member states (Germany is shrinking rapidly but the UK’s population is growing healthily, in economic terms), they offer vital lessons.

Europe has roughly four people actively in work for every retired pensioner. By the middle of this century, if not before, that ratio will have dwindled to 2:1. The implications for virtually bankrupt pension and social security systems are horrendous. So the first step is to get unemployed young people into work, whatever the cost. They are among Europe’s most precious assets.

Perhaps Europeans can square the circle by escaping the economic doldrums in which many have been trapped since 2008? If only. The forecasts point towards Europe falling further behind in the global wealth race. Average GDP per capita in the EU is now about two-thirds that of the United States, and is set to drop to three-fifths by 2025.

And the 2020s are shaping up to be a most unpleasant watershed. When top European business executives were surveyed by consultancy firm Accenture, a substantial majority thought China would draw ahead of Europe on technological innovation by the early part of the next decade.

“The first step is to get unemployed young people into work, whatever the cost. They are among Europe’s most precious assets”

Every year, Europe’s universities still account for half of the world’s major scientific breakthroughs. But for reasons that are well known – mainly a lack of capital and government help, but also an absence of entrepreneurism – these discoveries often don’t translate into commercial innovations.

These are uncomfortable facts. But they aren’t secrets hidden away from the public gaze. Sadly, nor are they part of the policy debate animated by national politicians or by the EU itself. If Europe’s voters are both complacent and seduced by the simplistic solutions of populism it is in large part because they don’t have the bigger picture.

The EU’s various arms grapple daily with most of these issues, and they report their progress in piecemeal ways and technocratic detail. What they avoid doing is tolling the bell that warns of overall, and perhaps irreversible, decline. That’s because they fear to appear ineffectual. But it is the only way to wake Europeans to the reality that no single EU country has the means to resolve these problems alone.

Giles Merritt is Founder and Chairman of Friends of Europe, and the author of Slippery Slope – Europe’s Troubled Future (Oxford University Press) which is shortlisted for the 2016 European Book Prize.      

Related content

• Friends of Europe: State of Europe high-level conference: read our Storify summary of the event
• Europe’s World: John Bruton – The lessons of Brexit: how British and European leaders can deal with the disruption
• Debating Europe: Can Britain survive outside the Single Market?

IMAGE CREDIT: CC / FLICKR – European Parliament

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Orange v Commission
State aid
The Court rejects France Télécom’s appeal in the case involving the reform of the arrangements for financing the pensions of civil servants working for that company

https://tvnewsroom.consilium.europa.eu/uploads/council-images/thumbs/uploads/council-images/remote/http_7e18a1c646f5450b9d6d-a75424f262e53e74f9539145894f4378.r8.cf3.rackcdn.com/02685638-9b5b-11e6-ab1e-bc764e092fac_55.86_thumb_169_1477472789_1477472789_129_97shar_c1.jpg

The EU-CELAC ministers of Foreign Affairs meeting takes place on 25 and 26 October 2016 in Santo Domingo.

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Plenary sessions : When it comes to budget talks, the stakes are high, but the terminology can be baffling. On Wednesday 26 October MEPs vote on Parliament's position regarding the EU's 2017 budget and the revision of the long-term budget, while in the afternoon the EU Court of Auditors presents its assessment of the 2015 budget. All of this is important, but it can be challenging to decode the terms used. Read our brief glossary to make sense of it all.

Source : © European Union, 2016 - EP

Plenary sessions : When it comes to budget talks, the stakes are high, but the terminology can be baffling. On Wednesday 26 October MEPs vote on Parliament's position regarding the EU's 2017 budget and the revision of the long-term budget, while in the afternoon the EU Court of Auditors presents its assessment of the 2015 budget. All of this is important, but it can be challenging to decode the terms used. Read our brief glossary to make sense of it all.

Source : © European Union, 2016 - EP

European Defence Union
Source : © European Union, 2016 - EP

Plenary sessions : MEPs want an EU work programme in line with genuine concerns and expectations of the Europeans. In their debate with Commission First Vice-President Frans Timmermans on Tuesday, they focused on the social dimensions of EU policies, investment, trade, migration and security.

Source : © European Union, 2016 - EP

Plenary sessions : MEPs want an EU work programme in line with genuine concerns and expectations of the Europeans. In their debate with Commission First Vice-President Frans Timmermans on Tuesday, they focused on the social dimensions of EU policies, investment, trade, migration and security.

Source : © European Union, 2016 - EP

The EU can’t pretend Brexit isn’t happening, charging on with business as usual in the hope this crisis will pass. We have to be proactive. Europe has to reform itself to survive. The Greek crisis already showed the very clear need for change, but the EU seems not to have heeded even such a loud wake-up call. Moreover, the EU has, over the last few years, demonstrated its ineffectiveness in dealing with the refugee crisis, failed to reduce unemployment, and still not created a truly functioning single market. Brexit is the Union’s last chance. Europe’s citizens are angry, and are failing to grasp the EU vision.

I am inclined to agree with the overall vision of President of the Alliance of Liberals and Democrats for Europe (ALDE) Group, Guy Verhofstadt – who has now been appointed to represent the European Parliament in the forthcoming Brexit negotiations. We need to clean up the institutional chaos created after decades of compromises that have resulted in a “Europe à la carte” based
on opt-ins, opt-outs and derogations, and introduce two kinds of cooperation – “full membership” and an “associate status”.

A new set-up could be used as a framework for future cooperation between the EU and the UK. There are a number of good proposals for how to solve the refugee crisis and deal effectively with cases of financial irresponsibility, and there are interesting suggestions for how to ensure Europe’s defence and fight against terrorism. The new institutional set-up should make the Union more effective on issues where citizens see the added value of European cooperation.

“We need to clean up the institutional chaos created after ‘decades of compromises'”

The main challenge, and the point of departure from “business as usual”, is how to take on board the views of the EU’s critics. The distance between the so-called “elite” and citizens is expressed
through the results of referendums like June’s vote in the UK, and the success of populist parties and individuals. This can’t be eliminated by building walls, creating ghettos for immigrants or other similar ideas. Changing the EU’s institutional set up may be necessary, but the EU needs first of all to reinforce the values and spirit that have been at the heart of the EU for decades and remain the core idea of the Union – the creation of the single market. This project must be put on a super-fast track as one of Europe’s biggest priorities, because it will benefit both businesses and consumers.

A competitive economic strategy is needed to ensure EU member states’ economies grow closer to one another; to converge rather than diverge. This is the only way for the EU to progress and
compete with the US and fast-growing foreign markets. The other ingredient is less government interference in the economy. The EU must stop funding uncompetitive businesses that survive only
thanks to its donations. It should also stop funding numerous unaccountable bureaucracies and unreformed social systems. Change can’t be boosted by subsidies and protectionism – it requires the empowerment of the market and investment in innovation and skills.

It’s time to dust off Mario Monti’s report on the single market re-launch, introduced in the wake of a global economic crisis. Today, its vision is crucial to solving the EU’s unity crisis. The “new
frontiers” described in the report, notably the digital sector, aren’t the future anymore; they are the present. For market reforms to succeed, it’s crucial to show concrete examples of how the single
market works for citizens, consumers and SMEs. Citizens need the real belief that they can control their own lives and can afford a European standard of living – something many people see, but only outside their own households. As long as businesses are forced to spend vast sums on administration costs instead of increasing wages, we can’t expect living standards to pick up. But we have to be realistic about what we can achieve. We need a fully-integrated single market as well as a “convergence code” with minimum and maximum standards on socio-economic policy, such as labour market reforms and pension reforms.

“The single market must be put on a super-fast track as one of Europe’s biggest priorities, because it will benefit both businesses and consumers”

Brexit is a greater challenge for the EU than for the UK. Britain itself will be fine. The country has the capacity to deal with the referendum’s consequences, and Brexit may not have the hugely
negative impact so often predicted. That said, these are early days. Yes, the referendum hurt the value of the pound sterling; yes, it may be a challenge to attract talent to tech jobs in London.
Overall, though, I have faith that Britain will be able to make even better bilateral trade deals with rapidly-emerging markets and other countries such as the United States or Australia. Sadly
– perhaps ironically – the UK was one of the EU single market’s biggest proponents. Watching the British leave scares me that EU reform will mean just another discussion, not the delivery of
real change. The clock is ticking. Citizens of other member states won’t wait long before turning to pro-leave politicians in their own countries.

I try to stay confident that the EU is capable of reform. Before the Brexit vote, I wrote a letter to the leaders of the Leave campaign offering a bet of €1m that the UK would remain, such is my belief in the value of the EU. That’s also why I have since written numerous letters to British tech and car companies inviting them to consider relocating their businesses to Lithuania for restriction-free access to the European single market. The job to remove barriers and eliminate protectionism in the single market becomes crucial if we want more innovative jobs in the EU. This, in turn, will convince citizens to believe in the value of integration.

The EU’s leaders must urgently boost economic growth, tackle terrorism together and reduce youth unemployment. I truly hope that its efforts won’t be yet another series of cosy chit-chats, but instead will bring forward a new reform plan and produce a credible European vision. Otherwise, “business as usual” will inevitably bring similar exit referendums.

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Plenary sessions : Parliament debated both the mid-term revision of the EU’s multiannual financial framework (MFF) 2014-2020 and the EU budget for 2017 with budgets Commissioner Kristalina Georgieva on Wednesday afternoon. For the 2017 budget debate, MEPs were joined by Slovakia’s state secretary for finance Ivan Lesay, representing the Council Presidency.

Source : © European Union, 2016 - EP