European Council

The Hague, 16 May 2016

Mrs. Emily O'Reilly
European Ombudsman

Subject: Recent initiatives to improve Eurogroup transparency

Thank you very much for your letter of 14 March and your kind words of appreciation for the recent initiatives to improve the transparency of the Eurogroup. I very much agree with you that transparency is closely tied to legitimacy. This is an issue which has become particularly relevant for the Eurogroup, since its work has become increasingly connected with concrete policy actions in the context of the euro area's crisis response.

Let me recall however that the Eurogroup is an informal gathering of Finance Ministers. Therefore,   under the Treaties, it cannot be considered part of the 'institutions, bodies, offices and agencies' within the meaning of Art. 15(3) TFEU or Art. 42 of the Charter of Fundamental Rights. Furthermore, the Members of the Eurogroup may meet in their capacity of Governors under the European Stability Mechanism Treaty. ESM bodies are of an intergovernmental nature and hence, not covered by the EU Treaties' provisions on transparency or by Regulation n° 1049/2001 regarding public access to European Parliament, Council and Commission documents.

Despite these legal considerations, the Eurogroup's recent initiatives respond to perceived shortcomings in transparency and reflect the political will to adhere to the principles stated in  Art. 15(3) TFEU and Regulation 1049/2001. 

The Eurogroup's decisions on transparency were reached in two stages. First, in February 2016, we agreed on the timely publication of annotated agendas and my summing-up letters. Second, in March 2016, after we had mandated the Eurogroup Working Group (EWG) to further explore the issue, we agreed on the publication of documents shortly after Eurogroup meetings unless there are well-founded objection 1.

The information note from the Council's Legal Service, to which you referred in in your letter,  served as background to our discussions and helped to inform our decisions.
In line with recital (11) of Regulation 1049/2001 and with a view to safeguard its ability to carry out its operations - the Eurogroup deemed it necessary to protect the internal discussions that take place in the EWG to prepare the Eurogroup at technical level. The confidentiality of the EWG's proceedings is in line with Council Decision 2012/245 on a revision of the Statutes of the Economic and Financial Committee, which comprises the EWG. 

However, the Eurogroup's proactive transparency regime in principle applies to all documents on which the political debate in the Eurogroup is based. The timely publication of the annotated agendas and the summing-up letters provides a precise picture of this political debate.  This new regime is therefore, in my view, consistent with the EU principles and rules on transparency, even though these do not directly apply to the Eurogroup. I am confident that our initiatives will adequately address information needs and consider that, while I am open to suggestions for further improvement, the newly instated regime should first be given time to demonstrate its effectiveness.

Finally, it goes without saying that individual requests for public access submitted to me or the Eurogroup's support structures (i.e. the General Secretariat of the Council and the Commission-based Secretariat of the Eurogroup Working Group) will continue being addressed by the institutions (i.e. the Council or the Commission) holding the relevant documents and which are therefore responsible for the application of Regulation n° 1049/2001. 

Kind regards,

Jeroen Dijsselbloem
President of the Eurogroup

(1) Cf. item 5b of the published summing-up letter of the EG meeting of 7 March, consistent with Art. 4  of Regulation 1049/2001

Conclusions adopted by the Council on the role of Europeana for the digital access, visibility and use of European cultural heritage, addresses its financing, governance, quality of available data and user-friendliness. The conclusions also aim to reinforce Europeana as a cultural and digital innovation project, increasing member states' involvement and ownership and securing its sustainable financing.

Dear President Joseph Daul, dear friends,

People celebrate anniversaries in order to remember. What should we, Christian Democrats, remember when we celebrate the fortieth anniversary of our political community? First and foremost, we should remember why we are together, and what the real reason behind creating a one-party family was. Today we often refer to ourselves as a party of results, not a party of ideology but this is too little to survive in good shape for the next forty years. The need for a deeper reflection of a historical, ideological and political nature is obvious. Proud as we are of our pragmatism, we must also remember that pragmatism itself does not constitute the foundations of our community. 

Today, I want to tell you about the three, to my mind, most important challenges currently facing the European People's Party. First, we must redefine our fundamental catalogue of values, the minimum of Christian democracy, so to speak. And by this I do not mean the need for some ideological inventions, but rather a conscious and very seriously taken return to our roots. 

It has been forty years exactly since I started my studies at the University of Gdańsk. It was precisely at the same time when the communists once again brutally crushed workers' protests and strikes in several Polish cities. In reaction to those events, a small group of Warsaw intellectuals and dissidents established the so-called KOR, the Workers' Defense Committee, an initiative to help the imprisoned, the injured and those thrown out of work. Illegal students' committees were also being set up at some universities. We didn't know at the time that four years later the great 10-million-strong Solidarity movement would come to life. 

When I set up such an underground student committee at my University in 1977, I was not thinking about politics as an art of achieving results. It was difficult to call that activity pragmatic, as it was strictly connected with taking a risk. On the other hand, however, it was an exciting experience, if not mystical. And that's because in those days ethics came before politics, or, to put it differently, political engagement was a result of exclusively ethical motives. Paradoxically, this is precisely what in the longer-term perspective became a source of strength and effectiveness. 

It was also then that we were discovering forbidden words and ideas: liberty, democracy, freedom of religion and expression, the rule of law, free market and private property. It is not a feeling of nostalgia that makes me go back to the old times, but a deep conviction that those values are still relevant in the Christian democratic minimum. Do they sound old-fashioned and banal? They do. But this is where their strength lies. We do not need further constructivist and progressive ideologies. Socialists are much better at this. Let us again believe in those ideas which are rooted in our tradition of freedom, in the Decalogue, in our hearts and experiences. What we lack today is a new energy and genuine determination to defend them. 

Second, persistent in our commitment to fundamental principles, we must be guided in our political projects by common sense and a good sense of timing. It is us who today are responsible for confronting reality with all kinds of utopias. A utopia of Europe without nation states, a utopia of Europe without conflicting interests and ambitions, a utopia of Europe imposing its own values on the external world. A utopia of a Euro-Asian unity. 

Obsessed with the idea of instant and total integration, we failed to notice that ordinary people, the citizens of Europe do not share our Euro-enthusiasm. Disillusioned with the great visions of the future, they demand that we cope with the present reality better than we have been doing until now. Today, Euro-scepticism, or even Euro-pessimism have become an alternative to those illusions. And increasingly louder are those who question the very principle of a united Europe. The spectre of a break-up is haunting Europe and a vision of a federation doesn't seem to me like the best answer to it. We need to understand the necessity of the historical moment. As the President of the European Council I want to start an honest and open debate on the subject. The sixtieth anniversary of the Treaty of Rome provides a good background for such a debate. 

The third challenge concerns ourselves. Let me be absolutely blunt when I tell you what I think about the internal situation in the EPP, in our political party. Before I start, however, I want to make an important declaration: I am terribly proud to be in the same party with such people as Joseph Daul and Angela Merkel, as Viktor Orban and Manfred Weber, as Jean-Claude Juncker and Boyko Borissov. That they are different from each other is clear. Just look at Boyko and Jean-Claude. But differences should not mean conflicts. There is space in the EPP for different sensitivities and different tactics as long as we share the same values and a common strategy. When you look at it objectively, there is no conflict between the idea of strict respect for the rules, e.g. Schengen, and solidarity with the refugees. In addition to that, Europe needs a wise synthesis of those two values. If we succeed in building it, people will believe that we are able to cope with this or another crisis. Speaking openly, we will either understand that the views of Angela and Viktor are compatible with each other and only together can they provide a full answer, or people will search for other radical and brutal recipes for how to solve the crisis. We have to look for what we share, and not underline our differences. That is why let us refrain from exaggerated rhetoric, because exaggeration, in whichever direction, is a heavy sin in politics.

If we want a united Europe, a Europe of Solidarity, we must start with ourselves. One of the great moral authorities, John Paul the Second said that Solidarity is never one against the other. Solidarity is always one with the other, together. When one is a Christian Democrat, it is sometimes worth listening to the Pope.

Conclusions adopted by the Council on developing media literacy and critical thinking through education and training acknowledge the many benefits and opportunities that the Internet and social media can bring, but also highlight the potential threats and dangers they can present. The conclusions stress the fundamental role of education and training in helping young people to become media-literate and responsible citizens of the future.

Read the full text of the Council conclusion on developing media literacy and critical thinking through education and training

The text of the conclusions stresses the invaluable contribution that youth work, voluntary and cultural activities and sport can make in reaching out to young people who might otherwise be more vulnerable to radicalisation.

Read the full text of the Council conclusions on the role of the youth sector in an integrated and cross-sectoral approach to preventing and combating violent radicalisation of young people

On 30 May 2016, the Council adopted a regulation extending an exemption for commodity dealers under EU bank capital requirements. 

Regulation 575/2013 exempts commodity dealers from large exposure requirements and from own funds requirements until 31 December 2017. It also requires the Commission to prepare, by 31 December 2015, reports on the prudential supervision of commodity dealers and of investment firms in general. That review is still underway, and it is likely that new legislation that may be required as a consequence would only be adopted after 31 December 2017. 

It has therefore been decided to extend the exemption until 31 December 2020, in order to save commodity dealers from an unstable regulatory environment in the short term. Applying large exposure requirements and own funds requirements to commodity dealers should not come as the result of a lapsed exemption, but on the basis of a thoroughly reasoned decision. 

The regulation extending the deadline was adopted without discussion at a meeting of the Education, Youth, Culture and Sport Council. The European Parliament approved it on 11 May 2016.

The exemption applies to a broad spectrum of dealers in energy and commodity markets. Some trade exclusively in commodity derivative contracts and resemble investment firms in terms of functions and risks, whereas others trade commodity derivatives purely as an ancillary activity to commodities production.

On 27 May 2016, the Council extended EU restrictive measures against the Syrian regime until 1 June 2017. This decision is in line with the Council conclusions of December 2014 which affirmed that the EU would continue imposing and enforcing sanctions targeting the regime and its supporters as long as repression continues. 

The EU remains committed to finding a lasting solution to the conflict in Syria. As stated in the Council conclusions on Syria, Iraq as well as the Da'esh threat of 23 May 21016, the EU will further support the International Syria Support Group (ISSG) efforts to strengthen the implementation of the cessation of hostilities in Syria. The EU will step up its political role in support for a credible resumption of the intra-Syrian talks coordinated by UN Special Envoy de Mistura aiming at reaching an agreement on a genuine political transition in Syria in accordance with the ISSG Vienna statement of 17 May 2016. The EU will also further support the delivery of humanitarian aid to all Syrians in need in besieged and hard to reach areas.

The sanctions currently in place include notably an oil embargo, restrictions on certain investments, a freeze of the assets of the Syrian central bank within the EU, export restrictions on equipment and technology that might be used for internal repression as well as on equipment and technology for monitoring or interception of internet or telephone communications. In addition, over 200 persons and 70 entities are targeted by a travel ban and an asset freeze over the violent repression against the civilian population in Syria.

The legal acts are published in the Official Journal of 28 May 2016. The decision was adopted by written procedure. 

Monday 30 May 2016
Luxembourg
17.00 Speech at the event marking the 40th anniversary of European People Party (EPP)

Wednesday 1 June 2016
10.30 Meeting with Prime Minister of Slovakia Robert Fico (photo opportunity)
17.30 Speech at the European Business Summit (Palais d'Egmont)

Preamble

We, the leaders of the G7, met in Ise-Shima on 26 and 27 May 2016 to address major global economic and political challenges. Global growth remains moderate and below potential, while risks of weak growth persist. Escalated geo-political conflicts, terrorism and refugee flows complicate the global economic environment. The rise of violent extremism, terrorist attacks and other challenges, pose serious threat to the existing rule based international order, as well as to common values and principles for all humanity.

The G7 has a special responsibility to lead international efforts to tackle these challenges. We remain bound together as a group guided by our common values and principles, including freedom, democracy, the rule of law and respect for human rights. Furthermore, following the adoption of the 2030 Agenda for Sustainable Development (2030 Agenda) and the Paris Agreement on climate change last year, we will further make efforts to implement our commitments. Today, we have demonstrated our capacity to make tangible progress on a broad range of economic, security, and development policy issues, and we will demonstrate through our actions, a path forward in solving major issues to ensure peace, security and prosperity of the world.

Monday 30 May

Place: Justus Lipsius building, Brussels
Chair(s):
Martin van Rijn, State Secretary for Health, Welfare and Sport of the Netherlands
Jet Bussemaker, minister for Education, Culture and Science of the Netherlands

All times are approximate and subject to change

Youth

+/- 08.00
Arrivals

+/- 08.30
Breakfast: structured dialogue Youth

+/- 09.45
Doorstep by Martin van Rijn

+/- 10.45
Doorstep by Jet Bussemaker

+/- 10.00
Beginning of Council meeting
- Adoption of the agenda
- Approval of legislative A items (in public session)
- Approval of non-legislative A items
- Preventing and combating violent radicalisation of young people
- The role of youth policy and the youth sector in an integrated approach to support youth in their identity development (in public session)
- Work programme of the incoming Presidency

+/- 13.00
Working lunch with Education ministers

+/- 14.30
Press conference

Education

+/- 15.00
Beginning of Council meeting
- Introduction
- Developing media literacy and critical thinking through education and training
- Pursuing the modernisation agenda for higher education in Europe (in public session)
- AOB:
 - New Skills Agenda for Europe
 - Ministerial meetings to be organised in Cyprus
 - Summer School “Beyond the refugee crisis - Studying in Europe”
 - Work Programme of the incoming Presidency

Tuesday 31 May

Place: Justus Lipsius building, Brussels
Chair(s):
Jet Bussemaker, minister for Education, Culture and Science of the Netherlands
Edith Schippers minister for Health, Welfare and Sport of the Netherlands

All times are approximate and subject to change

Culture / Audiovisual

+/- 08.30
Arrivals

+/- 08.45
Doorstep by Jet Bussemaker

+/- 09.30
Beginning of Council meeting
- Introduction
- The role of Europeana for the digital access, visibility and use of European cultural heritage
- Work Plan for Culture (2015-2015) as regards the priority on intercultural dialogue
- Proposal for a revision of the Audiovisual Media Services Directive (in public session)
- Revision of the Audiovisual Media Services Directive and the promotion of European audiovisual content (in public session)
- AOB:
 - European Year of Cultural Heritage (2018)
 - Interoperability of digital content
 - Limit for cultural projects under the ERDF
 - European Youth Orchestra
 - Court decisions on copyright law 
 - Work Programme of the incoming Presidency

+/- 13.00
Doorstep by Edith Schippers

+/- 13.15
Press conference

Sport

+/- 14.00
Beginning of Council meeting
- Introduction
- Enhancing integrity, transparency and good governance in major sport events
- Improving governance in sport (in public session)
- AOB:
 - World Anti-Doping meetings
 - The European Week of Sport
 - Recent Commission studies
 - Work Programme of the incoming Presidency

+/- 16.00
Structured dialogue with sport representatives

+/- 18.00
Press conference

On 26 May 2016 the Council adopted the following conclusions:

Following a policy debate on better regulation to strengthen competitiveness, the Council adopted the following conclusions:

“THE COUNCIL:

ACKNOWLEDGES that better regulation is a key driver for delivering economic growth and fostering innovation, competitiveness, SMEs and job creation, and for a fully functioning Single Market. REITERATES the need to ensure that EU regulation is transparent, simple and is achieved at minimum cost, and to always take into account a high level of protection of consumers, health, the environment and employees.

WELCOMES the Commission Communication “Better Regulation for better results, an EU agenda” of 19 May 2015[1] and the Interinstitutional Agreement by the European Parliament, the Council and the Commission on "Better Law-making" of 13 April 2016.[2]

Future proof and innovation-friendly legislation

1)      UNDERLINES the importance of a sound regulatory framework conducive to research, innovation and competitiveness, and WELCOMES the Commission's commitment to address the issue of future proof, fit for purpose and research and innovation-friendly legislation as part of the implementation of its better regulation guidelines and toolbox.

2)      STRESSES that, when considering, developing or updating EU policy or regulatory measures, the 'Innovation Principle' should be applied, which entails taking into account the impact on research and innovation in the process of developing and reviewing regulation in all policy domains. CALLS on the Commission together with Member States, to further determine its use and to evaluate its potential impact.[3]

3)      In this respect, CALLS on the Commission and Member States to explore and exchange best practices as to how regulation can be made more future proof and enabling for research and innovation, making good use of existing concepts and practices from the Commission and Member States. These may include risk- and hazard-based approaches to regulation, the use of goal or outcome oriented legislation, the use of digital tools, possibilities for experimentation[4], and flexibility.[5]INVITES the Commission to assist in collecting the outcome of this exploration in the first half of 2017, including the experience of using the research and innovation and ICT assessment tools[6] in Impact Assessments.

4)      WELCOMES the Commission's commitment to address the issue of future proof, fit for purpose and research and innovation-friendly legislation also when dealing with existing legislation in the framework of the REFIT programme; SUGGESTS a review (for instance by a fitness check) on how regulation can be made more innovation-friendly and on how the regulatory framework can be made more supportive for the digitisation of industry, also on the basis of input from stakeholders on identified regulatory barriers to their innovation projects and actions, and (new) business models, such as through the recent call from the Commission on this topic. CALLS on the Commission and Member States to include the perspective of research and innovation-friendly and future proof regulation as part of their discussions on existing regulation within REFIT. HIGHLIGHTS the importance of single market rules that facilitate the scale-up of innovative European businesses that wish to offer goods and services across borders and/or establish in other Member States; WELCOMES the Commission's intention for the REFIT platform to assess suggestions from stakeholders on regulatory barriers to digitisation and innovation.

Impact Assessment and Quantification of costs and benefits

5)      UNDERLINES the importance of measuring the impact of EU regulation, taking into account both the costs and benefits, including long-term benefits for both society and business whenever possible the cost of non-Europe, the impact on competitiveness, the administrative and other regulatory burdens of the different options, and with full respect given to the principles of subsidiarity and proportionality, in line with the Inter-institutional Agreement on better law-making. STRESSES that quantified estimates of impacts should not be a goal in itself but be a tool for better policy-making and should as much as possible be available at the early stage of consultation. RECALLS the importance of cooperation between the Commission and Member States in ensuring that the information and data needed to monitor and evaluate the implementation of EU law is obtained while minimising additional administrative burden for business and Member States.

6        ENCOURAGES the Commission to be transparent on the criteria used to determine when legislative and non-legislative proposals of the Commission are expected to have significant impact and therefore an Impact Assessment will be undertaken by the Commission. ENCOURAGES the Commission to be transparent and predictable in which cases quantification of costs and benefits are is undertaken within the Commission's Impact Assessments, and the reasons for this.

7)      WELCOMES the Commission's commitment in the Interinstitutional Agreement to further quantification of its simplification and administrative burdens reduction efforts, to present an annual burden survey and, where possible, to quantify the regulatory burden reduction or savings potential of individual proposals or legal acts; INVITES the Commission to include in the annual burden survey figures on the increase or reduction in burden of new legislation over the previous year.

8)      CALLS on the Commission to continue its work on quantification of the burden reduction efforts by quantifying where feasible ex ante the expected results of the proposed initiatives in the REFIT scoreboard, based inter alia on impact assessments and existing methods, and making good use of available information from Member States and stakeholders. CALLS on the Commission to present the first results of its efforts to quantify the REFIT scoreboard and its annual burden survey in the first half of 2017.

Reduction Targets

9)      RECALLS the Council Conclusions of December 2014[7] that call on the Commission to develop and put in place - on the basis of input from Member States and stakeholders - reduction targets in particularly burdensome areas, especially for SMEs, within the REFIT Programme, which would not require baseline measurement and should consider at the same time the costs and benefits of regulation; WELCOMES the Commission's recent commitment in this regard, and URGES the Commission to rapidly proceed on this to enable the introduction of reduction targets in 2017, whilst always taking into account a high level of protection of consumers, health, the environment and employees and the importance of a fully functioning Single Market. UNDERLINES that such targets should be well-defined, pragmatic and sound, and should focus on sectors or sets of regulation that are particularly burdensome, areas relevant for SMEs and with strong potential for innovation, and fitting within the current REFIT priorities.

Better Regulation and SMEs

10)    STRESSES the economic importance of SMEs and micro-enterprises, notably for the creation of jobs. STRESSES the need for the better regulation policy and REFIT actions to address the needs of SMEs and in particular micro-enterprises; and UNDERLINES the importance of the rigorous application of the “Think Small First” principle and SME tests throughout the whole EU policy cycle in an integrated and balanced way and SUGGESTS for the European Parliament, the Commission and the Council to exchange information on best practices, methodologies and data in this area.

11)    WELCOMES the Commission's commitment to assess the impacts on SMEs in all impact assessments, and UNDERLINES the importance for the Commission in principle not to adopt legislative proposals in the absence of a positive opinion of the Regulatory Scrutiny Board on the respective draft Impact Assessments including the impact on SMEs.

12)    CALLS on the Commission to ensure that measurements of impact of regulation on SMEs and micro-enterprises are consistently made and that all SME tests in Impact Assessments are robust, including consistent consultation of SMEs as part of all Impact Assessments, promoting broad and inclusive participation by SMEs and micro-enterprises in consultations, clear reporting in the Impact Assessment on the outcome of consultations of SME and micro-enterprises, and ensuring that Impact Assessments and consultations are easy to read for SMEs and micro-enterprises, both in terms of lay-out, wording and languages.

13)    INVITES the Commission and Member States to explore the possibilities to support the development and use of digital tools making it easier to understand complex regulation and to comply with regulation once implemented."

[1]        Doc. 9079/15
[2]        Doc. 15506/15
[3]        The Council recalls the Precautionary Principle.
[4]        Such as the Regulatory Sandbox in the UK, Green Deals in the Netherlands and the Commission's intended Innovation Deals.
[5]        Such as the Right to Challenge and the use of sunset clauses.
[6]        Impact assessment toolbox 18 and 23.
[7]        Doc. 16000/14

On 27 May 2016, the Council adopted additional restrictive measures against the Democratic People's Republic of Korea (DPRK). These measures complement and reinforce the sanctions regime imposed by United Nations Security Council (UNSC) resolutions. 

In response to the nuclear test conducted by the DPRK on 6 January 2016 and the launch using ballistic missile technology of 7 February, the UNSC adopted resolution 2270 on 2 March 2016 imposing additional restrictive measures against the DPRK. On 5 and 31 March 2016 the Council transposed  this resolution into EU law. 

Considering that the actions of the DPRK constitute a grave threat to international peace and security in the region and beyond, the EU decided to further expand its restrictive measures targeting the DPRK's nuclear, weapons of mass destruction and ballistic missile programmes. These additional measures include: 

• in the trade sector: prohibition of the import of petroleum products and luxury goods from the DPRK, prohibition of the supply, sale or transfer to the DPRK of additional items, materials, equipment relating to dual-use goods and technology and ban on any public financial support for trade with the DPRK;
• in the financial sector: prohibition of transfers of funds to and from the DPRK, unless for certain predefined purposes and authorised in advance;
• in terms of investment: prohibition of all investment by the DPRK in the EU; prohibition of investment by EU nationals or entities in the mining, refining and chemical industries sectors as well as in any entities engaged in the DPRK's illegal programmes;
• in the transport sector: prohibition on any aircraft operated by DPRK carriers or originating from the DPRK from landing in, taking off or overflying EU territory; prohibition on any vessel owned, operated or crewed by the DPRK from entering EU ports.

EU restrictive measures against the DPRK were introduced on 22 December 2006. The existing EU measures implement all UNSC resolutions adopted after the DPRK's nuclear tests and launches using ballistic missile technology and already include additional autonomous measures. Prohibitions on the export and import of arms, goods and technology that could contribute to nuclear, weapons of mass destruction and ballistic missile programmes, and other restrictions in the financial, trade and transport sectors were already in force. 

On 5 March 2016, the Council transposed a first set of measures under UNSCR 2270 by adding 16 persons and 12 entities to the list of those subject to travel restrictions and asset freeze. On 19 May 2016 the Council brought the total number of persons subject to EU restrictive measures against the DPRK to 66 and the number of entities to 42.

The legal acts are published in the Official Journal of 28 May 2016. The decision was adopted by written procedure. 

The Council agreed on a general approach on a draft regulation aimed at ensuring the cross-border portability of online content services in the internal market.

The agreement enables the Council to start negotiations with the European Parliament, once the Parliament has set its negotiating position, under the ordinary legislative procedure.

The president of the Council and minister for economic affairs of the Netherlands, Henk Kamp, made the following comments: "This initiative will make life easier for European citizens when they travel, by allowing them to keep accessing online content they have legally acquired or subscribed to in their home member state when they are temporarily in another member state. This means that citizens who are in another member state for purposes such as holidays or business trips can enjoy for example music, films, games or sporting events just like at home".

Travelling with subscriptions to online content services

The increased use of portable devices such as tablets and smartphones facilitates access to the use of online content services regardless of the consumers' location.

There is a rapidly growing demand on the part of consumers for access to content and innovative online services not only in their home country but also when they are temporarily abroad. Therefore, barriers that hamper access and use of such online content services within the single market will be eliminated.

Current obstacles to cross-border portability of online content services stem from the fact that the rights for the transmission of content protected by copyright and/or related rights such as audiovisual works as well as rights for premium sporting events are often licensed on a territorial basis.

Under the general approach, the regulation would apply to online content services which are provided against payment of money. Free to air services, such as public broadcasters, would be able to benefit from the regulation provided that they verify the country of residence of their subscribers.

The Commission presented the original proposal in December 2015. It is among the first initiatives of the digital single market strategy put forward with the objective of creating an internal market for digital content and services.

On 25 May 2016 Lebanon enters its third year without a President. The sovereignty, stability, territorial integrity and independence of Lebanon are important for the European Union. Lebanon remains an example of freedom, diversity and tolerance for the region, but the prolonged political crisis can only further weaken the country and its institutions in facing its many challenges. Lebanon cannot afford to wait for the region to solve its problems before it addresses this issue.

The EU again urges Lebanese political forces and all stakeholders to put partisan and individual interests aside and find a viable compromise to elect a President swiftly. The EU supports the efforts deployed by the Lebanese government under difficult circumstances to ensure that issues of dissent do not hinder completely the functioning of Lebanese Institutions, and do not compromise the delivery of international assistance. In this context the EU commends the Lebanese Armed Forces' work for the safety and security of the country. The National Dialogue and other mediation efforts are laudable initiatives to ensure communication between political forces and prevent a deterioration of the political climate. The EU welcomes the holding of the Municipal elections and the Parliamentary by-elections for a vacant Parliamentary seat, and calls on all parties to create the conditions for the holding of Parliamentary elections.

The EU is fully aware of the additional challenges that the refugee crisis poses for the stability of Lebanon. The EU commends the Lebanese people for their efforts to host refugees fleeing the conflict in Syria, and stresses the importance of respect by all parties of the right to safe and voluntary return of refugees displaced from Syria. As demonstrated by the EU's pledge at the London Conference and its initial implementation, the EU and its Member States are committed to supporting Lebanon, its host institutions and public services in addressing the growing needs of all vulnerable host communities and refugees.  The EU welcomes Lebanon's Statement of Intent presented at the London Conference, and fully supports its implementation.

The EU reiterates its commitment to the partnership with Lebanon, and reaffirms the need to work together to respond to common challenges on the basis of our common values, including human rights, democracy, and respect for diversity.

Japanese Prime Minister Shinzo Abe, European Council President Donald Tusk, European Commission President Jean-Claude Juncker, French President François Hollande, German Chancellor Angela Merkel, Italian Prime Minister Matteo Renzi and UK Prime Minister David Cameron, made the following joint statement in the margins of the G7 Summit in Ise-Shima:

“We, the Leaders of Japan, the European Union, France, Germany, Italy and the United Kingdom, in the margins of the G7 Summit in Ise-Shima welcome the view shared by the leaders of Japan and the European Union on the occasion of their meeting on 3 May 2016 to instruct their respective negotiators to accelerate the negotiations on the Japan-EU Economic Partnership Agreement (EPA)/Free Trade Agreement (FTA) and reaffirm our strong commitment to reach agreement in principle as early as possible in 2016.

We commend the work of our negotiators over the last 3 years, and for the substantial progress already made. With our full backing, the negotiators are entrusted to make the efforts necessary in the coming months to move forward with the negotiations, paving the way for reaching agreement encompassing all key issues including all types of tariffs and non-tariff measures, in line with the timeline committed above in a constructive manner, based on mutual trust, toward a comprehensive, high-level and balanced agreement which further consolidates our solid trade and economic partnership.

Recognizing the strategic importance of the Japan-EU EPA/FTA, we remain committed to creating a free, fair and open international trade and economic system, which will promote stronger, sustainable and balanced growth and contribute to the creation of more jobs and economic opportunity in Japan and the European Union and to the increase of our international competitiveness.”

Representatives of the EU Member States, the Western Balkans and Turkey, the European Commission and the European Central Bank, as well as representatives of the central banks of the Western Balkans and Turkey[1] met for their annual economic policy dialogue[2]. Participants welcomed the submission of the 2016 Economic Reform Programmes (ERPs) of the Western Balkans and regretted that Turkey's ERP had been submitted with a significant delay. The programmes outline the medium-term macroeconomic and fiscal framework as well as structural reforms (affecting labour markets, transport, energy, education etc.) to enhance competitiveness and long-term growth. The programmes cover the period 2016-2018. 

Participants took note of the Conclusions of the General Affairs Council on 15 December 2015 in which the Council took note of the Commission's communication on the EU enlargement strategy and the reports, which have a strengthened focus on economic governance. The dialogue on economic governance with the Western Balkans and Turkey is meant to prepare them for their future participation in the EU economic policy coordination. The dialogue reflects to some extent the European Semester process at EU level. 

Participants recalled the commitment to set out a new set of targeted policy guidance to support efforts towards fulfilling the Copenhagen economic criteria. In this context, Participants agreed that the elements of the 2015 policy guidance which had not yet been fully implemented remained valid and needed be addressed by policymakers in the Western Balkans and Turkey. 

 [1] Montenegro, Serbia, the former Yugoslav Republic of Macedonia, Albania and Turkey are candidate countries for EU accession. 

[2] The conclusions of this dialogue are without prejudice to EU Member States' positions on the status of Kosovo.  

 

The Council of the European Union (ECOFIN): 

-       WELCOMES the Commission Communication "Towards a single EU VAT area - Time to decide" (VAT Action Plan) and TAKES NOTE of the Special Report of the Court of Auditors No. 24: "Tackling intra-Community VAT Fraud: More action needed", as well as of the findings and recommendations set out therein; 

-       RECALLS Council conclusions of 15 May 2012 "On the Future of VAT", where the Council has emphasised that the EU needs a simpler VAT system, which at the same time is more efficient, more robust, fraud-proof and tailored for single market and has pointed out the following principles and legal considerations, which should be taken into account in furtherance of any future action: cost-efficiency, proportionality, unanimity, data protection legislation, compliance with the subsidiarity principle and full respect for the respective competences of the Union and the Member States; 

-       AGREES that the EU VAT system needs to be modernised and improved with these general objectives in mind, while stressing the importance of keeping the EU's business environment competitive; 

-       ACKNOWLEDGES the objectives outlined in the VAT Action Plan, which provide a framework to achieve a Single EU VAT area, and 

-       ADOPTS the following conclusions: 

I.       ON URGENT MEASURES TO FIGHT VAT FRAUD AND TACKLE THE VAT GAP

The Council of the European Union: 

1.      RECALLS the utmost importance of robust legal rules which hamper VAT fraud and AGREES with the Commission and the Court of Auditors that improving administrative cooperation between tax authorities is of significant importance in the fight against VAT fraud, and hence UNDERTAKES to pursue discussion on means of enhancing the scope of administrative cooperation and stepping up efforts to exchange information between tax administrations; 

2.      CONFIRMS that there is a need for further co-operation in a spirit of good understanding among business and tax administrations, as well as between tax administrations of EU Member States; 

3.      UNDERLINES that further initiatives in this area should form an efficient addition to existing rules and instruments and also seek to guarantee high standards of data protection, and fully take into account the principles of sovereignty, subsidiarity and proportionality; 

4.      TAKES NOTE of the Commission's intention to table in 2017 a legislative proposal that will aim at improving the exchange, sharing and analysis of key information and foresee conducting of joint audits; 

5.      ACKNOWLEDGES that improvement of information exchange could result in a clear improvement of efficiency in the fight against VAT fraud, and CALLS upon the Commission to propose ways of addressing  legal obstacles and practical limitations that might exist in the EU and in the Member States that prevent from making a qualitative leap in this area in the EU; 

6.      HIGHLIGHTS that this work should promote co-operation and cover the full range of available means and methods and alignment of procedures, including, inter alia, VIES, Eurofisc, feedback procedures and customs procedure 42, where the challenges both to customs and tax authorities must also be addressed; 

7.      LOOKS FORWARD to the other measures referred to in the VAT Action Plan that the Commission will propose to the Council with the objective of improving cooperation between tax administration and customs authorities; 

8.      UNDERLINES that as discussed during an informal meeting of ECOFIN ministers in Amsterdam, automatic exchange of information is one of the ways forward in the fight against fraud; 

9.      CONFIRMS that risk assessment and analysis remains a major area for further improvement in the EU, and INVITES the Commission, after the results of the feasibility study on Transaction Network Analysis have been evaluated by Member States, to present relevant initiatives enabling the Member States, wishing to start this tool on a voluntary basis, to exercise such an option, and at the same time ASKS the Commission to consider the possibilities of an explicit legal basis; 

10.    RECOGNISES that some Member States are more heavily affected by VAT fraud than others and the need to find practical and short-term solutions rapidly, and TAKES NOTE of the position of the Commission regarding a possible temporary derogation for certain Member States to apply the reverse charge mechanism in a wider scope and that the implementation of such derogation would require legislative measures;

11.    CONFIRMS that such derogations should not disproportionally hamper the proper functioning of the internal market; 

12.    UNDERLINES, without prejudice to a definitive VAT system, that the information obtained from a temporary derogation could be useful to decide on the most efficient way of fighting VAT fraud, and LOOKS FORWARD to an in-depth analysis by the Commission on possibilities for a temporary derogation, to be presented at the upcoming June ECOFIN; 

13.    TAKES NOTE of the non-legislative measures whereby the Commission intends to tackle the VAT gap and STRESSES that the Council will examine these non-legislative measures on the basis of the principles of sovereignty, subsidiarity, and proportionality. 

II.      ON SHORT AND MEDIUM-TERM ACTIONS IN VAT AREA AND SMEs 

The Council of the European Union: 

14.    WELCOMES the call by the Commission to reduce VAT compliance burdens for business, particularly for SMEs, both within Member States and across borders, and TAKES NOTE of the Commission's intention to make legislative proposals in  2016 and 2017; 

15.    EMPHASISES that the ultimate objective remains that VAT compliance costs in the single market are brought closer to the levels of those in domestic trade, however, further simplification should not result in an increase of VAT fraud risks or disproportionate rise of the costs of tax administration; 

16.    HIGHLIGHTS the importance of reflecting upon the position of micro-SMEs in the VAT system, in order to promote growth, jobs and real economy in the EU, without causing distortions of competition; 

17.    In the context of the Digital Single Market Strategy, STRESSES the importance of finding an EU-level solution rapidly to eliminate the competitive disadvantage for EU suppliers and UNDERTAKES to review the scope and discuss the possibility of repealing the VAT exemption for final importation of small consignments of goods into the EU by non-EU suppliers, considering also the impact of possible changes on the customs administration; 

18.    RECOGNISES the need to simplify cross-border e-commerce, and the opportunity to extend the "One Stop Shop" for online sales of tangible goods to final consumers and CALLS FOR further analysis and technical work to be undertaken on a common EU-wide simplification measure, including a threshold; 

19.    NOTES that the debate will continue concerning a possible  introduction of legal means allowing for home country checks, including a single audit of cross-border businesses;

20.    In this context, LOOKS FORWARD to receiving the results of the ongoing Commission' study on VAT obstacles to cross-border e-commerce and the legislative proposals by the Commission; 

21.    STRESSES that improvements on the current system could be possible and necessary in the short term. 

III.    ON THE DEFINITIVE VAT SYSTEM (SINGLE EU VAT AREA) 

The Council of the European Union: 

22.    TAKES NOTE of the points made by the Commission in its VAT Action Plan as regards the way forward towards the definitive VAT system and of its intention to present a legislative proposal in 2017 for the definitive VAT system for cross-border trade, as a first step;

23.    NOTES, while working towards the definitive VAT system in the EU, the importance of fully respecting the principles of subsidiarity and proportionality and taking full account of how potential EU-level solutions would best fit with the aspects upon which Member States continue to exercise their competence; 

24.    REITERATES that the principle of “taxation in the Member State of origin of the supply of goods or services”, as envisaged in article 402 of Directive 2006/112/EC on the common system of value added tax, should be replaced by the principle of “taxation in the Member State of destination” for the definitive VAT system for B2B transactions, as stated in the Council conclusions of 15 May 2012; 

25.    WELCOMES the in-depth technical work conducted by the Commission so far, as well as the broadly based dialogue it initiated with Member States to examine in detail the different possible ways how to best implement the destination principle; 

26.    STRESSES nevertheless that the work has to continue to set ground for the political choice to be made with regard to the definitive VAT system; 

27.    TAKES NOTE that taxation with cross-border reverse charge in the Member State of destination could be analysed as an option to the proposed taxation of cross-border supplies for the definitive VAT system; 

28.    UNDERSCORES that the Council will continue to follow up the debate to reach an agreement on the political guidance to the Commission to conduct further analysis that would enable it to carry this work forward and enable the Council to properly evaluate the impact of possible technical solutions and adopt those that suit the common EU objectives best. 

IV.    ON VAT RATES 

The Council of the European Union: 

29.    TAKES NOTE of the directions of action proposed in the Commission Action Plan on VAT with regard to the VAT rate system and its intention to make a legislative proposal in 2017, proposing a reform to give more freedom to Member States in setting up rates and proposing two options; 

30.    RECALLS the conclusions of the European Council of 17-18 March 2016 which welcomed "the intention of the Commission to include proposals for increased flexibility for Member States with respect to reduced rates of VAT, which would provide the option to Member States of VAT zero rating‎ for sanitary products";

31.    WELCOMES the intention of the Commission to present a proposal for increased flexibility for Member States, so that they could benefit from the existing reduced and zero rates in other Member States, INVITES the Commission to include an impact assessment, and STRESSES that a sufficient level of harmonisation in the EU remains required and the adopted solution has to be carefully balanced to avoid distortion of competition, rise in business costs and negative impact on the functioning of the single market; 

32.    INVITES the Commission to present a legislative proposal which integrates provisions concerning VAT rates for e-publications in the context of Digital Single Market initiatives by the end of 2016 and include an impact assessment; 

33.    CALLS UPON the Commission, in line with the March 2016 European Council conclusions, to present to the Council a legislative proposal foreseeing an option to Member States of VAT reduced or zero rating for women's sanitary products at the earliest opportunity. 

On 25 May 2016, the EU agreed new rules on medical devices and in vitro diagnostic medical devices. 

The Netherlands presidency of the Council and representatives of the European Parliament reached a political agreement. It is still subject to the approval by the Council's Permanent Representatives Committee and of the Parliament's ENVI committee.

The agreed two draft regulations are expected to achieve a twofold aim: making sure that medical devices and in vitro diagnostic medical devices are safe while allowing patients to benefit of innovative health care solutions in a timely manner.

Medical devices and in vitro diagnostic medical devices cover a wide range of products, from sticking plasters to hip replacements, and from pregnancy tests to HIV tests. 

"This agreement matters to all citizens: sooner or later all of us enter into contact with medical devices to diagnose, prevent, treat or alleviate diseases. The deal reached will improve patients' health and it will help to enhance the quality of life of disabled persons. It will also ensure a level playing field for the 25 000 medical devices manufacturers in the EU, many of which are SMEs and which employ more than half a million persons", said Edith Schippers, Minister of Health of the Netherlands and President of the Council.

Strengthening the system 

The agreement reached seeks to ensure the safety of medical devices by two means: by strengthening the rules on placing devices on the market and tightening surveillance once they are available. 

The agreement will further tighten the rules for the independent bodies that are responsible for assessing medical devices before they can be placed on the market. The new rules will strengthen the surveillance of these so-called notified bodies by national authorities. They will also give these bodies the right and duty to carry out unannounced factory inspections. Notified bodies will have to ensure that they have available qualified personnel.

The draft regulations establish explicit provisions on manufacturers' responsibilities for the follow-up of the quality, performance and safety of devices placed on the market. This will allow manufacturers to act swiftly when concerns arise and help them to improve their devices continuously on the basis of actual data. Manufacturers and other economic operators will have clear responsibilities, for instance on liability, but also on registering complaints on devices. The draft regulations also improve the availability of clinical data on devices. The protection of patients participating in clinical investigations will also be strengthened.

 Strengthened rules for high risk devices

 Certain high risk devices, such as implants, may undergo an additional check by experts before they are placed on the market. Expert panels and laboratories will play a key role in supporting the legislative system, to provide expertise and guidance on clinical aspects to notified bodies, competent authorities and to manufacturers. 

The new EU rules also explicitly cover certain devices without a medical purpose but with similar characteristics as medical devices. This concerns for instance  fillers and coloured contact lenses for cosmetic purposes.

More transparency for patients and increased traceability

A central database will be set up to create an improved system for all relevant information. It will cover economic operators, notified bodies, market surveillance, vigilance, clinical investigations and certificates. In addition, it will provide patients, healthcare professionals and the public with comprehensive information on products available in the EU. This will enable them to make better informed decisions. Patients who are implanted with a device will be given key information on the product, including any precautions which might need to be taken.

Devices will have a unique identification number to provide for traceability throughout the supply chain to the end-user or patient.  

Next steps 

The Council's Permanent Representatives Committee will be invited to endorse the agreement probably mid-June 2016. Once the Parliament's ENVI committee has also confirmed that it can accept the compromise the Council will be invited to confirm the agreement. Following the revision of the texts by the lawyer-linguists the two regulations will have to be formally adopted by the Council and the Parliament. The new rules will apply three years after publication as regards medical devices and five years after publication as regards in vitro diagnostic medical devices. 

1.             The forty-fifth meeting of the EEA Council took place in Brussels on 25 May 2016 under the Presidency of Mr Bert Koenders, Minister of Foreign Affairs of the Netherlands, representing the Presidency of the Council of the European Union. The meeting was attended by Ms Aurelia Frick, Minister of Foreign Affairs of Liechtenstein, Ms Lilja Dögg Alfreðsdóttir, Minister for Foreign Affairs of Iceland, and Ms Elisabeth Aspaker, Minister of EEA and EU Affairs of Norway, 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 the migratory and refugee crisis, Russia and Ukraine, the EU Global Strategy on foreign and security policy, including cooperation in the Arctic. An orientation debate was held on the state of play of the Better Regulation agenda and its impact on the EEA.

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.             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.

6.             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.

7.             The EEA Council recognised the still existing need to alleviate social and economic disparities in the EEA, as well as 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.

8.             The EEA Council welcomed the signature on 3 May 2016 of the Agreement on an EEA Financial Mechanism 2014-2021 and of the Agreement between Norway and the EU on a Norwegian Financial Mechanism for the 2014-2021 period.

9.             The EEA Council also welcomed the signature on 3 May 2016 of the protocols on trade in fish and fisheries products between Norway and the EU and Iceland and the EU and called for a swift conclusion of the necessary work.

10.         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.

11.         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.

12.         The EEA Council welcomed the significant progress towards finalisation 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. It stressed the need to swiftly finalise the necessary procedures to allow for the incorporation into the EEA Agreement and the rapid entry into force of these acts in order to ensure effective and homogenous supervision throughout the EEA, as called for by the EU and EEA EFTA Ministers of Finance and Economy at their informal meeting of 14 October 2014. 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.

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 welcomed the efforts and close cooperation of the EU, its Member States and the EEA EFTA States in the preparations of the 21st Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC) in Paris in December 2015. The EEA Council highlighted that this cooperation had contributed to the adoption of an ambitious, dynamic, durable and legally binding global agreement. In order to hold the increase in the global average temperature well below 2ºC, and to pursue efforts to limit it to 1,5° C above pre-industrial levels, as well as to foster climate resilience and low greenhouse gas emissions development, parties aim to reach global peaking of greenhouse gas emissions as soon as possible and to undertake rapid reductions thereafter in accordance with best available science, so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century. The EEA Council underlined the need to maintain the momentum after COP21 and focus on implementation, at the international level and domestically, in particular in relation to the Intended Nationally Determined Contributions (INDCs) and the 2030 climate and energy framework. In this regard, the EEA Council welcomed the opening for signature of the Paris Agreement on 22 April 2016 in New York and underlined the need for the EU, its Member States and the EEA EFTA States to be able to ratify the Paris Agreement as soon as possible and on time so as to be Parties as of its entry into force.

15.         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.

16.         With regard to the Third Package for the Internal Energy Market, the EEA Council welcomed progress made in recent months with regard to 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.

17.         The EEA Council welcomed the incorporation into the EEA Agreement of the public procurement legislative framework and 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.

18.         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.

19.         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.

20.         The EEA Council acknowledged the significance of the negotiations on a Transatlantic Trade and Investment Partnership (TTIP) 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.

21.         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.

22.         The EEA Council took note of the lack of progress in the negotiations between the EU and Norway on the protection of geographical indications and noted the suspension of the talks for the time being. However, the EEA Council welcomed the progress made in the negotiations between the parties 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.

23.         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.

24.         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.

25.         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.

26.         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.

27.         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 Dutch and incoming Slovak Presidencies for the continuation of this practice.

28.         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 and agencies, as well as through the submission of EEA EFTA Comments.

29.         The EEA Council noted the Resolutions of the EEA Joint Parliamentary Committee adopted at its meeting in Vaduz on 19-20 May 2016 on The Single Market Strategy for Goods and Services, and on The Collaborative Economy, and of the EEA Consultative Committee adopted at its meeting in Vaduz on 19-20 May 2016 on Labour mobility in the EEA and on Better Regulation to support businesses and protect workers in the EEA.