European Council

On 3 February 2016, the 28 member states agreed on how to finance the €3 billion EU refugee facility for Turkey. This will allow the EU to deliver additional humanitarian assistance to refugees in Turkey and their host communities. The help is mainly focused on meeting immediate needs by providing food, health services and education.

“We are working continuously to stem the flow of migrants to Europe. The agreements between the EU and Turkey are a vital part of this. They aim at targeting human traffickers and launching projects which will help give those in and around the refugee camps the hope of a better future. Europe is following  up on its decision to make 3 billion euro available for the Turkey Refugee Facility and we will continue to work hard with our Turkish partners to turn this into concrete results”, said Mark Rutte, Prime Minister of the Netherlands, which is currently holding the rotating Presidency of the Council of the EU.

This agreement puts into practice the commitment made by the EU at its summit with Turkey on 29 November 2015 to provide €3 billion additional resources to assist Turkey in addressing the immediate humanitarian and development needs of refugees and their host communities. €1 billion of this will be financed from the EU budget and the remaining €2 billion by contributions from the member states according to their share in EU GNI.

The facility will include a governance and conditionality framework. Its respect is an essential element for the execution of assistance actions.

The distribution of member states' contributions is set out in the following table and graphic: 

[1] Contributions made by member states could be adjusted downwards in 2017 according to the final contribution from the EU budget, without prejudice to the total amount planned for the instrument and without prejudice to the prerogatives of the budgetary authority.

[2] National contributions for the Facility will not be taken into account for the calculation of a member state's deficit under the Stability and Growth Pact.

[3] A contribution from Cyprus in the amount of € 2.3 million will be made to the EU budget for Jordan and Lebanon.

Keeping the unity of the European Union is the biggest challenge for all of us and so it is the key objective of my mandate. It is in this spirit that I put forward a proposal for a new settlement of the United Kingdom within the EU. To my mind it goes really far in addressing all the concerns raised by Prime Minister Cameron. The line I did not cross, however, were the principles on which the European project is founded.

I deeply believe that our community of interests is much stronger than what divides us. To be, or not to be together, that is the question which must be answered not only by the British people in a referendum, but also by the other 27 members of the EU in the next two weeks.

This has been a difficult process and there are still challenging negotiations ahead. Nothing is agreed until everything is agreed. I am convinced that the proposal is a good basis for a compromise. It could not have been drafted without the close and good cooperation of the European Commission. In order to facilitate this process the Commission also made political declarations that are included in this package.

Let me briefly refer to all the four baskets of the proposal.

On economic governance, the draft Decision of the Heads sets out principles to ensure mutual respect between the Member States taking part in further deepening of the Economic and Monetary Union and those which do not. By doing that we can pave the way for the further integration within the euro area while safeguarding the rights and competences of non-participating Member States.

The respect for these principles is backed up by a draft Decision establishing a mechanism that while giving necessary reassurances on the concerns of non-euro area Member States, cannot constitute a veto nor delay urgent decisions. The exact conditions for triggering this mechanism remain to be further discussed.

On competitiveness, the draft Decision of the Heads, together with a more detailed European Council Declaration and a draft Commission Declaration, will set out our commitment to increase efforts to enhance competitiveness. We will regularly assess progress in simplifying legislation and reducing burden on business so that red tape is cut.

On sovereignty, the proposed Decision of the Heads recognises that in light of the United Kingdom's special situation under the Treaties, it is not committed to further political integration. It also reinforces respect for subsidiarity, and I propose that the Member States discontinue the consideration of a draft legislative act where a number of national parliaments object to it on the grounds of subsidiarity, unless the concerns raised can be accommodated. The importance of respecting the opt-out regime of Protocols 21 and 22, as well as national security responsibilities is also underlined.

On social benefits and free movement, we need to fully respect the current treaties, in particular the principles of freedom of movement and non-discrimination. Therefore the proposed solution to address the UK concerns builds on the clarification of the interpretation of current rules, including a draft Commission Declaration on a number of issues relating to better fighting abuse of free movement.

The draft Decision of the Heads notes, in particular, the Commission's intention to propose changes to EU legislation as regards the export of child benefits and the creation of a safeguard mechanism to respond to exceptional situations of inflow of workers from other Member States. A draft Commission Declaration also relates to this mechanism. This approach, as well as the exact duration of the application of such a mechanism need to be further discussed at our level.

Most of the substance of this proposal takes the form of a legally binding Decision of the Heads of State or Governments. We should also be prepared to discuss the possible incorporation of the substance of a few elements covered by the Decision into the Treaties at the time of their next revision.

Our Sherpas and Permanent Representatives will meet on Friday this week to have the first discussion of the proposal. The clear objective is to have an agreement of all 28 at the February European Council. To succeed we will all need to compromise. To fail would be compromising our common future.

Donald Tusk, President of the European Council

Elements of the proposal

Sunday 31 January 2016
London
18.30 Meeting with Prime Minister David Cameron

Tuesday 2 February 2016
17.00 Meeting with NATO Secretary-General Jens Stoltenberg (photo opportunity)

Thursday 4 February 2016
London - Supporting Syria and the Region conference

(local time)
11.00 Intervention at the Supporting Syria and the Region conference

11:25 Meeting with UN Secretary-General Ban Ki-moon
12.30 Meeting with Prime Minister of the United Kingdom David Cameron
13.00 Meeting with President of the European Parliament Martin Schulz
14.30 Meeting with Prime Minister of Slovenia Miro Cerar
15.00 Meeting with Prime Minister of Turkey Ahmet Davutoğlu, German Federal Chancellor Angela Merkel, Prime Minister of the Netherlands Mark Rutte, Prime Minister of Greece Alexis Tsipras and Austrian Chancellor Werner Faymann

On 28 January 2016, the Council extended until 31 January 2017 a freeze on the assets of 48 persons deemed to be responsible for the misappropriation of state funds in Tunisia and those associated with them. 

The decision will be published in the Official Journal of the EU on 29 January 2016.

The sanctions were initially introduced on 31 January 2011, targeting former president Zine El Abidine Ben Ali, his wife and 46 other persons. They have been renewed annually.

On behalf of the European Council, I wish to congratulate you on becoming Prime Minister of the Republic of Croatia. 

Your nomination comes at a crucial time both for Croatia and the European Union. Today, more than ever, we need unity and solidarity in Europe, in order to deal with the refugee crisis effectively. Bearing in mind the region's role as a key transit route for large numbers of migrants, Croatia will continue to be an important and valued partner in this effort. 

Europe also needs to show determination in carrying out economic reforms necessary to create jobs and growth. I trust that under your leadership Croatia will contribute constructively in rising to these as well as other challenges facing Europe today. 

I look forward to working closely with you and welcoming you at the European Council of 18 and 19 February.

It is my pleasure to extend my wholehearted congratulations to you on your election as President of the Portuguese Republic. On behalf of the European Council and personally, I wish you every success in your work. I trust that under your term, Portugal will benefit from the political stability and social cohesion that are necessary to respond to the challenges lying ahead.

In 2016 Portugal  celebrates 30 years of accession to the European Communities. I am pleased to note that the political commitment and popular support of your Nation to the European project and values have always remained among the strongest. I have the firm conviction that Portugal will continue to contribute to the development of the European Union, the completion of monetary union and appropriate responses to geopolitical threats. 

Today I met with Prime Minister of Lebanon Tammam Salam to prepare for the upcoming London Conference, "Supporting Syria and the region", on 4 February. We discussed topics of common concern, such as the impact of the refugee crisis, the  joint fight against terrorism, and the Syria crisis.

The European Union is committed to support Lebanon to sustainably address the consequences of the Syrian crisis. Ahead of London, we agreed with Prime Minister Salam to do more to address the needs of refugees and host communities. This includes by creating job opportunities and providing education, offering greater hope for the future.

The European Union also appreciates Lebanon's efforts in countering violent extremism and fighting terrorism, particularly in the light of the brutal terrorist attacks in Beirut of 12 November. I hope that the EU and Lebanon will be able to further strengthen our cooperation. The upcoming counter-terrorism Dialogue in Beirut is an important opportunity to do so.

I expressed to the Prime Minister our appreciation for his commitment and efforts to govern in such challenging times. I also renewed our call on all political forces to elect a new President and foster reforms to strengthen democracy, justice and the rule of law.

The European Union is committed to working with Lebanon, especially during challenging times. We will continue our joint efforts to make the EU-Lebanon partnership stronger.

The December European Council debated in fact all the major crises that confronted Europe in 2015. Whether it was the migration and refugee crisis, EMU reform or Brexit, in all of these discussions we made some progress but for sure not enough. Let us have no doubt that 2016 will also be overshadowed by these challenges. Our community is experiencing a stress test. And what is most challenging is that we are being tested on all possible fronts at the same time. Today, let me say it loud and clear. I will not rest until we work out solutions to all these challenges. Our strength comes from our unity. Therefore keeping European unity will continue to be my main goal in 2016.

Dear members, let me start with the migration and refugee crisis, an existential challenge for the EU. As you remember I have emphasised for months, in fact from the very beginning of the migration crisis that there is no good alternative to border protection. This is a conditio sine qua non of any effective migration policy.

After the December European Council, we can be a bit more optimistic. The leaders' discussion concentrated on ways and means to strengthen external border control. All leaders acknowledge that protecting Schengen requires difficult decisions. In this context, we agreed to rapidly examine the European Commission's proposal to strengthen the EU's external borders, including the idea of the European Border Guard. This is a priority for the Dutch Presidency and we should have political agreement in the Council by June.

The agreement of by Greece to accept a Rapid Border Intervention Team from Frontex already in December is another indication that we have started to move in the right direction when it comes to guarding the external border.

Despite political progress, I have to admit that there is a clear delivery deficit on many fronts, from hotspots and security screening in frontline countries to relocation and returns. The action plan with Turkey, although promising, is still to bear fruit.

I share the sentiment expressed by Prime Minister Rutte that we have no more than two months to get things under control. The statistics over the Christmas period are not encouraging with over 2,000 arrivals to the EU per day, according to Frontex. The March European Council will be the last moment to see if our strategy works. If it doesn't we will face grave consequences such as the collapse of Schengen. For sure this kind of alternative to our strategy is not pleasant and so I appeal that Member States implement our agreements in full.

Dear members, let me turn to the UK. In December, leaders had a substantive and constructive discussion on the UK question. Prime Minister Cameron set out his position in detail, in particular regarding benefits and free movement. He explained his request for a model based on four years and reiterated the openness to alternative solutions but only if they achieve the same objective. Leaders voiced their concerns on specific issues, but also demonstrated willingness to look for compromises. Building on this positive debate, we agreed to work together to find solutions in all four baskets raised by PM Cameron: relations with the euro area, sovereignty, competitiveness and on benefits and free movement. Hard work on all these baskets is progressing and as we speak my people are working with the Commission to bring us closer to the solution. In the run-up to the February European Council, I will table a concrete proposal for a deal with the UK to all EU leaders. Let me stress again that from the very beginning of these negotiations I have been very clear. There will be no compromise on fundamental values like non-discrimination and free movement. At the same time I will do everything in my power to find a satisfactory solution, also for the British side. As of today the result of the referendum is more unpredictable than ever before. Time is of essence here. And this is why I will work hard to strike a deal in February. It will not be easy but it is still possible.

Dear members, the European Council also discussed counter-terrorism in light of the Paris tragedy. These outrageous acts only have strengthened Europe's resolve to fight terrorism. Leaders agreed to operationalise our policies, including systematically sharing information on foreign fighters through Schengen and Europol, as well as between Member States' authorities. Security services should conduct joint threat analysis if it can prevent future attacks. Europol has already reported a significant rise in information-exchange on foreign fighters through its new Counter Terrorism Centre with almost every Member State contributing data. Without vigilance and real co-operation, we cannot defeat this threat and the likelihood of further attacks remains very high. I urge all states to cooperate fully.

The European Council was an opportunity for the leaders to assess the state of play in building the Energy Union. There is a significant progress in the level of interconnections between states on the gas and electricity markets, including the parts of Europe that have been isolated until now. When I proposed the energy union concept as Polish prime minister, this was one of my major goals.

I am happy to see clear progress but still we need more. The European Council asked for all relevant legislation to be brought forward, including on strengthening the transparency on the gas market. Talking about the Energy Union, leaders had an exchange on the Nord Stream II project, some of them were very critical, and we also discussed the conditions that need to be met by major energy infrastructure projects. We reiterated that any new infrastructure should be fully in line with the Energy Union objectives. Not to mention the obvious obligation that all projects have to comply with all EU laws, including the third Energy Package. These are clear conditions for receiving support from the EU institutions or any Member State - political, legal or financial. Now the ball is in the court of the European Commission. But the political message of the European Council is clear and goes in a similar direction as the position expressed by the European Parliament.

Leaders praised President Hollande and congratulated him on the successful hosting of the COP21 and on the agreement of the first ever, legally-binding global climate deal. We have asked the Commission and the Council to assess fully what the Paris Agreement implies for our own energy and climate policy mix.

Last, but certainly not least, the European Council addressed economic challenges.  Leaders confirmed their commitment to work towards completing EMU further based on the Five Presidents' report. Even if Europe is overwhelmed by the migration crisis, we cannot afford to wait with the necessary EMU reforms for better days. In this spirit ministers were asked to advance their work rapidly on a number of areas, including the banking union.

The European Council also emphasised the importance of deepening the single market in key areas. Delivering a digital single market and building a capital markets union are our top priorities.

Finally, I want to warn against the increasingly alarmist rhetoric on the future of Europe. Neither naivety nor excessive pessimism will get Europe the results it needs. As Europeans we have to be both realistic and confident about our values and beliefs. I am reminded of Arnold Toynbee's famous remark that civilisations die from suicide, not by murder. Europe is stronger than some may think, and we still have the power and the public mandate to do what is necessary. Thank you.

The Cooperation Council between the European Union (EU) and the Republic of Armenia held its sixteenth meeting on Monday, 18 January 2016. The EU was represented by Mr. Bert KOENDERS, Minister of Foreign Affairs of the Kingdom of the Netherlands, acting as head of the European Union delegation on behalf of the High Representative of the Union for Foreign Affairs and Security Policy, Ms Federica Mogherini, and by Mr Johannes HAHN, Commissioner for European Neighbourhood Policy and Enlargement Negotiations. The Armenian delegation was led by Mr Edward NALBANDIAN, Minister of Foreign Affairs of the Republic of Armenia, acting this year as Chair of the Cooperation Council. 

The European Union and Armenia reconfirmed their joint commitment to enhance and deepen their cooperation in all areas possible and compatible with Armenia's new international obligations deriving from its accession to the Eurasian Economic Union.

Both sides welcomed the launch of negotiations and provided further political guidance and impetus as regards the future EU-Armenia Agreement, meant to replace the current outdated Partnership and Cooperation Agreement and to reset their relations within the wider framework of the reviewed European Neighbourhood Policy and the Eastern Partnership.

The EU and Armenia reviewed activities undertaken and meetings held during the past year in the context of the Eastern Partnership and underlined the importance of effective joint actions to build on the successful 2015 Eastern Partnership Summit held in Riga. They addressed issues related to the implementation of the reviewed European Neighbourhood Policy and shared the view that updated Partnership Priorities should be defined after the conclusion of the new EU-Armenia agreement.  

The Cooperation Council reviewed recent political, economic and social reforms in Armenia. The EU took note of progress achieved in implementing these reforms and of Armenia's commitment to continue on this positive trajectory, while at the same time encouraging Armenia to accelerate reforms in specific areas, notably democracy and the rule of law, anti-corruption, human rights and fundamental freedoms, constitutional and judicial reform. Particular attention was drawn to the need for reform of the electoral system, to the need to appropriately implement the new constitution and assure media freedom, as well as to the important role of civil society. 

The EU confirmed its continued support for Armenia's reform efforts, including implementation of the visa facilitation and readmission agreements, and encouraged Armenia to make best use of the assistance it receives to this end from the EU. For 2014-2017, between 140 and 170 million EUR, focused on private sector development, public administration reform, and justice sector reform, are to be disbursed. 

The Cooperation Council welcomed the good progress made in implementing the Mobility Partnership. The EU reiterated its firm commitment to enhance the mobility of citizens in a secure and well-managed environment, which is a core objective of the Eastern Partnership, and recognised the high importance attached by Armenia to the mobility of its citizens. Moreover, both sides welcomed the overall good implementation of the Visa Facilitation and Readmission agreements since the previous Cooperation Council. 

The Cooperation Council addressed also regional issues of common interest, including the prospects for the resolution of the Nagorno-Karabakh conflict. On the latter, the EU reaffirmed that the status quo is unsustainable and that the peaceful resolution of this conflict remains a priority issue for the EU. The security situation along the Line of Contact and the international border between Armenia and Azerbaijan is a matter of serious concern. The EU reiterated its call for restraint and further engagement in the OSCE-led negotiation efforts. Moreover, the EU reiterated its support to the negotiations mediated by the OSCE Minsk Group Co-Chairs aimed at settling the conflict. It encouraged further dialogue between Armenia and Azerbaijan, including at the level of Presidents and welcomed the summit held on the initiative of the Co-Chairs in Switzerland on 19 December 2015 which provided an important opportunity for exchanges on the way ahead. Furthermore, the EU reiterated its willingness to support peace-building activities and its readiness to provide reconstruction and rehabilitation support to the regions affected by the conflict, once a peace deal is struck. 

Tuesday 12 January 2016
11.00 New Year's reception at the Royal Palace (Brussels)
17.00 Meeting with the Greens/EFA group in the European Parliament  (EP)
18.00 Meeting with the S&D group in the European Parliament  (EP)

European Council meeting will take place on 18-19 February 2016 in Justus Lipsius building in Brussels. 

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On 7 January 2016, the Council appointed Mr Kęstutis Lančinskas, a senior Lithuanian police official, as head of the European Union Advisory Mission Ukraine. Mr Lančinskas will replace Mr Kalman Mizsei and is expected to take up his duties in Kyiv on 1 February 2016. 

The European Union Advisory Mission for Civilian Security Sector Reform Ukraine, EUAM Ukraine, was formally launched on 1 December 2014, with a mandate to support Ukrainian state agencies in the reform of the security sector. The mission is one the central elements of the EU's enhanced support to the Ukrainian authorities after the Maidan uprising in December 2013. It follows the signing of an Association Agreement between Ukraine and the EU in 2014, which includes the establishment of a Deep and Comprehensive Free Trade Area (DCFTA). The DCFTA came into effect on 1 January 2016. 

The EUAM aims to strengthen and support reform in state agencies such as the police, other law enforcement agencies and the overall judiciary, particularly the prosecutor's office. This process is ultimately designed to restore the trust of the Ukrainian people in their civilian security services, which have been beset by allegations of corruption and malpractice. 

Today's decision was taken by the Political and Security Committee. 

A Masters graduate of criminal law, Mr Lančinskas held several first secretary roles as part of Lithuania's diplomatic service during the 1990s. From 1998 to 2005, he served as the head of the international cooperation and European integration service at Lithuania's Ministry of the Interior, where he was also responsible for Lithuania's participation in peace-keeping missions, and its accession to the Schengen cooperation.

Mr Lančinskas became deputy police commissioner general of Lithuania in 2005, before taking over as chief of Vilnius County Police in January 2009, a position he has held until now.

On 21 December 2015, the Council prolonged EU economic sanctions against Russia until 31 July 2016. 

The sanctions were initially introduced for one year on 31 July 2014, in response to Russia's actions in the east of Ukraine.

On 22 June 2015, the Council prolonged the duration of the measures by six months until 31 January 2016. This followed an agreement in the European Council in March 2015, when EU leaders linked the duration of the sanctions to the complete implementation of the Minsk agreements, which was foreseen to take place by 31 December 2015. 

However, since the Minsk agreements will not be fully implemented by 31 December 2015, the duration of the sanctions has been prolonged whilst the Council continues its assessment of progress in implementation.

The measures originally imposed in July 2014 were reinforced  in September 2014. They target certain exchanges with Russia in the financial, energy and defence sectors and in the area of dual-use goods.

The 7th meeting of the accession conference with Montenegro at ministerial level was held on 21 December 2015. The conference opened negotiations on two chapters:

• Chapter 14, on transport policy;
• Chapter 15, on energy.

Accession negotiations with Montenegro started in June 2012. Twenty-two out of 35 chapters have now been opened, two of which have been provisionally closed.

1. The Council was informed by the Commission of latest developments in the 10th WTO Ministerial Conference. It shared the Commission's assessment of the overall package and welcomed the conclusion of the negotiations on the revised Information Technology Agreement.
2. In the absence of final texts, the Council agreed that the EU's position joining the consensus in the Ministerial meeting would be presented to the WTO and reflected in the written conclusions of the Conference, on the understanding that the EU will follow up the results of the Ministerial Meeting in accordance with its internal procedures and without prejudice to the division of competencies between the EU and its Member States.
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On 18 December 2015, under the Luxembourg Presidency and subject to the European Parliament and Council formal adoption, the Coreper (Permanent Representatives Committee) approved a final compromise on the draft "Animal Breeding Regulation".  

The European Parliament and the Council representatives identified the compromise package during a trilogue meeting held on 16 December.  

Animal breeding and trade

The Animal Breeding Regulation will apply to the breeding, the trade in and the entry into the EU of purebred breedingcows, pigs, sheep, goats and horses, hybrid breeding pigs and their germinal products.

The new regulation constitutes a more comprehensive single legal framework taking into account the “state-of-the-art” in animal breeding while preserving valuable animal genetic resources. Breed societies and breeding operations which will have to meet specific criteria to obtain recognition and approval of their breeding programmes by national authorities form the backbone of this regulation. 

The new legislation aims at improving the functioning of the internal market and trade with third countries. It contains specific rules for promoting endangered breeds and provisions taking into account the specificities of the horse breeding sector. 

As animal breeding is not intended to fall within the scope of the official controls proposal currently discussed between the Council and the European Parliament, the new regulation will include provisions on the performance of official controls which are tailor-made for the animal breeding sector. 

The next steps 

The Chairman of the Coreper will send a letter to the Chairman of the European Parliament's Committee on Agriculture and Rural Development. This letter will indicate that, if the Parliament adopts at its plenary session the compromise text as approved by the Coreper today, the Council will then adopt in first reading that text without amending it.

This should enable the entry into force of the new legislation by mid 2016 and its application 28 months after the entry into force.

On 18 December 2015, under the Luxembourg Presidency and subject to the European Parliament and Council formal vote, the Coreper (Permanent Representatives Committee) approved a final package on plant health. 

The Council and European Parliament representatives finalised the overall compromise during a trilogue meeting held on 16 December.

Tackling plant diseases 

The proposal on protective measures against pests of plants aims to address increased risks in that area, which stem from the emergence of new pests and diseases. It will also modernise instruments related to intra-EU trade or trade with third countries focusing on a risk-based approach. Better surveillance and early eradication of outbreaks of new pests are the tools which should be used to ensure plant health. 

Together with the regulation on animal health (which should be adopted soon) and the proposal on official controls (currently under examination in the Council), the draft regulation on plant health aims to strengthen the enforcement of health and safety standards for the whole agri-food chain.  

The next steps 

The European Parliament is expected to vote on the compromise text at a meeting of its Committee on Agriculture and Rural Development in late February. 

The Chairman of the European Parliament's Committee on Agriculture and Rural Development will send a letter to the Chairman of Coreper. The letter will indicate that if the Council adopts at first reading the compromise text as adopted by the European Parliament's Committee on Agriculture and Rural Development (after legal-linguistic revision), the Parliament plenary will adopt the same text at its second reading, without any amendment, and the legislative procedure will be concluded. 

This should enable the entry into force of the new plant health regulation by the end of 2016 and its application after a three-year period following the entry into force, during which the relevant pieces of secondary legislation will be adopted.

 

This morning, we had a serious political discussion about completing the Economic and Monetary Union. The European Central Bank President Mario Draghi also joined us and has stressed the need for progress. We have one clear message from our debate: there is no time for complacency in reforming the eurozone. We stand ready to take difficult decisions on banking union and economic governance in the coming year. Our ministers will work rapidly and report to us next June.

We congratulated President Hollande on the historic success of COP21 in Paris and assessed progress on building the Energy Union. We discussed the conditions that need to be met by major energy infrastructure projects. What we have agreed is that any new infrastructure should be fully in line with Energy Union objectives, such as reduction of energy dependency and diversification of suppliers, sources and routes. Not to mention the obvious obligation that all projects have to comply with all EU laws, including the third Energy Package. This is a clear condition for receiving support from the EU institutions or any Member State - be it political, legal or financial.

I cannot finish without a word of appreciation for Prime Minister Bettel and his team. Xavier, I think I can speak for all leaders when I say that the Luxembourg Presidency was outstanding with very hard work done on the migration crisis, Passanger Name Record and data protection. It was an extremely efficient presidency. Thank you, Xavier, and most sincere congratulations. 

On 18 December 2015, the Permanent Representatives Committee (Coreper) endorsed an informal deal struck with the European Parliament on the first rules to strengthen the security of network and information systems across the EU. 

The network and information security (NIS) directive will increase cooperation between member states and lay down security obligations for operators of essential services and digital service providers. Essential services operators are active in critical sectors such as energy, transport, health and finance. Digital services cover online marketplaces, search engines and cloud services. 

The requirements will be stronger for essential operators than for digital service providers. This reflects the degree of risk that any disruption to their services may pose to society and the economy. 

Each EU country will also be required to designate one or more national authorities and set out a strategy to deal with cyber threats. 

What next? 

Once the agreed text has undergone technical finalisation, it needs to be formally approved first by the Council and then by the Parliament. The procedure is expected to be concluded in spring 2016.  

After the directive has entered into force, member states will have 21 months to adopt the necessary national provisions. Following this period, they will have another 6 months to identify the essential services operators established in their territory which are to be covered by the directive.

On 18 December 2015, the Permanent Representatives Committee (Coreper) confirmed the compromise texts agreed with the European Parliament on data protection reform. The agreement was reached between the Council, Parliament and Commission on the 15 December. This agreement is in line with the request from the European Council for negotiations on data protection reform to be concluded by the end of 2015.

Félix BRAZ, Luxembourg Minister of Justice and President of the Council said: "It is a fundamental agreement with important consequences. This reform not only strengthens the rights of citizens, but also adapts the rules to the digital age for companies, whilst reducing the administrative burden. These are ambitious and forward-looking texts. We can have full confidence in the result."  

Data protection reform is a legislative package proposed by the Commission in 2012 to update and modernise the data protection rules.  It concerns two legislative instruments: the general data protection regulation (intended to replace directive 95/46/EC) and the data protection directive in the area of law enforcement (intended to replace the 2008 data protection framework decision). 

The protection of persons in relation to the processing of their personal data is a fundamental right laid down in the Charter of Fundamental Rights of the EU (Article 8) and in the Treaty on the Functioning of the European Union (Article 16).

General data protection regulation

The general data protection regulation aims at enhancing the level of data protection for individuals whose personal data is processed and increasing business opportunities in the digital single market including through reduced administrative burden. 

An enhanced level of data protection

The principles and rules on the processing of personal data of individuals must respect fundamental rights and freedoms, notably the right to protection of personal data. These strengthened data protection rights give data subjects (the individuals whose personal data is being processed) more control over their personal data: 

• more specific rules allowing data controllers (those responsible for the processing of data) to process personal data, including through the requirement for the consent of the individuals concerned.
• easier access to their personal data.
• better information about what happens to personal data once it is shared. This includes informing individuals about their privacy policy in clear and plain language, which can also be done via standardised icons.
• a right to erase personal data and "to be forgotten". This enables, for example, subjects to require the removal, without delay, of personal data collected or published on a social network when the individual was still a child.
• if a youngster of below 16 years wishes to use online services, the service provider has to try to verify that parental consent has been given. Member states may lower this age ceiling without going below 13 years.
• a right to portability, facilitating the transmission of personal data from one service provider, such as a social network, to another. This will not only increase data protection rights but also enhance competition among service providers.
• a right to object to the processing of personal data relating to the public interest or to legitimate interests of a controller. This right covers the use of personal date for the purposes of 'profiling'.
• common safeguards covering the processing of personal data for archiving purposes where that is in the public interest and for scientific and historical research or statistical purposes.

To ensure proximity of legal redress, data subjects have the right for a decision of their data protection authority to be reviewed by their national court, irrespective of the member state in which the data controller is established. 

Increased business opportunities in the digital single market

The regulation provides for a single set of rules, valid across the EU and applicable both to European and non European companies offering on-line services in the EU. This avoids a situation where conflicting national data protection rules might disrupt the cross-border exchange of data. It also provides for increased cooperation between member states to ensure coherent application of the data protection rules across the EU. This will create fair competition and will encourage companies, especially small and medium-sized enterprises, to get the most out of the digital single market. 

To reduce costs and provide legal certainty, in important cross-border cases where several national supervisory authorities are involved, a single supervisory decision is taken. This one-stop-shop mechanism allows a company which is active in several member states to deal only with the data protection authority in the member state of its main establishment. This mechanism also provides for a single decision applicable to the entire EU territory in case of disputes. 

With a view to reducing administrative costs, the regulation applies a risk-based approach: data controllers can implement measures according to the risk involved in the data processing operations they perform. Different businesses have different activities and the risks of such activities in terms of privacy can vary. The regulation  provides for no one-size-fits all solution: the stronger the risks of the activities for the personal data, the more stringent the obligations. 

More and better tools to enforce compliance with the data protection rules

The regulation provides a range of measures to increase the responsibility and accountability of data controllers in order to ensure full compliance with the new data protection rules. Data controllers must implement a number of security measures, including the requirement in certain cases to notify personal data breaches. To future-proof the regulation, the principles of data protection by design and by default are introduced. Public authorities and those companies that perform certain risky data processing must designate a data protection officer to ensure compliance with the rules. 

Data subjects, and in certain conditions, data protection organisations can lodge a complaint with a supervisory authority or seek judicial remedy in case the data protection rules are not complied with. Data controllers can face maximum fines of up to €20 million or 4% of their global annual turnover. 

Guarantees on the transfer of personal data outside the EU

The regulation lays down the rules for transferring personal data to third countries and international organisations. Transfers may take place provided that a number of conditions and safeguards are met, in particular where the Commission has decided that an adequate level of protection exists. New adequacy decisions will have to be reviewed at least every 4 years. Existing adequacy decisions and authorisations remain in force until amended, replaced or repealed.   

Data protection directive in the field of law enforcement

This directive is aimed at protecting personal data processed for prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties, including the safeguarding against and the prevention of threats to public security. 

It is crucial to ensure a consistent and high level of protection of personal data of individuals while at the same time facilitating the exchange of personal data between law enforcement authorities in the different member states. 

Broader scope of application

In addition to covering activities aimed at preventing, investigating, detecting and prosecuting criminal offences the new directive has been extended to cover the safeguarding and prevention of threats to public security. 

The new directive would apply to both the cross-border processing of personal data as well as the processing of personal data by the police and judicial authorities at purely national level. The framework decision, which will be replaced, covered only cross-border exchange of data. 

Data subject's rights

The rules strike a balance between the right to privacy and the need for the police not to reveal that data is being processed at an early stage of an investigation. However, the text lists the information that the data subject is always entitled to receive in order to protect his or her right if they fear that an infringement of their data has taken place. 

The new rules will also cover the transfer of personal data to third countries and international organisations. 

Compliance

The new directive foresees that a data protection officer is appointed to help the competent authorities to ensure compliance with the data protection rules. 

Another tool to ensure compliance is impact assessment. Where a type of processing is likely to result in a high risk for the rights and freedoms of individuals the competent authorities must carry out an assessment of the potential impact of a certain processing, in particular when using new technology.   

Monitoring and compensation

The text of the directive is aligned with the text of the regulation in order to ensure that in broad terms the same general principles apply. In addition, the rules on the supervisory authority are to a large extent similar because the supervisory authority established in the general data protection regulation can also deal with matters falling under the directive. The new directive would also grant data subjects the right to receive compensation if they have suffered damage as a consequence of a processing that has not respected the rules.                        

NEXT STEPS

On 17 December, in an extra-ordinary meeting, the European Parliament's Civil Liberties, Justice and Home Affairs (LIBE) Committee endorsed the texts agreed in the trilogues. This support enabled Coreper today to confirm the final compromise texts on the regulation and the directive. After a legal-linguistic review of the texts, they will be submitted for adoption by the Council and, subsequently, by the Parliament. The regulation and the directive are likely to enter into force in spring 2018.