European Council

Let me start with Syria. Today I invited the chairman of the local Council in Aleppo to personally address the leaders so that the voice of the people of Aleppo is heard, at least in this symbolic way. To be clear, faced with the brutality of the Syrian regime and its supporters, notably Russia and Iran, we are not as effective as we would like to be. But we are not indifferent to the suffering of the Syrian people. We will exert pressure on other global players who are present in Syria using all available diplomatic channels. The aim is clear: the immediate opening of humanitarian corridors to allow aid into Aleppo, and for civilians to be evacuated safely under neutral, international supervision. There must be full and unrestricted access for all medical personnel and aid workers. The protection of civilians is the absolute priority.

Another point on the agenda was migration. Leaders stressed their commitment to implement the EU-Turkey Statement, which also requires continued efforts from Turkey. High Representative Mogherini reported progress with African countries. For example, our partnership with Niger is reducing the numbers of people using smugglers to get to Libya. But we know that more needs to be done, and so we will discuss Libya and our approach to the Central Mediterranean route at our next informal summit in Malta in February. As for the reform of the common asylum system, Prime Minister Muscat will continue this work under his presidency. The aim will be to achieve consensus.

As regards Ukraine, we did what we could to help save the Association Agreement that has been ratified already by 27 Member States and the European Parliament. We have adopted a legally binding decision of the leaders to facilitate the ratification in the Netherlands. This decision addresses all the concerns expressed by the Dutch voters earlier this year. Now the responsibility lies with the Netherlands. The ratification is important not only for Ukraine, but also for Europe's geopolitical standing and credibility. We are counting on our Dutch colleagues.

Today we also agreed to step up our work on security and defence, in partnership with NATO. It is evident that Europe needs to do more to fulfil our international responsibilities and to protect our own citizens,. We committed to increase cooperation and to allocate more resources to security and defence.

Moving on to Brexit, the EU27 had a short informal meeting where we finalized procedural arrangements and reconfirmed our principles, meaning the indivisibility of the four freedoms, the balance of rights and obligations and the rule "no negotiations without notification". We adopted the organisational structure with the European Council maintaining political control over the process, and the Commission as the Union's negotiator. And Michel Barnier as the Commission's Chief Negotiator.

Finally, let me thank Prime Minister Fico and his team for a very successful and productive presidency. Not only did you host the historic EU27 summit in Bratislava, but thanks to your professionalism you have also succeeded in making a number of promises from Bratislava a reality. To give a few examples, the Council agreement on the Trade Defence Instruments, the Visa Suspension Mechanism and the Schengen Borders Code. So let me conclude by again thanking Robert and the entire Slovak Presidency for a great performance.

On 15 December 2016 the European Council adopted conclusions on Ukraine.

On 16 December, the Permanent Representatives Committee (Coreper) endorsed, on behalf of the Council, a deal with the European Parliament on a draft regulation on mercury. The new rules aim to enhance the protection against the pollution by this highly toxic substance. 

The text was agreed by the Council's presidency and the European Parliament during a trilogue meeting on 6 December 2016. 

Mercury represents a global and major threat to human health, including through the presence of its compound methylmercury in fish and seafood. Once emitted into the air or the water, mercury can travel long distances. That is why mercury pollution needs to be tackled at international level. 

Minamata Convention 

The changes agreed will ensure EU legislation is aligned with international rules as set out in the Minamata Convention. This will allow for swift EU ratification of the text and therefore pave the way for its entry into force. 

Mercury pollution is found all around the globe, even in virgin lands very remote from pollution sources. This proves how dangerous and global this pollution is. Today we have shown that we remain committed to halting mercury pollution. This deal will enable a swift ratification of the Minamata Convention by the EU. 

László Sólymos, Slovak Environment Minister and President of the Council 

First of all let me thank you for your visit and for this opportunity to listen to you. Honestly speaking, I have nothing to add to what has been said or written about the tragedy of your city, Aleppo.

The last thing your people in Aleppo need today is more words of sympathy. The only thing you need today is real and effective protection and assistance. I am absolutely aware of this fact. Your words, the words of the people of Aleppo and the facts are much more powerful than any of our words or declarations. Our main goal today is to protect as effectively as possible your civilians in Aleppo.

Please believe me, no-one is indifferent in the EU. I am talking about people, institutions, politicians. There are some global limitations and problems, but this is what we want to do, to be more effective when it comes to protection and assistance. We should and we will try to do everything we can to help you and the civilians in Aleppo.

After the informal meeting held on 15 December 2016 in Brussels, the 27 heads of state or government and Presidents of the European Council and Commission issued the following statement. 

On 15 December 2016 the European Council adopted conclusions on migration and Cyprus.

The European Council on 15 December 2016 adopted conclusions on migration, security, economic and social development, youth, Cyprus, and external relations.

Following the referendum in Denmark on 3 December 2015, we agree on the need for operational arrangements, minimising the negative impact of Denmark's departure from Europol on 1 May 2017, for the mutual benefit of Denmark and the rest of the European Union in the combatting of cross-border serious and organised crime and international terrorism. Such arrangements must be Denmark-specific, and not in any way equal full membership of Europol, i.e. provide access to Europol's data repositories, or for full participation in Europol's operational work and database, or give decision-making rights in the governing bodies of Europol. However, it should ensure a sufficient level of operational cooperation including exchange of relevant data, subject to adequate safeguards.

This arrangement would be conditioned on Denmark's continued membership of the European Union and of the Schengen area, on Denmark's obligation to fully implement in Danish law Directive 2016/680/EU on data protection in police matters by 1 May 2017 and on Denmark's agreement to the application of the jurisdiction of the European Court of Justice and the competence of the European Data Protection Supervisor.

The Commission and Denmark will endeavour to initiate the necessary legal procedure as rapidly as possible and take all necessary actions, including contacts with relevant institutional actors, to ensure a swift process with a view to the new arrangements being in place by 1 May 2017 or as rapidly as possible thereafter. This is to limit to the maximum extent possible the gap between 1 May 2017 and the entry into force of the future operational agreement, in order to minimise the negative impact on cooperation and data exchange.

We acknowledge that the only way for Denmark to fully participate in the new Europol Regulation by 1 May 2017 is to make use of the procedure foreseen in Protocol No 22 to the Treaty on the European Union and the Treaty on the Functioning of the European Union.

The third meeting of the EU−Ukraine Association Council will take place on 19 December 2016 in Brussels.

The meeting will be chaired by High Representative for Foreign Affairs and Security Policy Federica Mogherini, on behalf of the European Union. Ukraine will be represented by its Prime Minister Volodymyr Groysman.

A press conference will take place after the meeting, on Monday 19 December at 11.30 in the Justus Lipsius building (main press room). A specific accreditation is needed to attend the press conference and all media opportunities.

The Association Council will discuss relations between the EU and Ukraine, specifically on:

• Political dialogue and reform, political association;
• Justice, freedom and security;
• Economic and sectoral cooperation, as well as trade and trade-related matters,  

The EU High Representative and the Prime Minister of Ukraine will also discuss more specifically developments related to Ukraine's sovereignty and territorial integrity, as well as the EU global strategy and regional issues.

Programme - including media opportunities and information on media accreditation

• 08.10 Arrival of Prime Minister of Ukraine Volodymyr Groysman, welcome by High Representative F. Mogherini, VIP entrance, level 02 - photo/video opportunity (*)
• 08.30 Working breakfast
• 09.30 Association Council - plenary session
  Roundtable - photo/video opportunity (*)
• 11.30 Press Conference by High Representative F. Mogherini and Prime Minister of Ukraine Volodymyr Groysman (*)live streaming

Journalists holding a 6-month badge (30.06.2016 - 31.12.2016) or a European Council badge (15.12.16) do not need to register. 6-month badges and European Council badges can be collected at the accreditation centre of the LEX building (14/12 from 9.30 to 13.00 and 14.00 to 19.00 - 15/12 from 8.00 to 20.00).

Other journalists must register by e-mail before Friday 16 December 13.00 to : press.centre@consilium.europa.eu, including copy of their ID and valid press card or assignment letter.

On 14 December 2016 the Slovak presidency reached an informal agreement with the European Parliament on the coordinated use of a key frequency band that will allow for higher speeds and better access to mobile internet across Europe. At the same time, the deal addresses the need for spectrum for broadcasting purposes. The outcome of the talks will be submitted for approval by member states at the beginning of 2017.

Árpád Érsek, the Slovak Minister for Transport, Construction and Regional Development, said: "Spectrum is a precious resource that must be used wisely and strategically. Releasing of 700 MHz frequency band for wireless broadband is a win-win solution for digital industry, audio-visual sector, as well as for all consumers. It brings long-term regulatory certainty and is essential for uptake of 5G. This means better connectivity everywhere."

Under the agreement, EU countries must reassign the 700 MHz frequency band (694-790 MHz) to wireless broadband services by 30 June 2020. If they are unable to do this, a delay of up to two years is possible in duly justified cases. 

The 700 MHz band provides high speeds and excellent coverage. Its coordinated use for mobile will promote the take-up of 4G and help offer high-quality broadband to all Europeans, including in rural areas. Increased connectivity will make it easier for citizens to communicate and use internet content and services in their daily life, wherever they are. It improves conditions for business, drives up demand for more services and furthers economic development. 

This targeted assignment of spectrum will also make it easier to roll out 5G as soon as it becomes available (around 2020). 5G will enable vastly enhanced wireless network capacity and ubiquitous connectivity, allowing for the effective deployment of innovative services such as remote healthcare, connected cars and smart infrastructures. Creating the conditions for these new technologies is crucial for Europe's global competitiveness.  

Broadcasting services, such as digital television and wireless microphones, will maintain priority in the sub-700 MHz band (470-694 MHz) at least until 2030, based on national needs. This gives the audio-visual sector long-term regulatory predictability so that it can continue to provide services and secure necessary investments.

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

The Council adopted the following conclusions:

1.             In accordance with its conclusions of 16 December 2014, the Council has assessed the overall state of the EU relations with the following Western European countries that are not members of the EU: the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Principality of Andorra, the Principality of Monaco and the Republic of San Marino. The Council will revert to the overall state of EU relations with the Swiss Confederation in early 2017. The Council will reassess the state of these relations in two years, as appropriate.

2.             The Council emphasises the weight and importance the EU attaches to relations with all these special partners. Beyond shared history, geography, interests and core fundamental values, it is economic integration within the framework of the extended EU Single Market that brings us together even more and frames the inter-dependency of our future prosperity and competitiveness.

3.             The Council reiterates that the strength of our economic integration depends on full respect for the four freedoms of the Single Market. It is therefore the responsibility of all the States which already participate or wish to increase their level of participation in the extended Single Market to ensure its integrity and homogeneity, as well as full respect for equal rights and obligations for both citizens and businesses. The Council welcomes the launch of negotiations with Andorra, Monaco and San Marino to develop closer relations with the EU, in particular with regard to their participation in the Single Market, while at the same time taking into account the specificities of each country, as well as their particular situations in line with the Declaration on Article 8 of the Treaty on European Union.

4.             The relations of the EU with the above Western European countries that are not members of the Union have further developed over the years to include many of the EU other policies. The Council looks forward to continuing this mutually beneficial cooperation and to further deepening it in the years to come.

5.             Furthermore, the Council notes the excellent cooperation in some areas of EU external action such as development aid, cooperation in multilateral fora, and common foreign and security policy, including human rights and restrictive measures. It notes that, in most instances, the action of our partners is much synchronised with EU action or complements it. It welcomes and stands ready to successfully further this approach.

6.             The Council acknowledges, in the context of the unprecedented migratory flows to Europe, the constructive and positive cooperation of our partners, as well as their contribution to the Union's efforts, notably in the context of the European Agenda on Migration.

PRINCIPALITY OF LIECHTENSTEIN

7.             In the course of the past two years, relations between the EU and Liechtenstein in the context of the EEA Agreement have further intensified. The Council appreciates Liechtenstein´s continued excellent rate of implementation of EEA relevant EU acquis, as well as its efforts to bring about solutions to pending issues.

8.             The Council welcomes the solidarity shown by the people of Liechtenstein through their increased commitment to reducing social and economic disparities within the EEA in the period 2014-2021, by supporting innovation, research, education, competitiveness and youth employment in the European labour market.

9.             The Council acknowledges the quick progress made by Liechtenstein in the process of incorporation of the package of EU acts in the area of financial services, needed for its integration into the system of financial supervisory authorities.

10.         Liechtenstein is a close and reliable partner in the area of justice and security, in particular with regard to the efficient implementation of the Agreements associating Liechtenstein with the Schengen and Dublin acquis.

11.         The Council appreciates the good cooperation with Liechtenstein in the area of CFSP and looks forward to further deepening this cooperation, in particular on issues such as strengthening the rule of law and respect for human rights, notably within the framework of the United Nations and the OSCE.

12.         The Council notes with satisfaction the advances made on cooperation between the EU and Liechtenstein against tax evasion thanks to the signing and entry into application of the 2015 Protocol on information exchange in tax matters, but also stresses the importance of the effective implementation of the cooperation measures agreed and the need for Liechtenstein to pursue its active participation in global efforts to increase transparency.

13.         The Council welcomes the intensified dialogue between the EU and Liechtenstein on tax measures which constitute harmful tax competition, and encourages Liechtenstein to continue to engage in constructive, transparent and open dialogue with the EU, with the aim of applying the principles and all the criteria of the EU Code of Conduct on Business Taxation.

14.         The Council also notes with satisfaction that Liechtenstein has become a member of the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and has committed to the comprehensive BEPS package and its consistent implementation.

REPUBLIC OF ICELAND

15.         Through its participation in the EEA Agreement, which is at the core of Iceland's foreign policy, its membership of the Schengen area, as well as through its close cooperation on various EU policies, Iceland remains an important and reliable partner for the EU.

16.         The Council has taken note of the Icelandic government's letter of 12 March 2015 clarifying its policy on the EU accession negotiations, as well as the Icelandic government's commitment to continued strong relations with the EU.

17.         The Council appreciates Iceland's close cooperation in the area of CFSP and acknowledges the constructive role played by Iceland in relation to Arctic matters. The Council welcomes the continued support of Iceland for observer status for the EU in the Arctic Council.

18.         The Council appreciates the continued close cooperation between the EU and Iceland in a range of other areas such as justice and home affairs, research, innovation, education and energy. The Council looks forward to deepening the close cooperation in the areas of environment and climate change policy. In this regard, the Council welcomes the commitment by Iceland to achieve the same emission reduction target as the EU by 2030, as well as the swift finalisation of the national ratification procedure of the Paris Agreement.

19.         The Council welcomes the signing of the Agreements on the EEA financial mechanisms for the period 2014-2021 and looks forward to their rapid implementation. The Council acknowledges Iceland's increased commitment to the reduction of social and economic disparities in the EEA by supporting innovation, research, education, competitiveness and youth employment in the European labour market, as well as the importance of sharing knowledge and expertise in areas such as geothermal energy. The Council also welcomes the signing of the Additional Protocol to the Free Trade Agreement between the European Economic Community and Iceland of 22 July 1972, establishing special provisions for imports of certain fish and fishery products for the period 2014-2021.

20.         The Council welcomes the conclusion of the negotiations between Iceland and the EU on further liberalisation of agricultural trade within the framework of Article 19 of EEA Agreement, on protection of geographical indications, as well as on further liberalisation of trade in processed agricultural products between Iceland and the EU, and looks forward to their rapid entry into force.

21.         The Council welcomes the commitment made by Iceland both to reduce the number of EEA-relevant EU acts awaiting incorporation into the EEA Agreement and to ensure their timely transposition. The Council strongly encourages Iceland to further substantiate ongoing efforts with the aim of ensuring legal certainty and homogeneity in the Single Market.

22.         The Council acknowledges the substantial efforts made towards a continued economic and financial recovery in Iceland. The Council welcomes recent decisions taken to gradually lift the remaining capital controls, and recalls that restrictions can only be implemented temporarily on the basis of provisions of Article 43 of the EEA Agreement.

23.         Regarding the management of mackerel stock in the North East Atlantic, the Council recalls the conclusion in 2014 of a five-year arrangement, as well as the long-term management strategy agreed upon in 2015 between EU, Norway and the Faroe Islands. The Council recalls that the possibility for Iceland to join these agreements remains open and urges Iceland to engage in consultations to arrive at solutions that would offer stability and predictability, and would guarantee the conservation of the biomass and the sustainable exploitation of the stock across its entire area of distribution.

24.         The Council reaffirms its strong support for the maintenance of the internationally-agreed moratorium on commercial whaling established under the International Whaling Commission and for the listing of cetaceans and other marine species under the Convention on International Trade in Endangered Species (CITES). It therefore calls upon Iceland to respect the internationally-agreed moratorium on commercial whaling established under the IWC and to withdraw its reservations under CITES for these and other marine species.

KINGDOM OF NORWAY

25.         The Council notes with satisfaction that, over the past two years, Norway and the EU have maintained and further strengthened their very close and stable cooperation both inside and outside the framework of the EEA Agreement.

26.         Norway is a close and reliable partner in the area of justice and home affairs, in particular in the application of the Schengen acquis. In the context of the unprecedented migratory flows to Europe, the Council acknowledges Norway's contribution, as well as its constructive and positive cooperation, notably in the context of the implementation of the European Agenda on Migration.

27.         The Council appreciates the very close cooperation with Norway, as well as its contribution, in the areas of Common Foreign and Security Policy (CFSP) and Common Security and Defence Policy (CSDP) and looks forward to the deepening of this cooperation based on shared values, such as democracy, the rule of law and human rights. The Council acknowledges Norway's active role in peace-building and mediation initiatives around the world. The Council also notes the importance of the close cooperation with Norway on the 2030 Agenda for Sustainable Development.

28.         The Council welcomes the continued strong cooperation with Norway on Arctic matters and reiterates its interest in further strengthening this cooperation. Many of the issues affecting the region can be more effectively addressed through enhanced regional or multilateral cooperation. The Council also welcomes the continued support of Norway for observer status for the EU in the Arctic Council.

29.         In the area of energy, the Council notes with satisfaction that Norway remains a key partner of the EU as a reliable supplier of gas and oil. The Council fully recognises the importance of this cooperation for the energy security of the EU, as well as the significant contribution of Norway to the completion of the internal energy market. The Council notes however that the Third Energy Package and the Offshore Safety Directive have not yet been implemented in Norway, and calls for increased efforts with a view to their swift incorporation into the EEA Agreement.

30.         In response to the challenges posed by climate change, the Council welcomes the commitment made by Norway to achieve the same emission reduction target as the EU and looks forward to continuing this cooperation. The Council notes the importance of the close cooperation with Norway on climate change, in particular in the context of the United Nations Framework Convention on Climate Change (UNFCCC). The Council welcomes the swift finalisation of the national ratification procedure of the Paris Agreement by Norway.

31.         The Council welcomes the signing of the Agreements on the EEA and the Norwegian financial mechanisms and looks forward to their rapid implementation. The Council welcomes, in particular, Norway's commitment to continue and increase its significant contribution to the reduction of social and economic disparities in the EEA by supporting innovation, research, education competitiveness and youth employment in the European labour market. The Council also welcomes the signing of the Additional Protocol to the Free Trade Agreement between the European Economic Community and Norway of 14 May 1973, establishing special provisions for imports of certain fish and fishery products for the period 2014-2021 and ensuring the continuation of the arrangement allowing for free transit of fish and fishery products landed in Norway from vessels flying the flag of a Member State of the EU.

32.         Participation in the framework programmes and in the European Research Area remains a core element of Norwegian research policy. The Council welcomes Norway's commitment to research and innovation and the successful participation of Norwegian entities in Horizon 2020, Creative Europe and Erasmus +.

33.         The Council acknowledges the importance of Norway as one of the EU's main trade partners and reiterates its interest in achieving further liberalisation of trade in agricultural products. The Council welcomes the launch in February 2015 of the negotiations within the framework of Article 19 of the EEA Agreement and strongly encourages the parties to actively continue their efforts to achieve further progress in the negotiations and conclude these shortly. The Council regrets that harmful tariff measures introduced by Norway in 2012 are still in force and calls on Norway to immediately reverse these measures.

34.         The Council reiterates its invitation for Norway to actively engage, without delay, in a proper and constructive negotiation process on the liberalisation of trade in processed agricultural products (Protocol 3 to the EEA Agreement).

35.         The Council takes note with regret of the suspension of the negotiations between the EU and Norway on the protection of geographical indications and hopes that these negotiations will resume soon.

36.         The Council reaffirms its strong support for the maintenance of the internationally-agreed moratorium on commercial whaling established under the International Whaling Commission and for the listing of cetaceans and other marine species under the Convention on International Trade in Endangered Species (CITES). It therefore calls upon Norway to respect the internationally-agreed moratorium on commercial whaling established under the IWC and to withdraw its reservations under CITES for these and other marine species.

37.         The Council acknowledges the close cooperation with Norway in a broad range of other areas, such as fisheries and maritime affairs and looks forward to continuing and further deepening this cooperation.

38.         Regarding cooperation under the EEA Agreement, and with a view to ensuring the homogeneity of the single market acquis throughout the entire EEA, the Council invites Norway to continue its efforts to fulfil its obligations under the Agreement regarding the timely incorporation and implementation of EEA relevant EU legislation.

39.         The Council takes note of the state of play on the negotiations for an agreement between the EU and Norway on administrative cooperation, combating fraud and recovery of claims in the field of value-added tax and invites the EU and Norway to continue and to complete the negotiations as soon as possible on that basis. The aim of the negotiations is to establish a common European framework for administrative cooperation between EU Member States and Norway in the field of VAT in order to exchange information and best practices and cooperate for the recovery of claims in a manner similar to the way it takes place between Member States.

EUROPEAN ECONOMIC AREA

40.         The Council notes that the EEA Agreement has continued to function in a satisfactory manner in the last two years, maintaining its key role in advancing economic relations and Single Market integration between the EU and the EEA EFTA States.

41.         The Council welcomes the adoption of the EEA Joint Committee Decisions on the first package of legal acts relating to the EU Regulations on the European Supervisory Authorities in the area of financial services. The Council also stresses the importance of promptly incorporating and applying the other outstanding legislation in the field of financial services as soon as possible.

42.         The Council notes that, despite all efforts, there is still an important number of legal acts for which the compliance date in the EU has passed but which have not entered into force in the EEA EFTA States as their incorporation into the EEA Agreement has been delayed. The Council stresses the need for the EEA EFTA States to continue their efforts towards a streamlined incorporation and application of EEA relevant legislation, in order to reduce the number of pending acts for incorporation and to ensure legal certainty and homogeneity in the EEA.

PRINCIPALITY OF ANDORRA, PRINCIPALITY OF MONACO AND REPUBLIC OF SAN MARINO

43.         The Council notes with satisfaction that, over the past two years, relations with Andorra, Monaco and San Marino have continued to be characterised by a high level of stability and cooperation.

44.         The Council welcomes the opening, on 18 March 2015, of negotiations between the EU and Andorra, Monaco and San Marino, with a view to concluding one or several Association Agreement(s) (the 'Agreement(s)') to provide for the participation of these countries in the EU's Single Market, as well as for cooperation with the EU in other policy areas.

45.         The Council considers that the future Agreement(s) should be based on a number of fundamental principles, such as maintaining the good functioning and homogeneity of the Single Market and legal certainty, while at the same time taking into account the specificities of each country as well as their particular situations in line with the Declaration on Article 8 of the Treaty on European Union. In this context, the Council stresses the need for all parties to continue to make steady and concrete progress towards the finalisation of these negotiations.

46.         Furthermore, the Council stresses the importance of establishing a coherent, efficient and effective institutional framework to underpin the Agreement(s) that, inter alia:

a)             includes a forum for consultation between parties to ensure the good functioning and proper implementation of the Agreement(s);

b)             ensures the dynamic take-over of the EU acquis by the three countries;

c)             provides for the uniform application and consistent interpretation of the provisions of the Agreement(s); and

d)            includes a fair, effective and efficient dispute resolution mechanism.

47.         The Council welcomes the continued cooperation with Andorra, Monaco and San Marino in the area of CFSP, including through close contacts in multilateral organisations and voluntary alignment with EU positions, declarations and restrictive measures on a case-by-case basis, and calls for this cooperation to be strengthened.

48.         The Council welcomes the signing of protocols between the EU and Andorra, Monaco and San Marino respectively on the implementation of the Global Standard for Automatic Exchange of Financial Account Information, as developed by the OECD and endorsed by the G20, and looks forward to their complete and effective implementation within the agreed timelines.

49.         The Council notes with satisfaction that Andorra, Monaco and San Marino have become members of the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS). The Council also notes that Andorra, Monaco and San Marino have yet to commit to and implement the principles and the criteria of the EU Code of Conduct on Business Taxation and urges them to do so without further delay.

Brigadier General Peter Devogelaere, a Belgian national, has been appointed as mission commander of the EU training mission in Mali (EUTM Mali). He will take up his duties on 19 December 2016. He will take over from Brigadier General Eric Harvent, who held the post since July 2016.

EUTM Mali assists in the reconstruction of effective and accountable Malian armed forces capable of ensuring the long-term security of Mali and, under civilian authority, restoring the country's territorial integrity. To this effect, EUTM Mali delivers training to units of the Malian armed forces and develops autonomous training capability. The mission also provides advice to the Malian authorities on reforming the army. The mission was launched on 18 February 2013. Its mandate was recently extended to 18 May 2018. The headquarters of the mission are located in Bamako, Mali.

The mission is part of the EU's comprehensive approach to security and development in the Sahel. Two other CSDP missions are in place in the region: EUCAP Sahel Mali, which supports the Malian state to ensure constitutional and democratic order and the conditions for lasting peace as well as to maintain its authority throughout the entire territory; and EUCAP Sahel Niger, which supports the fight against organised crime and terrorism in Niger.

The decision was adopted by the Political and Security Committee.

 
Media advisory
Visit of the President of Colombia, Manuel Santos, in the margins of the Foreign Affairs Council

Monday 12 December 2016
Justus Lipsius building - Brussels

17.00  Informal discussion with the members of the Foreign affairs Council
            (roundtable - photo/TV opportunity)

17.30  Signature of the constitutive agreement of the EU Trust Fund for Colombia
            (livestreaming of the ceremony - http://europa.eu/!RX79dW)

18.00  Family photo (photo/TV opportunity)
  
18.05  Press Conference by HR Federica Mogherini and President Manuel Santos
            (pressroom, level 00 - livestreaming - http://europa.eu/!mW99xd)

* * *
Access to the press room (level 00) and participation to the photo/TV opportunities will be subject to the following conditions:
- 6-month badge (2nd semester 2016)
- Journalists without the above must send a written request by mail - deadline Friday 9 December at 17.00 - to press.centre@consilium.europa.eu, indicating their full name, media, date of birth and attaching a copy of their ID, a valid press card (if available) or a signed letter from their media confirming their professional status and that they are assigned to cover this event. No late request will be accepted.
Original documents need to be produced when collecting the badge.
Photos and video coverage of the event will be available for preview and download on http://tvnewsroom.consilium.europa.eu
 

On 7 December 2016, the Permanent Representatives Committee (Coreper) approved a compromise text agreed with the European Parliament on an amendment to the Schengen Borders Code to reinforce checks against relevant databases at external borders. 

"This achievement was only made possible through the hard work and commitment of everyone involved", said Robert Kaliňák, Interior Minister of Slovakia and President of the Council. "It is an important response to the increase of terrorist threat in Europe and particularly crucial in the context of tackling the problem of foreign fighters." 

The amendment obliges member states to carry out systematic checks on all persons, including persons enjoying the right of free movement under EU law (i.e. EU citizens and members of their families who are not EU citizens) when they cross the external border against databases on lost and stolen documents, as well as in order to verify that those persons do not represent a threat to public order and internal security. This obligation shall apply at all external borders (air, sea and land borders), both at entry and exit. 

However, where a systematic consultation of databases on all persons enjoying the right of free movement under Union law could lead to a disproportionate impact on the flow of traffic at a sea and land border, member states may carry out only targeted checks against databases, provided that a risk assessment shows this does not lead to risks related to internal security, public policy, international relations of the member states or a threat to public health.

As regards air borders, the institutions agreed that member states may use this possibility, but only during a transitional period of 6 months from the entry into force of the amended regulation. This period may be prolonged by a maximum of 18 month in exceptional cases, where at a specific airport there are infrastructural difficulties requiring a longer period of time for adaptations to allow for the carrying out of systematic consultations of databases without disproportionate impact on the flow of traffic.

Background 

This regulation to amend the Schengen Borders Code (SBC) was presented by the European Commission in December 2015. It is a response to the increase of terrorist threats and to the call from the Council in its Conclusions of 9 and 20 November 2015 for a targeted revision of the SBC in the context of the response to "foreign terrorist fighters". The agreement is also a tangible outcome of the Bratislava Declaration and Roadmap, agreed by the leaders of the 27 member states on 16 September 2016. 

While member states are obliged to check third country nationals systematically on entry against all databases for reasons of public order and internal security, the current provisions do not provide for such a check on exit in all databases. Nor do they provide for a systematic check of persons enjoying the right of free movement under EU law. The amendment will align the obligations to include systematic checks on exit to ensure that both third country nationals and EU citizens and their family members do not present a threat to public policy and internal security. 

The amendment makes the use of the Schengen Information System and other relevant Union databases more intensive and it gives the possibility for consulting other Interpol databases. Consultation of the Interpol database on stolen and lost travel documents is an obligation for checks of third country nationals and persons enjoying the right of free movement under Union law both, on entry and on exit. 

Next steps 

Now that the agreement has been confirmed by the Permanent Representatives Committee, on behalf of the Council, the regulation will be submitted to the European Parliament for a vote at first reading, and to the Council for adoption.

I would like to congratulate you wholeheartedly on your appointment at the helm of the French government as Prime Minister. On behalf of the European Council and personally, I wish you every success in that high office.

At a time when France and the European Union are facing multiple political and economic challenges, it remains essential for the French government, the governments of all the member states and the EU institutions to work together to find joint solutions.

Yours sincerely,

The Council: 

1.           WELCOMES the Commission Communication of 25 October 2016[1] on building a fair, competitive and stable corporate tax system for the Union (doc. 13729/16) and related legislative proposals; 

2.           RECALLS the European Council conclusions of 18 December 2014 stating the urgent need to advance efforts in the fight against tax avoidance and aggressive tax planning, both at the global and EU levels and REITERATES its commitment to principles of international taxation; 

3.           RECALLS its conclusions on Base Erosion and Profit Shifting (BEPS), adopted on 8 December 2015 (doc. 15150/15) and on the Communication from the Commission of 5 July 2016 on further measures to enhance transparency and the fight against tax evasion and avoidance of 11 October 2016 (doc. 13139/16); 

4.           RECOGNISES recent important achievements in the field of corporate taxation in the Union and in particular the legislation aimed at increasing tax transparency and ensuring that companies operating in the European Union pay taxes where profits are generated; 

5.           REAFFIRMS the importance of continuing to promote tax good governance in the EU's relations with international partners to ensure an effective level-playing field between the Member States of the EU and third States; 

6.           ENDORSES the view that the EU tax environment could benefit from a forward-looking framework for corporate taxation that is growth-friendly and efficient, fair and effective in tackling aggressive tax planning practices, without prejudice to Member States' competence in these matters; 

7.          UNDERLINES the importance of having corporate tax rules which offer stability, legal certainty and administrative simplification to large companies as well as small and medium sized enterprises (SMEs) and, in the light of this, WELCOMES further discussion on the proposal on a Common Corporate Tax Base (CCTB) and on a Common Consolidated Corporate Tax Base (CCCTB); 

8.           NOTES the  two step approach proposed by the Commission concerning the proposals on a Common Corporate Tax Base (CCTB) and on a Common Consolidated Corporate Tax Base (CCCTB) and SUPPORTS the view that work should focus as a priority on the elements of a common tax base; 

9.           TAKES NOTE of the incentives for research and development, and innovation as well as investment incentives at EU level proposed by the Commission and INVITES Member States to continue discussion on assessing the need and the  added value of the elements proposed on this matter; 

10.        CONCURS that current international tax rules can, in some cases, lead to double taxation and double non-taxation that should be eliminated through coordinated EU measures and Acknowledges that there is a need to review existing dispute resolution mechanisms to enhance tax certainty for business in the EU; 

11.        Therefore LOOKS FORWARD to the examination of the proposal for a Double Taxation Dispute Resolution Mechanism in the European Union for businesses in the EU; 

12.        NOTES the ambitious timeline proposed by the Commission in  the proposals on CCTB, CCCTB and Double Taxation Dispute Resolution Mechanism, and CALLS FOR swift progress on the examination of these legislative files; 

13.        INVITES incoming Presidencies to sequence the work on the CCTB and CCCTB proposals along the lines of the following: 

(a)     As a start, Member States should concentrate their efforts on the rules for calculating the tax base and, in particular, on the new elements of the relaunched initiative (chapters I to V); 

(b)     Member States should then concentrate on the remaining elements of the common base (chapters VI to XI), that is: i) those that have already been extensively discussed under the 2011 proposal for a CCCTB, and ii) those that are included in the recently adopted Council Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market; 

(c)     Tax consolidation should be examined without delay once the discussion on these elements has been successfully concluded; 

14.        RECALLS its statement on hybrid mismatches at the Council (ECOFIN) meeting on 12 July 2016, and therefore WELCOMES the proposal amending Directive (EU) 2016/1164 as regards hybrid mismatches with third countries; 

15.        ACKNOWLEDGES that these initiatives may contribute to building a fair, competitive and stable corporate tax system for the EU. 

 [1]         Communication from the Commission to the European Parliament and the Council of 25 October 2016 on building a fair, competitive and stable corporate tax system for the EU (doc. 13729/16). 

The Council (ECOFIN) adopted the following conclusions: 

A number of positive developments in the EU since the global economic and financial crisis signal the resilience and recovery of the European economy. All Member States' economies are growing again, investment has started to pick up and 8 million new jobs have been created since 2013. However, since the global economic and financial crisis, the level of investment in the EU has fallen substantially. Economic recovery, job creation, long-term growth and competitiveness are being hampered as a result. In this context the Investment Plan for Europe presented in November 2014 aims to address this low investment via three mutually reinforcing pillars: mobilising private finance for investment; targeted initiatives to ensure investment reaches the real economy and improving the investment environment by removing sector specific and other barriers to investment. 

Under the first pillar, the European Fund for Strategic Investment (EFSI) is expected to have already mobilised total investment of 154bn euros. The European investment Advisory Hub, which constitutes the second pillar, together with the European Investment Project Portal, has been active since September 2015 and has been providing advice to projects in a majority of the Member States. Furthermore, the Council RECOGNISES aggregate demand as a driver of investment and CONSIDERS that in order to unlock the full potential of the opportunities provided by the Investment Plan, and to mobilise its full multiplier effect, relevant and appropriate measures including structural reforms to remove barriers to investment under the so-called "third pillar" of the plan are critical. This requires implementing an ambitious agenda to further strengthen the Single Market, providing greater regulatory predictability and removing remaining bottlenecks to investment through combined actions at EU and at Member State level. Against this background, the Council WELCOMES the work conducted by the Economic Policy Committee, in cooperation with services of the Commission and the European Investment Bank to identify bottlenecks to investment. 

The Council STRESSES that completing the Single Market is essential for the delivery and success of the objectives of the Investment Plan for Europe. Europe needs a regulatory environment which is predictable, reduces administrative burdens and encourages investment and needs to actively work to achieve these conditions. Favourable framework conditions for businesses across the Single Market are essential to unlock the full potential of investment. To this end the Council WELCOMES the Commission´s efforts to improve Europe´s investment environment and facilitate the financing of the real economy and CALLS on the Commission to continue with these efforts in the context of the Energy Union, the Capital Markets Union, the Single Market Strategy for Goods and Services, the Digital Single Market Strategy, the Better Regulation Agenda, as well as the Circular Economy package. The Council NOTES the Commission's legislative proposal amending Directive 2012/30/EU on insolvency procedures which will be assessed as a matter of priority. 

The Council STRESSES that further progress towards increasing investment in Europe, and the success of the Investment Plan are strongly contingent on the implementation of structural reforms to address bottlenecks to investment identified under the third pillar but, as noted by Council in July 2016, progress on improving the investment environment has been insufficient so far. 

In light of the work carried out so far, the Council HIGHLIGHTS the following specific bottlenecks to investment:   

• The most frequent barriers to investment are for example related to an unfavourable business environment, inefficiencies in public administration, frequent changes to regulation, market size and structure, and high sector-specific administrative and regulatory burdens. In some countries, access to finance particularly for SMEs, complex taxation systems and/or a high level of capital taxation, distortions in product and labour markets, and weaknesses in research and innovation frameworks can also hinder investment.
• Investment in Network Industries: Investment in sectors of transport, energy, and telecoms combined has constituted on average around 3% of GDP for the EU 28. Whilst often of a sector specific nature, there are substantial and growing synergies between networks across sectors which are shaping market dynamics through new uses for infrastructure and demanding changes in business models. In the energy sector, new services rely on fast precise telecommunication leading operators to invest in broadband infrastructure. In the transport sector, new services are being developed relying on quality electricity infrastructure and advanced telecoms.
• Whilst this varies across the EU, important bottlenecks hampering investment include a lack of interconnection of networks across the EU, complexity and heavy burden within the regulatory framework, lengthy permit procedures, the lack of competitive tendering often limiting the full benefit of public procurement, and time overruns due to unnecessary lengthy legal and administrative procedures.
• In energy markets, consistent price signals are important for a market based and efficient allocation of investment. Any public intervention should aim to minimise regulatory distortions and address misaligned incentives. Instruments to support the transition to the low carbon economy need to be designed to ensure environmental, social and fiscal sustainability over time.
• Investment into Energy efficiency and residential investment in renewable energy: households may face specific constraints leading to sub-optimal investment decisions for the long term. These can include a lack of awareness of the true costs and returns to investment as they are not matched over time. Households may also face a limited access to finance, with a need for affordable financing products to incentivise consumers, particularly low-income households for example through large scale or pooling solutions while also respecting their risk profiles. Investments are typically small and often only considered as part of periodic renovation projects. In the case of rental markets, incentives may be split between building owners and renters.
• Investment for the Digital Economy: investment in digital physical infrastructure is key in order for the EU to benefit from the wave of innovation brought by the expansion of the digital economy and to continue being competitive. However, important bottlenecks hamper investment. Deployment costs for very high capacity broadband networks are high and sometimes not commercially viable in less densely populated areas. Directive 2014/61/EU, which aims to help reduce those costs, still has to be fully transposed and implemented in most Member States. Quicker and more efficient administrative procedures would also help to reduce costs. Markets are often national which keeps costs high and may hamper the realisation of economies of scale. Uncertainty about the short-term uptake of very high capacity broadband implies low expected earnings compared to investment costs and acts as a brake on investment. In some countries, other obstacles than those linked to the physical infrastructure also exist, such as a lack of trust in security of digital systems and insufficient digital skills among layers of the population.  
• The use of Public Private Partnerships (PPPS): Public Private Partnerships can, when used appropriately, represent a facilitator for specific kinds of investment and offer an alternative way to deliver public assets and services. As long-term contractual obligations they however require strong and stable commitment from public and private sector partners and are a potential source of risk to public finances. Their use is often hampered by unfavourable framework conditions including a lack of administrative resources, unstable and ineffective regulatory framework and a lack of political commitment for longer-term investments. In certain circumstances EU funds may contribute to funding PPPs, and the recent changes in the regulations should facilitate the blending of EU funds and PPPs.
• Insolvency Frameworks: Well-functioning insolvency frameworks benefit economic growth and financial stability. Clear rules for cross-border procedures may contribute to cross-border investment, as well as reduced differences in insolvency systems across countries. Insolvency regimes differ significantly across the EU, with the length and cost of procedures, their predictability and transparency, second chances for entrepreneurs and consumers, and the possibility of restructuring debt all varying.  
• Important bottlenecks created by inefficient insolvency frameworks may include low recovery rates for claimholders, including secured creditors, the possible use of creditor priority ranking, and a lack of effective and efficient restructuring procedures. Adequate flanking policies that would help reap the benefits of effective insolvency frameworks include the resolution of Non Performing Loans including via the creation of a secondary market, at the national level, and adequate tax and prudential policies to ensure effective offloading of bad debt.
• There remains considerable potential to further promote synergies and complementarities between EU financial instruments to support blending of funds for infrastructure projects. Regulatory complexities and administrative bottlenecks for the use of EU funds can be reduced through the key principles of simplification and standardisation of process, combination of instruments, and pooling of resources irrespective of their origin.

The Council TAKES NOTE of the bottlenecks to investment identified by this work and INVITES the Commission to consider these findings into further draft recommendations in the framework of the European Semester and INVITES Member States to fully implement the 2016 Council Country Specific Recommendations issued under the European Semester and particularly those identifying investment bottlenecks. 

The Council HIGHLIGHTS the need to continue the work on identifying the barriers to investment and INVITES the Economic Policy Committee to continue its thematic work to identify further investment bottlenecks and best policy practices to address them. Furthermore, the Council INVITES the European Investment Bank to complement the work of the Economic Policy Committee through its findings on barriers and bottlenecks to investment identified when carrying out its market-based activities, notably under the Investment Plan for Europe.  

Place:       Justus Lipsius building, Brussels
Chair:       Employment and Social Policy: Mr Jan Richter, Minister for Labour, Social Affairs and Family of Slovakia; Health: Mr. Tomáš Drucker, Minister for Health of Slovakia

All times are approximate and subject to change

EMPLOYMENT AND SOCIAL POLICY

+/- 08.50
Doorstep by Jan Richter

+/- 09.30
Beginning of the meeting (Roundtable Employment and Social Policy)
Adoption of the agenda
Adoption of the non-legislative A Items
Adoption of the legislative A Items (public session)

+/- 09.45
European agencies (Eurofound, EU-OSHA, CEDEFOP)

+/- 10.25
Posting of workers

+/- 10.50
European accessibility act

+/- 11.00
Equal treatment

+/- 11.10
European pillar of social rights

+/- 14.45
Council conclusions on accelerating the process of Roma integration (public session)
Council conclusions on women and poverty

+/- 15.10
European Semester 2017

+/- 16.10
Council conclusions on Youth Guarantee and the Youth Employment Initiative

+/- 16.20
Any other business

+/- 16.30
Press conference (live streaming)

HEALTH

+/- 14.15
Doorstep by Tomáš Drucker

+/- 16.45
Beginning of the meeting (Roundtable Health)

+/- 16.50
Annual growth survey 2017 (public session)

+/- 17.35
Any other business

+/- 19.00
Press conference (live streaming)

The Eurogroup welcomes the progress that has been made in reaching full staff-level agreement between Greece and the institutions in the context of the second review of the ESM programme. In particular, the Eurogroup welcomes the agreement with the European institutions on a budget for 2017, which confirms the agreed primary balance target of 1.75% of GDP and which allows for the national rollout of the Guaranteed Minimum Income (GMI), which establishes a genuine social safety net. The Eurogroup notes that staff-level agreement should include measures to reach the agreed fiscal target for 2018 (a primary balance of 3.5% of GDP), as well as reforms to enhance growth and cost competitiveness, including further substantial reforms of the labour market, the opening up of closed professions and the removal of barriers for investment. 

In particular, the Eurogroup recalls that the appointment of the members of the Board of Directors of the Hellenic Corporation of Assets and Participations (HCAP) should be implemented before the end of January 2017 to make the fund fully operational. 

The Eurogroup recalled that the primary surplus target of 3.5% of GDP reached by 2018 should be maintained for the medium-term. We also recalled the importance of a fiscal trajectory that is consistent with the fiscal commitments under the EU framework. In order to ensure compliance with the fiscal targets in a sustainable manner after the completion of the programme, the Greek authorities commit to agree with the institutions on a mechanism and structural measures that would ensure this. 

Today the Eurogroup discussed again the sustainability of Greek public debt with the objective to regain market access. In this context, the Eurogroup endorsed today the full set of short-term measures on the basis of proposals by the ESM and preparatory work by the EWG, which will be implemented by the ESM following this meeting.  Those measures will consist of: 

• The smoothening of the EFSF repayment profile within the current weighted average maturity of up to 32,5 years;
• The waiver of the step-up interest rate margin amounting to 200 bps related to the debt buy-back tranche of the 2nd Greek programme for the year 2017;
• The use of the EFSF/ESM funding strategy as markets allow to reduce interest rate risk without incurring any additional costs for former programme countries. This measure will be implemented through: (i) exchanging the EFSF/ESM back-to back notes supporting the bank recapitalization loans to Greece, (ii) the ESM entering into interest rate swaps to mitigate the risk of higher market rates and  (iii) introducing matched funding for future disbursements to Greece under the current programme.

The short-term debt measures will have a significant positive impact on the sustainability of Greek debt. 

The Eurogroup calls upon the institutions and Greece to swiftly resume negotiations in order to reach staff-level agreement as soon as possible, based on a shared conditionality, as agreed in August 2015, and mandates the EWG to assess this. The Eurogroup stands ready, in line with usual practice, to support the completion of future reviews provided that the policy package, including the contingency fiscal mechanism as agreed in the context of the first review, is implemented as planned. The Eurogroup confirms that the programme implementation, as well as policy conditionality and targets, will be reviewed regularly based on input from the institutions. 

The IMF staff reconfirmed today its intention to recommend to the Fund's Executive Board a new financing arrangement for Greece as soon as possible once staff-level agreement is reached in accordance with established Fund policies. 

The full implementation of all prior actions related to the second review and the completion of national procedures would pave the way for the ESM governing bodies to approve the supplemental Memorandum of Understanding.

On 5 December 2016, the U.S.-EU Ministerial Meeting on Justice and Home Affairs occurred in Washington, D.C. The meeting reaffirmed the strong and historical bonds between the United States and the European Union, and the commitment to continue working closely together in the areas of Justice and Home Affairs.

The United States of America, hosting the event at the Department of Justice, was represented by U.S. Attorney General Loretta Lynch and by Secretary of Homeland Security, Jeh Johnson.

The European Union was represented by the Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos and by Slovak Deputy Prime Minister and Minister of Interior Robert Kaliňák, on behalf of the Presidency of the Council of the European Union.

The United States of America and the European Union underlined the critical importance of their robust relationship and cooperation in the area of Justice and Home Affairs and the need to sustain and deepen cooperation while facing the shared security challenges, for the benefit  of the security of citizens in the United States and in the European Union.

Both sides confirmed the completion of their internal approval procedures for the EU-U.S. Data Protection "Umbrella" Agreement, and welcomed this important step for strengthening data protection in law enforcement cooperation across the Atlantic. On that basis, the U.S Attorney General will now make the  necessary designations under the Judicial Redress Act to allow the swift entry into force of the Agreement.

The United States and the European Union discussed their common efforts to fight terrorism, including through improved information sharing, and addressing the issue of radicalization. The sides also exchanged views and took stock of recent European Union actions in the areas  of migration, border management and its role in ensuring internal security. They also discussed questions related to Chemical, Biological, Radioactive and Nuclear materials.

The European Union stressed the importance of achieving full visa reciprocity with the United States as soon as possible.

The sides reaffirmed the need to step up joint work on cybersecurity and cybercrime in all its dimensions including with the private sector.

The discussion further covered the implementation of the U.S.-EU Mutual Legal Assistance Treaty and the question of access by law enforcement authorities to electronic evidence. Participants also recognized the challenges posed by the existing legal frameworks in terms of cross-border access to digital evidence and agreed to regularly discuss these issues with a view to proposing common solutions. The participants also discussed recent extradition matters.

Reiterating the progress made and the need to face global challenges together, the United States and the European Union committed to continue their constructive dialogue and meet again in the first half of 2017.