European Council

The Council (ECOFIN):

1.      WELCOMES the timely publication of the Commission's country reports analysing the economic policies for each of the Member States, including the in-depth reviews (IDRs) in the context of the Macroeconomic Imbalances Procedure (MIP), and the implementation of the 2016 country specific recommendation (CSR) follow-up, as well as the accompanying Communication summarising the main results of the IDRs. WELCOMES the integrated analysis and STRESSES the need to keep IDR analysis well identifiable and transparent within the country reports.

2.      WILL take into account these elements, as well as the National Reform Programmes and the Stability and Convergence Programmes and the recommendation on the economic policy the Euro area of March 10th 2017, when adopting the 2017 Country Specific Recommendations.

I.          IN-DEPTH REVIEWS

3.      CONSIDERS that the IDRs present a thorough and mature analysis of the country position in each of the Member States under review, thus presenting the basis for multilateral surveillance, enhanced domestic ownership of reforms and effective policy action. RECOGNISES that the relevant analytical tools have been applied in view of the specific challenges of each economy and complemented by substantive qualitative analysis.

4.      AGREES that 12 of the examined Member States (Bulgaria, Germany, Ireland, Spain, France, Croatia, Italy, Cyprus, the Netherlands, Portugal, Slovenia, and Sweden) are experiencing macroeconomic imbalances of various nature and degree of severity under the MIP, and that Finland is no longer experiencing macroeconomic imbalances in the sense of the MIP.

5.      AGREES with the view of the Commission that excessive imbalances exist in 6 Member States (Bulgaria, France, Croatia, Italy, Cyprus, and Portugal). NOTES the Commission's intention to review in May its assessment for three countries identified with excessive imbalances (Italy, Cyprus, and Portugal), in light of structural challenges emerging from the IDR analysis, taking into account the level of ambition of their National Reform Programme. AGREES to carefully consider any further Commission reviews in order to establish if further steps are needed. UNDERLINES that the MIP procedure should be used to its full potential, with the corrective arm applied where appropriate. 

6.      UNDERLINES the continued need for policy action and strong commitment to structural reforms in all Member States, including when they face macroeconomic imbalances affecting the smooth functioning of EMU. Imbalances should be addressed in a durable manner focusing on key challenges, reducing risks, facilitating the rebalancing of the EU economies and creating conditions for sustainable growth and jobs.

7.      RECOGNISES the progress achieved by many Member States in correcting their external and internal imbalances, thus contributing to the rebalancing at euro-area and EU level. UNDERLINES that despite improvements the challenges and risks remain broadly unchanged and further progress on policy action is needed to address imbalances, in particular elevated levels of indebtedness, against the background of declining potential output and productivity growth and unemployment rates that remain historically high. At the same time, elevated current account surpluses in some euro area Member States with relatively low deleveraging needs persist and could under some circumstances indicate large savings and investment imbalances deserving progress on policy actions. NOTES that the rebalancing of deficits to surplus positions in many euro area countries coupled with persistent and high surpluses in others has implied an asymmetric adjustment leading to a large and increasing surplus position of the euro area as a whole whose consequences deserve further attention.

II.        IMPLEMENTATION OF COUNTRY SPECIFIC RECOMMENDATIONS (CSRs)

8.      NOTES progress made in addressing the 2016 CSRs but TAKES NOTE that reform implementation has been uneven across policy areas and countries, and that in only a few cases substantial progress has been made in addressing the 2016 CSRs.

9.      WELCOMES the Commission`s new multiannual assessment of CSR implementation, and that good progress on a large majority of recommendations has been made, but NOTES this has been uneven across policy areas, countries and over time. RECALLS that multiannual assessment by the Commission illustrates that a number of CSRs relate to long-term structural issues that take time to be addressed and that tangible results may take time to show.

10.  STRESSES that in the currently relatively favourable macroeconomic environment, reform implementation needs to continue and be stepped up to address the policy challenges outlined below, guarding against reform fatigue and overcoming political economy challenges.

11.  WELCOMES that general government deficits and debt ratios are expected to decline in many Member States, but STRESSES that ensuring long-term fiscal sustainability, including the sustainability of pension systems remains a challenge.

12.  UNDERLINES that further structural reforms to product and services markets should be prioritised to strengthen economic recovery, correct harmful imbalances, improve the investment conditions, and reinforce the single market. More progress could be achieved in generating a business and employment friendly regulatory environment, cutting red tape, strengthening both administrative efficiency and regulatory quality, and eliminate unjustified restrictions in the service sector, particularly by making it significantly easier for service providers to operate across borders.

13.  WELCOMES the emphasis placed on inclusive growth and STRESSES that fostering economic and employment growth, increased investment, and reforms to increase productivity and labour supply are all essential elements in tackling social challenges. Sound public finances and implementing ambitious reforms are a prerequisite for sustainable and inclusive growth.

14.  AGREES that there remains an urgent need to improve investment conditions in order to attract increased private investment in the real economy and ensure high quality public investment and infrastructures. Reform progress has been slow in tackling problems regarding sector specific regulation and other impediments to investment and in reforming public administration, judicial systems, insolvency frameworks and the business environment, including access to finance. Despite some progress, barriers to investment persist in some key sectors in many Member States.

15.  ACKNOWLEDGES that Europe faces a productivity challenge, with productivity growth subdued and lagging behind the growth rates of other advanced economies. In this context UNDERLINES the importance of structural reform to foster innovation, digitalisation and facilitate the diffusion of new technologies, to create a business environment where the most productive firms are allowed to thrive, and to reduce resource misallocation and skill mismatches. The challenge is exacerbated by inter alia ageing populations. The share of working-age persons in the total population is projected to decline across Europe, and this is particularly marked in some economies.

16.  WELCOMES progress in reforming labour markets, but notes that significant challenges and implementation gaps remain. There remains potential to broaden tax bases and reduce the tax burden on labour, and further progress could be made to increase female labour market participation. In some Member States further efforts to reduce youth and long-term unemployment are needed. The successful integration especially of migrants and refugees requires particular attention.

On 23 May 2017, the Council agreed on a new system for resolving double taxation disputes within the EU.

The proposal sets out to improve the mechanisms used for resolving disputes between member states when disputes arise from the interpretation of agreements on the elimination of double taxation. It builds on convention 90/436/EEC on the elimination of double taxation in connection with the adjustments of profits of associated enterprises.

"This directive is an important part of our plan for strengthening tax certainty and improving the business environment in Europe", said Edward Scicluna, minister for finance of Malta, which currently holds the Council presidency.

Situations where different member states tax the same income or capital twice can create serious obstacles to doing business across borders. They create an excessive tax burden, can cause economic distortions and have a negative impact on cross-border investment.

The draft directive requires dispute resolution mechanisms to be mandatory and binding, with clear time limits and an obligation to reach results. It thereby sets out to secure a tax environment where compliance costs for businesses are reduced to a minimum.

The text allows for a 'mutual agreement procedure' to be initiated by the taxpayer, under which member states must reach an agreement within two years. If the procedure fails, an arbitration procedure is launched to resolve the dispute within specified timelines. For this, an advisory panel of three to five independent arbitrators is appointed together with up to two representatives of each member state. The panel ('advisory commission') issues an opinion for eliminating the double taxation in the disputed case, which is binding on the member states involved unless they agree on an alternative solution.

The Council endorsed a compromise reached on the following issues:

• scope of the directive, i.e. the types of disputes that should be covered. The Council agreed on a broad scope but with the possibility, on a case-by-case basis, of excluding disputes that do not involve double taxation;
• 'independent persons of standing': criteria to ensure the independence of those appointed to a pool of independent arbitrators. It was agreed that arbitrators must not be employees of tax advice companies or have given tax advice on a professional basis. Unless agreed otherwise, the panel chair must be a judge;
• standing committee: the possibility of setting up a permanent structure to deal with dispute resolution cases if member states so agree.

Next steps

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

Member states will have until 30 June 2019 to transpose the directive into national laws and regulations. It will apply to complaints submitted after that date on questions relating to the tax year starting on or after 1 January 2018. The member states may however agree to apply the directive to complaints related to earlier tax years.

The Council, meeting in an EU27 format, adopted a decision authorising the opening of Brexit negotiations with the UK and formally nominating the Commission as EU negotiator. The Council also adopted negotiating directives for the talks. 

Both texts are based on a recommendation presented by the Commission on 3 May 2017 and build on the guidelines adopted by the European Council (Art.50) on 29 April 2017. Their adoption allows for the start of negotiations with the UK following the notification of its intention to withdraw from the EU (under article 50 of the Treaty of the EU).

"Today we have established the EU position on the key issues for the beginning of the talks. The rights of citizens are at the very top of our agenda and we aim for an ambitious solution, where those affected continue to enjoy their rights".

Louis Grech, Deputy Prime Minister of Malta and President of the CouncilNegotiating directives and phased approach

This first set of negotiating directives is intended to guide the Commission for the first phase of the negotiations. They therefore prioritise issues that have been identified as necessary for an orderly withdrawal of the UK, including citizens' rights, the financial settlement and the situation of Ireland, as well as other matters in which there is a risk of legal uncertainty as a consequence of Brexit.

The first phase of the talks aims to provide as much clarity and legal certainty as possible and to settle the disentanglement of the UK from the EU. Once the European Council deems sufficient progress has been achieved, the negotiations will proceed to the next phase.

An agreement on a future relationship between the EU and the UK can only be concluded once the UK effectively leaves the EU and becomes a third country. However, discussions on an overall understanding of that future relationship could start during a second phase of the negotiations.

The negotiating directives may be amended and supplemented during the negotiations.

Citizens' rights

The first priority for the negotiations is to agree on guarantees to protect the rights of EU and UK citizens, and their family members, that are affected by Brexit. The EU27 insist that such guarantees should be reciprocal and based on equal treatment among EU27 citizens and compared to UK citizens. This should cover, among others, the right to permanent residence after five years of legal residence, including if this period is incomplete on the date of withdrawal but is completed afterwards.

The negotiating directives specify that workers, self-employed persons, students and other inactive persons should be covered, as well as frontier workers and family members. Guarantees should protect residence rights and free movement, as well as all the rights attached to them (such as health care). All rights should be protected for the lifetime of the persons concerned.

Financial settlement

The EU27 agree there must be a single financial settlement and the UK must honour its share of all the obligations undertaken while being a member. The UK should also fully cover the specific costs related to the withdrawal, such as the relocation of EU agencies currently based in the UK. The agreement should include a calculation of the total amount and a schedule of payments, as well as further rules and arrangements to address specific issues.

The situation of Ireland

The EU is committed to continue to support peace, stability and reconciliation on the island of Ireland. Nothing in the UK withdrawal agreement should undermine the objectives and commitments of the Good Friday Agreement. Negotiations should aim to avoid a hard border, while respecting EU law. Issues such as the transit of goods will need to be addressed.

Goods placed on the market and procedures based on EU law

The negotiating directives also cover other issues were arrangements are needed to reduce uncertainty and avoid a legal vacuum. This includes addressing what will happen with procedures based on EU law and with goods already on the market. For instance, if a product is already placed on the single market before the withdrawal, it should be ensured that it can remain in the market afterwards.

Other matters where there may be a need to reduce uncertainty or avoid a legal vacuum, such as services, will be covered in future negotiating directives.

Next steps

The Commission will agree with the UK the dates for the first negotiating sessions. The first formal meeting between the EU and the UK negotiators is likely to take place in June.

Over 350 000 documents are listed in the Council's register, and over 70% of these are public and can be downloaded for free. That is one of the key points in the Council's 2016 report on access to documents which was approved by the Council on 22 May 2017. 

During 2016, 22 671 documents were added to the register, of which 71%, or 16 181 documents, are public. The Council's public register was consulted around 380 000 times and attracted 9% of the Council's website traffic.

To get access to a document in the Council's register that is not public from the outset any interested person can request access. If access is refused at an initial stage a confirmatory application can be made. In 2016, the Council received 2 342 initial requests for access to documents and 24 confirmatory applications, requiring the analysis of 10 232 documents. Full access was granted to 7 307 documents (of which 7 273 at initial stage) and partial access to 556 documents (501 at initial stage). More than 76 % of the documents for which access was requested were released in full, and more than 82 % either in full or partially.

For some documents access was refused on the basis of legitimate reasons outlined in the EU regulation on the access to documents. These include in particular the need to protect the Council's decision-making process and public interest with regard to international relations and public security.

Media programme

+/- 10.00 Arrival of President of the United States Donald Trump
Official welcome at the car
(Europa VIP entrance outside, level 0 - photo/TV opportunity - pool A)

Official handshake
(Europa Forum, level 0 - photo/TV opportunity - pool B)
Meeting with President of the United States Donald Trump, President of the European Council Donald Tusk and President of the European Commission Jean-Claude Juncker

Enlarged meeting including European Parliament President Antonio Tajani and High Representative Federica Mogherini

+/- 11.00 Departure
(Europa VIP entrance, level 0 - photo/TV opportunity - same pool A)

Photographers and cameramen wishing to join one of the pools must express their interest by sending a request by email before Tuesday 22 May 2017, 17.00 to press.centre@consilium.europa.eu.

Pool A & B are incompatible. For security reasons the pool meeting point will be 60 minutes before the event at the Justus Lipsius press centre. No late comers will be accepted. The Council press office is responsible for the composition of the pool.

Access & accreditation

Access to the Council premises is only possible with the specific event badge or 6 month badge (see accreditation information).

Due to security measures, media wishing to access the premises are strongly advised to arrive well in advance. Media access will only be possible through the Justus Lipsius building.

Host broadcaster coverage

Photos and video coverage of the event will be available for preview and download on http://tvnewsroom.consilium.europa.eu
Live streaming will be available on http://video.consilium.europa.eu

 

Tuesday 23 May 2017
13.00 Meeting with President of the European Commission Jean-Claude Juncker and NATO Secretary-General Jens Stoltenberg

Wednesday 24 May 2017
Aachen (Germany)
19.30 Speech at the dinner in honour of Charlemagne Prize Laureate 2017, Timothy Garton Ash

Thursday 25 May 2017
EU-US Leaders' meeting (Europa building)
10.00 Welcome of President of the United States Donald Trump
10.05 Meeting with President of the United States Donald Trump and President of the European Commission Jean-Claude Juncker
10.20 Enlarged meeting including European Parliament President Antonio Tajani and High Representative Federica Mogherini

13.00 Meeting with President of Turkey Recep Tayyip Erdoğan and President of the European Commission Jean-Claude Juncker

Friday 26 and Saturday 27 May 2017
Taormina (Italy)
10.15 Joint press briefing with President of the European Commission Jean-Claude Juncker 

G7 Summit

Sunday 28 May 2017
Bratislava
12.30 Intervention at the Globsec 2017 conference

Place:         Justus Lipsius building, Brussels
Chair:         Louis Grech, Deputy Prime Minister and Minister for European Affairs of Malta

All times are approximate and subject to change

+/- 09.30
Arrivals (live streaming)

+/- 10.15
Doorstep by Deputy Prime Minister Grech

11.00
Beginning of Council meeting (Roundtable)
Adoption of the agenda

Decision to create a working party on Article 50

Decision to authorise the opening of Brexit negotiations and nominate the Commission as EU negotiator. Adoption of negotiating directives

Preparation of the European Council (Art. 50) in June 2017

+/- 12.00
Press conference (live streaming)

+/- 12.30
Working lunch

Europa and Justus Lipsius building - Brussels

The 19th bilateral summit between the EU and China will take place on 1-2 June in Brussels. European Council President Donald Tusk and European Commission President Jean-Claude Juncker will represent the European Union. China will be represented by Prime Minister Li Keqiang.

Media Programme 

The media programme will be available in the coming days. The meeting is expected to start late afternoon on 1 June and finish around lunchtime on 2 June. 

Accreditation

• Journalists holding a 6-month badge (01.01.2017 - 30.06.2017) do not need to register.
  Journalists without the above badge must apply on https://eventaccreditationjour.consilium.europa.eu
• Media representatives applying for the first time or who have not been recently screened will be the subject of a comprehensive and detailed verification by our security service. Considering the time and resources needed for these verifications, not all requests may be processed. Media are therefore advised to avoid sending representatives falling into these categories. 
• You will receive an acknowledgement of receipt by email. Please read it carefully as it includes the list of original documents you will be asked to present when collecting your badge. Depending on your profile, the requested documents will include: Passport or ID card, press card and/or a signed original letter from your editor-in chief as well as the signed original of your authorisation for security screening (only for media representatives resident in Belgium). The press centre may contact you to request additional information if necessary. No accreditation badge will be issued if you cannot provide all required documents.

Collection of badges

Accreditation badges must be collected in person from the LEX building (145 rue de la Loi, Brussels)  

• Thursday 1 June - 14.00 - 19.00
• Friday 2 June - 8.30 to the end of the final press conference

Photos and video coverage of the event will be available for preview and download on http://tvnewsroom.consilium.europa.eu

Live streaming will be available on http://video.consilium.europa.eu

For more details on the EU-China Summit,  see the meeting page.

Place:        Europa building, Brussels 

Chair(s):    Evarist Bartolo, Minister for Education and Employment of Malta
                   Dr Owen Bonnici, Minister for Justice, Culture and Local Government 

All times are approximate and subject to change 

MONDAY, 22 MAY 2017

 +/- 09.30      
Doorstep by Minister Bartolo 

+/- 10.00      
Beginning of Council meeting (Roundtable)
Adoption of the agenda
Adoption of legislative A Items (public session)
Adoption of non-legislative A items 

YOUTH 

+/- 10.35 
Conclusions on the role of youth work in supporting young people's development of essential life skills  Adoption 
+/- 10.45 
Conclusions on the strategic perspectives for European cooperation in the youth field post-2018 - Adoption 
+/- 10.55      
Resolution on the Structured Dialogue and the future development of the dialogue with young people  -Adoption
+/- 11.05      
Building Europe's future - listening to and supporting young people (public session) -Debate 

EDUCATION 

+/- 15.15      
Decision on a common framework for the provision of better services for skills and qualifications (Europass) (public session) - Progress report
+/- 15.25      
Recommendation on the European Qualifications Framework for lifelong learning - Adoption
+/- 15.35
Giving learners a voice: how to improve and modernise our systems to provide high quality education for all - Debate

+/- 18.00      
Press conference (live streaming) - main press room Justus Lipsius building 

TUESDAY, 22 MAY 2017

+/- 09.15      
Doorstep by Minister Bonnici 

+/- 10.00      
Beginning of Council meeting (Roundtable) 

AUDIOVISUAL/CULTURE 

+/- 10.10      
Directive on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services in view of changing market realities (public session) 
+/- 11.40      
Council conclusions on an EU strategic approach to international cultural relations -Adoption 

+/- 13.15      
Press conference - tbc (live streaming) - - main press room Justus Lipsius building  

SPORT 

+/- 15.15      
Conclusionson sport as a platform for social inclusion through volunteering -Adoption 
+/- 15.30      
Resolution on the European Union Work Plan for Sport (1 July 2017 - 31 December 2020) - Adoption
+/- 15.40      
Sports media and its role in strengthening social inclusion (public session) - Debate

Donald Tusk, President of the European Council, and Federica Mogherini, the High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission held meetings today, in Brussels, with Professor Yoon Je Cho, the Special Envoy of President Moon Jae-in of the Republic of Korea. 

The decision of President Moon to send a special envoy to the European Union is an indication of the strength of the Strategic Partnership between the European Union and the Republic of Korea. President Tusk had earlier today spoken with President Moon, with both sides agreeing to work together to consolidate the Strategic Partnership and to meet at the G20 Summit in Hamburg in July.  

The exchanges with the Special Envoy focused on the Korean Peninsula and other regional and global matters of common interest. President Tusk and the High Representative/Vice-President conveyed that the EU will remain a strong partner in promoting peace, security and an open, rules-based trading system.  

President Tusk and High Representative/Vice-President Mogherini stressed that the European Union is ready to increase its work, in full coordination with the Republic of Korea and the international community, to de-escalate tensions and peacefully denuclearise the Korean Peninsula. The EU will also continue its work to promote respect for human rights in the Democratic People's Republic of Korea (DPRK) and to ensure that the current sanctions regimes regarding North Korea are effectively implemented by the international community. The European Union is implementing all the restrictive measures imposed by the UN Security Council and its additional autonomous restrictive measures on the DPRK are the most stringent the European Union has on any third country. The European Union calls upon North Korea to engage in a credible and meaningful dialogue with the international community and is ready to support such dialogue. The High Representative/Vice-President Mogherini also discussed with Professor Yoon Je Cho the experience the EU has on the nuclear-non-proliferation agenda, that is at the full disposal of the international community.

President Tusk and the High Representative/Vice-President Mogherini both expressed their readiness to work closely with President Moon and the new Korean government.

Place:        Justus Lipsius building, Brussels
Chair:        Edward Scicluna, Minister for Finance of Malta

All times are approximate and subject to change.

from 07.00
Arrivals (live streaming)

+/- 07.45 (time to be confirmed)
Doorstep by Minister Scicluna

08.00
Annual EIB governors meeting  (Roundtable)

10.00
Beginning of the Council meeting
Adoption of the agenda
Adoption of legislative A items (public session)

Dispute Resolution Mechanisms (public session)

Common Corporate Tax Base (public session)

Any other business
-   Current financial services legislative proposals (public session)

Approval of non-legislative A items

Movement of capital:
-   2016 EFC Report on the movement of capital and the freedom of payments
-   Report from the Commission - accelerating the Capitals Markets Union: Addressing national barriers to capital flows

European Semester 2017
- Macroeconomic Imbalance Procedure (MIP)

Follow-up to the G20 Meeting of Finance Ministers and Central Bank Governors on 20-21 April 2017 and of the IMF and World Bank Spring meetings on 21-23 April 2017 in Washington

At the end of the meeting
Press conference (live streaming)

*           *           *

In the margins of the Council:

22 May - Eurogroup meeting

15.00
Roundtable

At the end of the meeting
Press conference

23 May

08.00
Annual EIB governors meeting (Roundtable)

09.00
Ministerial breakfast

14.00
Economic and Financial Dialogue between the EU and the Western Balkans and Turkey  (Roundtable)

On 19 May 2017, the Permanent Representatives Committee (Coreper) agreed on a negotiating mandate to start negotiations with the European Parliament on all four legislative proposals on waste, which are part of the Circular economy package submitted by the Commission on 3 December 2015. 

The four legislative proposals introduce additional measures to reduce waste generation, control waste management, boost recycling and cut resource use. They aim at bringing benefits to our economy, environment and health.  

These new proposals amend six waste related legislation as follows: 

• Waste framework directive
• Packaging waste directive
• Landfill directive
• Directive on electrical and electronic waste, on end-of-life vehicles; and on batteries and accumulators and waste batteries and accumulators

Today's Council mandate is the result of intensive work and discussions on all four proposals during three Council Presidencies (NL, SK and MT). The Maltese Presidency has now obtained support to initiate talks with the European Parliament with a view to a possible first reading agreement. A first trilogue meeting is scheduled on 30 May.

Negotiations are expected to focus on a number of outstanding elements, including the definitions, the setting of binding targets and their calculation rules, end-of-waste criteria, extended producer responsibility schemes and waste prevention. 

Background 

The European Commission presented a new revised circular economy package on 3 December 2015. It consists of four waste legislative proposals and an Action Plan in the form of a Commission Communication. 

The action plan was discussed during the Competitiveness Council on 29 February 2016 and the Environment Council on 4 March 2016. Taking into account both discussions from an economic and environmental perspective, and following further discussions in the working group, the Council adopted conclusions on the plan in the Environment Council of 20 June 2016. 

The Council has been intensively discussing the legislative proposals since the revised package was submitted with the aim of reaching a balanced compromise text.

At its plenary session last 14 March 2017, the European Parliament voted on a mandate to open negotiations with the Council. 

The Council supports the promotion of responsible supply chains in the textile and clothing sector. It adopted conclusions recognising the potential of this sector as a driver of development and emancipation, but also acknowledging the economic, social and environmental challenges posed by the garment value chains. Deadly accidents such as the collapse of the factory in Rana Plaza in Bangladesh in 2013 underline the importance of preventing human rights violations and of promoting corporate social responsibility in the garment sector.

The Council adopted conclusions regarding information on the EU's official development assistance (ODA), analysing trends with regard to its commitments and delivery in 2016. The ODA is a major source of finance for least developed countries and fragile states which particularly lack the domestic capacity to raise finance from other sources. Last year, ODA reached €75 billion. This constitutes an 11% increase compared to 2015.

Poverty, conflict, fragility and forced displacement are deeply interlinked and must be addressed in a coherent and comprehensive way. In this context, the Council adopted conclusions recognising the connections between sustainable development, humanitarian action and peace and security. In particular, the conclusions stress the need to coordinate humanitarian and development actions so as to address the root causes of vulnerability, fragility and conflict while simultaneously meeting humanitarian needs and strengthening resilience.

On 19 May, the Council adopted a new European consensus on development. This joint statement by the three institutions (Parliament, Council and Commission) sets out a new framework for development cooperation for the EU and its member states.

"The new European consensus for development makes the EU even stronger to tackle today's challenges and promote sustainable development and eradication of poverty all over the world. Investing in  sustainable development is investing in our common security and prosperity", said Federica Mogherini, EU High Representative for foreign affairs and security policy.

"Today's agreement confirms the commitment of all member states to work together on a shared agenda and priorities for the EU's cooperation with all developing countries over the years to come. We are proud that the Maltese Presidency has succeeded in securing a consensus", added George Vella, Maltese Minister for foreign affairs.

The consensus is important given the crucial role of the EU in the area of development cooperation. The EU remains the world's largest development aid donor, providing more than half of assistance worldwide. The overarching goal is the eradication of poverty, by promoting good governance, human and economic development and tackling universal issues such as fighting hunger and preserving the world's natural resources.

The European consensus for development is the EU's response to the UN 2030 agenda for sustainable development. It sets out the main principles which will guide the approach of the EU and the member states to cooperation with developing countries over the next 15 years, as well as a strategy for reaching the sustainable development goals (SDGs). In line with the global strategy on the EU's foreign and security policy, the consensus will also help achieve the priorities of the EU's external policy.

The consensus is intended to respond to current global challenges which have a demographic, economic, social and environmental impact. Strengthening the resilience of states, societies and individuals is central to this approach. It seeks to bring about sustainable development and to accelerate transformation by placing an emphasis on cross-cutting elements of development policy such as gender equality, youth, investment and trade, sustainable energy and climate action, good governance, democracy, rule of law and human rights, and migration and mobility.

The consensus recommends increased coordination and coherence between the EU and its member states. In order to  achieve more effective results and make a greater impact, it proposes a tailored and differentiated approach when working with partners to promote joint programming and implementation, with the full involvement of civil society and other actors. It highlights the importance of development effectiveness, transparency, mutual accountability and ownership by all partners involved, as well as ensuring that all means are used to deliver on the SDGs.

Next steps

The European Parliament is expected to endorse the consensus on 31 May.

The joint statement will be officially signed by the President of the European Parliament, the Prime Minister of Malta, on behalf of the Council and member states, the President of the European Commission, and the High Representative, at the European Development Days on 7 June. It will then replace the current European consensus on development which was adopted in 2006.

On 18 May the Council adopted conclusions on security and defence in the context of the EU Global Strategy. The conclusions take note of progress in strengthening cooperation in the area of security and defence, and provide guidance for further work. The areas covered include:

 - Improving CSDP crisis management structures, in particular the ongoing work leading to the establishment of a military planning and conduct capability (MPCC) within the EU military staff (part of the EEAS) which will assume command of non-executive military CSDP missions (currently: EUTM Somalia, EUTM RCA, EUTM Mali), as agreed on 6 March 2017;

 - Strengthening CSDP cooperation with partner countries, with the aim to adopt a more strategic approach to Common and Security Defence Policy partnerships, in view of enhancing cooperation, with a focus on partner countries that share EU values, including the respect for international law, and are able and willing to contribute to CSDP missions and operations;

 - Capacity building for security and development (CBSD), in order to fully cover all the requirements needed to support partner countries in preventing and managing crises on their own;

 - Developing civilian capabilities and enhancing the responsiveness of civilian crisis management, including the possible creation of a core responsiveness capacity;

 - Reinforcing military rapid response, including EU battlegroups, with a view to developing further their modularity in a pragmatic way and to adapt as necessary the financing arrangements;

 - Deepening European defence cooperation, taking stock and providing guidance on the way forward on

•  an inclusive permanent structured cooperation (PESCO), which would allow those member states who are willing and able to collaborate further in the area of security and defence and which would, in turn, help generate new collaborative efforts, cooperation and projects.
• the possibility of a voluntary coordinated annual review on defence (CARD), which would be a process aimed at offering a better overview at EU level of defence spending, national investment and defence research efforts. This would support member states in delivering capabilities to tackle existing and future strategic trends and challenges, and actively promote enhance defence cooperation among member states.
• the European Defence Action Plan of the European Commission, which foresees new financial tools for capability development and defence cooperation in support of the European defence industry and technological innovation. 

Background 

On 14 November 2016, the Council adopted conclusions on implementing the EU global strategy in the area of security and defence. These conclusions set out the level of ambition in the form of the main goals the EU and its member states will aim to achieve in the area of security and defence. The Council set out three strategic priorities: responding to external conflicts and crises, building the capacities of partners, and protecting the European Union and its citizens. Progress was noted and further guidance provided through the Council's conclusions on 6 March 2017. 

The implementation plan on security and defence was presented by the High Representative, acting also in her roles as Vice-President of the European Commission and Head of the European Defence Agency, to member states. It is part of the follow-up to the EU global strategy on foreign and security policy, which was presented by the High Representative to the European Council on 28 June. The Council adopted conclusions on the global strategy on 17 October 2016. 

The implementation of the EU global strategy also includes further work on building resilience and an integrated approach to conflicts and crises, strengthening the nexus between internal and external policies, updating existing or preparing new regional and thematic strategies and stepping up public diplomacy efforts. 

Good evening. I have come to you today, to the President of the proud Republic of France, with a simple message: Europe needs your energy, your imagination, your courage. And when I say Europe, I am not thinking about the institutions or bureaucracy, but about millions of Europeans, who see your victory as a sign of hope. Hope for a Europe that protects, for a Europe that wins, for a Europe that looks to the future. I am talking about the French and Belgians, Poles and Germans, the Irish and the Greeks. Because from all the European states I hear voices of those who are regaining their faith in the European Union.

A strong EU, capable of being sovereign in relation to the external world, capable of protecting its values, culture and economic interests, capable of protecting its external border, is the best, and perhaps the only guarantee of national and state sovereignty and independence. We both believe that for rational and responsible patriots, there is no alternative to a united and sovereign Europe.

Words such as security, protection, dignity and pride must return to our political dictionary. There is no reason why, in public debate, extremists and populists should have a monopoly on these terms. Today they are cynically taking advantage of social fears and uncertainty, building their own model of security on prejudice, authoritarianism and organised hatred. Our response must be clear and decisive. And you are the best proof that this is possible, Mister President. Thank you.

On 21 March 2017, the Council adopted Council Decision (CFSP) 2017/496[1]. The Council Decision extends the existing restrictive measures until 22 March 2018. The measures in question are an assets freeze and a prohibition from making funds available regarding 15 individuals considered as responsible for the misappropriation of Egyptian State funds before 2011. 

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 and the Republic of Moldova align themselves with this Council 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 22.03.2017 in the Official Journal of the European Union no. L76, p. 22. 
*Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.