European Union

The #mindpower short film project dedicated to the 150th anniversary of Latvian poets Rainis and Aspazija visits the Spanish film director and producer Toni Marín Vila who reflects on how people are in constant movement.

On Friday, June 19, the Minister for Finance, Jānis Reirs chaired the meeting of the EU Economic and Financial Affairs Council (ECOFIN) in Brussels. During the meeting, the EU Member States expressed their views on the Banking structural reform, Capital markets union and other issues.

On 16-17 June 2015 the meeting of the Heads of Medicines Agencies (HMA) Clinical Trials Facilitation Group (CTFG) took place in Riga. The main focus was on the implementation of the Regulation (EU) No 536/2004 of the European Parliament and of the Council on Clinical Trials on Medicinal Products for Human Use which came into force in June 2014 and will be applied no sooner than 28 May 2016.

On Friday, 19 June, the Minister for Health Guntis Belēvičs chaired the meeting of the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) in Luxembourg. During the meeting the EU Member States discussed legislation on madical devices, EU alcohol policy and health dimension of the migration.

The Baltic Sea is an integral part of the Latvian identity, but it is also the most polluted sea in the world. Therefore, from 26 May to 28 June the My Baltic Sea 2015 campaign is being organised along the whole of the Latvian coastline. Itsaim is to educate society about problems relating to the maritime environment in order to better understand what harm is being done and how the Baltic Sea can be restored.

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.)

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. 

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. 

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.

On 18-19 June, the informal meeting of Forest Directors took place in Riga under the Latvian Presidency of EU Council. At the meeting, the participants discussed the results of the 11th Session of the UN Forum on Forests – the importance of the Ministerial Declaration and the Joint Resolution for further development of the Forum on Forests.

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; 

EU Heads of State or Government of the eurozone meet in Brussels on 22 June 2015 to discuss the urgent situation in Greece.

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On 19 June 2015, the Council extended the EU restrictive measures in response to the illegal annexation of Crimea and Sevastopol until 23 June 2016. The sanctions include prohibitions on:

EU Finance Ministers of the eurozone meet in Brussels on 22 June 2015 to discuss the urgent situation in Greece.

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EU Ministers of Foreign and European Affairs meet in Luxembourg on 22 June 2015 to hold a strategic discussion on Asia. This is expected to focus on Asian regional integration, the EU's strategic partnership with China as well as cooperation on connectivity between Asian partner states. The Council is also discussing current issues such as migratory pressures and the situation in Yemen, Syria and Libya.

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