European Council

On 22 June 2015, the Council adopted Decision (CFSP) 2015/973[1] implementing Council Decision 2013/255/CFSP. 

The Decision removes one person from the list of persons and entities subject to restrictive measures as set out in Annex I to Decision 2013/255/CFSP. 

The Candidate Countries the former Yugoslav Republic of Macedonia*, Montenegro*, Serbia* and Albania*, and the EFTA countries Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine, the Republic of Moldova and Georgia align themselves with this Decision. 

They will ensure that their national policies conform to this Council Decision. 

The European Union takes note of this commitment and welcomes it. 

 [1] Published on 23.6.2015 in the Official Journal of the European Union no. L 157, p. 52. 

* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.

On 19 June 2015, the Council adopted Council Decision (CFSP) 2015/959[1]. The Council Decision extends existing measures until 23 June 2016. 

The Candidate Countries Montenegro* and Albania*, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine and Georgia align themselves with this Decision. 

They will ensure that their national policies conform to this Council Decision. 

The European Union takes note of this commitment and welcomes it. 

 [1] Published on 20.6.2015 in the Official Journal of the European Union no. L 156, p. 25. 

*Montenegro and Albania continue to be part of the Stabilisation and Association Process.

On 22 June 2015, the Council adopted Council Decision (CFSP) 2015/971[1]. The Council Decision extends existing measures until 31 January 2016. 

The Candidate Countries Montenegro* and Albania* and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine align themselves with this Decision. 

They will ensure that their national policies conform to this Council Decision. 

The European Union takes note of this commitment and welcomes it. 

 [1] Published on 23.6.2015 in the Official Journal of the European Union no. L 157, p. 50. 

* Montenegro and Albania continue to be part of the Stabilisation and Association Process.

On 5 June 2015, the Council adopted Council Decision (CFSP) 2015/876[1]. 

The Council Decision extends existing measures for three of the four persons covered by measures applying until 6 June 2015. The measures are extended until 6 March 2016 for two of the persons concerned and until 6 October 2015 for the third person. 

The Candidate Countries Montenegro*and Albania*, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine and the Republic of Moldova align themselves with this Decision. 

They will ensure that their national policies conform to this Council Decision. 

The European Union takes note of this commitment and welcomes it.

 [1] Published on 6.6.2015 in the Official Journal of the European Union no. L 142, p. 30. 

*The Montenegro and Albania continue to be part of the Stabilisation and Association Process.

Despite the efforts of the international community, and in particular the recent initiative of President Museveni with a view to facilitating an inter-Burundian dialogue, it seems clear that insufficient progress has been made in implementing the decisions adopted by the African Union on 13 June and by the East African Community on 6 July. Only by implementing those decisions in full would it have been possible to hold credible and inclusive elections in Burundi yielding representative results. In going ahead with the elections, the government has decided otherwise.

In the absence of a meaningful national dialogue which could lead to a political consensus, Burundi will be unable to return to the path of stability, democracy and development which started with the adoption of the Arusha Agreement. The EU will therefore launch the preparatory work for specific consultations as provided for in Article 96 of the Cotonou Agreement in order to ensure that the Burundian government makes the commitments necessary to remedy the crisis. Respect for human rights, democratic principles and the rule of law is an essential element of the cooperative relationship between the EU and Burundi, which is governed by the Cotonou Agreement.

The EU urges the government and the opposition parties to resume the dialogue in order to achieve a consensual outcome which will lead to the re-establishment of an inclusive and democratic political system. The EU fully supports the efforts being made to that end by the East African Community, the African Union and the United Nations.

The European Union is deeply concerned about the humanitarian, socioeconomic and security-related impact of the crisis in the country and in the region as a whole. In that context, we welcome the dispatch by the African Union of human rights observers and military experts to oversee the disarmament of the groups affiliated to the political parties. The European Union commends the generosity of neighbouring countries in sheltering refugees from Burundi and reaffirms its solidarity with the Burundian people and with the host communities, including through the mobilisation of humanitarian aid for the thousands of refugees.

The EU notes that violence cannot be used for political ends and once again calls on all stakeholders and political leaders to both condemn and discourage it. In particular, this refers to the activities of the armed groups, such as the recent attacks in the province of Kayanza. In line with the Council conclusions of June 2015, the European Union is preparing to adopt, where necessary, restrictive measures targeted at those whose actions might have led or might lead to acts of violence and repression and to serious human rights violations, and/or which might hamper the quest for a political solution.

The Candidate Countries Montenegro*, Serbia* and Albania*, the country of the Stabilisation and Association Process and potential candidate Bosnia and Herzegovina, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine, the Republic of Moldova, Armenia and Georgia align themselves with this Declaration. 

* Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process. 

1. The EU firmly condemns the brutal attack which killed 38 tourists and wounded many others, on 26 June near Sousse, three months after the deadly attack at the Bardo. It reiterates its solidarity with the Tunisian people and with the families of the victims. 

2. While Tunisia embodies the success of a genuine democratic revolution and has made a transition to being the kind of society that protects fundamental freedoms and human rights, it is also a target for terrorism. These attacks strengthen the EU's determination, expressed by the European Council of 20 March, to support the Tunisian transition so that it can maintain its ambitious aim of democratic consolidation, and to deepen the privileged partnership between the EU and Tunisia which manifests, in many fields, the shared ambition to bring Europeans and Tunisians closer together.

3. The EU reasserts its support for the efforts of the Tunisian authorities to implement the Constitution fully, to ensure that all on Tunisian territory are safe and to undertake the reforms that are needed in order to meet the social and economic challenges that confront the young above all. It reiterates its commitment to further intensify its cooperation with Tunisia, through substantial technical and financial support, within an integrated approach designed to respond to the numerous challenges facing the country.

1. The EU commends the work carried out by the transitional Central African authorities over the last few months, which has allowed major political progress to be made, and particularly welcomes the Bangui Forum, which is a crucial step towards national reconciliation. To complete the transition, these efforts must be continued in a spirit of inclusiveness and responsibility. The international community remains committed to helping the Central African Republic (CAR) recover from the crisis. In this context, the Council welcomes the High-Level International Conference which was organised in Brussels on 26 May and attended by the transitional president, Catherine Samba-Panza. This event was an important opportunity to confirm the EU’s comprehensive approach in the CAR and has encouraged the mobilisation of additional resources for the Bêkou Trust Fund and humanitarian aid. The EU also welcomes the positive political engagement in the region – on the part of the ECCAS and the AU – in support of the transitional government.

2. The EU acknowledges the role played in the stabilisation of the CAR by all the international troops on the ground, the MINUSCA peacekeepers and the French troops involved in Operation Sangaris. The work begun by EUMAM RCA should help launch security sector reform, which is crucial for the country's recovery. This work must be continued, in coordination with other actions by the international community.

3. The preparations for elections have progressed in the last few weeks. The EU welcomes the publication of the revised election timetable and the first voter registration operations. The EU encourages the Central African authorities to take further action in this priority area, to allow for the organisation on the agreed dates of credible, transparent and inclusive elections for all, including displaced populations and refugees in neighbouring countries, focusing in particular on women. The Bangui Forum has created a drive towards inclusiveness which must be maintained. The EU is providing substantial financial support for the electoral process. In order not to undermine this process, and given that funding is still insufficient, the EU calls for costs to be rigorously controlled and for all potential donors to be mobilised. In addition to its financial support, the EU reiterates its continued readiness to support the electoral process, including in the field of election observation. 

4. The Disarmament, Demobilisation and Reintegration (DDR) process must quickly generate a controlled drive towards disarmament further to the agreement signed on 10 May 2015 by a large number of the armed groups. The EU will work with MINUSCA, which is supporting the Central African authorities in this field, including through measures to promote voluntary disarmament. With this in mind, the EU stresses that it already supports several community integration and reconciliation projects funded by the European Development Fund (EDF) and the Instrument contributing to Stability and Peace (IcSP), as well as the actions supported by the Bêkou Trust Fund to create jobs for young Central Africans. The EU welcomes the agreement signed between the transitional authorities, the UN and the armed groups regarding the demobilisation of children from the armed groups. It calls for full implementation of this agreement. It is important that UNICEF – supported by the EU – should help to promote the reintegration of these children into society.

5. In the wake of the DDR process, progress is urgently needed on security sector reform conducted under the auspices of MINUSCA in cooperation with Operation Sangaris and the CSDP mission EUMAM RCA, which must cover all relevant areas, including the whole of the criminal justice chain. The EU believes that the role of the armed forces (FACA), their location, size, composition and weaponry, including the individual reintegration of former combatants into the uniformed services, will have to be precisely defined after the elections and will have to form part of the SSR process, which must start now.

6. The EU remains concerned about the difficult budgetary situation of the Central African state. Through its budgetary support, the EU contributes significantly to the CAR's functioning, and hopes the economic upturn will continue, in order to enable the CAR to meet its basic needs. The economic recovery, which may become reality thanks in part to the considerable natural resources the CAR has at its disposal, requires, in addition to improved security and political stability, better management of state finances.

7. The EU stresses, as it did at the Bangui Forum, that there can be no reconciliation without justice. The adoption and enactment of the law establishing the Special Criminal Court constitutes an important step in the fight against impunity. It must start its work without delay and ensure the CAR participates fully in its operation, given how high public expectations are in this area. The Central African authorities' cooperation with the United Nations human rights mechanisms, as well as with the International Criminal Court, must also continue. 

8. In solidarity with the people of the Central African Republic, the EU intends to pursue its humanitarian efforts, both inside the CAR and in neighbouring countries which have taken in very large numbers of Central African refugees. Humanitarian needs remain vast. Despite an improvement in the security situation, access to the populations in need inside the country remains highly problematic. In this transition phase, it is essential to ensure that the international community is committed to working alongside the CAR to continue to address the humanitarian crisis with a comprehensive strategy in support of displaced populations, including in the neighbouring countries and taking into account the impact on the host communities. At the same time the EU reiterates its commitment to strengthening the population's resilience to the impact of the crisis, in particular through the implementation of the Bêkou Trust Fund, launched by the EU, which brings together the contributions of several donors. The EU is also committed in the longer term to addressing the need for capacity building and for the restoration of the state's essential functions throughout the country, building on its social services.

The Permanent Representatives Committee (Coreper) on 22 July 2015 approved, on behalf of the Council, an agreement reached with the European Parliament on a directive establishing new rules on insurance distribution.  

The text recasts and repeals directive 2002/92/EC on insurance mediation with a threefold objective. It seeks to improve retail insurance regulation in a manner that will facilitate market integration, and to establish the conditions necessary for fair competition between distributors of insurance products. It also sets out to strengthen policyholder protection, in particular with regard to life insurance products with an investment element.

Intermediaries play a central role in the distribution of insurance and reinsurance products. Various types of persons and institutions distribute insurance products, such as agents, brokers and insurance undertakings. Application of directive 2002/92/EC has shown a number of provisions to require greater precision.

More specifically, the new directive is aimed at: 

- extending the scope of application to all distribution channels, including proportionate requirements for those who sell insurance products on an ancillary basis; 

- identifying, managing and mitigating conflicts of interest; 

- strengthening administrative sanctions, as well as measures to be applied in the event of a breach of key provisions; 

- enhancing the suitability and objectiveness of insurance advice; 

- ensuring that sellers' professional qualifications match the complexity of the products they sell; 

- clarifying the procedure for cross-border market entry. 

In order to ensure consistency between financial sectors, the directive would take account of rules established for markets in financial instruments. 

The directive would not prevent member states from applying more stringent provisions to protect consumers, providing that such provisions are consistent with EU law. 

Next steps 

The agreement with the Parliament was reached during a trilogue meeting on 30 June 2015. The Council agreed its negotiating stance in November 2014. 

The directive will now be submitted to the European Parliament for a vote at first reading and to the Council for final adoption. 

Member states would have two years to transpose the directive into national laws and regulations.

Today President Aliyev and I had a wide-ranging discussion covering our extensive bilateral relationship. We talked about what we are already doing together now. But more important, we talked about what we should do together in the future, about the future direction of our important relationship in the years to come. 

Azerbaijan is our reliable and strategic partner in the energy field, and we want to take this partnership further. One aim of the European energy union is to exclude the possibility of using gas as a threat. The conflict in Ukraine shows that such threats are still possible. 

This is why the EU is dedicated to diversifying our supplies. And Azerbaijan is a main partner in this endeavour. Today, we agreed to stand united on developing the Southern Gas Corridor - a project which is in our common strategic interest - and to make sure it is completed on time, whatever our competitors do. For Europe, it is a question of diversifying supply. For Azerbaijan, it is a question of diversifying demand. 

Azerbaijan has the potential to become one of the EU's major commercial partners in the region. The EU is already Azerbaijan's main trade partner and one of its most important investors. We will expand these commercial relations further in the coming years. I recalled that good governance and rule of law are important for creating a favourable commercial and investment climate. The EU stands ready to assist here, if needed. 

I also hope very much that Azerbaijan will soon finalise its negotiations to join the WTO. 

We have discussed how best to move our relationship forward, through an ambitious new bilateral agreement. We agreed to set a brisk pace for our talks toward an Agreement on Strategic Partnership. 

I stressed the high importance we attach to human rights and fundamental freedoms. The EU believes that an open society is the best guarantee of long term stability and prosperity. I have discussed with the President our concerns with the detention of human rights defenders here and our hope that prompt action will be taken on the individual cases. We will continue to discuss these issues and to explore ways for good and mutually beneficial cooperation on human rights, also in the context of the future of our contractual relations. After this meeting, I will meet with representatives of the civil society. 

We also discussed the Eastern Partnership. The EU's intention is to better reflect the individual wishes and interests of each partner as we develop this policy. 

Let me also reiterate that the EU supports the territorial integrity, independence and sovereignty of Azerbaijan. The EU and its Member States have not recognised Nagorno-Karabach. 

The status quo is unsustainable and the peaceful resolution of the Nagorno-Karabakh conflict remains a priority for the EU. We continue to support the mediation efforts of the OSCE Minsk Group Co-Chairs. 

Finally, we discussed the mobility of people and our strong common wish to facilitate travel and direct contacts between our peoples. I applaud the entry into force of the Visa Facilitation Agreement and the Readmission Agreement in the autumn of last year. This was an important step. Last year there were 70,000 visitors from Azerbaijan to the Schengen area. An increase by almost 20% from the year before. And one third of the visas we issue are now long-term multiple entry visas. 

I look forward to continue strengthening our important relationship in the coming years, and hope my visit today has contributed to this aim. Thank you!

 

Dear soldiers, 

I want to thank you for your service to Europe and to peace and security abroad. Your hard work and sacrifice is appreciated in the European Union. I am personally very proud of you and of what you have done in Central African Republic. Thanks to you, your residence for sacrifice, your courage, your professionalism, your dedication, Georgia is maybe the best example of the international solidarity in the whole world. Thank you very much.

Our military operation in the Central African Republic has created security within a very difficult theatre, protected populations at risk and helped humanitarian aid reach the people that really need it. This is something we have done together on behalf of the global community, based on a UN Security Council mandate and part of wider international efforts.

Georgia's participation, as the second largest contingent in the operation, has been essential to its success.

I welcome your country's decision to stay engaged in these important efforts by providing the Immediate Reaction Team for the EU's Military Advisory Mission in the Central African Republic.

Together, we are achieving something very important in a spirit of both global and European solidarity and cooperation. I commend and thank you for your service. All the best.

I would like to invite you to an informal meeting of the Heads of State or Government of the euro zone and the President of the Commission on Monday 22 June 2015 at 19.00.

Given the outcome of the Euro Group meeting on 18 June, I consider that we cannot wait until our regular meeting to discuss the situation of Greece at the highest political level. The current economic assistance program to Greece runs out in 11 days. The purpose of the summit is to make sure that we all understand each other's positions and the possible consequences of our decisions. The summit will not be the final step and there will be no detailed technical negotiations. That remains the task of the finance ministers.

I have also invited the Presidents of the ECB, of the Euro Group and the Managing Director of the IMF to join us.

The situation of Greece is getting critical. The current economic assistance programme to Greece runs out in 11 days. Four months of negotiations have not led to the necessary compromise. The Eurogroup meeting yesterday did not manage to break the deadlock. The game of chicken needs to end, and so does the blame game. Because this is not a game and there is no time for any games. It is reality with real possible consequences, first and foremost for the Greek people.

This is why I have decided to convene a Euro Summit on Greece on Monday evening. The purpose of the summit is to make sure that we all understand each other's positions and the consequences of our decisions. We need to get rid of any illusions that there will be a magic solution at the leaders' level. The summit will not be the final step. There will be no detailed technical negotiations. That remains the job of the finance ministers.

We are close to the point where the Greek government will have to choose between accepting what I believe is a good offer of continued support or to head towards default. At the end of the day, this is and can only be a Greek decision and a Greek responsibility. There is still time, but only a few days. Let us use them wisely.

Watch the video

Monday 22 June 2015
14.30  Meeting with Mr Bill Gates from the Bill and Melinda Gates Foundation
19.00  Euro summit

Thursday 25 June 2015
12.30  European People's Party Summit (Académie Royale de Belgique)
15.00  Meeting with Prime Minister of Latvia Laimdota Straujuma
16.00  European Council

Friday 26 June 2015
10.00  European Council 

On 19 June 2015, the Council confirmed that the United Kingdom had missed a deadline set for reducing its deficit below 3% of GDP, the EU's reference value for government deficits. 

The Council found that action taken by the UK in response to a recommendation it issued in December 2009 had proved to be insufficient. It therefore issued a new recommendation under the excessive deficit procedure on corrective measures to be taken. 

In doing so, the Council extended by two years, to the 2016-17 financial year, the deadline set for the UK to reduce its deficit below 3% of GDP. (UK financial years run from 1 April to 1 April.)

A declining deficit 

The Council found that, despite a fiscal consolidation programme implemented since 2010, the UK had not corrected its deficit by the required 2014-15 deadline. After peaking in 2009-10, the nominal budget deficit fell to 7.7% of GDP in 2011‑12, then to 7.6% in 2012-13, 5.9% in 2013-14 and 5.2% in 2014-15. 

Since 2009-10, the UK's general government gross debt has remained continuously above 60% of GDP, the EU's reference value for government debt. The Commission's 2015 spring forecast projects the debt-to-GDP ratio to further increase marginally, though financial sector interventions could have a positive effect. 

Two-year extension 

The Council found that granting the UK one additional year to correct its deficit, which is the general rule under the excessive deficit procedure, would be overly demanding. It would require an adjustment in the headline deficit of 2.2% of GDP, and implementation of additional measures within a tight timetable. This would have a significantly negative impact on economic growth. 

The Council therefore opted for two years, recommending headline deficit targets of 4.1% of GDP in 2015-16 and 2.7% of GDP in 2016-17. These should be consistent with an improvement in the structural balance of 0.5% of GDP in 2015-16 and 1.1% in 2016-17. The Council set a deadline of 15 October 2015 for taking effective action. 

A deadline already extended 

The UK has been subject to an excessive deficit procedure since July 2008, when the Council initially called for the deficit to be corrected by the 2009-10 financial year.

However, the combined effects of the economic downturn and of stimulus measures adopted in response to the downturn led to a substantial deterioration in the UK's budgetary position.

In April 2009, the Council extended the deadline for correction by four years, and in December 2009 by a further year, to the 2014-15 financial year. 

As the UK is not a member of the euro area, it cannot face sanctions under the excessive deficit procedure.

The Council:

1. RECALLS its Conclusions of 9 December 2014 on Finance for Growth and the Long-term Financing of the European Economy in order to further build on the policy targets and principles contained therein;
2. RECOGNISES that although EU capital markets have expanded over recent decades, they remain fragmented and less developed as compared to those in some other comparable jurisdictions, in particular in certain market segments crucial for jobs and growth such as securitisation and venture capital;
3. CONSIDERS that more developed and more integrated capital markets could unlock investment for companies and infrastructure projects, attract foreign investment, contribute to growth and job creation and make the financial system more efficient, robust and resilient to shocks; 

Place:    European Convention Centre (KIRCHBERG building), Luxembourg

All times are approximate and subject to change

08.45 tbc

Doorstep by High Representative Mogherini  

09.00

Adoption of the agenda
Adoption of A items

Energy diplomacy
Asia

13.15

Working lunch with UN Secretary General Ban Ki-moon - EU-UN cooperation

Former Yugoslav Republic of Macedonia

16.00

Press conference

If EUNAVFOR Med is launched, a press briefing on the operation will be held in Luxembourg after the adoption of the A-items. This briefing will be retransmitted live to the Council press centre in Brussels (accreditation to the Euro summit will be required for access to the press centre). 

In the margins of the Council:

17.20

EU-Montenegro Accession Conference (TV/photo opportunity)  

18.00

EU-Montenegro Stabilisation and Association Council

20.10

Press conference

 

On 19 June 2015, the Council agreed its negotiating stance on structural measures to improve the resilience of EU credit institutions. 

On the basis of this mandate, the incoming Luxembourg presidency will start negotiations with the European Parliament as soon as the latter has adopted its position. 

The proposal is aimed at strengthening financial stability by protecting the deposit-taking business of the largest and most complex EU banks from potentially risky trading activities. 

The proposed regulation would apply only to banks that are either deemed of global systemic importance or exceed certain thresholds in terms of trading activity or absolute size. Despite recent regulatory reforms in the banking sector, these credit institutions and groups remain too-big-to-fail, too-big-to-save and too complex to manage, supervise and resolve.

Tackling excessive risks 

The draft regulation is intended to reduce excessive risk taking and prevent rapid balance sheet growth as a result of trading activities. It sets out to shield institutions carrying out activities that deserve a public safety net from losses incurred as a result of other activities. It provides for the mandatory separation of proprietary trading and related trading activities and establishes a framework for competent authorities to take measures to reduce excessive risk taking. 

Trading activities other than proprietary trading would be subject to a risk assessment. If a competent authority finds that an excessive risk exists, it could require trading activities to be separated from the core credit institution, or demand an increase in the core credit institution's own fund requirements, or impose other prudential measures. Trading entities would be prohibited from taking retail deposits eligible for deposit insurance. 

Scope 

According to the Council's text, the regulation would apply to global systemically important institutions (in accordance with directive 2013/36/EU on capital requirements) or to entities with total assets of at least €30bn over the last three years and trading activities of at least €70 billion or 10% of their total assets. These banks would be allocated into two tiers, depending on whether the sum of their trading activities during the last three years exceeds €100 billion or not. Stricter reporting requirements, a more thorough risk assessment, and different supervisory actions would apply to banks exceeding the threshold. 

The regulation would not apply to institutions with total eligible deposits (under directive 2014/49/EU on deposit guarantee schemes) of less than 3% of their total assets, or total eligible retail deposits of less than €35bn. 

As proposed by the Commission, it would also not apply to sovereign debt instruments. But in the Council's text, a review clause has been further elaborated to specify that the Commission would review this exclusion taking into account developments at European and international level. 

National regimes 

To accommodate existing national regimes, the Council text provides two options for addressing excessive risk stemming from trading activities: This could be done either through national legislation requiring core retail activities to be ring-fenced, or through measures imposed by competent authorities in accordance with the regulation. 

Liikanen report 

The draft regulation builds on the recommendations of a report published in October 2012 by a "high-level group" chaired by the governor of the Bank of Finland, Erkki Liikanen (the "Liikanen report"). 

The regulation requires a qualified majority for adoption by the Council, in agreement with the European Parliament. (Legal basis: Article 114 of the Treaty on the Functioning of the EU.) 

On 19 June 2015, the Council closed excessive deficit procedures for Malta and Poland, confirming that they had reduced their deficits below the EU's 3% of GDP reference value.  

It abrogated previous decisions on the existence of excessive deficits in the two countries.  

As a consequence, 9 of the EU's 28 member states remain subject to the excessive deficit procedure, down from 24 during a 12-month period in 2010-11. Most of these procedures were opened after the global financial crisis and recession of 2008-09. The excessive deficit procedure has been used to support a return to sound fiscal positions.

Malta 

Malta was subject to an excessive deficit procedure from July 2009 to December 2012. The procedure was reopened in June 2013, after Malta's deficit was estimated to have reached 3.3% of GDP in 2012. A 2.6% of GDP deficit had been projected for 2012 when the procedure was closed in December 2012. 

In June 2013, the Council issued a recommendation calling on Malta to correct its deficit by 2014. To achieve this, it called for an improvement of the structural balance of 0.7% of GDP in 2013 and 2014. 

Malta reduced its general government deficit to 2.6% of GDP in 2013 and 2.1% in 2014. The Commission 2015 spring forecast projects deficits of 1.8% of GDP in 2015 and 1.5% in 2016. Malta's deficit is thus set to remain below the 3% of GDP reference value over the forecast horizon. 

Malta's debt-to-GDP ratio rose from 67.4% in 2012 to 69.2% in 2013, on account of a temporary stock-flow adjustment. It decreased to 68.0% in 2014, and is forecast to continue decreasing, reaching 65.4% in 2016, due in part to a favourable macroeconomic scenario. 

The Council concluded that Malta's deficit has been corrected. 

Poland 

Poland has been subject to an excessive deficit procedure since July 2009, when the Council issued a recommendation calling for its deficit to be corrected by 2012. 

In June 2013, the Council extended the deadline for correcting the deficit by two years, to 2014. Although Poland missed the 2012 deadline, it had made a fiscal effort over the 2010-12 period that exceeded the recommended level. In December 2013, the Council extended the deadline by a further year, to 2015. 

Poland's general government deficit amounted to 3.2% of GDP in 2014, above the 3% of GDP reference value. However, the Council found Poland to be eligible to specific provisions under the excessive deficit procedure dealing with systemic pension reforms, because: 

• its deficit is close to the reference value; 
• its debt-to-GDP ratio is below the 60% reference value for government debt, 

In December 2013, Poland reversed a pension reform introduced in 1999, but net costs of the 1999 reform continued until the end of July 2014. The total of these net costs for the period from January to July 2014 are estimated at 0.4% of GDP. The Council considered them to be sufficient to explain the excess of the deficit over the 3% reference value in 2014. 

Looking forward, the Commission's 2015 spring forecast projects deficits of 2.8% of GDP for 2015 and, based on a no-policy-change scenario, 2.6% of GDP for 2016. Poland's deficit is thus set to remain below the 3% of GDP reference value over the forecast horizon. 

Poland's general government gross debt reached 50.1% of GDP in 2014. The Commission's spring forecast projects it to amount to 50.9% of GDP in 2015 and 50.8% in 2016. 

The Council concluded that Poland's deficit has been corrected.

On 19 June 2015, the Council agreed the substance of its negotiating stance on two draft regulations aimed at modernising EU rules on medical devices and in vitro diagnostic medical devices. This is a step towards providing the presidency with a mandate to start talks with the European Parliament with a view to reach an agreement as early as possible.

The two draft regulations on medical devices cover a wide range of products, from sticking plasters to hip replacements, pacemakers and laboratory tests for assessment of medical interventions.  

The main objective of the two draft regulations is to ensure that medical devices are safe. This would be achieved by strengthening the rules on placing devices on the market and tightening surveillance once they are available.  

"We are pleased that under the Latvian presidency major progress could be achieved to strengthen the rules on medical devices. Today's agreement is a decisive step forward to improve patient safety and strengthen European competitiveness. Further work both within the Council and between the Council and the European Parliament is, however, needed to ensure that the benefits of the new rules are put into practice", said Guntis Belēvičs, the Latvian minister for health and President of the Council.  

Placing on the market

Unlike pharmaceuticals, medical devices and in vitro diagnostic medical devices are not subject to pre-market authorisation. Instead, they undergo a conformity assessment to establish whether they meet the applicable standards before they are placed on the market. Depending on the risk posed by a product, the assessment may involve a so-called notified body. This is an independent body with specific expertise for certain types of medical devices which assesses whether these medical devices meet the relevant standards.  

The Council further tightened the rules for the designation of notified bodies, for the monitoring of their assessment activities by national competent authorities and for co-operation of those competent authorities. The new rules would also give notified bodies the right and duty to carry out unannounced factory inspections.  

Post-market surveillance 

The Council added explicit provisions on manufacturers' responsibilities for the follow-up of the quality, performance and safety of devices placed on the market.  

Clinical investigations 

The draft regulations provide also for strengthened provisions on clinical investigation with a view to increase the availability of reliable clinical data on medical devices. The Council focused its efforts in particular on the protection of those undergoing clinical trials.

More transparency for patients 

The draft regulations seek to provide patients more transparency on the available devices, and increase their traceability.

 Patients who are implanted with a device would be given key information on the product, including any precautions which might need to be taken. Manufacturers of high-risk devices would have to make publicly available a summary of their safety and performance, with key elements of the clinical data. 

Increased traceability 

Manufacturers of medical devices would have to fit their products with a unique device identification to ensure traceability. Manufacturers and importers of both categories of products would have to register themselves and the devices they place on the EU market in a central database. An EU portal would be set up where manufacturers would have to report serious incidents and corrective actions they have taken to reduce the risk of recurrence. The Council took particular care to ensure that the traceability and identification rules can be implemented in practice. 

Next steps 

The agreement on the substance of the Council's negotiating stance will allow the next presidency to take contact with the European Parliament to prepare negotiations between the two institutions. Once the Council has finalised some outstanding technical work concerning the preamble of the two draft regulations, negotiations between the institutions will be able to start. 

The Council on 19 June 2015 agreed to increase the EU 2015 budget to respond to migratory pressures in the Mediterranean. The Council treated this draft amending budget no 5 as a matter of urgency and high political priority, thus backing up proposal by the Commission to provide for additional resources to manage migration and refugee flows by €89 million in commitments and €76.6 million in payments in a fast-track procedure. Since part of this support can be financed from unused funds in other areas the additional financing burden is limited to €75.8 million in commitments and no fresh payments are needed. The additional resources are intended to reinforce notably FRONTEX, the Asylum, Migration and Integration Fund, as well as the Internal Security Fund.

The Council also accepted the following draft amending budgets for 2015: 

• Draft amending budget no 4 which increases the 2015 EU budget by €66.5 million in commitments and payments for the EU solidarity fund to deal with the damage caused by floods in Italy (€56 million), Romania (€8.5 million) and Bulgaria (€1.98 million)
• Draft amending budget no 3 which seeks to incorporate the budget surplus of 2014 into the revenue side of the EU budget for 2015. The 2014 EU budget closed with a surplus of €1.43 billion

 Next steps 

The European Parliament is expected to vote on the three draft amending budgets at its plenary session starting on 6 July 2015. If the Parliament accepts the Council's position the draft amending budgets are adopted. If the Parliament adopts amendments a three-week conciliation period would start.