European Council

The Council working group that oversees implementation of the EU's code of conduct on business taxation has appointed a new chairperson.

Fabrizia Lapecorella (Italy) took up the position at the beginning of February 2017 for a period of two years. Appointed at the group's meeting on 25 January 2017, she replaces Dr Wolfgang Nolz (Austria), who had chaired the group since 2009.

The code of conduct on business taxation sets out criteria for assessing tax measures that potentially encourage harmful tax competition. It is implemented through a voluntary commitment by member states to peer-reviewed 'standstill' (refraining from introducing harmful new tax measures) and 'rollback' (abolishing existing harmful tax measures). 

The code was established by Council conclusions adopted in December 1997. 

Work has more recently expanded to new areas, such as:

• anti-abuse measures;
• transparency and the exchange of information in the area of transfer pricing;
• administrative practices;
• links to third countries.

In these areas, several 'soft law' initiatives (i.e. rules that are neither strictly binding nor lacking legal significance) have been agreed. 

The code of conduct group, established in 1998, is responsible for implementing the code of conduct and is a formal preparatory body of the Council. It is assisted by several subgroups, chaired by the rotating presidency. Two subgroups are currently active: one on third countries and the other on clarification of the 3rd and 4th criteria of the code. 

One of the group's main tasks for the near future will be to finalise establishment of an EU list of non-cooperative jurisdictions in tax matters. 

On 1 February 2017, the process was launched by the dispatching of letters to 92 third-country jurisdictions, requesting information in accordance with Council Conclusions of 8 November 2016 on the criteria for and process leading to the establishment of the EU list. 

The code of conduct group will conduct and oversee this screening process, supported by the Council's secretariat. The Commission's services will assist it by carrying out the necessary preparatory work. 

Ms Lapecorella is director general of finance at the Italian Ministry of Economy and Finance. She is a member and vice-chair of the bureau of the OECD's committee on fiscal affairs and a member of the OECD's steering group of the 'inclusive framework' on BEPS (tax base erosion and profit shifting) implementation.

In 2014, during the Italian presidency of the Council, she chaired the high level working party on taxation matters.

The President of the European Council, Donald Tusk received the letter of credentials of the following Ambassador:

H.E. Mr Faruk KAYMAKCI, Head of the Mission of the Republic of Turkey to the European Union

On 8 February 2017, the presidency reached provisional agreement with representatives of the European Parliament on a programme to help member states implement structural reforms.

The programme will be established for the period running from its entry into force until 31 December 2020 with a financial envelope of €142.8 million.

“This is a programme that will support governments in improving their economic and governance structures. It is another step forward to better equip member states in implementing important reforms which ultimately will be beneficial to European citizens.”

The agreement will be submitted to the Permanent Representatives Committee in the coming days for approval. The Parliament and the Council will then be called on to adopt the proposed regulation at first reading.

On 9 February 2017 Council and European Parliament representatives reached a provisional agreement on a decision establishing a European Year of Cultural Heritage (2018). 

Cultural heritage encompasses resources from the past in a variety of forms and aspects. These include monuments, sites, traditions, transmitted knowledge and expressions of human creativity, as well as collections conserved and managed by museums, libraries and archives.

The aim of this initiative is to raise awareness of European history and values and to strengthen a sense of European identity. At the same time, it draws attention to the opportunities offered by our cultural heritage, but also to the challenges it faces, such as the impact of the digital shift, environmental and physical pressure on heritage sites, and the illicit trafficking of cultural objects.

The main objectives of this European Year are: 

• to promote cultural diversity, intercultural dialogue and social cohesion;
• to highlight the economic contribution of cultural heritage to the cultural and creative sectors, including small and medium-sized enterprises, and to local and regional development
• to emphasise the role of cultural heritage in EU external relations, including conflict prevention, post-conflict reconciliation and rebuilding destroyed cultural heritage

The European Year will have a dedicated financial envelope of EUR 8 million.

Representatives of the European Parliament will be able to participate as observers in the meetings of national coordinators convened by the Commission for the running of the European Year. 

As Europeans we have a particularly rich cultural heritage born of our long shared history. I welcome the opportunity to celebrate that heritage and to take pride in all that makes up our common European identity.

Coreper will be invited to endorse the agreement at a forthcoming meeting. The Chairman of Coreper will then send a letter to the Chairperson of the European Parliament's CULT committee. 

That letter will indicate that, if the Parliament adopts at its plenary session the compromise text as approved by the Coreper, the Council will adopt the text in first reading without amendments. 

This should enable the new legislation to enter into force soon enough to allow the Commission and member states sufficient time for the necessary preparations. 

The idea of a European Year of Cultural Heritage was raised for the first time in 2014 when the Council referred to it in its conclusions on the participatory governance of cultural heritage. The idea received strong support from the European Parliament, the Commission presenting its proposal for a European Year of Cultural Heritage in August 2016. 

The Council adopted a general approach on the proposal on 22 November 2016.

The European Parliament's Culture and Education Committee (CULT Committee) report on the decision was voted at its meeting on 8 November 2016. A first trilogue took place on 9 December.

On 8 February 2017 member states' ambassadors endorsed the deal on wholesale caps that will put an end to retail mobile roaming charges in the EU on 15 June this year. The presidency reached a provisional agreement on the wholesale rules with the European Parliament on 31 January. 

As the culmination of a 10-year process to push down roaming fees, people will finally be able to travel across Europe and stay connected just as they do at home, without paying extra.

The successive decisions that the EU has taken, first to reduce retail roaming charges, and now to abolish them, are underpinned by a set of rules governing operators when they do business with each other. In particular, these rules cap how much operators may charge each other when consumers call, text or surf in another EU country. 

The new, significantly lower caps are designed to allow mobile phone operators to offer surcharge-free roaming to their customers without increasing domestic prices. Together with the retail fair use policy, the wholesale rules help ensure that the abolition of roaming charges is sustainable throughout the EU. 

Dr Emmanuel Mallia, the Maltese Minister for Competitiveness and Digital, Maritime and Services Economy, said: "Ending roaming fees is very good news for all Europeans. I am pleased that the Maltese presidency has brought this file to a successful close. It is key to making further progress towards achieving a European Digital Single Market. Malta will be celebrating this achievement with its fellow EU member states on the 15th and 16th of June during the Digital Assembly 2017 event, which will be held in Malta." 

The agreed text will now undergo technical finalisation. It must then be formally approved first by the Parliament and then by the Council (agreement at first reading). 

It is envisaged that the Parliament will adopt the regulation in April and the Council at the latest in May. Adoption by the Council does not need to take place in the Telecom Council: any Council configuration has the power to adopt the legal act. 

The adopted regulation will be signed by both institutions. This could take place at the Parliament plenary session in Strasbourg in May. The signed text will be published in the EU Official Journal and will enter into force three days later. 

The new wholesale regulation must be in effect by 15 June 2017 so that retail roaming fees can be abolished as laid down in the roaming regulation adopted in 2015.

For more information and the agreed caps, see our press release from 31 January 2017 (link below)

On 7 February the Maltese presidency reached a provisional agreement with European Parliament representatives to remove barriers to cross-border portability of online content services in the internal market.

The agreement, which still needs to be confirmed by both the Council and the European Parliament, will allow consumers who have subscribed or bought online content services in their home country to access it when temporarily present in another country within the EU. 

"Europeans travelling within the EU will no longer be cut off from online services such as films, sporting broadcasts, music, e-books or games they have paid for back home. Together with the ending of roaming charges, this is important progress in creating a digital single market which benefits everyone."

On 7 February 2017, the Council adopted an implementing decision setting out a recommendation to prolong temporary internal border controls in exceptional circumstances. 

Starting from 11 February 2017, when the previous decision expires, Austria, Germany, Denmark, Sweden and Norway should prolong proportionate temporary border controls for a maximum period of three months at the following internal borders:  

• Austria at the Austrian-Hungarian land border and Austrian-Slovenian land border
• Germany at the German-Austrian land border
• Denmark in the Danish ports with ferry connections to Germany and at the Danish-German land border
• Sweden in the Swedish harbours in the Police Region South and West and at the Öresund bridge
• Norway in the Norwegian ports with ferry connections to Denmark, Germany and Sweden

 Before prolonging such controls, those member states concerned should exchange views with the relevant member states to ensure that internal border controls are carried out only where it is considered necessary and proportionate. They should also ensure that internal border controls are only carried out as a last resort when other alternative measures cannot achieve the same effect. 

Border controls should be targeted and limited in scope, frequency, location and time, to what is strictly necessary to respond to the serious threat and to safeguard public policy and internal security resulting from the continued risk of secondary movements of irregular migrants. 

The member states that carry out these controls should review each week whether they are still necessary and adjust them to the level of the threat, phasing them out wherever appropriate. They should report to the Commission and the Council every month.

Under article 29 of the Schengen Borders Code, the Commission may propose a recommendation, to be adopted by the Council by qualified majority, to reintroduce controls at all or specific parts of the border of one or more member states as a matter of last resort. They may be introduced for a period of up to six months. Controls can be prolonged for additional six month periods up to a maximum duration of two years.  

On 4 May 2016, in the context of the migratory crisis, the Commission considered that the conditions for applying Article 29 of the Schengen Borders Code were fulfilled and submitted a recommendation to the Council. This was due to serious deficiencies in ensuring efficient controls at parts of the EU's external borders, which put the functioning  of the entire Schengen area at risk. 

On 12 May 2016, the Council recommended to the five Schengen state most affected (Austria, Germany, Denmark, Sweden and Norway) that they maintain proportionate temporary border controls for a maximum period of six months to respond to the serious threat and to safeguard public policy and internal security, as a result of the secondary movements of irregular migrants.  

Given the fragile situation and the residue of pressure remaining in the members states most affected by these movements, on 11 November 2016 the Council recommended that these member states prolong proportionate temporary border controls for a maximum period of three months. 

On 25 January 2017, the Commission adopted a proposal for a Council implementing decision recommending to the five Schengen states that they prolong the temporary internal border controls for a further maximum period of three months. 

On 7 February 2017, the Council registered the absence of unanimity in support of the proposal for a regulation creating a European Public Prosecutor's office (EPPO). This opens the way for a group of at least nine member states to refer the text for discussion to the European Council for a final attempt at securing consensus on the proposal. If this does not prove possible, enhanced cooperation can be considered. 

"EPPO has been part of the Treaties since 2009. However, as the last six and a half years have shown its establishment has been elusive. I am positive that the Maltese presidency will achieve concrete results by continuing to act as an honest broker so that those member states who wish to launch enhanced cooperation do so under this presidency”, said Owen Bonnici, Minister for Justice of Malta. 

Article 86 of the Treaty on the functioning of the EU foresees that, in case of absence of unanimity on the regulation creating the EPPO, a group composed of a minimum of nine member states may request that the text be referred to the European Council for discussion. The European Council then has  a period of up to four months to try to reach a consensus. 

If it still proves impossible to secure a consensus, a group of at least nine member states can express the wish to establish enhanced cooperation. 

The aim of the EPPO regulation is to create a European Public Prosecutor's Office. The EPPO would be an independent Union body with the authority, under certain conditions, to investigate and prosecute EU-fraud and other crimes affecting the Union's financial interests. It would bring together European and national law-enforcement efforts to counter EU-fraud.

I am pleased to welcome President Aliyev to Brussels today.

Azerbaijan is an important partner for the European Union, whose independence, sovereignty and territorial integrity we support.

We want to build on our reliable and strategic partnership in the energy field. Azerbaijan is important for Europe's energy security and diversification of supplies. We have a shared commitment to finalise the Southern Gas Corridor; in fact it is a key priority for both sides.

The European Union is already Azerbaijan's main trading partner and one of its most important investors. We intend to expand these commercial relations further in the coming years. We discussed how our strengthened cooperation will help modernise  and diversify the Azerbaijani economy. For Azerbaijan to also move forward in the WTO talks would pave the way for a competitive business environment that would drive our economic integration.

During our talks, I stressed the importance we attach to human rights and fundamental freedoms, including the freedom of expression. The EU believes that an open society is the best guarantee for long term stability and prosperity. We look forward to continuing to work as partners on these issues.

Azerbaijan acts as a bridge between cultures. This is very welcome in view of the challenges that we currently face in our common neighbourhood.

We discussed the peaceful resolution of the Nagorno-Karabakh conflict. The status quo is unsustainable. The conflict does not have a military solution and needs an early political settlement in accordance with international law. The EU continues to fully support the mediation efforts and proposals of the OSCE Minsk Group Co-Chairs.

Our relations go beyond energy and trade: We want to upgrade our relationship and develop its full potential through a new bilateral agreement. I am very happy to announce that tomorrow,  the negotiations on a new EU-Azerbaijan agreement will be launched. I wish our negotiators every success.

This new agreement will broaden the scope of our relations, taking into account the new global, political and economic interests we share and challenges we want to face together. Mr. President, thanks again for coming to Brussels.

The Council discussed the situation in Libya and adopted conclusions.

Place:        Europa building, Brussels
Chair:        Mr. Louis Grech, Deputy Prime Minister and Minister for European Affairs of Malta

 All times are approximate and subject to change

+/- 08.30
 Arrivals 

+/- 08.45         
Doorstep by Deputy Prime Minister Grech 

+/- 10.00      
Beginning of Council meeting (Roundtable)
Adoption of legislative A items (public session)
Adoption of non-legislative A items
Preparation of the European Council of 9-10 March
European Council follow-up
Sustainable European future 

+/- 12.00      
Press conference (live streaming), JL building

1. We welcome and support the Maltese Presidency's efforts to take forward all elements of the EU's comprehensive migration policy. We reaffirm our determination to act in full respect of human rights, international law and European values, and in conjunction with UNHCR and IOM.
   
   
2. A key element of a sustainable migration policy is to ensure effective control of our external border and stem illegal flows into the EU. In 2016, arrivals decreased to one-third of the levels in 2015. On the Eastern Mediterranean route, while pressures remain, arrivals in the last four months of 2016 were down 98% year-on-year. We remain committed to the EU-Turkey Statement and the full and non-discriminatory implementation of all its aspects, as well as to continued support for the countries along the Western Balkans route.
   
   
3. On the Central Mediterranean route, however, over 181,000 arrivals were detected in 2016, while the number of persons dead or missing at sea has reached a new record every year since 2013. With hundreds having already lost their lives in 2017 and spring approaching, we are determined to take additional action to significantly reduce migratory flows along the Central Mediterranean route and break the business model of smugglers, while remaining vigilant about the Eastern Mediterranean as well as other routes. We will step up our work with Libya as the main country of departure as well as with its North African and sub-Saharan neighbours.
   
   
4. The Partnership Framework and the Valletta Action Plan have allowed us to deepen long-term cooperation with a number of partner countries, including on root causes of migration, through a solid partnership based on mutual trust. This work is already yielding results and will be intensified. At the same time, the urgency of the situation requires immediate additional operational measures at the regional level, taking a pragmatic, flexible and tailor-made approach at each and every point involving all actors along the migratory route. In this context, we welcome the joint Commission and High Representative Communication "Migration on the Central Mediterranean Route - Managing flows, saving lives".
   
   
5. Efforts to stabilise Libya are now more important than ever, and the EU will do its utmost to contribute to that objective. In Libya, capacity building is key for the authorities to acquire control over the land and sea borders and to combat transit and smuggling activities. The EU remains committed to an inclusive political settlement under the framework of the Libyan Political Agreement and to supporting the Presidency Council and the Government of National Accord backed by the United Nations. Where possible the EU and Member States will also step up cooperation with and assistance to Libyan regional and local communities and with international organisations active in the country.
   
   
6. Priority will be given to the following elements:

   a) training, equipment and support to the Libyan national coast guard and other relevant agencies. Complementary EU training programmes must be rapidly stepped up, both in intensity and numbers, starting with those already undertaken by Operation SOPHIA and building on its experience. Funding and planning for these activities needs to be made sustainable and predictable, including through the Seahorse Mediterranean Network;
   
   b) further efforts to disrupt the business model of smugglers through enhanced operational action, within an integrated approach involving Libya and other countries on the route and relevant international partners, engaged Member States, CSDP missions and operations, Europol and the European Border and Coast Guard;
   
   c) supporting where possible the development of local communities in Libya, especially in coastal areas and at Libyan land borders on the migratory routes, to improve their socio-economic situation and enhance their resilience as host communities;
   
   d) seeking to ensure adequate reception capacities and conditions in Libya for migrants, together with the UNHCR and IOM;
   
   e) supporting IOM in significantly stepping up assisted voluntary return activities;
   
   f) enhancing information campaigns and outreach addressed at migrants in Libya and countries of origin and transit, in cooperation with local actors and international organisations, particularly to counter the smugglers' business model;
   
   g) helping to reduce the pressure on Libya's land borders, working both with the Libyan authorities and all neighbours of Libya, including by supporting projects enhancing their border management capacity;

   h) keeping track of alternative routes and possible diversion of smugglers' activities, through cooperative efforts with Libya's neighbours and the countries under the Partnership Framework, with the support of Member States and all relevant EU agencies and by making available all necessary surveillance instruments;
   
   i) continuing support to efforts and initiatives from individual Member States directly engaged with Libya; in this respect, the EU welcomes and is ready to support Italy in its implementation of the Memorandum of Understanding signed on 2 February 2017 by the Italian Authorities and Chairman of the Presidential Council al-Serraj;
   
   j) deepening dialogue and cooperation on migration with all countries neighbouring Libya, including better operational cooperation with Member States and the European Border and Coast Guard on preventing departures and managing returns.

7. These objectives shall be underpinned by the necessary resources. In line with the Valletta Action Plan, the European Union is strengthening the mainstreaming of migration within its Official Development Assistance for Africa, which amounts to €31 billion during this financial period. Some of the actions referred to above can be funded within projects already under way, notably projects funded by the EU Trust Fund for Africa as appropriate, which mobilises €1,8 billion from the EU budget and €152 million from Member States' contributions. To cover the most urgent funding needs now and throughout 2017, we welcome the Commission's decision to mobilise as a first step an additional €200 million for the North Africa window of the Fund and to give priority to migration-related projects concerning Libya.
   
   
8. We will further develop our external migration policy in order to make it resilient for future crises. We will identify potential barriers, for example in relation to conditions to be met for returns, and reinforce EU return capacities, while respecting international law. We welcome the Commission's intention to rapidly present, as a first step, an updated Action Plan on Returns and to provide guidance for more operational returns by the EU and Member States and effective readmission based upon the existing acquis.
   
   
9. We agree to act determinedly and speedily to achieve the objectives set out in this Declaration and call upon all actors to work towards this end. We welcome the intention of the Maltese Presidency, in close cooperation with the Commission and the High Representative, to present a concrete plan for implementation to this effect to the Council at the earliest opportunity, to take work forward and to ensure close monitoring of results. The European Council will review progress on the overall approach at its meetings in March and in June on the basis of a report from the Maltese Presidency.

Monday 6 February 2017
12.30 Meeting with President of Azerbaijan Ilham Aliyev (press statements ± 14.40)

Tuesday 7 February 2017
10.30 Meeting with President of the Republic of Moldova Igor Dodon

Wednesday 8 February 2017
14.00 Meeting with President of Kosovo Hashim Thaçi
15.00 Meeting with President of the European Parliament Antonio Tajani

Thursday 9 February 2017
16.00 Meeting with Prime Minister of Ukraine Volodymyr Groysman

Before anything else let me thank again and congratulate Prime Minister Joseph Muscat for once again organising and hosting an important and productive summit in the beautiful city of Valletta. It is a pleasure to be back here today after the equally successful Valletta Summit in 2015 with our African partners.

Now turning to the results of today's meeting. We have agreed on immediate operational measures that should help reduce the number of irregular migrants and save lives at the same time. We will train, equip and support the Libyan coastguard to stop people smugglers and increase search and rescue operations. We will deliver economic assistance to local communities in Libya to improve their situation, and help them shelter stranded migrants. And we will work with the International Organisation for Migration to step up voluntary returns from Libya to countries of origin. There will be additional European funds to implement those priority actions. And we will, of course, act in full respect of human rights, international law and European values, and in close cooperation with organisations such as UNHCR and IOM.

We have also decided to support Member States' bilateral activities directly engaged with Libya. Therefore we welcomed the Memorandum of Understanding signed yesterday by the Italian and Libyan Prime Ministers as another important and encouraging sign that things are about to change for the better. The European Union and our actions will support Italy and Libya. It is our shared responsibility.

After this press conference, we will meet to discuss the future of the EU as Joseph Muscat has just mentioned with 27 States and our Rome meeting marking the sixtieth anniversary of the Treaty of Rome.

But in fact we have started the discussion on the future of Europe already during our lunch. The developments on the international scene remind us of how important a strong EU is. Transatlantic co-operation remains an absolute priority because it has until now been a key pillar of the free world. At the same time we know that today we have no other option than to regain confidence in our own strength.

Good afternoon,

Our main goal for the Malta summit is to stem the flow of irregular migration from Libya to Europe. This is the only way to stop people dying in the deserts and at sea. This is also the only way to gain control over migration in Europe.

After my talks with Italian Prime Minister Gentiloni yesterday in Rome and this morning with Libyan Prime Minister Al-Sarraj on their bilateral cooperation, I can say that this goal is within our reach. I also had talks with other EU leaders, including President Hollande yesterday and Chancellor Merkel this morning, about this bilateral cooperation between Italy and Libya and we agreed on the need to support Italy in this cooperation, especially the Memorandum of Understanding which should be signed in Rome, I hope today or tonight. Europe should and will stand by Italy in sharing the responsibility.

I am very happy to welcome Prime Minister Al-Serraj in Brussels today on the eve of the Malta summit.

EU leaders will be discussing in Malta how the European Union and its Member States can better cooperate with Libya. We have a shared interest in and determination to reduce the number of irregular migrants risking their lives crossing the Central Mediterranean. This is not sustainable for Europe nor for Libya, as the smugglers let people drown and undermine the authority of the Libyan state for their own profit. Tomorrow I will put forward additional concrete and operational measures to strengthen our work, to more effectively tackle the smuggling and trafficking networks and help manage migratory flows more effectively.

Europe has proved it is able to close down irregular routes of migration, as we did on the Eastern Mediterranean route. We have discussed the example of our cooperation with Turkey and other countries in this part of the region. Now it is time to close down the route from Libya to Italy. I have spoken at length with the Italian Prime Minister Gentiloni about it yesterday and I can assure you that it is within our reach. What we need is the full determination to do that. We owe it first and foremost to those who suffer and risk their lives. But we also owe it to Italians and all Europeans.

Although it is only one issue of several in our strategic relationship, I am nevertheless glad for the opportunity to have discussed it with the Prime Minister today.

Let me say that the EU is fully behind the efforts of the Libyan people to find an inclusive political settlement, and the United Nations efforts to that end. I reiterated the EU's support for the Presidency Council and the Government of National Accord in implementing the Libyan Political Agreement. What is needed now is further outreach in a constructive manner to those in Libya who have not yet rallied around the new institutions.

The Libyans have shown determination in the fight against terrorism. However, the threat remains in Libya and in neighbouring countries, and sustained efforts will be needed to win this struggle outright so that terrorism is beaten and does not return.

The humanitarian and security situation in Libya has devastated the prospects of the civilian population and their hopes of a normal life. The EU will continue to provide assistance to the Libyan people. We urge all Libyans to put aside their differences so that we can engage further and enhance our relationship. As neighbours, we share many common interests, including stability and prosperity on both sides of the Mediterranean.

Let me finally turn to another crisis high on the European Union's radar screen; the situation in eastern Ukraine, where we again are witnessing a sharp increase in violence. The ceasefire violations that have taken place over the last few days have demonstrated a new level of intensity and brutality. The humanitarian situation in the Avdiivka region is getting critical. We are reminded again of the continued challenge posed by Russia's aggression in eastern Ukraine as well as the threat to the implementation of the Minsk agreement. The fighting must stop immediately. The ceasefire must be honoured. Russia should use its influence to disengage the Russian-backed separatists. Weapons need to be withdrawn and the OSCE given unhindered access. Thank you.

Place:     Europa building, Brussels
Chair:     Federica Mogherini, High Representative for Foreign Affairs and Security Policy

All times are approximate and subject to change

+/- 08.30
Arrivals (live streaming)
VIP entrance, Europa building

+/- 09.30 (ttbc)
Doorstep by High Representative Federica Mogherini
VIP entrance, Europa building

+/- 10.00
Beginning of the meeting (Roundtable)
Adoption of the agenda
Approval of non-legislative A items

+/- 10.15
Ukraine
Libya

+/- 13.00
Working lunch: Egypt

+/- 15.00
Middle East Peace Process

+/- 16.30
Press conference by Federica Mogherini (live streaming)
Main press room, Justus Lipsius building

The abolition of mobile roaming fees for consumers by the summer will be secured by a steep drop in maximum wholesale roaming prices. On 31 January 2017 the Council presidency reached a provisional agreement with the European Parliament on new wholesale caps, which will be around 90% lower than current ones. Wholesale roaming reform is the last piece of legislation required before retail roaming fees can be abolished on 15 June 2017. This informal agreement still has to be confirmed by EU member states and the full Parliament. 

The reform determines how much operators may charge each other for using their networks to provide roaming services. The new caps must be low enough to make it possible for operators to offer surcharge-free roaming to their customers without increasing domestic prices. At the same time, they need to be high enough so that operators in visited countries are able to recover their costs without increasing their domestic retail prices. In addition, the caps should allow for continuing maintenance and upgrading of networks, so that people can enjoy smooth connectivity everywhere - from the most crowded holiday spots to the most remote regions in Europe. 

As the use of data has been increasing exponentially in recent years and is expected to continue to do so, the most crucial part of the reform is the new cap for data. With the end of roaming fees, data usage abroad is also expected to soar since consumers will not need to search for wifi hotspots to make surfing affordable. 

Dr Emmanuel Mallia, the Maltese Minister for Competitiveness and Digital, Maritime and Services Economy, said: "Reaching a quick agreement on wholesale roaming prices was a top priority for the Maltese presidency. Today's decision is the final step in a process that started ten years ago. From next summer, wherever they are travelling in Europe, our citizens will be able to make calls, send texts, surf and stay connected. Roam like at home is now a reality." 

Under the agreement, on 15 June 2017 the maximum wholesale charge for data will drop from the current cap of €50/GB to €7.7/GB and then continue to decrease in stages: from 1 January 2018 the maximum charge will be €6.0/GB, from 1 January 2019 €4.5/GB, from 1 January 2020 €3.5/GB, from 1 January 2021 €3.0/GB and, finally, from 1 January 2022 €2.5/GB. 

This progressive decrease in data caps reflects the expectation that increasing use of mobile data services, combined with greater economies of scale, new technologies and effective competition, will reduce the cost of providing wholesale roaming services over the coming years. This agreed approach makes the caps significantly lower than the fixed cap of €8.5/GB originally proposed by the Commission, while still allowing businesses to invest in the upcoming fifth generation of mobile networks (5G). 

On 15 June 2017 the maximum wholesale surcharge for voice calls will be cut from €0.05/min to €0.032/min. The cap for text messages will decrease from €0.02 to €0.01 per message. 

Together with the retail fair use policy, these new cap levels will help ensure that the end of roaming charges is sustainable across the EU. 

The Commission will have to report every two years on how the rules are working and propose new caps if appropriate. The first report is due by 15 December 2019. 

The presidency will submit the outcome of the talks for approval by member states in the coming weeks. The new rules must be in place by 15 June 2017 so that roaming fees can be abolished as laid down in the roaming regulation adopted in 2015.

Dear colleagues,

In order to best prepare our discussion in Malta about the future of the European Union of 27 member states, and in light of the conversations I have had with some of you, let me put forward a few reflections that I believe most of us share.

The challenges currently facing the European Union are more dangerous than ever before in the time since the signature of the Treaty of Rome. Today we are dealing with three threats, which have previously not occurred, at least not on such a scale.

The first threat, an external one, is related to the new geopolitical situation in the world and around Europe. An increasingly, let us call it, assertive China, especially on the seas, Russia's aggressive policy towards Ukraine and its neighbours, wars, terror and anarchy in the Middle East and in Africa, with radical Islam playing a major role, as well as worrying declarations by the new American administration all make our future highly unpredictable. For the first time in our history, in an increasingly multipolar external world, so many are becoming openly anti-European, or Eurosceptic at best. Particularly the change in Washington puts the European Union in a difficult situation; with the new administration seeming to put into question the last 70 years of American foreign policy.

The second threat, an internal one, is connected with the rise in anti-EU, nationalist, increasingly xenophobic sentiment in the EU itself. National egoism is also becoming an attractive alternative to integration. In addition, centrifugal tendencies feed on mistakes made by those, for whom ideology and institutions have become more important than the interests and emotions of the people.

The third threat is the state of mind of the pro-European elites. A decline of faith in political integration, submission to populist arguments as well as doubt in the fundamental values of liberal democracy are all increasingly visible.

In a world full of tension and confrontation, what is needed is courage, determination and political solidarity of Europeans. Without them we will not survive. If we do not believe in ourselves, in the deeper purpose of integration, why should anyone else? In Rome we should renew this declaration of faith. In today's world of states-continents with hundreds of millions of inhabitants, European countries taken separately have little weight. But the EU has demographic and economic potential, which makes it a partner equal to the largest powers. For this reason, the most important signal that should come out of Rome is that of readiness of the 27 to be united. A signal that we not only must, but we want to be united.

Let us show our European pride. If we pretend we cannot hear the words and we do not notice the decisions aimed against the EU and our future, people will stop treating Europe as their wider homeland. Equally dangerously, global partners will cease to respect us. Objectively speaking, there is no reason why Europe and its leaders should pander to external powers and their rulers. I know that in politics, the argument of dignity must not be overused, as it often leads to conflict and negative emotions. But today we must stand up very clearly for our dignity, the dignity of a united Europe - regardless of whether we are talking to Russia, China, the US or Turkey. Therefore, let us have the courage to be proud of our own achievements, which have made our continent the best place on Earth. Let us have the courage to oppose the rhetoric of demagogues, who claim that European integration is beneficial only to the elites, that ordinary people have only suffered as its result, and that countries will cope better on their own, rather than together.

We must look to the future - this was your most frequent request in our consultations over the past months. And there is no doubt about it. But we should never, under any circumstances, forget about the most important reasons why 60 years ago we decided to unite Europe. We often hear the argument that the memory of the past tragedies of a divided Europe is no longer an argument, that new generations do not remember the sources of our inspiration. But amnesia does not invalidate these inspirations, nor does it relieve us of our duty to continuously recall the tragic lessons of a divided Europe. In Rome, we should strongly reiterate these two basic, yet forgotten, truths: firstly, we have united in order to avoid another historic catastrophe, and secondly, that the times of European unity have been the best times in all of Europe's centuries-long history. It must be made crystal clear that the disintegration of the European Union will not lead to the restoration of some mythical, full sovereignty of its member states, but to their real and factual dependence on the great superpowers: the United States, Russia and China. Only together can we be fully independent.

We must therefore take assertive and spectacular steps that would change the collective emotions and revive the aspiration to raise European integration to the next level. In order to do this, we must restore the sense of external and internal security as well as socio-economic welfare for European citizens. This requires a definitive reinforcement of the EU external borders; improved cooperation of services responsible for combating terrorism and protecting order and peace within the border-free area; an increase in defence spending; strengthening the foreign policy of the EU as a whole as well as better coordinating individual member states' foreign policies; and last but not least fostering investment, social inclusion, growth, employment, reaping the benefits of technological change and convergence in both the euro area and the whole of Europe.

We should use the change in the trade strategy of the US to the EU's advantage by intensifying our talks with interested partners, while defending our interests at the same time. The European Union should not abandon its role as a trade superpower which is open to others, while protecting its own citizens and businesses, and remembering that free trade means fair trade. We should also firmly defend the international order based on the rule of law. We cannot surrender to those who want to weaken or invalidate the Transatlantic bond, without which global order and peace cannot survive. We should remind our American friends of their own motto: United we stand, divided we fall.

We will meet on Friday in Malta for an important informal meeting, hosted by Joseph.

We will first look at the external aspects of migration. This is very much part of the comprehensive strategy we have been developing over the past two years. After having stabilised the situation in the Eastern Mediterranean, our focus will this time be on operational measures to address the challenge of the massive flows of irregular migrants in the Central Mediterranean region. Flows are at a record level, too many people die while trying to reach Europe, and spring is approaching fast. We will continue our long term action with African partners through the Partnership framework and the Valletta Action Plan. But the situation on the ground requires immediate and urgent action, with and around Libya, where the vast majority of irregular migrants depart from. Efforts to stabilise Libya are now more important than ever. But we must at the same time protect our external border while helping the Libyan authorities provide decent reception facilities on their territory. The situation there is different and even more complex that in the east, and we have to be innovative while drawing on the principles that have guided our action over the past months. We will at the end of our discussion adopt an ambitious declaration setting out the way ahead in a clear and concrete way.

We will break at the end of the morning for a family photo outside, and will then move to our lunch venue, across the bay. Over lunch, we will have the opportunity to freely exchange views on other international challenges and the international situation. We will also talk briefly about the follow up and implementation of the conclusions we adopt after European Council meetings and about ways to better communicate about our action.

After lunch, we will meet the press and hold our respective press conferences.

After the press conference we will reconvene in the Grandmaster's Palace at 27 to discuss preparations for Rome, where Paolo will host us on 25 March for the 60th anniversary of the Treaties of Rome. You have received a short concept paper prepared together with Italy that will serve as a basis for an open discussion about the future of the EU. I have also sent you a letter setting out my reflections on the future of the EU. Our discussion in Malta will help us subsequently to prepare a declaration in view of Rome. Rome must be a moment of celebration and unity and an opportunity to collectively set out a vision for the coming years.

I very much look forward to seeing you all in Malta on Friday.