European Council

The Council: 

1.      CONFIRMS the importance of continuing and intensifying action to tackle tax fraud, tax evasion and aggressive tax planning at national, EU and global level, as requested by the European Council in May 2013 and recalled by Ministers at the informal ECOFIN on 22 April 2016; 

2.      RECALLS the importance of taking effective steps to fight tax evasion, tax fraud and tax avoidance as well as money laundering, in particular in times of budgetary constraints; 

3.      therefore WELCOMES the Commission Communication on an External Strategy for Effective Taxation and NOTES the Commission Recommendation on the implementation of measures against tax treaty abuse; 

4.      RECALLS that from the discussions during an informal meeting of ECOFIN ministers in Amsterdam support emerged for the establishment of an EU-list of non-cooperative jurisdictions and coordinated defensive measures, both to be defined by the Council;

Regarding the Communication on an External Strategy, the Council: 

5.      CALLS FOR a swift and comprehensive implementation of the internationally agreed standards on transparency and exchange of information developed by the OECD and ENCOURAGES all jurisdictions to commit to implement international standards as soon as possible and URGES jurisdictions that are not yet participants in the OECD's inclusive framework to join without delay; 

6.      AGREES on the establishment by the Council of an EU list of third country non-cooperative jurisdictions and to explore coordinated defensive measures at EU level without prejudice to Member State competence; 

7.      STRESSES the need to work closely and in parallel with the OECD to draw the international criteria in this area and to take into account the work of the Global Forum when developing the EU list of non-cooperative jurisdictions; 

8.      DECIDES that the criteria on transparency for establishing a list of non-cooperative jurisdictions have to be compliant with internationally agreed standards on transparency and exchange of information for tax purposes, in particular standards developed by the OECD, both on exchange of information on request and automatic exchange of information (Common Reporting Standard); 

9.      INVITES the Code of Conduct Group to consider  an additional criterion for listing non-cooperative jurisdictions based on the non-existence of harmful tax regimes as defined by the criteria of the Code of Conduct on Business Taxation, and possible additional criteria, which could be inspired in particular by the OECD BEPS actions; 

10.    INVITES the Code of Conduct Group to start work on an EU list of non-cooperative jurisdictions by September 2016, and to determine, on the basis of a first screening by the Commission, third Countries with which dialogues should start, with a view to establishing an EU list of non-cooperative jurisdictions and exploring defensive measures at EU level to be endorsed by the Council in 2017. Those defensive measures could be considered to be implemented in the tax as well as in the non-tax area;

11.    WELCOMES the pilot project for the automatic exchange of information on ultimate beneficial owners endorsed by all Member States with the aim of  developing a common standard;

12.    INVITES the Commission to consider legislative initiatives on Mandatory Disclosure Rules inspired by Action 12 of the OECD BEPS project with a view to introducing more effective disincentives for intermediaries who assist in tax evasion or avoidance schemes; 

13.    SUPPORTS the need to update the principles of tax good governance to be used as the new standard provision in future negotiations with third countries and INVITES the Code of Conduct Group to examine key elements which should be contained in a clause to be inserted in agreements between the EU and those countries; 

14.    CONCURS with the importance of tax good governance for developing countries to increase their domestic revenue mobilisation and UNDERLINES the importance of assisting them in meeting tax good governance; 

15.    STRESSES the importance of the Addis Tax Initiative (ATI), with its core commitment to doubling or substantially increasing support for technical cooperation on taxation and domestic resource mobilisation, already signed up to by twelve Member States, and CALLS FOR all remaining Member States to join the ATI; 

16.    IS READY to examine the proposal to include EU's updated tax good governance standards into the EU Financial Regulation in relation to third countries once a new proposal has been put forward by the Commission; 

Regarding the Recommendation on the implementation of measures against tax treaty abuse, the Council: 

17.    NOTES the recommendation from the Commission to ensure that the implementation of OECD BEPS recommendations on Actions 6 and 7 is compliant with EU law; 

18.    REITERATES the importance of taking concrete and coherent action against double non-taxation through tax evasion or avoidance via the operation of double tax conventions, in line with the competence of Member States in negotiating double tax conventions bilaterally and the principle of subsidiarity; 

19.    WELCOMES the proposed provisions with regard to a principal purpose test and permanent establishments to be included in bilateral tax treaties agreed by a Member State, while ACKNOWLEDGING that bilateral tax treaties remain the competence of the Member States and that other measures elaborated in the context of OECD BEPS Action 6 may be helpful, such as limitation on benefits (lob) clauses.  

Place:          Justus Lipsius building, Brussels
Chair(s):    Henk Kamp, Minister for Economic Affairs of the Netherlands
                    Sander Dekker, State Secretary of Education, Culture and Science of the Netherlands

All times are approximate and subject to change

+/- 08.20
Doorstep by Henk Kamp

+/- 12.00
Working lunch debate on the digital single market strategy

+/- 14.00
Beginning of the Competitiveness Council meeting

Adoption of the agenda
Adoption of A Items (public session)

+/- 14.10
Digital single market strategy: mainstreaming competitiveness

Any other business (AOB):
Quantum technology - High performance computing

+/- 14.30
Draft regulation on cross border portability of online content (public session)

+/- 14.50
AOB: agenda for single market implementation

+/- 15.00
Competitiveness check-up

+/- 15.55
Better regulation to strengthen competitiveness

+/- 17.20
AOB: work programme of incoming presidency - Friends of Industry

+/- 17.30
AOB: Product safety and market surveillance package (public session)

+/- 17.45
Review of the posting of workers directive (public session)
(Break)

+/- 19.00
Uptake of space data

+/- 20.15
AOB: work programme of incoming presidency

+/- 20.30
Joint press conference of the Telecommunications and Competitiveness Councils (life streaming)

(ttbc)
Doorstep by Sander Dekker

+/- 09.30
Beginning of the Competitiveness Council meeting

+/- 09.40
FP7: final evaluation report and future outlook (public session)

+/- 10.00
Research and innovation friendly regulation (public session)

+/- 10.20
Transition towards an Open Science system (public session)

+/- 12.15
Any other business:
2016 ESFRI roadmap (public session)
European Innovation Council (public session)
Work programme of incoming presidency

+/- 13.00
Press conference (life streaming)

+/- 14.00
Working lunch debate on the European Research Area

Good evening and welcome to this press conference. 

The main topic of today's Eurogroup was of course Greece, so I will concentrate on that. We've reached a full staff-level agreement; well actually, the institutions and Greece had already reached the full staff-level agreement and that was welcomed and agreed and adhered to by the Eurogroup today. So on the package of all these major reforms that Greece had committed to last summer - we have now a full agreement, a lot of legislative work has been done by the Greek government and the institutions will do a final check on that to look at the last legislative work and to see whether that's all in agreement. Part of that is of course the contingency mechanism that makes sure that Greece stays on the fiscal path. 

On that basis and of the full implementation of those prior actions and the completion of the national procedures, the ESM will be able to endorse the supplementary MOU and then approve the disbursement of the 2nd tranche of this programme. The figure that we have outlined for that is €10.3 billion, to be disbursed in several disbursements but perhaps I'll leave it to Klaus to outline how that works both in substance and in procedure. So this is very good news, already this part of the agreement of today is very good news because it shows that the programme is fully back on track and that Greece has done a lot and is delivering a lot and we are making good progress there. 

Of course this should lead to a full and positive conclusion of the first review, and as you remember, on that basis we've promised to look at debt and discuss debt sustainability. And we did. We prepared that in a couple of Eurogroups behind us already when we said we would discuss it, when we said we had agreed on the method to look at gross financing needs on an annual basis to take as a standard the maximum of 15% of GDP and in the future, once the debt has gone down, that can go to 20%. So on the methodology we already have agreement. We also already agreed in the previous Eurogroup to take it step by step, so we have designed and agreed today a number of measures that can be taken on in the short run. We have a number of measures already for the medium term, if and when needed, and we have designed an additional mechanism for the long term. Let me give you little more information on that. 

The short term is basically a debt management so we've asked the ESM management to look at the measures, which have to do with repayment profiles, which have to do with reducing interest rate risks and which also outline a waiver of the step-up interest rate margin related to the debt buy-back tranche which was in the second Greek programme. So along those lines we've asked the ESM management to see what is possible and to take decisions on that in the short run and to take that on. 

It's difficult now and of course Klaus now probably will say more about what in economic terms the impact of that will be, but that is yet to be developed further by the ESM management. 

For the medium term -- this is a second term of measures -- will come into play upon the full implementation of the programme, so this is mid-2018, and the programme runs until July 2018 to be precise. If all is implemented and the programme has come to a successful end, we intend to do more along the following lines to abolish the step-up interest rate margin to the debt buy-back tranche of the 2nd Greek programme as of 2018 and the following years. It is the same measure that was also in the short-term package, but then it was only for 2017 so we will continue that measure for the longer term. 

A second element here is the use of the SMP profits and the restoration. If you remember, this was also the part of the second programme where we agreed to return the SMP profits and the profits from ANFA holdings to Greece. When the programme got into trouble in 2014, that stopped, the transfer of these profits. Some are still in the segregated account at the ESM in Luxembourg, that's the 2014 June tranche, so that will be made available. And as of budget year 2017, we will restart this transfer of ANFA and SMP profits to Greece. 

A third element in the medium term package: liability management, where we will consider early partial repayment of existing official loans to Greece. Utilizing unused resources within the ESM programme. To be a little more precise, you remember that part of this programme last summer: we reserved €25 billion for the recapitalization of banks; a lot less was needed -- roughly €5 billion -- so there's €20 billion so far unused. Part of that we will set aside for possible future problems in banks, but the larger part of that could be made available and used to swap existing official loans to Greece in order to reduce the interest rate costs or extend maturities. 

A final element in the medium term package is targeted EFSF re-profiling: that could be extension of weighted average maturities re-profiling of EFSF amortization, as well as capping and deferral of the interest payments. And here we will make sure that we don't incur any additional costs for former programme countries or to the EFSF. 

Then finally for the long term we've agreed to put in place a mechanism, which if needed and activated by the Eurogroup could provide additional debt measures to meet the gross financing benchmarks if it were to be a problem in the future. Of course, as you know, the whole loan package has a long maturity period so we also need to consider the longer period ahead. All of this of course under the agreement that Greece complies with the requirements of our fiscal frameworks. 

Now having said that, the key issue that will certainly interest you is whether the IMF is coming on board and tonight I am very glad to be able to say that the IMF has expressed its intention to recommend to the Fund's board to approve the financial arrangement before the end of the year. So the IMF will go to the board on the basis of this agreement to be part again of the support programme for Greece. Of course this requires a number of steps still to be taken. I will mention just two -- one is of course that before the IMF goes to the board we have a new DSA, to assess where we are, take into account all that is in this agreement and the IMF will of course assess the possible debt relief measures that we, the Eurogroup members, agreed tonight. So those are two key issues that IMF will have to assess before taking that board decision. 

The possible debt relief -- mainly talking about the medium-term package -- will be delivered at the end of the programme, so we are talking mid-2018. The scope will be determined by the Eurogroup on the basis of a revised DSA which will be designed in cooperation with European institutions, also taking into account the European fiscal policy framework -- and this is an important point brought by a number of ministers and also by Klaus -- that of course even after the programme, Greece will, as all Eurogroup members, remain under supervision for its fiscal policies by the Commission. So that is an important element also to take into consideration when we look at the future. 

On that basis we look forward to not just the successful completion of the first review, but also the intention of the IMF management to go to the board. I think this is an important moment in the long Greek programme -- an important moment for all of us since last summer when we had a major crisis of confidence between us -- that confidence has begun to recover. I think that this helped us very much in this Eurogroup and in the last Eurogroups, starting to talk about where we are in the programmes, talk about what is further needed to support Greece, also looking at its debt. And I want to extend my thanks to also to the Greek finance minister and his staff; they have been working very constructively, very seriously, with us, with the institutions, to get us where we are now and I think that is a new phase that I welcome very much. 

Thank you. 

The Eurogroup welcomes that a full staff-level agreement has been reached between Greece and the institutions. Also, the Eurogroup notes with satisfaction that the Greek authorities and the European institutions have reached an agreement on the contingency fiscal mechanism, which is in line with the Eurogroup statement adopted on 9 May in particular as regard the possible adoption of permanent structural measures, including revenue measures, to be agreed with the institutions. It therefore provides further reassurances that Greece will meet the primary surplus targets of the ESM programme (3.5% of GDP in the medium-term), without prejudice to the obligations of Greece under the SGP and the Fiscal Compact. 

The Eurogroup also welcomes the adoption by the Greek parliament of most of the agreed prior actions for the first review, notably the adoption of legislation to deliver fiscal parametric measures amounting to 3% of GDP that should allow to meet the fiscal targets in 2018, to open up the market for the sale of loans and to establish the agreed Greek Privatisation and Investment Fund that should operate in full independence. The Eurogroup mandates the EWG to verify in the next few days the full implementation of the outstanding prior actions on the basis of an assessment by the institutions, in particular the corrections to the legislation on the opening up of the market for the sale of loans, and on the pension reform, as well as the completion of all prior actions related to the government pending actions in the field of privatization. 

Following the full implementation of all prior actions and subject to the completion of national procedures, the ESM governing bodies are expected to endorse the supplemental MoU and approve the disbursement of the second tranche of the ESM programme. The second tranche under the ESM programme amounting to EUR 10.3 bn will be disbursed to Greece in several disbursements, starting with a first disbursement in June (EUR 7.5 bn) to cover debt servicing needs and to allow a clearance of an initial part of arrears as a means to support the real economy. The subsequent disbursements to be used for arrears clearance and further debt servicing needs will be made after the summer. The disbursements for arrears clearance will be subject to a positive reporting by the European Institutions on the clearance of net arrears. The additional disbursement for debt servicing needs will be subject to milestones related to privatization, including the new Privatization and Investment Fund, bank governance, revenue agency and energy sector to be assessed by the European institutions and verified by the EWG and the ESM Board of Directors. 

In line with the 9 May Eurogroup statement, and in view of the forthcoming full implementation of all the prior actions by Greece and completion of the first review, the Eurogroup considered today the sustainability of Greek public debt. 

The Eurogroup agrees to assess debt sustainability with reference to the following benchmark for gross financing needs (GFN): under the baseline scenario, GFN should remain below 15% of GDP during the post programme period for the medium term, and below 20% of GDP thereafter. 

The Eurogroup recalls the medium-term primary surplus target of 3.5% of GDP as of 2018 and underlines the importance of a fiscal trajectory consistent with the fiscal commitments under the EU framework. 

The Eurogroup recalls the following general guiding principles agreed on 9 May for possible additional debt measures: (i) facilitating market access in order to replace over time public financed debt with privately financed debt; (ii) smoothening the repayment profile; (iii) incentivising the country's adjustment process even after the programme ends; and (iv) flexibility to accommodate uncertain GDP growth and interest rate developments in the future. On 9 May the Eurogroup also reconfirmed that nominal haircuts are excluded, and that all measures taken will be in line with existing EU law and the ESM and EFSF legal frameworks. 

Guided by these principles and on the basis of technical work carried out by the EWG, the Eurogroup agreed today on a package of debt measures which will be phased in progressively, as necessary to meet the agreed benchmark on gross financing needs and will be subject to the pre-defined conditionality of the ESM programme. 

For the short-term, the Eurogroup agrees on a first set of measures which will be implemented after the closure of the first review up to the end of the programme and which includes: 

• Smoothening the EFSF repayment profile under the current weighted average maturity
• Use EFSF/ESM diversified funding strategy to reduce interest rate risk without incurring any additional costs for former programme countries
• Waiver of the step-up interest rate margin related to the debt buy-back tranche of the 2nd Greek programme for the year 2017

The Eurogroup asks the EFSF and ESM management to take these measures forward within their mandate, on the basis of preparatory work by the EWG, and where needed to prepare formal decision making by the relevant EFSF and ESM decision-making bodies. The decision on the smoothening of the EFSF repayment profile and the reduction of interest rate risks should be taken as a matter of priority. 

For the medium term, the Eurogroup expects to implement a possible second set of measures following the successful implementation of the ESM programme. These measures will be implemented if an update of the debt sustainability analysis produced by the institutions at the end of the programme shows they are needed to meet the agreed GFN benchmark, subject to a positive assessment from the institutions and the Eurogroup on programme implementation. 

• Abolish the step-up interest rate margin related to the debt buy-back tranche of the 2nd Greek programme as of 2018
• Use of 2014 SMP profits from the ESM segregated account and the restoration of the transfer of ANFA and SMP profits to Greece (as of budget year 2017) to the ESM segregated account as an ESM internal buffer to reduce future gross financing needs.  
• Liability management - early partial repayment of existing official loans to Greece by utilizing unused resources within the ESM programme to reduce interest rate costs and to extend maturities. Due account will be taken of exceptionally high burden of some Member States.
• If necessary, some targeted EFSF reprofiling (e.g. extension of the weighted average maturities, re-profiling of the EFSF amortization as well as capping and deferral of interest payments) to the extent needed to keep GFN under the agreed benchmark in order to give comfort to the IMF and without incurring any additional costs for former programme countries or to the EFSF.

For the long-term, the Eurogroup is confident that the implementation of this agreement on the main features for debt measures, together with a successful implementation of the Greek ESM programme and the fulfilment of the primary surplus targets as mentioned above, will bring Greece's public debt back on a sustainable path over the medium to long run and will facilitate a gradual return to market financing. At the same time, the Eurogroup agrees on a contingency mechanism on debt which would be activated after the ESM programme to ensure debt sustainability in the long run in case a more adverse scenario were to materialize. The Eurogroup would consider the activation of the mechanism provided additional debt measures are needed to meet the GFN benchmark defined above and would be subject to a decision by the Eurogroup confirming that Greece complies with the requirements under the SGP. Such mechanism could entail measures such as a further EFSF reprofiling and capping and deferral of interest payments. Also, the Eurogroup commits to long-term technical assistance to boost Greek growth. 

The Eurogroup recognises that over the exceptionally long time horizon of assessing debt sustainability there can be no forecasts, only assumptions, given the sizable degree of uncertainty over macroeconomic developments. 

Against the background of the forthcoming successful completion of the first review and the agreement on debt relief, the Eurogroup welcomes the intention of the IMF management to recommend to the Fund's Executive Board to approve a financial arrangement before the end of 2016 that will support the implementation of the agreed fiscal and structural reforms. It is recognised that, consistent with IMF policies, approval of this arrangement will also be based on a new DSA and the assessment of possible debt relief measures mentioned above. The possible debt relief will be delivered at the end of the programme in mid-2018 and the scope will be determined by the Eurogroup on the basis of a revised DSA in cooperation with the European Institutions for purposes of taking into account the European policy framework, subject to full implementation of the programme. 

The Eurogroup stands ready, in line with usual practice, to support the completion of future reviews provided that the policy package considered today, including the contingency mechanism, is implemented as planned.  The Eurogroup confirms that programme implementation, as well as policy conditionality and targets, will be reviewed regularly based on input from the institutions.

It is my pleasure to extend my wholehearted congratulations to you on your election as Federal President of the Republic of Austria. On behalf of the European Council and personally, I wish you every success in your endeavours.

I trust that under your term, Austria will benefit from the political stability and social cohesion that are necessary to respond to the challenges lying ahead. Maintaining Austria's productive contribution to supporting EU efforts has been, and will remain, essential in seeking common European solutions.

As part of the EU institutions' open day, the headquarters of the European Council and the Council of the European Union, the two institutions representing the member states of the EU, is opening its doors from 10.00 to 18.00 on Saturday 28 May, offering guided tours, activities and information stands.

Guided by members of staff, visitors will be able to walk in the footsteps of the presidents and prime ministers of the 28 member states by following a route through the Council building from their arrival at the VIP entrance to the meeting rooms. Tours are organised from 10.00 to 17.00 in French, Dutch, German and English.

The 28 member states will be represented at a joint stand, where visitors can learn how each country participates in the Union's work, discover their cultures and landscapes, and even taste some traditional dishes. Some member states, such as Cyprus, Slovenia and Hungary, will also put on traditional dance and/or music sessions. For the full list, see the open day website (link at the bottom of the page).

The staff of the Council's central archives will tell visitors how and where the treaties and other major European agreements were signed. Visitors will also have the chance to see the originals or facsimiles of some of these historic documents, such as the original of the Convention between the African, Caribbean and Pacific States and the European Economic Community, signed in 1975, or a certified copy of the Treaty establishing the European Economic Community, signed in Rome in 1957.

Council online: visitors will be encouraged to take part in interactive games, discover surprising facts about Europe, take photos and share their impressions about the Council with their friends on social media.

Finally, the Council will house information stands of other EU institutions and bodies such as the European Central Bank (ECB), the European Investment Bank (EIB) and Frontex. EUNAVFOR MED operation SOPHIA, which operates against human smuggling and trafficking networks in the Mediterranean, will also be present.

The open day will take place in the Justus Lipsius building, 175 rue de la Loi/Wetstraat, Brussels.

Due to the alert level currently in place in Belgium, additional security checks will be set up around the institutions. To facilitate these checks, visitors are encouraged not to bring luggage or other bulky objects.

Visitors are also encouraged to use public transport. A small train will circulate all day between the institutions in the European quarter.

Media wishing to access the Justus Lipsius building on open day are asked to contact the press office if they have any questions and to obtain easy access.

1.           WELCOMES the publication of the Commission's country reports analysing the economic policies for each of the Member States, including the in-depth reviews (IDRs) in the context of the Macroeconomic Imbalances Procedure (MIP), as well as the accompanying Communication summarising the main results of the IDRs. 

I - IN-DEPTH REVIEWS 

2.           CONSIDERS that the IDRs are well structured as a key part within the country reports and NOTES the importance of presenting a thorough analysis of the imbalances in each of the Member States under review as the basis for multilateral surveillance, enhanced domestic ownership of reforms and effective policy adjustment. RECOGNISES that the analysis covers possible spillover effects to other countries and the euro area where relevant, differentiates between the adjustments driven by cyclical factors and those resulting from structural changes, and takes country-specific circumstances into account. Relevant analytical tools are also applied in view of the specific challenges of each economy and complemented by qualitative analysis where needed. 

3.           WELCOMES the Commission's effort to improve the transparency of the MIP, including streamlining and stabilisation of the categories of macroeconomic imbalances, the publication of a compendium bringing together relevant information on the implementation of the MIP, and the inclusion of new summary tables in the IDRs (MIP assessment matrices). NOTES Commission's plans with regard to specific monitoring of recommendations by the Council to all Member States concerned by imbalances and excessive imbalances, to ensure enhanced surveillance of the policy response to the imbalances identified. INVITES the Commission to outline a proposal for the concrete timing and content of this monitoring, including plans to differentiate with respect to the severity of imbalances, as well as the articulation with other surveillance procedures, notably post programme surveillance for countries concerned to avoid duplication and in line with established practice. EMPHASISES the importance of efficiency, transparency and predictability in assessing macroeconomic imbalances in the MIP. In light of this, UNDERLINES the importance of presenting both the country analysis and the conclusions on the assessment of imbalances together in line with the European Semester Roadmap.  

4.           AGREES that 13 of the examined Member States (Bulgaria, Germany, Ireland, Spain, France, Croatia, Italy, Cyprus, the Netherlands, Portugal, Slovenia, Finland and Sweden) are experiencing macroeconomic imbalances of various nature and magnitude. 

5.           AGREES with the view of the Commission that excessive imbalances exist in 6 Member States (Bulgaria, France, Croatia, Italy, Cyprus, and Portugal). The Council will carefully assess the Commission's further review for Croatia and Portugal presented in late May, which should take into account the policy measures outlined in their National Reform Programmes to assess whether further steps are needed. UNDERLINES that the MIP procedure should be used to its full potential, with the corrective arm applied where appropriate.   

 6.           AGREES that 6 of the examined Member States (Belgium, Estonia, Hungary, Austria, Romania and the UK) do not experience macroeconomic imbalances in the sense of the MIP. 

7.           UNDERLINES the continued need for policy action and strong commitment to structural reforms in all Member States, in particular when they face macroeconomic imbalances affecting the smooth functioning of EMU. Imbalances should be addressed in a durable manner focusing on key challenges, reducing risks, facilitating the rebalancing of the EU economies and creating conditions for sustainable growth and jobs. 

8.           RECOGNISES the continued progress achieved by Member States in correcting their external and internal imbalances, thus contributing to the rebalancing in the EU and within the euro area. However, UNDERLINES that there are still sizeable risks in certain Member States. While current account deficitis of the pre-crisis period have been considerably reduced or have moved to surplus, large stocks of external liabilities remain a vulnerability in some net debtor countries. ACKNOWLEDGES that cost competitiveness has generally improved in countries that exhibited large external deficits, with more limited evidence pointing to improvements in non-cost competitiveness. At the same time, elevated current account surpluses in some Member States with relatively low deleveraging needs persist and could under some circumstances indicate large savings and investment imbalances deserving progress on policy actions. 

9.           UNDERLINES that high levels of private and government debt remain an important challenge in a number of Member States in the context of low inflation and growth rates. Despite notable progress, further structural reforms are needed to enhance the growth potential and to tackle high unemployment, in particular among the youth and long-term unemployed. 

II - IMPLEMENTATION OF COUNTRY SPECIFIC RECOMMENDATIONS (CSRs)

10.         WELCOMES progress made in addressing the 2015 CSRs. The streamlined set of 2015 CSRs allowed for greater focus on tackling pressing challenges and persistent macroeconomic imbalances. TAKES NOTE that reform implementation has been uneven across policy areas and countries and that in only a few cases has substantial progress been made in addressing the CSRs. STRESSES that reform implementation needs to be stepped up to address the policy challenges outlined below and RECALLS the importance of a timely assessment of the implementation of CSRs in the Council prior to the proposal of new CSRs, in order to draw conclusions, increase national awareness and implement reforms effectively in each country. 

11.         STRESSES that further structural reforms to services, product and labour markets, alongside responsible, sound fiscal policies are needed to strengthen and sustain the economic recovery, correct harmful imbalances, achieve fiscal sustainability, improve the conditions for investment, and reinforce the single market, unleashing the growth potential of Member States' economies.     

12.         RECOGNISES the progress made by Member States in implementing CSRs in the areas of improving the business environment and in fighting against tax avoidance and improving its administration. Member states concerned should continue their efforts.  STRESSES that more progress could be achieved in generating a business and employment friendly regulatory environment, increasing female labour force participation, cutting red tape, strengthening both administrative efficiency and regulatory quality, and reducing the number of restrictions in the service sector, particularly by making it significantly easier for service providers to operate across borders. Progress in addressing existing gaps and weaknesses in some national fiscal frameworks has been made but are still limited in some Member States, and efforts should focus on ensuring their effective functioning to support the conduct of responsible fiscal policies. National fiscal frameworks should be brought in line with EU requirements. 

13.         AGREES that there is an urgent need to improve investment conditions in order to attract increased private investment in the real economy and ensure high quality public investment and infrastructures. Reform progress has been slow in tackling problems regarding sector specific regulation and other impediments to investment and in reforming public administration, judicial systems, insolvency frameworks and the business environment, including access to finance. Despite some progress, barriers to investment persist in some key sectors in many Member States. This is particularly the case for services, network industries and construction. 

14.         WELCOMES progress in reforming labour markets, but notes that significant challenges and implementation gaps remain. There remains potential to broaden tax bases and reduce the tax burden on labour. The successful integration of migrants and refugees in some Member States requires particular attention. While progress has been made in bringing back to the labour market the unemployed, further structural reforms to support employment and active labour market policies are needed. 

Place:        Justus Lipsius building, Brussels
Chair:        Jeroen Dijsselbloem, Minister for Finance of the Netherlands

All times are approximate and subject to change

+/- ttbc
 Doorstep by Minister Dijsselbloem 

+/- 08.00
Annual EIB governors' meeting
Roundtable

+/- 09.00
Ministerial breakfast

+/- 11.30
Beginning of Council meeting
Adoption of the agenda
Adoption of legislative A items (public session)
Anti-Tax Avoidance Package  (public session)
AOB: Financial services (public session) 

Adoption of non-legislative A items
Implementation of the Banking Union
VAT Action Plan
European Semester 2016
Any other business 

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

+/- 15.00
Economic and Financial dialogue between the EU and the Western Balkans and Turkey

On 25 May 2016, the Council adopted rules on the reporting by multinational companies of tax-related information and exchange of that information between member states. 

The directive is the first element of a January 2016 package of Commission proposals to strengthen rules against corporate tax avoidance. The directive builds on 2015 OECD recommendations to address tax base erosion and profit shifting (BEPS). 

The directive will implement OECD anti-BEPS action 13, on country-by-country reporting by multinationals, into a legally binding EU instrument. It covers groups of companies with a total consolidated group revenue of at least €750 million.

The principal aim of the directive is to prevent multinationals from exploiting the technicalities of a tax system, or mismatches between different tax systems, in order to reduce or avoid their tax liabilities. 

Increasing transparency, the directive requires multinationals to report information -- detailed country-by-country -- on revenues, profits, taxes paid, capital, earnings, tangible assets and the number of employees. 

This information must be reported, already for the 2016 fiscal year, to the tax authorities of the member state where the group's parent company is tax resident. 

If the parent company is not EU tax resident and does not file a report, it must do so through its EU subsidiaries. Such "secondary reporting" will be optional for the 2016 fiscal year, but mandatory as from the 2017 fiscal year. 

The directive requires tax authorities to exchange these reports automatically, so that tax avoidance risks related to transfer pricing[1] can be assessed. For this, it builds on the EU's existing framework for automatic exchange between tax authorities, established by directive 2011/16/EU. An existing common communications network will be used, thereby saving implementation costs. 

The directive sets deadlines of: 

• 12 months after the end of the fiscal year for companies to file the information;
• a further three months for tax administrations to automatically exchange the information. 

It also requires the member states to lay down rules on penalties applicable to infringements. 

The directive will ensure harmonised implementation in the EU of the OECD recommendation on country-by-country reporting. 

The directive was adopted without discussion at a meeting of the Economic and Financial Council, following an agreement reached on 8 March 2016. 

The January 2016 anti-tax-avoidance package follows on from a number of EU initiatives in 2015. These include a directive, adopted in December 2015, on cross-border tax rulings. 

In December 2014, the European Council cited “an urgent need to advance efforts in the fight against tax avoidance and aggressive tax planning, both at the global and EU levels”. 

[1] Transfer pricing is the price paid for goods and services exchanged between entities that make up a corporate group.

On 25 May 2016, the Council adopted a directive maintaining for a further two years the minimum standard VAT rate at 15%. 

The minimum standard rate is aimed at preventing an excessive divergence in VAT rates applied by member states, and the structural imbalances or distortions of competition that could arise as a result. A minimum standard rate of 15% was applied until 31 December 2015. 

In view of on-going discussions on definitive rules for a single European VAT area, the directive extends the minimum standard rate for a period long enough to ensure legal certainty. It maintains the rate at 15% from 1 January 2016 until 31 December 2017. 

The directive was adopted without discussion at a meeting of the Economic and Financial Council.

On 25 May 2016 the Permanent Representatives Committee (Coreper) confirmed the deal reached with the European Parliament on the first rules to make public sector websites and mobile applications (apps) more accessible across the EU.

The draft directive requires EU countries to ensure that the websites and mobile apps of public sector bodies meet common European accessibility standards. In addition, people will be able to request specific information if content is inaccessible.

The new requirements will make content more accessible and usable for all users, and will especially benefit those with disabilities or age-related limitations.

Once the agreed text has undergone legal-linguistic finalisation, it needs to be formally approved first by the Council and then by the Parliament. The procedure is expected to be completed in the autumn.  

For more information, please see our press release from 3 May 2016 (link below).

Tuesday 3 May 2016
EU-Japan Leaders' meeting
17.25 Arrival of Prime Minister Shinzō Abe welcomed by President Donald Tusk and President Jean-Claude Juncker
17.30 Press statements
17.45 Leaders' meeting
18.30 Working dinner
More information on media registration for the event here

Thursday 5 May 2016
Rome
16.30 Bilateral meeting with President Sergio Mattarella
18.30 "State of the European Union" panel discussion of President Donald Tusk, President Jean-Claude Juncker and President Martin Schulz together with Prime Minister Matteo Renzi

Friday 6 May 2016
Rome
09.20 Bilateral meeting with Prime Minister Matteo Renzi
10.30 Joint audience with the Holy Father Pope Francis

International Charlemagne Prize award ceremony to Pope Francis
12.22 Speech by European Parliament President Martin Schulz
12.28 Speech by European Commission President Jean-Claude Juncker
12.34 Speech by President of the European Council Donald Tusk

On 28 April 2016, the Permanent Representatives Committee (Coreper) agreed, on behalf of the Council, its negotiating stance on a proposed regulation establishing a structural reform programme to help member states implement reforms.

The programme would be established for the period from 1 January 2017 to 31 December 2020, with a financial envelope of €142.8 million. 

Coreper asked the Netherlands presidency to start negotiations with the European Parliament.

The aim of the programme is to contribute to institutional, administrative and structural reforms in the member states with a view to enhancing competitiveness, productivity, growth, jobs, cohesion, and investment, in particular in the context of economic governance processes, including through assistance for the efficient and effective use of EU funds. The programme would finance actions and activities of European added value. 

Member states would have to submit a request for financial support by 31 October of each calendar year. The financial resources available under the programme would be redirected from other technical assistance programmes under the common provision regulation for structural funds and the Rural Development Fund.   

The Commission would carry out the programme, which would build on best practices with technical assistance to Cyprus and Greece. The Commission would also monitor the implementation of actions financed by the programme. 

On 28 April 2016, the Permanent Representatives Committee (Coreper) agreed, on behalf of the Council, its negotiating stance aimed at extending by one year the dates of transposition and application of new securities market rules.

 The one-year extension will affect the provision of services for investments in financial instruments and on the operation of regulated financial markets. Coreper asked the Netherlands presidency to start negotiations with the European Parliament as soon as possible, so as to enable adoption at first reading of a regulation enacting the extension. 

A recent revision of rules on financial instruments set out to promote the integration, competitiveness, and efficiency of EU financial markets. The Council adopted these in May 2014, amending and replacing an existing "MIFID" text that regulates markets in financial instruments. 

The rules consist of two legislative instruments: 

• regulation 600/2014 ("MIFIR"), aimed at improving transparency and competition of trading activities by limiting the use of waivers[1] on disclosure requirements and by providing for non-discriminatory access to trading venues and central counterparties (CCPs) for all financial instruments, and requiring derivatives to be traded on organised venues; 
• directive 2014/65/EU ("MIFID II"), amending rules on the authorisation and organisational requirements for providers of investment services and on investor protection. The directive also introduces a new type of trading venue, the organised trading facility (OTF). Standardised derivatives contracts are increasingly traded on these platforms, which are currently not regulated. 

Under the Council's approach: 

• the deadline for the member states to transpose MIFID II into national legislation would be set for 3 July 2017; 
•  the date of application of both MIFID II and MIFIR would be set for 3 January 2018. 

Additionally, the Council included amendments to the Commission's proposal in its negotiating mandate. These concern trading on own accounts, package transactions, alignment with the EU directive on securities financing transactions and the date of application of certain provisions of a regulation on market abuse. 

Both the directive and the regulation were to become applicable 30 months after entry into force, i.e. as of 3 January 2017, with member states having to transpose the new directive by 3 July 2016. However, due to technical implementing challenges faced by the European Securities and Markets Authority (ESMA) and by national competent authorities, essential data infrastructures will not be in place by 3 January 2017. 

The new framework requires trading venues and systematic internalisers to provide competent authorities with financial instrument reference data that describes in a uniform manner the characteristics of every financial instrument subject to the scope of MiFID II. In order to collect data in an efficient and harmonised manner, a new data collection infrastructure must be developed. This obliges ESMA, in conjunction with competent national authorities, to establish a data system covering a wider range of financial instruments, given the extended scope of MiFID II. 

On 2 October 2015, ESMA informed the Commission that a delay in the technical implementation of MiFID II was unavoidable. Neither competent authorities nor market participants will be in a position to apply the new rules on 3 January 2017. This would lead to legal uncertainty and potential market disruption.

 [1]            By setting an overall EU cap and a cap per trading venue for the so-called reference price waiver and negotiated transaction waiver.

Good afternoon. I was pleased to welcome President Bujar Nishani in Brussels today.

The migration crisis has brought the Western Balkans region and the European Union even closer. The crisis has demonstrated, once again, that our destinies are truly linked. Today was a chance to reiterate the central role of the Balkan countries in the Union's strategy of how to respond the migratory flows. Getting back to Schengen and the closure of the Western Balkan route is one of three building blocks of the Union's comprehensive response to current migration crisis.

The European Union stands ready to support Albania should an alternative route develop. I was satisfied with your information that Albania is not an attractive route for irregular migrants We agreed to monitor the situation closely and I encouraged Albania to share with us its needs assessment.

Albania has made important progress in recent years toward achieving its European integration aims. With overwhelming public support to underlying reforms, I am confident that Albania can stay the course and adopt those agreed reforms that are still outstanding.

At this crucial moment, when Albania is undertaking an ambitious and comprehensive reform of its judiciary, I emphasized - as I did last November to Prime Minister Rama, that cross-party cooperation and dialogue are indispensable to advance in the country's European ambitions.

Establishing a track record of proactive investigations, prosecutions and convictions in the fight against organized crime and corruption is also an important challenge.

Finally, we discussed Albania's unequivocal commitment to regional cooperation and good neighbourly relations. The European Union appreciates your country's full support to common values on the international stage. This includes not least our joint response to Russia's violation of Ukraine's sovereignty, territorial integrity and independence. We also discussed the need to strengthen EU-NATO cooperation in light of current hybrid threats in Europe.

This is also a clear signal that Albania is a reliable partner for the European Union. I am personally convinced that there is no alternative to the European path for the region. And I am convinced that with enduring political will to reform and with strong public support, Albania will achieve it.

Let me make a final point on Greece and the ongoing review of the Greek adjustment programme. I consult closely with the Presidents of the Eurogroup and of the European Commission. And earlier today I talked to Prime Minister Tsipras. I am convinced that there is still more work to be done by the ministers of finance. We have to avoid a situation of renewed uncertainty for Greece. Therefore we need a specific date for the new Eurogroup meeting in the not distant future, and I am not talking about weeks but about days. Thank you. 

On 28 April 2016, the Council gave its green light for new rules that aim to improve domestic rail passenger services in the EU. It endorsed the deal concluded by the presidency with the European Parliament on 19 April.

"During the negotiations the interest of travellers always came first. Together we have been able to reach an ambitious agreement. The quality and efficiency of railway services will improve because of this package".

Sharon Dijksma, Dutch Minister for Infrastructure and the Environment

The revised rules - known as the 4th railway package market pillar - will open up domestic rail passenger markets in the member states. Railway companies will have non-discriminatory access to the network across the EU provided that public service contracts are not compromised. This means that it will be easier for new operators to enter the market and offer their services. For the award of public service contracts competitive bidding will become the rule, although exceptions to this rule are still possible.

Quality of service, for instance the punctuality and frequency of trains, will have more of an influence on the award of contracts to operators. For public service contracts - which currently account for over 90% of EU rail journeys - direct award will continue to be allowed provided it leads to better quality of service or cost-efficiency.

Answering to a question during a press conference held in Gazientep (Turkey), President Tusk made the following remarks:

"This is one of the permanent topics of our discussions and during our meetings and I think that I am consistent when we come to this topic. I will not comment on specific case. But I have just two more personal reflections today.

First of all, thirty years ago when I was an activist of the illegal opposition to the communist government in Poland I was imprisoned for being critical of the regime. And if I remember well also my good friend, President Erdogan, fifteen years later also had similar experience for expressing his views.

And the second reflection I think it is very simple and obvious: as a politician I have learned and accepted to have thick skin and I have no expectation that the press will treat me with special care; quite the opposite. I think it is a good lesson for all of us, in Turkey, in Europe, in other countries. It is nothing specific geographically.

And the line between criticism, insult and defamation is very thin and relative. The moment politicians begin to decide which is which can mean the end of the freedom of expression, in Europe, in Turkey, in Africa, in Russia, evevywhere.

I hope that in the future, freedom of speech we will not be our main topic during our meetings, thank you. "

Good evening. Let me first of all thank Prime Minister Davutoglu for the invitation to Gaziantep today. We last met in Brussels on 18 March, when we concluded an ambitious agreement between the European Union and Turkey with an aim to stem irregular migration and to create a legal avenue for refugees to seek and obtain asylum in Europe. Our visit here today is part of the follow-up to that agreement.

Combined with other actions we have taken together with the Western Balkans countries, in Greece and by stepping up our support to refugees in third countries, we are starting to see results.

Since the March agreement we have seen a sharp reduction of the illegal migration flows across the Aegean. Our return operations are working in tandem with resettlements of Syrian nationals from Turkey to EU Member States, demonstrating the desired shift from illegal to legal migration.

This is a big and complex undertaking and much work still lies ahead of us. Our visit here today gives us the opportunity to discuss with Prime Minister Davutoglu the further implementation and next steps.

Today I  also had another opportunity to assess the situation with regard to the Syrian refugees in Turkey. After visiting a refugee camp in Nizip, I was pleased also to participate in the inauguration of a child protection centre in Gaziantep on the occasion of the National Sovereignty and Children's Day in Turkey. A number of other projects are currently being launched through the EU Facility for Refugees in Turkey.  Programming under the Facility has been accelerated.

Beyond our cooperation on the migration crisis, we will take stock of our revitalised bilateral relations. It also includes an accelerated roadmap for visa liberalisation. The way I see it, Turkey has made good progress ahead of decisions to be taken this summer, provided that Turkey meets all the agreed benchmarks.

One of the most crucial subjects of our discussion will be the conflict in Syria and the need for political talks to get back on track. Recent attacks on civilians and the prevention of humanitarian access are cynical attempts to derail the only real chance to stop the bloodshed.

Let me conclude, Prime Minister Davutoglu, dear Ahmet, by thanking you once again for your invitation, but also for your involvement and determination.

I would just like to add that, and it is not only a formal and political assessment but it is also my very private, personal feeling also after today's visit, that today Turkey is the best example for the whole world on how we should treat refugees. No one has the right to lecture Turkey what you should do. I am very proud  that we are partners. I am absolutely sure that we will succeed. There is no other way.

Saturday 23 April 2016
Visit to Gaziantep (Turkey) together with Federal Chancellor of Germany Angela Merkel and EU Commission First Vice-President Frans Timmermans.
17.40 Visit to Nizip temporary protection centre
19.15 Visit to Gazientep Child protection support centre
20.50 Joint press conference by President Tusk, Chancellor Merkel, First Vice President Timmermans and Prime Minister Davutoğlu
21.50 Leaders' meeting

Tuesday 26 April 2016
13.00 Meeting with European Commission President Jean-Claude Juncker and European Parliament President Martin Schulz (Berlaymont)

Wednesday 27 April 2016
11.30 Meeting with President of Albania Bujar Nishani (photo opportunity - press statements ±12.00)

Good afternoon. Welcome everyone, welcome to Amsterdam. Let me debrief you on the Eurogroup meeting. Many of us were already in Washington at the IMF spring meetings, discussing the state of play in the global economy, rising risks on the basis of the advice and analysis of the IMF. The good news, however, for major economies, this also goes for the Eurozone economy, is that our economies have weathered global events quite well. I believe we are still on the right track with economic growth that is broad-based, stronger supervision of banks and signs that investment is starting to pick up throughout the Eurozone.

Having said that, and on that positive note, let's first turn to Greece, which took up a major part of our time today. We discussed the state of play of the first review of the ESM programme and next steps to be taken.

Cooperation between the institutions and the Greek authorities has been strong and productive, but the institutions will say more about that. We believe that substantial progress has been made, reducing the number of open issues, and getting close to an agreement on a number of key areas such as pension reform, income tax reform, the NPL strategy and the establishment of the privatisation fund. On some issues more work will have to be done to fully conclude that, but we are very close.

Today we also looked at and clarified the way to go forward to bridge the issue which is about insecurity of a forecast and confidence that we can have in the implementation of what has been agreed.

We came to the conclusion that the policy package should include a contingent package of additional measures that would be implemented only if necessary to reach the primary surplus target for 2018. The contingency mechanism needs to be credible, legislated upfront, automatic and be based on objective factors which would trigger these contingent measures.

That needs further work: the design of that, how it would work, what kind of measures there would be and what would trigger it. I'm happy to say that with the commitment of the Greek minister to work on that constructively and as quickly as possible, the institutions have said that they stand ready to work as quickly as possible, in the coming days, on this contingency mechanism. On that basis, if we have the package which needs to be done and delivered upfront, and if we have the contingency package and the mechanism to support that, we can have a further Eurogroup next Thursday. This is not for sure yet, but we are aiming for a meeting next Thursday which would then come to positive conclusions on those two elements, on the upfront package and the contingency package, and have a serious discussion on debt sustainability. As you know we have a long standing promise which was reaffirmed during the summer agreement, that if necessary and on condition that the Greek government fully delivers on what has been agreed in the programme, if necessary, we stand ready to consider more measures to assure debt sustainability.

Ministers today have given us a mandate to work on that, to make the analysis, and to prepare possibilities within, of course, some limitations. To mention two main ones: there is no support in the Eurogroup for nominal haircuts on the debt, and what we will design and propose needs to stay within the agreement of last summer. So we will look at possibilities of re-profiling and if necessary possible additional measures, looking at maturities and grace periods as outlined in the agreement last summer. And hopefully we will meet again next Thursday to bring those elements all together and come to a political agreement which would be very important for Greece and for the Eurozone.

Secondly, let me go on in our agenda. Second item was work we are doing on insolvency frameworks. This is very important for strengthening our economies, dealing with our banks, and opening space for new investments throughout the Eurozone. It is of course also an issue for the EU 28, so the follow up that we will give on the issue will also be on the agenda in Ecofin for some months. We have asked the Commission to do further work on that, to improve the quality of the data that we have and to develop an approach aimed at improving the effectiveness of national frameworks, trying to reach convergence at a higher level, in speed, affordability and predictability of insolvency procedures.

So on work that has been done so far, the Commission will do more on improving the quality of data, and developing a method of benchmarking on insolvency frameworks.

Finally, on the SSM. We welcomed Danièle Nouy, the chair of the Single Supervisory Mechanism to the Eurogroup. She regularly joins the Eurogroup to present to us the state of play in the SSM. Today she presented the annual report. She informed us about the execution of the supervisory tasks of the SSM. She spoke specifically on the many options and national discretions that are still in our banks and in our bank legislation and regulations. She is making a lot of progress from the SSM. Work also needs to be done by legislators. The Commission will work on that and put forward proposals to improve our level playing field for our banking union.

Those were the key issues.