European Council

On 17 October 2016, the Council adopted Council Decision (CFSP) 2016/1839[1] amending Decision 2010/638/CFSP. 

The Council Decision renews existing measures until 27 October 2017. 

The Candidate Countries the former Yugoslav Republic of Macedonia*, 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 the Republic of Moldova, Armenia and Georgia 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 18.10.2016 in the Official Journal of the European Union no. L 280, p. 32. 

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

On 20 September 2016, the Council adopted Council Implementing Decision (CFSP) 2016/1694[1] implementing Council Decision (CFSP) 2015/1333. 

The Council Decision removes one person from the list of persons as set out in Section A of Annexes II and IV to Decision (CFSP) 2015/1333. 

On 30 September 2016, the Council adopted Council Decision (CFSP) 2016/1755[2] amending Council Decision (CFSP) 2015/1333. 

The Council Decision renews the existing measures for three persons for a further period of six months and amends the statements of reasons relating to these persons. 

The Candidate Countries the former Yugoslav Republic of Macedonia*, 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 the Republic of Moldova and Armenia 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 21.9.2016 in the Official Journal of the European Union no. L 255, p. 33.
[2] Published on 1.10.2016 in the Official Journal of the European Union no. L 268, p. 85. 

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

THE COUNCIL OF THE EUROPEAN UNION: 

(1)     RECALLS its conclusions of 19 November 2014 on the Sixth report on economic, social and territorial cohesion: investment for jobs and growth[1], of 23 June 2015 on the implementation challenges of the cohesion policy 2014-2020[2], of 18 November 2015 on Simplification: Priorities and expectations of Member States with respect to European Structural and Investment Funds[3], of 15 March 2016 "Investing in jobs and growth - maximising the contribution of European Structural and Investment Funds"[4] and of 24 June 2016 on "A more R&I friendly, smart and simple cohesion Policy and the European Structural and Investment Funds more generally"[5]; 

(2)     RECALLS that the EU shall develop and pursue actions to strengthen the economic, social and territorial cohesion of the Union and that the specific mission of cohesion policy is to reduce disparities between the levels of development of the various regions as set out in Article 174 of Treaty on the Functioning of the European Union; 

(3)     RECOGNISES that cohesion policy is the main investment policy at the EU level to achieve the objectives as set out in the Europe 2020 strategy; and UNDERLINES the added value of cohesion policy and the European Structural and Investment Funds (ESI Funds), in particular:  

a)      in providing a stable long-term EU framework and financial means for investment in jobs and growth and the delivery of structural reforms, through integrated interventions tailored to Member States and the various regions of the EU; 

b)      in mobilising and coordinating national and subnational actors under the shared management mode by directly engaging them, based on the partnership principle, in delivering EU priorities through co-financed projects; 

c)           in pioneering an evidence-based and result-oriented approach to EU investments; 

d)      in providing positive incentives for many Member States and subnational actors to implement structural reforms, strengthen their strategic planning, administrative capacity, and cooperation. 

I.          Evaluation of the cohesion policy programmes 2007-2013

 (4)     WELCOMES the Commission Staff Working Document 'Ex post evaluation of the ERDF and Cohesion Fund 2007-2013'[6], which provides evidence that during the 2007-2013 programming period, cohesion policy has made a major contribution to growth, employment and social inclusion opportunities throughout the different types of EU regions, objectives defined in EU strategies, as well as to the reduction of regional disparities between Member States; 

(5)     HIGHLIGHTS that the results set out in the Ex-post evaluation of the European Regional Development Fund (ERDF) and the Cohesion Fund were achieved in a context of economic and social challenges, including the deep global economic and financial crisis, the need to build up the economy, infrastructure and administrative capacity, in particular of 13 Member States joining the EU as from 2004, as well as shifting strategic political priorities and newly emerging challenges at EU level;  

(6)     UNDERLINES in particular the following findings of the Ex-post evaluation of the ERDF and the Cohesion Fund: 

a)      The economic modelling performed by the Commission estimates that EUR 270 bn invested from the ERDF and Cohesion Fund during the period 2007-2013, together with national co-financing, will have generated EUR 1 trillion in additional GDP across all Member States by 2023; 

b)      The data reported by managing authorities of the Member States shows that the ERDF and Cohesion Fund will have led to the creation of nearly 1 million jobs, which represents a significant contribution to the net total of 3 million jobs created in the EU economy over the period; 

c)      Financial support under the ERDF programmes helped 400 000 SMEs to withstand the effects of the economic and financial crisis and increase their competitiveness and exports through innovation; 

d)      Cohesion policy contributed to a closer integration of the EU internal market, in particular through improving transport links (in particular TEN-T corridors), to improving energy efficiency, water and waste water treatment as well as waste management, to modernising education and healthcare infrastructure, as well as to strengthening research and innovation; 

e)       Funding available under European Territorial Cooperation programmes (Interreg) enhanced cooperation between neighbouring regions of different Member States, between Member States across the EU, as well as between Member States and non-EU countries,  and also contributed to wider effects, notably in terms of alleviating specific barriers to cooperation across different sectors and of better economic, social and environmental integration, thus representing a prominent example of EU added value;  

(7)     Notwithstanding the positive results of cohesion policy in the 2007-2013 period, NOTES some shortfalls during this period, in particular: 

• Weaknesses in terms of relevance, monitoring, effectiveness and coherence of the actions undertaken, showing that the focus on result-orientation had not been strong enough; and
• The need to enhance administrative capacity at the management level of programmes and to decrease the administrative burden and costs;

 (8)     NOTES that the underlying evaluations of the Staff Working Document capture the situation at the end of 2014 when programmes could not yet have reported in full on the achievement of objectives and targets; 

(9)     NOTES that the Commission has also undertaken an ex-post evaluation for the European Social Fund (the ESF) and LOOKS FORWARD to the presentation of results in the related Staff Working Document; INVITES the Commission to present the outcomes of future evaluations for the ESI Funds in a coordinated manner to facilitate a complete assessment, while paying special attention, where appropriate, to the place-based approach; 

(10)   UNDERLINES that cohesion policy, being accompanied by a thorough set of rigorous evaluations, represents best practice of evidence-based policy-making, and can serve as an example for other EU policies financed from the EU budget; 

(11)   CALLS ON the Commission and Member States, in cooperation with all relevant stakeholders, to widely disseminate to the public the results and benefits of cohesion policy which are supported by available evaluations.  

II.         Assessment of certain new elements of cohesion policy and the ESI Funds 2014-2020

(12)   HIGHLIGHTS that compared to the 2007-2013 programming period, a number of new elements were introduced into the legislative framework for the 2014-2020 period aimed at strengthening the effectiveness, result orientation and EU added value of the ESI Funds. First concrete experiences with certain new elements, in particular with the performance framework, thematic concentration, ex-ante conditionalities and the link to the EU economic governance, were made in Member States during the elaboration of their Partnership Agreements and programmes. The practical application of new elements required careful preparation in terms of time and resources to ensure that the necessary conditions for effective spending, including new management and control systems, are in place. At the same time, new instruments of the legal framework such as joint action plans, integrated territorial investments or community led local development strategies provide new opportunities for Member States; 

(13)   NOTES that the comprehensive programming exercise, in combination with the late adoption of the legal acts, parallel preparation for the closure of the 2007-2013 period, and longer than expected designation of authorities, has delayed the implementation phase in the 2014-2020 period; EXPECTS, however, that the efforts made by Member States and the Commission during the programming process will pay off in the years to come through a more effective implementation of high quality programmes, and the possibility to build in the future on the improvements made in the current period; CALLS on the Member States and the Commission to take the necessary steps to speed up the implementation and reporting on the progress of the current programmes;  

(14)   RECALLS that the Youth Employment Initiative (YEI) provides a targeted support to tackle youth unemployment, accompanying the traditional actions supported by the ESF, and complementing national strategic frameworks including through the implementation of the Youth Guarantee; and TAKES NOTE of the recent Commission Communication[7] setting out the implementation results of the Youth Guarantee and YEI since 2013; 

(15)   CALLS on the Commission to submit the legislative proposals for the next programming period of the ESI Funds as soon as possible in 2018, with a view to allowing the co-legislators to reach a timely agreement, and providing a basis for early start of the programming process; 

(16)   CALLS on the Commission to consider using new elements of the ESI Funds as an example for other EU policies financed from the EU budget in the context of its "EU Budget focused on Results" initiative[8] launched in 2015; 

Performance framework

(17)   RECALLS that the ESI Funds were the first EU funding instruments to introduce a performance framework based on measurable indicators, and a review with a performance reserve to be allocated during 2019 to only those priorities of Member States programmes for which the milestones set out in the performance framework of the programmes have been achieved; 

(18)   RECOGNISES the efforts made and resources dedicated by Member States and the Commission to develop intervention logic and performance framework for the ESI Funds programmes (especially to define robust indicators, their baseline and target values); NOTES that this process has triggered useful reflections and discussions on the setting of objectives, monitoring of progress, and contributed to changing the mind-set towards an increased focus on results and performance within Member States and the Commission; 

Thematic concentration

(19)   RECALLS that the ESI Funds are subject to legal requirements for thematic concentration which leads to a higher concentration of financial support on fewer areas contributing the most to reaching the targets of the Europe 2020 Strategy, and is expected to produce better results; 

(20)   WELCOMES the fact that in the Member States' programmes under the ERDF and the ESF, thematic concentration has been achieved and, in many cases exceeded the minimal requirements; CONSIDERS, however, that a balance must be maintained between the predefined requirements for concentration on a limited number of thematic areas and the needs of Member States, including the flexibility to respond during the programming period to specific national and regional development challenges; 

Ex-ante conditionalities

(21)   RECALLS that ex-ante conditionalities were introduced in the 2014-2020 period to ensure that the conditions necessary for an effective use of funds were in place in Member States before the investment under the ESI Funds is made; 

(22)   CONSIDERS that while the fulfilment of ex-ante conditionalities sometimes requires significant time and resources to implement legislative changes or complex reforms, they have a positive effect on the overall investment environment, the strengthening of administrative capacity and good governance in many Member States; WELCOMES the facilitating role of ex-ante conditionalities in the preparation of project pipelines, strategic documents such as smart specialisation strategies, as well as in a faster implementation of the EU acquis; 

Link to EU economic governance

(23)   RECALLS that in the legislative framework for the 2014-2020 period, measures were introduced to ensure that multi-annual investments of the ESI Funds address relevant country-specific recommendations. As a result of the programming exercise, the current ESI Funds programmes are designed to support structural reforms in line with EU priorities defined through the European Semester process; 

(24)   CONSIDERS that investments that address relevant country-specific recommendations contribute to delivering structural reforms and improving the overall macro-economic situation of the Member State concerned; 

(25)   CONSIDERS that more consistency should be sought in the future between various measures linking the effectiveness of the ESI Funds to economic governance, building on the first positive experience with the introduction of ex-ante conditionalities, and taking into account the need to accommodate social, economic and territorial challenges, as well as the continuity and stability of multi-annual programmes; 

Simplification

(26)   REGRETS that the full potential of the efficiency and the result orientation of the ESI Funds legislative framework is hampered by over-regulation and the existence of too many layers of rules and controls (EU, national and regional level); RECALLS that trust between all actors is essential for an effective functioning of the shared management mode, and should be further strengthened by making the ESI Funds simpler, more accessible and more understandable to citizens, businesses and administrations; REITERATES in this regard the importance of early warning mechanisms and of reinforcing the preventive role of audit at EU and national level; 

(27)   WELCOMES the findings and recommendations issued to date by the High Level Group on monitoring simplification for beneficiaries of the ESI Funds established by the Commission and LOOKS FORWARD to its future work regarding the preparation of the post-2020 programming period; 

(28)   TAKES NOTE of the legislative proposal aimed at the simplification of the ESI Funds for the current programming period, submitted by the Commission to the Council in September 2016, and REMAINS COMMITTED to its rapid adoption; CALLS on the Commission and Member States to make best use of all options in the legal framework (including early preparation of delegated acts) which help to simplify the implementation of the current ESI Funds programmes; 

(29)   IS COMMITTED to a substantial simplification, balancing the need for stability and continuation with a significant reduction of the administrative burden and costs in the post-2020 period; CONSIDERS that the following directions and new avenues should be carefully explored without prejudice to future decisions: 

a)      A simple, clear and light set of rules for the ESI Funds with a stronger emphasis on an integrated approach (e.g. multi-fund programmes and common rules for all ESI Funds), while ensuring that each ESI Fund can deliver effectively and efficiently on its Fund-specific missions, and that preference is given to the simplest solution available; 

b)      The ESI Funds rules and the rules applicable to other EU funds, as well as other EU policies having an impact on the implementation of the ESI Funds (in particular state aid rules), should be further mutually aligned in order to simplify the implementation of EU funds for beneficiaries, facilitate synergies and complementarity between different programmes and blending of various sources, as well as to allow for comparability of effectiveness and efficiency across EU funding instruments; 

c)      Further facilitation of the take-up and efficient use of the full range of simplified cost options, accompanied by clear requirements for their control and audit; 

d)      A simpler and streamlined shared management model based on performance rather than compliance, in order to further enhance the result-orientation of the ESI Funds, while taking into account the importance of prevention, proportionality and value-for-money; 

e)      An assessment of whether lessons to be drawn from delivery mechanisms used in other EU policy areas could contribute to improving the effectiveness of cohesion policy and the ESI Funds; 

f)       Broader application of proportionality and the introduction of differentiation into the implementation of the ESI Funds programmes based on objective criteria and positive incentives for programmes; 

(30)   REMAINS COMMITTED that a regular political debate takes place among relevant ministers in the General Affairs Council to discuss the implementation and the results of cohesion policy and the ESI Funds, as well as to support the preparation of the policy framework for the post-2020 period. 

[1]            Doc. 15802/14.
[2]            Doc. 9622/1/15 REV 1.
[3]            Doc. 14266/1/15 REV 1.
[4]            Doc. 7075/16.
[5]           Doc. 10668/16.
[6]           Doc. 12371/16.
[7]            Doc. 12749/16 + ADD 1-3.
[8]            http://ec.europa.eu/budget/budget4results/index_en.cfm

 

Monday 21 November 2016 - Youth and Education

Place:        Justus Lipsius building, Brussels
Chair:       Peter Plavčan, Slovak minister for Education, Science, Research and Sport

All times are approximate and subject to change

Youth

+/- 08.00
Arrivals

+/- 08.15
Doorstep by minister Plavčan

+/- 08.30
Breakfast: structured dialogue Youth

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

+/- 10.30
Promoting new approaches in youth work (conclusions)

+/- 10.45
Young Europeans at the centre of a modern Europe (public session)

+/- 12.30
Any other business

Education

+/- 15.00
Beginning of Council meeting

+/- 15.15
Resolution on a New Skills Agenda (adoption)

+/- 15.30
Recommendation on a Skills Guarantee (political agreement)

+/- 15.45
Prevention of radicalisation leading to violent extremism (conclusions)

+/- 16.00
Fostering and developing talent: (public session)

+/- 17.45
Any other business

+/- 18.00
Press conference (live streaming)

Tuesday 22 November 2016 - Culture and Sport

Place:        Justus Lipsius building, Brussels
Chair:       Marek Maďarič, Slovak minister for Culture

All times are approximate and subject to change

Culture

+/- 08.00
Arrivals

+/- 08.45
Doorstep by Minister Maďarič

+/- 09.30
Beginning of Council meeting

+/- 09.45
Public deliberations (public session)
Audiovisual Media Services Directive (progress report)

+/-10.00
Decision on the European Year of Cultural Heritage (2018) (general approach

+/-10.15
Decision on the European Capitals of Culture 2020-2033 (general approach)

+/-10.30
Towards an EU strategy for international cultural relations (debate)

+/- 12.15
Any other business

+/- 13.00
Lunch: structured dialogue Sport

+/- 14.30
Press conference (live streaming)

Sport

+/- 15.00
Beginning of Council meeting

+/- 15.15
Sport diplomacy (conclusions)

+/- 15.30
The impact of sport on personal development (public session)

+/- 17.20
Any other business

Place: Justus Lipsius building, Brussels
Chair: Robert Kaliňák, Deputy Prime Minister and Minister for the Interior 

All times are approximate and subject to change 

Home affairs issues 

+/- 08.00
Arrivals (live streaming) 

+/- 08.15
Doorstep by Minister Kaliňák 

+/- 10.00
Beginning of Mixed Committee meeting (roundtable)
Adoption of the agenda
European Travel Information and Authorisation System
Information Exchange and Interoperability (evolution of the Schengen Information System - SIS)  

+/- 11.10
Beginning of Home Affairs Council meeting
Adoption of the agenda
Adoption of non-legislative A Items
Information Exchange and Interoperability

+/- 12.50
Joint Action Days
European Travel Information and Authorisation System (public session)
Any other business 

+/- 13.15
Working lunch

+/- 15.00
Fight against Terrorism
EU Internet Forum
EU-Passenger Name Record
Any other business 

+/- 17.15
Press conference (live streaming) 

We politicians, our people, but also investors, bankers, live in uncertain times, ever since the outcome of the British referendum, the UK and the continent have regarded each other with some suspicion.

Coming from the Netherlands, I strongly regret the outcome of the referendum, but we have to respect and accept the choice of the British people. In my mind, it is a lose-lose situation, which we must manage as well as possible. It is now in the interest of both the UK and the rest of Europe to come to a fair and clear arrangement for our future relation. A new settlement with clarity on how the British government sees the role for itself in the Europe of the future, on how to proceed with our trade and international affairs and to limit the economic damage to the UK and the European Union.

Many things are uncertain, but we do know that whatever the future will look like, we'd better face it with a strong foundation. And that's what we are focusing on. Because the eurozone economy is now in a better shape and it needs to improve further. Since the crisis, we have taken important steps to secure our recovery. We are better prepared for possible shocks in the future. Thanks to the decisive steps we took, all European economies are growing again in the third quarter, unemployment is falling and deficits have been reduced. The average government deficit in the euro area in 2009 was over six percent, and will fall below two percent this year.

We have added safeguards to strengthen our shock absorption capacity so our economies can keep growing in the future, our people can find jobs again and investors are willing to invest in our countries and companies. But this doesn't mean we're there yet.

We've come a long way

First, look at how far we have come. In 2008 and 2009 our economies were hit by a huge financial crisis. In the US, the UK and all over continental Europe banks had to be saved by taxpayers' money in order to prevent chaotic defaults. But by preventing the collapse, government debt increased and investors became concerned about the prospects of repayment of government debt. This affected the banks' health, as they hold large amounts of sovereign debt. And so the vicious link between banks and sovereigns was born.

This is the reason we have taken unprecedented steps over the last couple of years. We have created a banking union, which aims to protect 340 million European taxpayers from future financial crises. The banking union was set up in only three years.

What are the results of the project so far? I see five key elements, which I will discuss in more detail in a minute: First, stricter and harmonized capital requirements. Second, enhanced supervision at European level. Third, making bail-in the new norm: if a bank gets into trouble, its investors must foot the bill. Fourth, resolution of failing banks at European level and setting up of a single resolution fund. Fifth and finally, we are determined to create a European deposit insurance scheme once remaining risks have been sufficiently reduced in the coming years.

These important steps will make banks and governments better prepared for possible shocks in the future.

Where are we now?

The European financial sector is in a much better shape than before. Thanks to the first two key elements of the banking union - stricter common rules and the single supervision mechanism - problems in bank balance sheets have become transparent in a uniform way. This is good news, because although this transparency shows that challenges remain, it also ensures that banks take their responsibility and take steps to become more resilient.

So banks can contribute to the recovery of the real economy and further reduce the negative feedback loop between sovereigns and banks.

As I said, we aren't there yet. A number of banks throughout the eurozone still suffer from a high stock of non-performing loans. These loans are putting pressure on bank's profitability and their ability to provide new credit. This is slowing down the economic recovery in a number of our countries. The gross carrying amount of these loans in the EU amounts to over a trillion euros. Insolvency laws in some countries have recently been modernized. But In practice there are also obstacles like the capacity of the courts. Therefore out-of-courts settlements are badly needed. The European Commission will propose legislation very soon.

But banks cannot afford to simply sit on their hands and wait. Without timely and adequate provisioning and write-offs of loans, their long term profitability and viability are at risk. While this might be painful in the short run, banks need to be ambitious, and raise additional capital if necessary, to survive in the long run.

Also, some banks still have a lot of scope for improving cost efficiency. Bold measures are needed to cut costs further. In addition, many banks have been hit by large fines due to unethical behavior. And I hope to say: unethical behavior in the past. These fines have been a drag on the recovery of some institutions. Here, prevention is better than cure. To survive in the long run, banks should always view things from the perspective of their clients and do what is right for them.

Earlier I mentioned five elements of the Banking Union. The third element, bail-in, is crucial. I am well aware, that some say bail-in is too painful, risky, and hard to apply. But it ensures that we won't have to save banks with taxpayers' money anymore. It is a sound economic principle and deals with losses in a fair way. Some may worry about stability, but I firmly believe that bail-in will ultimately safeguard stability and strengthen bank's resilience. And it gives markets an incentive to price risks as accurately as possible.

The effects are already becoming visible. Major rating agencies have downgraded their expectations about public support to much lower levels in eurozone countries. And several studies show that investors are responding accordingly. For example, we see an increase in the difference between banks' CDS spreads and the spreads of their sovereigns, which means that investors believe in the principle of bail-in.

The newly established Single Resolution Board, the fourth key element I mentioned, has not yet had to deal with a failing bank. This might sound a bit odd, but it makes sense, because bail-in also has a very strong  preventive effect. The threat of bail-in has caused banks to increase their buffers  by raising private capital, issuing shares or merging with other banks. In Greece, for example, the threat of bail-in late last year significantly increased private participation in the recapitalisation process of some Greek banks, thereby reducing the public burden. The same can now be seen in Italy. Private solutions are once again preferred.

What do we, the governments, do?

Let me reassure you: it's not all up to you.It's also up to governments. This brings me to the fifth element of the banking union: creating a European deposit insurance scheme once the remaining risks have been sufficiently addressed. I think we politicians should do two things in this respect:

First, we need to finish what we've started.

The banking union is a work in progress and we - the legislators - have to complete it so we have the right framework in place to deal with future crises.

One of the most important next steps is to start working on the Commission's legislative proposals that are expected before the end of the year. They should focus on reducing the risks that still exist. For example:

• They should clarify the quality and quantity of bail-in-able buffers for banks by ensuring that bail-in is possible without material risk of litigation. To achieve this, the creditor hierarchy in Europe needs to be further clarified and harmonised.
• The proposals should also create a level playing field by harmonizing further capital rules for banks by removing the remaining options and discretions.
• The final Basel 3 reforms should be put into practice, especially regarding the leverage ratio. 
• Insolvency laws and practices should be harmonised and strengthened to address banks' problems with non-performing loans, which I have already mentioned.

Another important element in reducing risks in bank balance sheets is the prudential treatment of sovereign exposures to banks. We're still waiting for the Basel Committee's findings, but we'll return to this issue in the future and consider the way forward in Europe, as this will also help to break the vicious circle.

The sooner we achieve these reforms, the sooner we'll be able to work on further steps to share risks. For example by creating a common backstop for the single resolution fund and introducing a European deposit insurance scheme.

The second thing we politicians need to do is stick to what we have agreed.

Over the last few years, we have all learned that saving a continent from financial ruin isn't easy and isn't always popular with voters. So I understand that my colleagues and myself  find it hard to keep doing what's necessary. I understand that it takes determination. But we have to stick to our plan. The road to populism is paved with paralyzed politicians.

European banking supervision and stricter prudential regulation will ensure we address the legacy problems in banks, and prevent the build-up of future risks. Bail-in limits the bank-sovereign nexus and helps set investors' incentives right. That's what we agreed to do. And it's important that we all remain committed. This brings clarity and stability. And that's how we contribute to further economic recovery throughout the eurozone.

Let me conclude. Brexit, globalisation, low interest rates, rising populism: we live in uncertain times. We have a strong common interest is to maintain financial stability and if possible political stability. In order to create opportunities and provide security. That's what people expect. That's what we should deliver.

Thank you.

On 14 November 2016, the presidency reached provisional agreement with representatives of the European Parliament on a draft regulation on money market funds (MMFs), aimed at making such products more robust. 

The draft regulation is intended to ensure the smooth operation of the short-term funding market. It sets out to maintain the essential role that money market funds play in the financing of the real economy. It follows efforts by the G20 and the Financial Stability Board to strengthen the oversight and regulation of the 'shadow banking' system. 

With assets under management of around €1 trillion, MMFs are mainly used to invest excess cash within short timeframes. They represent an important tool for investors because they offer the possibility to diversify their excess cash holdings, whilst maintaining a high level of liquidity. 

While an overall agreement was reached at political level, a number of technical issues relating to the draft regulation are to be finalised in the coming days. The agreement will then be submitted to the Permanent Representatives Committee for endorsement on behalf of the Council. The Parliament and the Council will then be called on to adopt the regulation at first reading.

Role and features of MMFs

 There are currently two kinds of MMFs that are used for short-term financing for companies and government entities: 

• those that offer a variable net asset value (VNAV) that mainly depends on market fluctuations;
• those that offer a constant net asset value (CNAV) and aim to offer share purchases and redemptions for a fixed price. 

When markets are stressed 

The financial crisis of 2007-08 showed that MMFs can be vulnerable to shocks and may even spread or amplify risks throughout the financial system. Investors are likely to redeem investments as soon as they perceive a risk, which can force funds to sell assets rapidly in order to meet redemption requests. This can fuel an investor 'run' and liquidity crisis for an MMF, potentially triggering further negative effects on other parts of the financial system. 

Common standards 

The draft regulation lays down rules for MMFs, in particular the composition of their portfolios and the valuation of their assets, to ensure the stability of their structure and to guarantee that they invest in well-diversified assets of the highestcredit quality.

It also introduces common standards to increase the liquidity of MMFs, to ensure that they can face sudden redemption requests when market conditions are stressed. In addition, the text provides for common rules to ensure that the fund manager has a good understanding of investors' behaviour, thus preparing for any future redemption requests. It provides investors and supervisors with adequate and transparent information. 

Issues resolved 

The agreement reached at the final meeting of 'political' negotiators covers, in particular, the core issues concerning regulation of MMFs, such as liquidity and diversification requirements, assets on which MMFs can invest including the role of government debt, transparency. It also provides fora report by the Commission on the functioning of the regulation, accompanied by a review clause.  

1.           The forty-sixth meeting of the EEA Council took place in Brussels on 15 November 2016 under the Presidency of Ms Elisabeth Vik Aspaker, Minister of EEA and EU Affairs of Norway. The meeting was attended by Ms Aurelia Frick, Minister of Foreign Affairs of Liechtenstein, Mr Stefán Haukur Jóhannesson, representing the Minister for Foreign Affairs of Iceland, and Mr Lukas Parizek, representing the Presidency of the Council of the European Union, as well as by members of the Council of the European Union and representatives of the European Commission and the European External Action Service. 

2.           The EEA Council noted that, within the framework of the political dialogue, the Ministers would discuss Western Balkans, Ukraine/Russia, Migration, and the EU global strategy on Foreign and Security Policy. An orientation debate was held on the digital single market, including the collaborative economy. 

3.           The EEA Council acknowledged the key role played by the EEA Agreement for more than 20 years in advancing economic relations and internal market integration between the EU and the EEA EFTA States. The EEA Council highlighted that the Agreement had been robust and capable of adapting to changes in EU treaties and EU enlargements. The EEA Council recognised that increased efforts towards enhancing competitiveness would be key for jobs and growth in Europe. 

4.           The EEA Council emphasised the importance of a well-functioning Single Market as a driver in boosting economic growth and creating new jobs throughout Europe, and welcomed the steps already taken to implement the proposals contained in the strategies for a digital single market and for upgrading the Single Market, both launched in 2015, with a view to exploiting in full its untapped growth and productivity potential. The EEA Council agreed that a holistic approach is required to tackle some of the main challenges facing the Single Market, and stressed the importance of close involvement of the EEA EFTA States in the further design and development of single market policies and initiatives. 

5.           The EEA Council welcomed the adoption of the EEA Joint Committee decisions of the first package of legal acts related to the EU regulations on the European supervisory authorities in the area of financial services. The EEA Council also highlighted the high importance of promptly incorporating and applying the other outstanding legislation in the field of financial services as soon as possible in order to ensure a level playing field throughout the EEA in this important sector.

6.           Noting the progress report of the EEA Joint Committee, the EEA Council expressed its appreciation for the work of the Joint Committee in ensuring the continued successful operation and good functioning of the EEA Agreement. 

7.           The EEA Council emphasised the importance of solidarity among the countries of Europe to overcome social and economic challenges. In particular, the EEA Council expressed concern regarding the continued high level of youth unemployment in some EEA member states. 

8.           The EEA Council commended the positive contribution of the EEA and Norway financial mechanism 2009-2014 and of their predecessors in reducing economic and social disparities throughout the EEA and recognised the still existing need to alleviate social and economic disparities in the EEA. 

9.           The EEA Council welcomed the ratification of the agreement on an EEA financial mechanism 2014-2021 by Iceland, Liechtenstein and Norway, and of the agreement between Norway and the EU on a Norwegian financial mechanism for the 2014-2021 period by Norway. The EEA Council further welcomed the provisional application of the agreement on a Norwegian financial mechanism for the 2014-2021 period as of 1 July 2016 and of the agreement on an EEA financial mechanism 2014-2021 as of 1 August 2016. 

10.        The EEA Council also welcomed the provisional application of the Protocol on trade in fish and fisheries products between Iceland and the EU as of 1 August 2016 and of the Protocol on trade in fish and fisheries products between Norway and the EU as of 1 September 2016. 

11.        Emphasising the fact that greater knowledge of the EEA Agreement throughout the EEA is in the interest of all contracting parties, the EEA Council urged them to ensure that information on the EEA Agreement is made readily and easily available. 

12.        The EEA Council noted that free movement of capital is a fundamental internal market freedom and an integral part of the EEA acquis and acknowledged that restrictions can be implemented only temporarily on the basis of the provisions of article 43 of the EEA Agreement. The EEA Council welcomed the progress of the comprehensive plan of the Icelandic government for removal of capital controls without threatening economic and financial stability of the country. 

13.        The EEA Council placed great importance on continued close cooperation between the EU and the EEA EFTA States in environment, energy and climate change polices, particularly in light of the 2030 framework for climate and energy and the framework strategy for a resilient Energy Union with a forward-looking climate change policy. The close cooperation should also continue in particular in the areas of internal energy market, energy security, emissions trading, promotion of competitive, climate resilient, safe and sustainable low carbon energy, energy efficiency, renewable energy resources, carbon capture and storage (CCS) and carbon capture and utilisation (CCU), as well as other environmental issues such as waste, chemicals, water resource management and industrial pollution. 

14.        The EEA Council recalled the historic global and legally-binding climate agreement reached in Paris in December 2015 and welcomed its entry into force on 4 November 2016, triggered by the EU ratification. The EEA Council welcomed the efforts undertaken by both EU member states and EEA EFTA States to ensure speedy completion of their national ratification procedures and encouraged other countries to ratify as soon as possible. 

15.        The EEA Council welcomed the broad support the joint initiative on European standardisation had achieved and the efforts the EU side had initiated with this successful collaborative co-regulation modernising the European standardisation system. The EEA Council also acknowledged that the involvement and contribution from EFTA in this field is an illustration of efficient EU-EFTA cooperation supporting a homogenous EEA. 

16.        The EEA Council welcomed the ongoing efforts made to both reduce the number of EEA-relevant EU acts awaiting incorporation into the EEA Agreement and to accelerate the incorporation process. While commending all the steps undertaken in the course of the last years, the EEA Council noted that the number of acts awaiting incorporation was still too high. The EEA Council called for continued work in order to significantly and durably reduce the current backlog and thereby ensure legal certainty and homogeneity in the EEA. It urged all parties to engage constructively to find solutions to pending difficult issues. 

17.        With regard to the third package for the internal energy market, the EEA Council welcomed progress made in recent months with regard to removing the remaining obstacles towards its incorporation in the EEA Agreement, notably as concerns the EEA EFTA participation in the Agency for the Cooperation of Energy Regulators (ACER), and underlined the importance of swiftly finalising this work in order to establish a fully functional internal market for energy. 

18.        The EEA Council welcomed progress made in recent months with regard to the 2009 regulatory framework for electronic communications (including the regulation on the Body of European Regulators for Electronic Communications - BEREC), and the regulation on medicinal products for paediatric use.

19.        The EEA Council noted that progress was still needed on a number of important outstanding issues and looked forward to reaching a conclusion as soon as possible, in particular regarding the third postal directive, the EU legal acts in the area of organic production, as well as in the area of common rules and standards for ship inspection and survey organisations. 

20.        The EEA Council noted that there was a number of Joint Committee decisions, for which the six-month deadline provided for in the EEA Agreement with regard to constitutional clearance had been exceeded. It encouraged the EEA EFTA States to strengthen their efforts to resolve the pending cases as soon as possible and to avoid such delays in the future. 

21.        The EEA Council acknowledged the significance of the negotiations on an ambitious, balanced and comprehensive free trade agreement between the European Union and the United States. The EEA Council welcomed the continuous exchange of information between the European Commission and the EEA EFTA States, initiated in the EEA Joint Committee in December 2014. Bearing in mind inter alia Protocol 12 to the EEA Agreement, the EEA Council encouraged a continuation of this exchange of information. 

22.        The EEA Council acknowledged that the contracting parties, pursuant to article 19 of the EEA Agreement, had undertaken to continue their efforts with a view to achieving the progressive liberalisation of agricultural trade. The EEA Council looked forward to the signing of the agreements on the further liberalisation of agricultural trade and on the protection of geographical indications between the EU and Iceland, which were initialled on 17 September 2015, in the near future. The EEA Council noted the suspension of the negotiations between the EU and Norway on protection of geographical indications. 

23.        The EEA Council welcomed the progress made in the negotiations between the EU and Norway on further liberalisation of agricultural trade within the framework of article 19 launched in February 2015 and encouraged the parties to actively continue their efforts for further progress in the negotiations.

24.        The EEA Council looked forward to the adoption of the Joint Committee decision related to the agreement on the further liberalisation of trade in processed agricultural products within the framework of article 2(2) and article 6 of Protocol 3 to the EEA Agreement between Iceland and the EU, which was concluded on 17 September 2015, in the near future. 

25.        The EEA Council encouraged the contracting parties to continue the dialogue on the review of the trade regime for processed agricultural products within the framework of article 2(2) and article 6 of Protocol 3 to the EEA Agreement in order to further promote trade in this area. 

26.        Acknowledging the contribution made by EU programmes to building a more competitive, innovative and social Europe, the EEA Council welcomed the participation of the EEA EFTA States in EEA-relevant programmes to which they contribute financially. 

27.        The EEA Council recognised the active participation and full integration of the EEA EFTA States in the European research area and the successful association of Norway and Iceland in Horizon 2020, the EU's flagship programme for research and innovation. The EEA Council will continue to place high importance to the integration and policy alignment of EEA EFTA States with the EU in the area of research and innovation. 

28.        The EEA Council underlined the importance of continuing the practice of inviting officials from the EEA EFTA States to political dialogues held at the level of the relevant EU Council working parties.

29.        The EEA Council underlined the importance of inviting EEA EFTA Ministers to informal EU ministerial meetings and ministerial conferences relevant to EEA EFTA participation in the Internal Market, and expressed its appreciation to the current Slovak and incoming Maltese Presidencies for the continuation of this practice. 

30.        The EEA Council recognised the positive contributions made by the EEA EFTA States to the decision-shaping process of EEA-relevant EU legislation and programmes through their participation in the relevant committees, expert groups, studies and agencies, as well as through the submission of EEA EFTA comments. 

The EU and Lebanon adopted the partnership priorities for the coming four years, as well as a compact. The partnership priorities set up a renewed framework for political engagement and enhanced cooperation. They were agreed in the context of the revised European neighbourhood policy and the EU's global strategy for foreign and security policy.

The compact includes the mutual commitments through which the EU and Lebanon will fulfil the pledges they made at the London conference on supporting Syria and the region in February 2016. The objective is to improve the living conditions both of refugees temporarily staying in Lebanon and of vulnerable host communities.

The announcement was made jointly by Federica Mogherini, High Representative for Foreign Affairs and Security Policy and Gebran Bassil, Minister of Foreign Affairs of Lebanon in Brussels on Tuesday 15 November.

Partnership priorities in EU-Lebanon relations for the coming years include: security and countering terrorism, governance and the rule of law, fostering growth and job opportunities, and migration and mobility.

The EU-Lebanon compact foresees an EU allocation of a minimum of € 400 million in 2016-2017, in addition to the bilateral assistance of more than €80 million for those two years.  It outlines specific mutual commitments to address the impact of the Syrian crisis and aims to turn the situation into an opportunity to improve the socio-economic prospects, security, stability and resilience of the whole Lebanon. In turn Lebanon commits to ease the temporary stay of Syrian refugees, in particular regarding their residency status. The country currently hosts at least 1.1 million Syrians. It is the country hosting the highest number of displaced persons and refugees both per capita and per square kilometre.

Place:        Justus Lipsius building, Brussels
Chair:        Ivan Lesay, State Secretary

All times are approximate and subject to change.

from 08.45
Arrivals

+/- 10.00 
Beginning of the Council meeting (Roundtable)
Adoption of the agenda

+/- 10.05
Council meeting to prepare the conciliation committee meeting (public session)

+/- 11.30
Conciliation committee meeting

+/- 12.30
Consultations in various formats

+/- ttbc
Conciliation committee meeting

+/- ttbc
Council meeting to take note of the results of the discussions (public session) 

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

The meeting might continue until 17 November 24.00 

On behalf of the European Council, I would like to extend my congratulations on your election as President of the Republic of Bulgaria.

It is my hope that your Presidency will enhance unity, prosperity and security in Bulgaria needed for your country to continue to play its key role in the region and in the European Union, including when it comes to protecting our common external border. 

I wish you every success in your term as President.

Place:         Justus Lipsius building, Brussels
Chairs:       Ivan Korčok, State Secretary of the Ministry for Foreign and European Affairs of Slovakia
                    Peter Pellegrini, Deputy Prime Minister for Investments of Slovakia 

All times are approximate and subject to change

TUESDAY 15 NOVEMBER

+/- 11.30      
Arrivals 
+/-  11.45     
Doorstep by State Secretary Ivan Korčok 

+/- 14.30
Beginning of Council meeting (Roundtable)
Adoption of agenda
Adoption of non-legisative A items
Adoption of legislative A items (public session) 

+/- 14.35      
Mid-term review of the Multiannual Financial Framework (public session)         

 +/- 14.55
Evaluation of rule of law mechanism

+/- 15.55      
Commission 2017 work programme (public session) 

+/- 16.55      
Follow up to the European Council of 20 and 21 October 

+/- 17.10      
Preparation of the European Council of 15 and 16 December

+/- 17.30      
European Semester

+/- 17.45
Any other business 

+/- 18.30      
Press conference (live streaming) 

WEDNESDAY 16 NOVEMBER

+/- 08.45      
Arrivals
+/- 09.45
Doorstep by Deputy Prime Minister Peter Pellegrini 

+/- 10.00      
Modification of the common provisions regulation (public session) 

+/- 10.35
Results and new elements of cohesion policy 

+/- 14.30
Press conference (live streaming)

On 14 November 2016, the Council adopted an amending regulation concerning goods that can be used for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment.

The agreement will enable regulation 1236/2005 to be amended in the light of developments since it entered into force in 2006. It provides for modifications to the current rules on export controls, for new controls on brokering services and technical assistance, for a ban on advertising of certain goods and for amendment of the definition of other cruel, inhuman or degrading treatment or punishment. The aim is to prevent EU exports from contributing to human rights violations in third countries.

A ban on torture and ill-treatment is enshrined in United Nations conventions on human rights. At EU level, the Charter of Fundamental Rights prohibits capital punishment and provides that "no one shall be subjected to torture or to inhuman or degrading treatment or punishment". The EU also promotes respect for fundamental rights around the world.

2005 regulation on torture goods

Regulation 1236/2005 bans the export and import of equipment/goods that can only be used for torture or capital punishment. Such goods are listed in annex II to the regulation.

The regulation requires specific licences for exports of equipment/goods that could have such uses but which also have legitimate applications. Such goods are subject to a case-by-case assessment and are listed in annexes III and IIIA to the regulation.

In December 2011, the regulation was amended to control the export of drugs that could be used in executions by lethal injection.

Amendments

The new regulation allows for exports to countries that are parties to international conventions on capital punishment to be covered by a general authorisation. The country must have abolished the death penalty for all crimes and the goods must not be re-exported to other countries.

The new regulation also imposes a ban on the brokering of equipment that is subject to an import and export ban as listed in annex II, so as to cover transfers of goods that are not located in the EU. It additionally bans the provision of brokering services by any broker who is aware that goods listed in annex III or IIIA may be used for torture or capital punishment.

The regulation bans the supply of technical assistance (concerning goods listed in annex III or IIIA) by anyone who is aware that the equipment in question may be used for torture or capital punishment.

It also adjusts the definition of other cruel, inhuman or degrading treatment or punishment in the light of case-law of the European Court of Human Rights.

It furthermore provides for an urgency procedure in case rapid amendment of the regulation's annexes is necessary when new goods enter the market.

Under the agreement with the European Parliament, the agreed text:

• introduces a prior authorisation regime for brokering services and technical assistance for goods listed in  annex III and IIIA
• prohibits the transport of goods in transit if they are listed in annex II, and of those listed  in annex III or IIIa if the economic operator has information about their use in the country of destination
• prohibits the advertising and promotion at exhibitions and trade fairs of goods listed in annex II
• establishes a coordination group, which will serve as a platform for member state experts and the Commission to exchange information on administrative practices and which will also discuss questions of interpretation, developments and implementation of the regulation

The Council endorsed the joint communication "Elements for an EU-wide strategic framework to support Security Sector Reform (SSR)". The Council called on all EU actors for a swift implementation of the EU SSR framework.

SSR provides foundations contributing to the establishment of effective democratic control and accountability of the security sector and is therefore relevant in all contexts - including stable ones - to improve governance and human security, and throughout the whole conflict cycle.

SSR is a key component of conflict prevention by addressing potential crisis factors, as well as of crisis management and conflict resolution, post-conflict stabilisation, peace-building and state-building by reinstating accountable security institutions and restoring effective security services to the population, thus providing the environment for sustainable development and peace.

Foreign affairs ministers and defence ministers held a joint session on the implementation plan on security and defence.

The implementation plan on security and defence was presented by the High Representative, taking into account her roles as  Vice-President of the European Commission and Head of the European Defence Agency, to member states at the Council meeting.

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 as well as concrete actions. These actions will assist the EU and its members states in addressing further Europe's current and future security and defence needs.

The implementation plan on security and defence is part of the follow-up to the EU global strategy on foreign and security policy. The High Representative presented the EU global strategy "Shared vision, common action: a stronger Europe" to the European Council on 28 June. The strategy is intended to guide EU foreign and security policy in the years to come. The Council adopted conclusions on the global strategy on 17 October 2016.

Security and defence is one of the priority areas for the work on implementation of the EU global strategy, which also includes resilience building and 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.

The work on security and defence is conducted in synergy with the work on the Commission European Defence Action Plan as well as in regards to the implementation of the joint declaration by the President of the European Council, the President of the European Commission and the Secretary General of NATO. The implementation plan, together with the Council conclusions, is expected to be presented at the European Council meeting of December.

The Council adopted conclusions welcoming the upcoming fifth review conference of the Convention on prohibitions or restrictions on the use of Certain Conventional Weapons which may be deemed to be excessively injurious or to have indiscriminate effects (CCW) taking place in Geneva from 12-16 December 2016.

The Council confirmed that the conference represents an opportunity to keep the Convention responsive to new developments and strengthen its implementation.

The CCW is a unique international forum gathering diplomatic, legal and military expertise. It offers a flexible way to respond to new developments in weapons technologies and to support the implementation of an essential part of international humanitarian law which contributes to preventing and reducing the suffering of both civilians and combatants.

On 14 November 2016, the Council adopted a mandate for the European Commission and the High Representative for Foreign Affairs and Security Policy to negotiate, on behalf of the EU and its member states, a comprehensive agreement with the Republic of Azerbaijan.

The new agreement should replace the 1996 partnership and cooperation agreement and should better take account of the shared objectives and challenges the EU and Azerbaijan face today.  It will follow the principles endorsed in the 2015 review of the European neighbourhood policy and offer a renewed basis for political dialogue and mutually beneficial cooperation between the EU and Azerbaijan.

1.         Recalling the July 2015 Council conclusions and the joint statement agreed by the HRVP and Foreign Minister Javad Zarif at their April meeting, the European Union expresses its will to develop further its relations with Iran, in a manner fully consistent with the JCPOA.

2.         The European Union reiterates its resolute commitment to the Joint Comprehensive Plan of Action (JCPOA), which is a multilateral endeavour by the E3/EU+3 and Iran. It welcomes that the Joint Comprehensive Plan of Action (JCPOA) is being implemented by all sides. It notes that the International Atomic Energy Agency (IAEA) has issued four reports since Implementation Day verifying Iran's nuclear related commitments. It underlines the need for Iran to continue to cooperate fully and in a timely manner with the IAEA and it supports the Agency work in monitoring Iran's implementation of the deal. It encourages Iran to ratify the additional protocol to its safeguards agreement. The European Union reiterates the need for continued full and effective implementation of the JCPOA throughout the lifetime of the agreement. The European Union confirms its support to the High Representative in her role as Coordinator of the Joint Commission.

3.         The European Union is committed to support the full and effective implementation of the JCPOA including by the lifting of nuclear related economic and financial sanctions and engaging with the private sector and economic operators, especially banks, to promote growth in trade and investment. In particular, extensive guidance has been provided on the lifting of sanctions to ensure the new regulatory framework is clear. The Council will continue to reach out to all relevant parties on this issue.

4.         The European Union welcomes and looks forward to the continued issuing of export licenses by the US Office of Foreign Assets Control for the transfer of commercial passenger aircraft and related parts and services to Iran. The sale of a significant number of aircraft to Iran's airlines  will be an important signal for the successful implementation of the JCPOA. The aircraft's exclusively civil aviation end-use will enhance the people's mobility and contribute to a safer commercial aviation environment.

5.         The upholding of commitments by all sides is a necessary condition to continue rebuilding trust and allow for continued, steady and gradual improvement in relations between the European Union, its Member States and Iran as stated by the July 2015 Foreign Affairs Council.

6.         The Council reiterates its support to the development of EU-Iran relations in areas of common interest such as political dialogue, human rights, economic cooperation, trade and investment, agriculture, transport, energy and climate change, civil nuclear cooperation, environment, civil protection, science, research and innovation, education, including through university exchanges, culture, drugs, migration, regional and humanitarian issues as outlined in the Joint statement agreed by the HRVP and the Iranian Foreign Minister in their April meeting. The Council supports a coordinated EU strategy of gradual engagement with Iran that is comprehensive in scope, cooperative where there is mutual interest, critical when there are differences and constructive in practice. As part of that the Council fully supports the prompt opening of an EU Delegation in Iran as a  key step to deliver the broad cooperation agenda.

7.         The Council welcomes the expansion of the EU's economic relationship with Iran as a result of the implementation of the JCPOA and reaffirms its support for Iran's WTO accession as a way to promote market related reforms and achieve reintegration into the global economy and the rules based trading system. For Iran to fully benefit from the lifting of sanctions, including the full reengagement of European banks and businesses, it is important that it addresses obstacles related to economic and fiscal policy, business environment and rule of law. The Council welcomes Iran's adoption of, and high-level political commitment to, a Financial Action Task Force Action Plan to address its strategic anti-money laundering/combating the financing of terrorism deficiencies, and its decision to seek technical assistance and urges its timely and swift implementation. The EU and its Member States are open to cooperate with Iran in these areas, including providing technical assistance for the implementation of the FATF action plan, and consider the use of export credits to facilitate trade, project financing, and investment in Iran. The Council welcomes the prospect of extending the third country lending mandate of the European Investment Bank (EIB) to Iran.

8.         The Council notes the Iranian President's pledge to improve human rights in the country. However it remains concerned with the human rights situation, in particular the frequent use of death penalty including against juvenile and drug offenders. The EU opposes the use of the death penalty in all circumstances. The Council underlines the need to ensure equal rights of women, and persons belonging to all minorities, including ethnic and religious minorities, respecting freedom of expression, assembly and association and implementing the treaties to which Iran is a party as well as acceding to those conventions to which it is not yet a state party. It also calls on Iran to cooperate with and grant access to the UN special rapporteur. The EU aims at addressing these issues in a constructive manner, including through a dialogue on human rights, which would further identify areas of cooperation in this field.

9.         The Council expresses its concern with the growing tensions in the region and supports ways to promote a more constructive regional environment. Iran plays an important regional role and it is of utmost importance that it takes tangible and constructive steps that would help make an improved regional situation a reality. The EU emphasises its balanced approach to the region and urges all countries in the region to work towards de-escalation of tensions and avoiding actions which feed violence, sectarianism and polarisation. In this sense the Council expresses its concern with the regional military build-up, including Iran's missile programme and calls upon Iran to refrain from activities which may deepen mistrust, such as ballistic missile tests, which are inconsistent with UNSCR 2231, and the statements associated with these.

10.       The EU reiterates its conclusions on Syria of 17 October 2016t and calls urgently for an end to the excessive and disproportionate attacks by the Syrian regime and its allies, both deliberate and indiscriminate, against civilian populations, humanitarian and healthcare personnel and civilian and humanitarian infrastructures. Therefore the Council urges Iran to use its influence on the Syrian regime to end the violence against civilian populations, humanitarian personnel and civilian and humanitarian infrastructures, enable full unhindered country-wide humanitarian access and engage constructively in a negotiated political process. The Council also encourages Iran to fully contribute to laying the ground for the resumption of an inclusive and Syrian led political process under UN auspices. The Council welcomes the outreach of the High Representative in this respect and invites her to continue this work with key actors in the region in support of the efforts of the UNSE Staffan de Mistura.

The Council discussed current multilateral and bilateral relations with the six Eastern Partnership countries - Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and Ukraine. Ministers had an exchange of views on the implementation of the Partnership and possible deliverables to be achieved in 2017, notably with a view to the next Eastern Partnership Summit in November 2017 in Brussels.

The Council adopted conclusions on the Eastern Partnership.

Monday 14 November 2016
13.00 Meeting with European Commission President Jean-Claude Juncker (Berlaymont)

Wednesday 16 November 2016
10.00 Meeting with Prime Minister of Malta Joseph Muscat (photo opportunity)