European Council

On 18 September 2015, the Council appointed the members of the European Economic and Social Committee (EESC) for the period from 21 September 2015 to 20 September 2020. 

The EESC is the European Union body which represents employers, workers and other groups and associations of civil society, notably in socio-economic, civic, professional and cultural areas. 

The Committee has 350 members from the 28 EU countries. 

Members are nominated by national governments and appointed by the Council for a renewable 5-year term of office. The latest renewal was in October 2010 for the mandate 2010-2015.

Place:        Justus Lipsius building, Brussels
Chair(s):    Carole Dieschbourg, Minister for the Environment of Luxembourg

All times are approximate and subject to change

+/- 09.45         Doorstep by Minister Dieschbourg

+/- 10.00         Beginning of Environment Council meeting
                         Adoption of the agenda

+/- 10.05         Approval of non-legislative A items
                        Approval of legislative A items (in public session)

+/- 10.15         Preparations for Paris UN Climate Change Conference

+/- 12.45         AOB
                        Cycling as a mode of transport

+/- 14.00        Press conference (in public session)

followed by   Working Lunch

On 16 September 2015, the Council's Permanent Representatives Committee backed a Commission proposal to help Greece maximise its use of EU funds and improve liquidity for boosting growth and creating jobs. The proposal's main objective is to address the lack of public funds available for much needed investments in Greece, and to ensure that the concerned European structural and investment funds deliver their benefits as rapidly as possible on the ground. The approved measures are exceptional and designed to respond to the unique situation created by the financial crisis in Greece.

The draft regulation would improve the liquidity of Greece by around €2.0 billion. This would be achieved in the following ways:  

• An increase in advance payments by a total of 7 percentage points in 2015 and 2016 for the funding of the 2014-2020 period. This concerns the European social fund, the European fund for regional development, the cohesion fund and the European maritime and fisheries fund. This measure would make available an additional €1 billion in 2015 and 2016. Advance payments are made by the Commission to the member states automatically after the adoption of each operational programme to accelerate the implementation of the planned measures.
  
  
• An increase in the maximum EU co-financing rates to 100% for the 2007-2013 programmes financed by the cohesion fund, the European social fund and the European fund for regional development. Greece already benefits from a higher EU co-financing for this period: in many cases the EU covers 95% of the total investment costs, rather than the usual 85%. In addition, there would be an early release of the last 5% of the remaining EU payments normally retained until the closure of the programmes for the 2007-2013 period. Together with the increase of the co-financing rates this would make available an additional €1 billion in 2015 and 2016.

The total €2 billion would be frontloaded within the 2014-2020 period and be budgetary neutral over the same period.

The position agreed by the Council serves as a mandate for the Luxembourg presidency to hold discussions with representatives of the European Parliament. Once an agreement between the Council and the Parliament is reached both institutions have to formally approve the outcome.

The purpose of cohesion policy is to reduce disparities between the levels of development of the EU's various regions by promoting economic growth, job creation and competitiveness.

The EU funds are the biggest source of foreign direct investment in Greece. Under the 2007-2013 programming period almost €42 billion are allocated to Greece. They consist of around €24 billion from EU structural and cohesion funds, the fisheries and rural development funds, and around €17 billion for direct payments to farmers and support measures for agricultural markets. Until now, Greece has received €38.4 billion, corresponding to 17.5% of average annual Greek GDP over that period. An amount of nearly €2 billion for cohesion policy is still available; if it is not used by the end of 2015 it would be lost.  

For the 2014-2020 period, more than €35 billion have been earmarked for Greece. They consist of € 20 billion European structural and investment funds and over €15 billion for direct payments to farmers and support measures for agricultural markets. Out of this foreseen allocation, €4.5 billion have already been paid between 2014 and July 2015.

Four judges and one advocate-general to the Court of Justice were appointed by the representatives of the governments of the member states on 16 September 2015.

Ms Camelia Toader (Romania) and Mr Marko Ilešič (Slovenia) were reappointed as judges for a further six years. Mr Michail Vilaras (Greece) and Mr Eugene Regan (Ireland) were appointed as judges and Mr Manuel Campos Sánchez-Bordona (Spain) as advocate-general to the Court of Justice. All appointments apply to a term of office from 7 October 2015 to 6 October 2021.

The representatives of member states' governments appointed Mr Ian Stewart Forrester as judge to the General Court to replace Mr Nicholas Forwood (both United Kingdom) for the remainder of the latter's term of office from 1 October 2015 to 31 August 2019. They also reappointed Mr Juraj Schwarcz (Slovakia) and Mr Heikki Kanninen (Finland) as judges to the General Court from 1 September 2016 to 31 August 2022.

The Court of Justice of the European Union is composed of three courts: the Court of Justice itself, the General Court and the Civil Service Tribunal.

The Court of Justice is currently composed of 28 judges and nine advocates-general. In line with a Council decision from 2013 the number of advocates-general will increase to eleven with effect from 7 October 2015. Every three years a partial replacement of judges and advocates-general takes place. The term of office of 14 judges and of four advocates-general expires on 6 October 2015. Ten judges (from Belgium, Spain, Poland, Luxembourg, Croatia, Finland, Estonia, Slovakia, Hungary, Denmark) and four advocates-general (from the United Kingdom, Germany, Denmark and the Czech Republic) were already appointed on 24 September 2014, on 1 April and 12 June 2015 for the 2015 partial replacement exercise. This means that the 2015 partial replacement exercise has now been completed. However, the advocate-general from Bulgaria still needs to be appointed to take account of the increase by two in the number of advocates-general.

The General Court is currently composed of 28 judges. As in the Court of Justice a partial replacement of judges every three years takes place in the General Court. The terms of office of 14 judges expires on 31 August 2016.

The judges and advocates-general of the Court of Justice and the judges of the General Court are appointed for a term of office of six years, which is renewable. The judges of the Court of Justice elect from amongst themselves a president for a renewable term of three years. The same applies to the General Court.

I have learnt with great sorrow of the horrific accident provoked by the collapse of a crane at the Grand Mosque in Mecca. 

My thoughts are with the families of the victims. On behalf of the European Union, I would like to convey my sincere condolences to the bereaved families and wish a prompt recovery to the wounded.

1. The Eighth Summit between the Republic of Korea (ROK) and the European Union (EU) took place in Seoul on September 15, 2015. The ROK was represented by President Park Geun-hye and the EU was represented by Mr. Donald Tusk, President of the European Council and Commissioner Cecilia Malmström representing the President of the European Commission. 

Thank you, Madam President, for your kind words and warm welcome. During challenging times, such as we are facing now in Europe with the refugee crisis, it is important to remain in close touch with old friends and resolute partners.

And, indeed, the European Union and the Republic of Korea are close. We share the same principles and hopes. And we share the same values, which lie at the heart of our strategic partnership. Europe is now this country's largest investor, helping to generate jobs and wealth here. We are working closely on shared foreign policy challenges. Together, we are breaking new ground in science and technology.

Madam President, let me touch on some of the topics we covered today that stand out for me: I was impressed with progress in relations across your region over the summer. The announcement of a new trilateral summit between Korea, China and Japan shows the efforts you have been making on this front. This endeavour will be decisive in strengthening the stability and prosperity of your region in the coming years.

I also want to congratulate you on how you helped transform the recent crisis at the border with your neighbour to the North into a settlement, which could herald positive developments. I wish you success with the family reunions' programme - the most simple but also the most evocative way to build bridges between your two countries. I also welcome efforts to have more exchanges between ROK and DPRK, and so to better cope with future stresses and strains that are sure to arise. The European Union supports a peaceful reunification of the Korean Peninsula and we really appreciate your personal engagement.

At the summit, we discussed regional issues affecting the European neighbourhood. I expressed my thanks to Korea for having voted in favour of United Nations General Assembly Resolution condemning Russia's annexation of Ukraine's Crimea. We also agreed to support full and rapid implementation of the Minsk Agreements by all sides. This also includes Russia.

We both view investing in science and technology as key to generating future jobs and growth in our economies. We have seen a major leap in exchanges of researchers, of joint projects between Korean and European institutions and the opening of new areas of cooperation, such as the commitment to work jointly on development of 5G. Today, we agreed to further strengthen our cooperation in this area.

We also agreed to explore ways to use our Free Trade Agreement to grow closer together on both trade and investment. The three framework agreements we have signed since 2010 go beyond trade, investment and economic cooperation, however. They have also opened up the possibility to work together in the political and security spheres. We have already deepened our efforts in this area since the last summit. And I was very gratified to hear today of your country's intention to expand cooperation further with us, such as in the counter-piracy operations off the Horn of Africa.

We lastly discussed in our meetings the global challenges that we face around the world. Again, we discussed solutions to better tackle those challenges, whether it be countering threats such as terrorism or climate change.

In three months, Paris will see one of the most important international events of the year: the UN climate conference, whose goal is to adopt a new climate change agreement. Climate change may put at risk not only the environment, but also prosperity, or even more broadly stability and security. To reach the deal, the European Union submitted the most ambitious contribution to date. In order to succeed, we need others, in particular major economies like the Korean, to join our lead in this process.

I end our meetings today absolutely optimistic for the future of our relations. I am confident that the friendship and strategic partnership we enjoy is expanding and deepening, and  will continue to do so. Thank you, Madam President.

After the discussions on migration held today in the Council in the presence of Schengen associate countries, the Presidency, supported by a large majority of delegations, draws the following conclusions:

"I am delighted that the Council has now been able to adopt this Decision. This is an important political message...".

Jean Asselborn, President of the Council 

The Council adopted a decision establishing provisional measures in the area of international protection for the benefit of Italy and Greece.

This decision establishes a temporary and exceptional relocation mechanism over two years from the frontline member states Italy and Greece to other member states. It will apply to persons in clear need of international protection who have arrived or are arriving on the territory of those member states as from 15 August 2015 until 16 September 2017.

Jean Asselborn, Luxembourg's Minister for Immigration and Asylum and President of the Council said: "I am delighted that the Council has now been able to adopt this Decision. This is an important political message. Indeed, the first relocations of people in need of international protection can start quickly. At the same time, the "hotspots" in Italy and Greece now have the necessary legal basis to start working.  Now that the Council is discussing an additional emergency relocation proposal, it is very important to see that the first mechanism is set up and begins to produce its effects".

The representatives of the governments of the member states meeting within the Council agreed by consensus on 20 July on the distribution of 32 256 persons. They also agreed to update the figures by December 2015 with a view to reaching the overall number of 40 000 in accordance with the commitment taken at the European Council on 25-26 June 2015.  

The member states participating in the mechanism will receive a lump sum of 6 000 EUR for each relocated person. 

The special procedure for the adoption of the decision establishes that the Council will consult the European Parliament. On 9 September the European Parliament adopted its opinion.  

Denmark and the United Kingdom are not participating in this decision.

The Council adopted a positive assessment that the conditions to move to the first step of phase two on the high seas of EUNAVFOR MED have been met, the naval operation having fulfilled all military objectives related to phase 1 focusing upon the collection and analysis of information and intelligence.

This assessment is part of the formal steps required in the process of transitioning the operation to phase 2 on the high seas and will be followed soon by a force generation conference and approval of rules of engagement for phase 2 on the high seas. Once these rules are agreed and the Operation Commander indicates that he has the required assets, the EU Ambassadors within the Political and Security Committee will decide when to launch the first step of phase 2.

This important transition will enable the EU naval operation against human smugglers and traffickers in the Mediterranean to conduct boarding, search, seizure and diversion on the high seas of vessels suspected of being used for human smuggling or trafficking, within international law.

The Council prolonged by 6 months the application of EU restrictive measures targeting actions against Ukraine's territorial integrity, sovereignty and independence.  

The asset freeze and travel bans against 149 persons and 37 entities have been extended until 15 March 2016.

The assessment of the situation did not justify a change in the regime of sanctions nor in the list of persons and entities under restrictive measures. One deceased person was removed from the list.

The legal acts are available in the EU Official Journal of 15 September 2015.

Place:        Justus Lipsius building, Brussels
Chair:        Jean Asselborn, Minister for Foreign and European Affairs of Luxembourg

All times are approximate and subject to change

+/- 08.00
Arrivals

+/- 09.10
Doorstep by Minister Asselborn

+/- 09.30
Beginning of Council meeting
Presentation of the working programme - Luxembourg Presidency  (in public session)

+/- 09.50
Approval of A items (in public session)

from 10.00
Preparation of the European Council (15-16 October 2015)
Commission Working programme 2016

Good afternoon and welcome to this press conference. We briefly discussed the economic situation in the Eurozone, I will let Commissioner Moscovici say more about that. We had a follow-up discussion on the issue of structural reforms, in particular on the tax wedge on labour, which is becoming a test case for us on how we can strengthen our cooperation in the field of structural reforms, how can we push the reform agenda jointly in the Eurozone.

Today we discussed and have decided to develop the instrument of benchmarking for the tax burden on labour to follow and stimulate developments in countries of the Eurozone on this issue.

It has to do with competitiveness and the functioning of the labour market, and there is a lot of potential there for us to improve. We will both benchmark on the EU average and also closely follow how we do in relation to the OECD average. There is a statement which will be distributed to you on the issue of benchmarking structural reforms and specifically on the tax wedge on labour, so I will refer for time's sake to that statement.

On Greece, we took stock of latest developments, we were informed by our Greek colleague, who is of course part of the caretaker government. He confirmed that preparatory work of the caretaker government is thus continuing and that implementation, for as far as it does not require further parliamentary decisions, will continue. All of that, of course, in order to lose as little time as possible. From our perspective we can of course only respect the democratic process and will await the election results. Timely implementation of reforms and next steps to take, after the election, is of course crucial and time is limited.

Then on Cyprus, the institutions briefed us on the positive outcome of the seventh review. We all welcomed the progress. Economic recovery is under way in Cyprus and it's actually stronger than was expected at the beginning of the year, picking up quite strong fiscal outturns also above forecast, and the determined reform implementation by the Cypriot government is bearing its fruit.

We endorsed in principle an updated MoU and the eighth ESM disbursement, perhaps Klaus can say more on that. National procedures can be launched on this and hopefully we will have formal approval early in October.

Finally on the Banking Union, the Commission very sternly spoked to us on the implementation process of both BRRD and the IGA. Luckily, all ministers could report progress on this. Progress is being made in different countries; only last week in the Netherlands, parliament agreed to the BRRD, and the IGA was also ratified in the senate, so we are also doing our part. This is also the case in other member states and it's crucial of course because these elements need to be fully operational on the 1st of January 2016.

Those were the key issues for me for now. Thanks for your attention and I pass the floor to Commissioner Moscovici and MD Regling.

The Eurogroup welcomes the successful conclusion of the seventh review mission in the context of Cyprus' macroeconomic adjustment programme, which took place in July. The fiscal developments continue to exceed expectations, the financial situation of the banks is showing signs of gradual improvement and some progress has been noted on important growth-enhancing reforms. The Eurogroup is encouraged that the economic recovery in Cyprus is gaining strength, the labour market showing signs of stabilization, although unemployment remains at a high level, and that the economy showed overall resilience in the past months. 

The Eurogroup recalls that addressing the excessive level of non-performing loans remains a top priority for Cyprus in order to reignite credit growth and ensure that banks continue to improve their resilience. In this regard, we stress the importance of an effective implementation of the recently enacted insolvency legislation and of the enhanced foreclosure framework, together with other measures adopted recently to speed up the reduction of arrears. The determined pursuit of financial sector reforms, including legislation to facilitate the sale of loans, remains necessary to secure a decisive reversal of the non-performing loan trend.

The Eurogroup commends the Cypriot authorities for the progress that has been made to date, and calls on them to keep up the reform momentum. The timely implementation of the growth-enhancing reform agenda, including privatisation and public administration reform, is essential in order to restore Cyprus' growth potential, while safeguarding the protection of the most vulnerable groups.

The Eurogroup agrees to endorse in principle the updated Memorandum of Understanding as well as the disbursement of the next tranche of financial assistance to Cyprus. We consider that the necessary elements are now in place to launch the relevant national procedures, paving the way to the formal approval by the ESM governing bodies of a disbursement of EUR 500 million in October. Concurrently, the IMF Executive Board is expected to decide on the disbursement of about EUR 125 million.

Following our agreement in September 2014 on common principles guiding euro area Member States' reforms to reduce the tax wedge on labour, the Eurogroup has discussed benchmarking as a tool to further inform and support reforms in this area.

The Eurogroup recalls that lowering the tax burden on labour has the potential to boost growth and support employment, as well as contributing to the smooth functioning of the EMU. The reforms undertaken recently in this area are steps in the right direction, and additional efforts should be pursued. Against this background, the Eurogroup considers benchmarking to be a useful tool for highlighting the possible need and scope for reform in this field in individual Member States and in the euro area as a whole.

The Eurogroup has agreed to benchmark euro area Member States' tax burden on labour against the GDP-weighted EU average, relying in the first instance on indicators measuring the tax wedge on labour for a single worker at average wage and a single worker at low wage. We will also relate this to the OECD average for purposes of broader comparability. This benchmark fulfils a number of criteria which should be met for a benchmark to be effective. It is simple, measurable and under the control of policy makers.

This benchmarking exercise, together with a continued exchange of best practices within the Eurogroup, can provide valuable support for further labour tax reform initiatives at the national level where applicable, thus giving fresh impetus for carrying reforms forward in euro area Member States. The benchmarking exercise will take place within the context of existing processes and surveillance mechanisms, in particular the European semester monitoring. The Eurogroup will also take stock of the state of play in the reduction of the tax burden on labour when discussing the draft budgetary plans of euro area Member States.

As the tax burden on labour interacts with other labour market features, monitoring needs to be part of a more comprehensive approach, examining the level of labour taxation in its full country-specific policy context, in line with the common principles adopted in September 2014. A full assessment of the urgency - and the potential benefit - for any given Member State to reduce the labour tax wedge should also make use of, indicators and country-specific information on, inter alia, the actual economic situation, in particular employment levels in specific demographic groups and overall, the  level and design of social protection (including its impact on the level of social security contributions), total labour costs dynamics over the medium run and other labour market features. Moreover, in line with the common principles adopted in September 2014, given limited fiscal space, reducing the tax burden on labour should be accompanied by either a compensatory reduction in (non-productive) expenditure, or by shifting labour taxes towards taxes less detrimental to growth, in full respect of the existing EU economic surveillance framework, in particular the Stability and Growth Pact.

"We would like to sincerely congratulate Prime Minister Lee on his reappointment in this historic year for the people of Singapore. We wish him every success in his renewed mandate and look forward to continuing the excellent cooperation we enjoy.

Our Free Trade and Partnership and Cooperation Agreements will deepen our bilateral ties and enable us to better address emerging global challenges. These Agreements will also serve as stepping stones for greater engagement between the EU and Southeast Asia.

 As Singapore prepares for the future, we look forward to meeting Prime Minister Lee to discuss the next chapter of our relationship."

Monday 7 September 2015
20.30 Keynote speech at the Bruegel Annual Dinner (Brigittines Performing Arts Centre)

Tuesday 8 September 2015
Visit to Israel
17.00 Meeting with President Reuven Rivlin
19.30 Joint press statements with Prime Minister Benjamin Netanyahu followed by working dinner

Wednesday 9 September 2015
Visit to Israel
09.00 Visit to the Holocaust History Museum Yad Vashem

Visit to Ramallah
13.30 Meeting with President of the Palestinian Authority Mohamud Abbas

Visit to Turkey
Meeting with President Recep Tayyip Erdoğan followed by press statements

Thursday 10 September 2015
Visit to Turkey
Meeting with Prime Minister Ahmet Davutoğlu (time tbc)
Visit of a refugee camp

Friday 11 September 2015
Visit to Cyprus
11.20 Meeting with President Nikos Anastasiades followed by press statements
13:00 Official working lunch hosted by President Nikos Anastasiades
15:00 Meeting with the leader of the Turkish Cypriot community Mustafa Akıncı

Thank you for that introduction and those thoughts. I am very glad to be here this evening. First, I want to congratulate Bruegel on a successful decade spent shaping and influencing Europe's economic debate. Not only in Brussels, but in many European capitals. I am personally very happy that my own country, Poland, was one of the founding members of your think-tank. Congratulations once again and keep up the great work. 

To begin with, I must confess that I have a kind of an eccentricity, or at least a political extravagance: I am very proud of Europe and really happy that I was born on this very continent. Contrary to all of today's radicals, notoriously outraged intellectuals and the European Union's external adversaries, I still perceive Europe as the best place on Earth. I am also ready to risk being criticized by modern and progressive politicians and thinkers, when I declare my allegiance to liberal democracy, the free market and a political philosophy founded on common sense and moderation. This also means the readiness to protect Europe the way she is now, together with all her problems, the "decadent Europe", as she is called by her enemies, without a strong ideology, diverse and very difficult to govern, with her never ending negotiations, just like the Greek poleis, arguing with each other even in the face of the Persian threat. 

Surely the European Union is not the best of all possible worlds.  But for sure it is the best of the existing ones, and in my view, the best among those that humankind has seen across the centuries. Europe is relatively safe and prosperous, and shows respect for the rule of law and rights of individuals. The poor are offered help, universal education and medical care are provided for. We are not perfect, but are still doing better than at any other time or anywhere else. Europe has also found a way how to durably substitute conflict and violence for dialogue and consensus. 

What also fills me with great pride is that Europe is the only place where the idea of solidarity is treated as a supreme political principle, or even more, as the main purpose of her existence. Today's disputes about how to apply solidarity in practice, especially in the context of refugees, show us that although we are far from perfect, we address this idea with all seriousness. 

Is this not enough to defend Europe? We should defend Europe hic et nunc, here and now, the Europe that exists in reality, and not as an ideal appearing in the dreams and visions of ultra-European ideologists. We all know that beautiful ideas, in particular the idea of progress, the better they sound the more destructive potential they may have. As a historian and a man with a painful personal experience of ideological experiments, (I lived under a Communist regime for the first half of my life) I am driven by very firm convictions in this regard. 

Life has also taught me that values are more important than ideologies, while realistic pragmatism is more important than utopian visions. That is why today, in the face of different crises and threats, I propose that we abandon revolutionary thinking and reflect on how to strengthen the Union in its current framework. 

In that regard, let us recall where the European Union was this time ten years ago, when Bruegel started its work. In September 2005, the Union was in a deep political crisis after the rejection of the constitutional treaty by voters in France and the Netherlands. That period of constitutional confusion ended four years later when the Lisbon treaty was finally ratified in 2009. What was the reason for wasting those years? I believe that the European project had drifted too much towards political day-dreaming and too far away from real life. 

In today's Europe there are even more risks than what we experienced 10 years ago. It is therefore necessary to properly assess them but above all we need to see everything in the right proportions. Problems do not imply catastrophe, neither today nor tomorrow, and even the loudest choir of today's Cassandras will not change this fact. We must not give in to hysteria nor put faith in empty promises of the third way or the new order because this might actually lead us to the brink of disaster. 

Instead of revolutionary thinking and sudden systemic changes (for instance big treaty changes) we should use every possibility to improve and correct the current system. Most importantly we should try and apply the rules and principles existing today with greater determination and engagement. Following the current rules would help us to avoid the many problems of the Eurozone, as well as those resulting from the new migratory pressure. Step-by-step action is a fine European tradition. This is why I prefer evolution to revolution and that is how our community was built. I can understand people's impatience. We all would like things to happen quickly. But let us get a proper perspective. Compared to the dollar, the currency of a federal nation for over 200 years, the euro is the currency of sovereign nations and is only 16 years old. Therefore, it is a much more difficult project and so it demands much more patience from us all. 

How to improve our Economic and Monetary Union? The missing links towards realising this vision were pointed out by the 5 Presidents' report, prepared by the presidents of the European institutions. Tonight let me mention three key elements that in my view require special attention. These are: a proper European deposit insurance scheme, a true capital markets' union and a euro area system of competitiveness authorities. These are the natural next steps in the evolution of the EMU and are in my opinion, politically more realistic, although still far from easy, than any treaty change. 

Let us start with the common deposit insurance scheme that would complement the banking union and make it more compatible with monetary union. Being here tonight in the company of distinguished economists I will not dare to pretend that I know more about the economic benefits of such a scheme than you. And so I will refrain from explaining them in detail. But as a politician let me share with you one political benefit of this EMU reform. However difficult the reform may seem, it does not require a treaty change. I am well aware that some politicians, not least in Germany, would disagree but their claims are either an overstatement or an excuse not to change. Legal advice is clear on this. We can introduce the European deposit insurance scheme within the current legal framework. Therefore before asking for more ambitious changes let us give this one a try. I assume most economists would agree that introducing a common deposit insurance scheme will strengthen the EMU. And not only because it would help avoid the unfortunate scenes that we witnessed outside banks and ATMs in Greece earlier this year. 

If someone is not convinced then I invite them for a trip across Europe to check the chances of a harmonious treaty change ratification process. My bet is zero. Let us therefore try to introduce the changes that are politically realistic and at the same time very ambitious. I apologise for the simplification but a little piece of something is better than all of nothing. And I am convinced that the very real political obstacles that exist, such as concerns about moral hazard, can be overcome through a prudent design of the system. 

Another evolutionary step towards financial union is the creation of a single European capital market. Again I do not need to state in this room that an integrated capital market is key to making the single currency work better. 

Finally, I would like to refer to an idea that was also developed here at Bruegel, namely a Eurozone system of independent competitiveness councils. Divergences in competitiveness within the Eurozone contributed greatly to the recent crisis and still remain a serious issue. Therefore a renewed focus on this in each and every state, as well as at European level, deserves proper reflection. 

Let me use this opportunity to appeal to finance ministers, who are now working to implement the 5 presidents' report, to speed up the work on the ideas I have just mentioned. EMU can be reformed now and it is up to Member States to deliver. 

Tonight, I am making a plea for pragmatism and moderation. These are the very same principles that should guide our response to the other challenge facing Europe: the huge and increasing number of refugees. EU countries will not change their migratory policies overnight. But our attitude to refugees is in fact an expression of European solidarity inside of Europe. The countries that are not directly affected by this crisis and have experienced solidarity from the EU in the past should now show it to those in need. Today, it is truly a paradox that the biggest countries in Europe, like Germany and Italy, need solidarity from others. 

At the same time we should seriously address containing the uncontrolled migration by strengthening the borders and getting the keys to our continent back from the hands of smugglers and murderers. The two approaches of solidarity and containment need not be mutually exclusive. It would be unforgivable if Europe split into advocates of containment symbolized by the Hungarian fence and advocates of full openness voiced by some politicians as the policy of open doors and windows. 

Today, I call on all EU leaders to redouble their efforts, when it comes to solidarity with the members facing this unprecedented migratory wave. Accepting more refugees is an important gesture of real solidarity but not the only one. An enormous effort is also demanded of the European institutions. Humanitarian efforts to contain migratory flows will require much greater engagement from Europe. It means a major increase in spending. When we talk about new reception centres, better protection of the borders or development aid for the countries outside the EU, much more money will be needed. The consultations I have had with the leaders in the recent days seem very promising and their pledges clear. Crucial in this matter will be cooperation with third countries. This is the reason why I am going to visit Turkey and organise a summit on migration in Malta with the African countries. But let us have no illusions that we have a silver bullet in our hands to reverse the situation. The present wave of migration is not a one-time incident but the beginning of a real exodus, which only means that we will have to deal with this problem for many years to come. Therefore it is so important to learn how to live with it without blaming each other. Also, we should not feel ashamed of our emotions. Compassion is one of the foundations of solidarity, but in order to be able to help others we ourselves must be pragmatic at the same time. We are now experiencing one of the most classical political dilemmas, that is a conflict between the protection of our borders and solidarity towards the refugees. Wise politics doesn't mean having to choose one value over the other, but to reconcile the two to the degree possible. In this case pragmatism should be the First Commandment. 

My background makes me incurably suspicious of political actors offering illusions to the naïve. I grew up with the consequences of that kind of politics. I have been a politician for 25 years and I can assure you that this is a time when those on the political extremes will waste everyone's time by promising the impossible. That includes those populist parties that call the Eurozone "a mousetrap" and advocate undoing reforms that Europe needs. It also includes those who promise zero immigration and tell their voters that they can shut out the world if they get elected. 

Democratic capitalism is still the best model of organising the economy because - unlike rigid ideology - it does not break in tough times, it adapts to its environment. The best proof of this is the unique experience of my country and its clear success in the last twenty five years where we undertook   permanent actions to reconcile democratic capitalism with solidarity. And please let us not forget that we were coming out of a much harder crisis than the Greek one. (My point of view is that of a practitioner not a theoretician.) 

Pragmatic European leadership, both on the level of national states and pan-European institutions, must focus on practical solutions. Problems that we encounter presently can be overcome on condition that they do not become an excuse to turn Europe upside down. Equally important are mutual loyalty and solidarity among European players. 

On every issue on today's agenda: migration, the Greek crisis, war in Ukraine, terrorism, a potential Brexit; we take action, which - if only we are sufficiently loyal to one another and stand united - will bring about positive results. We will continue to live with the problems longer than we would like to - but this is not the reason to question our European principles. 

We need to think about our Europe with greater tenderness and patience. We need to protect her not only against external threats when they appear, but also against internal temptations for revolutionary and total changes. The European Union certainly needs to adjust and improve itself, and it must do so constantly, but under no condition should we undermine the very essence of Europe or the political and legal norms of the Union. In that respect, our patience will achieve more than our force in these times, as Edmund Burke once said. Thank you.

Ladies and gentlemen,  

Let me start by thanking my esteemed colleague in the Eurogroup and your Minister of Finance Hans Jörg Schelling for his kind invitation to visit beautiful Tyrol.

Since February the spotlight has been on Greece. I was not very happy about that. We spent many meetings before reaching an agreement on a new program. Greece is in many respects lagging behind the positive outlook for the Eurozone. Almost all countries are leaving the crisis behind. Eurozone-averages on growth, employment and deficits have all improved and continue to do so. Only a year ago the eurozone was considered a liability to the global economy, now it is one of the stronger regions internationally.  

Greece will require ownership and strong implementation of the program and of course political stability, which is key. Other former program countries have recovered strongly; Ireland even leads the growth-chart.

That's where we are now: Greece deserves attention, the rest of the eurozone is getting back on track.

Yet we cannot sit back and relax. The potential growth in the eurozone is not high enough, our capacity to adjust and compete is not good enough. In order to strengthen our monetary union economically and politically we need to restart the convergence-machine. 

That is why, in the report president Juncker, Draghi, Tusk, Schulz and myself wrote before the summer, we put much emphasis on realizing reforms to strengthen and create competitiveness of all of our countries and convergence within the Eurozone. 

We need convergence in a number of areas like labour markets, product markets and investment. But convergence can't be achieved automatically. It doesn't come easily. 

When the euro was launched, many politicians assumed that trailing member states would spontaneously catch up with higher-income economies.

And in fact, in the first years of the new millennium per capita GDP actually rose among the euro's early adopters with relatively weaker economies. 

As a consequence, the economy of the eurozone as a whole flourished, which in turn helped boost public support for monetary union. Unfortunately a lot of the growth was based on cheap credit. Credit used for consumption and investments in the wrong sectors of economy, in stead off improving the structural strength of the economy. We incurred debt to finance prosperity. So the rise turned out to be temporary.

When the global financial crisis struck, the catch-up process was rapidly reversed. Member states even started drifting further apart. Now it's time to restart the convergence process in order to strengthen the eurozone.  

It's no coincidence that per capita GDP development is expected to be above the eurozone average in countries without economic imbalances. Countries like the Baltic States and Slovakia. And countries that have implemented ambitious reform agendas, like Spain, Portugal, and Slovenia, have also followed an upward trajectory. However, more still needs to be done.  

It's a legitimate question whether the lack of convergence is a problem for the eurozone as a whole. Does the discrepancy in income levels put the monetary union in jeopardy? Can the eurozone survive despite diverging member states? Maybe it can. But it would be difficult to stop public support from unraveling either directly or indirectly because of increasing economic differences. Public support is the basis for our work on achieving sustainable growth and preserving the European social model. In the Eurogroup we are very aware that the EMU's existence is justified only as long as people are convinced it enables them to build a prosperous life. Without that support, the union has little in the way of foundations.   

There are of course other, more economic arguments for fostering convergence. Let me mention three I see as especially compelling.

Firstly, within the euro area business-cycle symmetry seems to be higher for countries with comparable income levels. This increases the effectiveness of monetary policy. Secondly, the policies that stimulate convergence in our union also strengthen the resilience of its member states to economic and financial shocks. And thirdly, our internal market makes it possible for the eurozone as a whole to benefit from a higher real income in individual member states.  

Although the argument for convergence is convincing, I'm aware there is also an aspect that's less appealing to member states. Eurozone countries cherish their individuality. We are used to doing things our own way. But we must realize that we can't be part of a union and at the same time approach economic policy as a purely domestic matter. Sustainable convergence will require more policy coordination. But there will still be plenty of room for the member states to make their own choices.  

Now let's take a look at Austria. Its strong economic performance in terms of GDP per capita over the last two decades certainly sets an example. Unemployment is relatively low and labour force participation is high. 

This country has been able to make full use of its less restrictive and less complex rules and regulations for its product markets. You've also increased your R&D expenditure to three per cent. That's well above the eurozone average. 

The question is how other parts of the eurozone can adopt the policy elements that have led to these successes. And you in turn might consider how Austria can learn from its fellow member states in order to boost its GDP further.  

The tax burden on labour is a good example of an area in which we have a lot to gain. As you know, the tax wedge in euro area member states is among the highest in the world. This reduces the incentive to find a job and to hire new staff. Shifting the tax burden away from labour will boost growth, external competitiveness and employment. We've discussed this issue in the Eurogroup and made countries aware of it. We've compared ourselves in this area and affirmed our commitment to reducing the tax wedge and making reforms.  

We're seeing the first results already. Let me give you some examples. Estonia has taken several measures across the board to reduce the tax wedge on labour. France and Italy have lowered the tax burden on labour for low-earning households. 

Spain has introduced a simpler tax system, including lower personal income tax rates. This summer the Belgian government announced a tax shift from labour to revenue sources that are less harmful to growth. In the Netherlands we're about to announce lower cost for both workers and employers. And last but not least, Austria is taking action as well. This government has presented a comprehensive tax reform that will reduce the entry rate for personal income tax. 

At the next Eurogroup meeting we will explore the scope for benchmarking the tax burden on labour, and we will closely follow the progress made.  

But the tax wedge is just one area we need to focus on. We should also address the broader issue of labour markets, opening up product markets and improving our investment climate. And more importantly, if we want to remain a strong and competitive partner for trade and investment, we simply cannot afford to be average. We need countries to commit to catching up with - or even exceeding - the eurozone's highest level.  

As mentioned, we've reiterated the importance of convergence for the EMU's smooth functioning in the Five Presidents' report.

Stepping up economic policy coordination in the eurozone requires political ownership. It should be a concerted effort, in which the member states wave the baton as much as the European Commission. I will promote these discussions in the Eurogroup to help identify the policy areas which are essential for real convergence.

We need to translate this into a common ambition by setting simple, measurable benchmarks that foster best practices and concrete timelines. And let me stress again that, for the eurozone, achieving the average is not ambitious enough.  

Ladies and gentlemen,

Time for me to conclude. After a period of crisis management the Eurozone has come out of the crisis in a strong way. The situation in Greece has not damaged the recovery path of any of the other countries. We have build a new fiscal policy, the ECB has done “whatever it takes”, we have realized in record-time a banking union which has made a successful start. Now we must deal with our structural issues. To become once again a leading economic region.

And the Eurogroup will play an active role in this. To quote conductor Claudio Abbado, who once said about the Vienna Philharmonic: 'I don't conduct them; I make music together with them.' And when the musicians play together in tune, the orchestra never ceases to amaze the world. 

The Eurozone must do the same.

Thank you.

Place:             Justus Lipsius building, Brussels 
Chair(s):        Mr Fernand Etgen Luxembourg's Minister for Agriculture,
                        Viticulture and Consumer Protection

All times are approximate and subject to change 

+/- 14.30
Adoption of the agenda

+/- 14.45
Market developments

AOBs:
- Drought in Eastern Europe
- African swine fever

+/- 18.00
Press conference