European Council

European Council meeting will take place on 17-18 December 2015 in Justus Lipsius building in Brussels. 

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The Council: 

1. RECALLS its determination to combat tax fraud, tax evasion and aggressive tax planning at EU and global level;
2. RECALLS the adoption by the Council and the representatives of the Governments of the Member States, meeting within the Council, in December 1997 of a resolution on a Code of conduct for business taxation (hereafter "the Code");
3. RECALLS the subsequent establishment in March 1998 of a Code of Conduct Group (hereafter "the Group") to assess the tax measures falling within the scope of the Code and oversee the provision of information on these measures;
4. UNDERLINES that the May 2013 European Council conclusions noted that “it is important to continue work within the EU on the elimination of harmful tax measures. To that end, work should be carried out on the strengthening of the Code of Conduct on business taxation on the basis of its existing mandate”;
5. RECALLS  the usefulness and the efficiency of the work done under the Code of Conduct so far to assess Member States individual tax measures;
6. CONFIRMS that work on the future of the Code of Conduct and its reinforcement should focus on making better use of the existing mandate of the Code; on examining the possibilities and modalities to extend the mandate and to update the criteria and on the possible need to adjust the governance of the Code accordingly;
7. ENDORSES the Group's new Work Package, and ENCOURAGES the Group to continue its work on that basis;
8. CONFIRMS its invitation to the Group to develop general guidance to prevent tax avoidance, base erosion and profit shifting (BEPS);
9. INVITES the High Level Working Party on Taxation (HLWP) to discuss a revision to the mandate in relation to the concept that profits are subject, as appropriate, to an effective level of tax within the EU, notwithstanding the competencies of Member States in the area of taxation;
10. AGREES that the rollback and standstill procedures foreseen in paragraphs C and D of the Code should cover existing and future general guidance notes developed by the Group;
11. INVITES in this respect the Group to ensure through such general guidance an effective implementation at the EU level of the relevant OECD BEPS Project conclusions when not covered by the EU legislation, and in accordance with the Group's new Work Program;
12. AGREES that the Code Group should clarify the third criterion by developing guidance on the basis of the OECD BEPS conclusion on  Action 5;
13. AGREES that the Code Group should clarify the fourth criterion by developing guidance  in the light of OECD Transfer Pricing Guidelines, as amended by OECD BEPS conclusions on Actions 8-9-10;
14. INVITES the Group to further develop, where appropriate, guidance notes on the interpretation of the criteria of the Code, including the gateway criterion, and their application;
15. CONFIRMS the importance that the principles of the Code of Conduct are applied on as broad geographical basis as possible, WELCOMES in this respect the recent Joint Statement with Switzerland and ongoing dialogue with Liechtenstein and INVITES the Group to open dialogues with relevant third countries, as well as to monitor the implementation of past agreements;
16. EXPRESSES the wish to improve the visibility of the work of the Code of Conduct Group and AGREES therefore that its results, in particular its 6-monthly reports, are systematically made available to the public;
17. INSISTS however on the confidentiality of the Group's deliberations with a view to protect the public interest as regards the economic policy of Member States, maintain the efficiency of the assessment process and counter related risks of aggressive tax planning;
18. INVITES the High Level Working Party on Taxation (HLWP) to conclude on the need to enhance the overall governance, transparency and working methods and to finalise the reform of the Group during the Dutch Presidency.

The President of the European Council, Donald Tusk received the letters of credentials of the following Ambassadors:

H. E. Mr Haymandoyal DILLUM, Ambassador, Head of the Mission of the Republic of Mauritius to the European Union
H.E. Mrs Oda Helen SLETNES, Ambassador, Head of the Mission of the Kingdom of Norway to the European Union
H.E. Mr Jawad Khadim Jawad AL-CHLAIHAWI, Ambassador, Head of the Mission of the Republic of Iraq to the European Union

On 8 December 2015, the Council approved the conclusion of agreements with Liechtenstein and Switzerland aimed at improving tax compliance by private savers. 

The two agreements will contribute to efforts to clamp down on tax evasion, by requiring the EU member states and the two countries to exchange information automatically. 

This will allow their tax administrations improved cross-border access to information on the financial accounts of each other's residents. 

The agreements upgrade 2004 agreements that ensured that Liechtenstein and Switzerland applied measures equivalent to those in an EU directive on the taxation of savings income. The aim is to extend the automatic exchange of information on financial accounts in order to prevent taxpayers from hiding capital representing income or assets for which tax has not been paid. 

The Council also approved the signing of a similar taxation agreement with San Marino, ahead of a signature ceremony later in the day.

The EU-Switzerland agreement was signed on 27 May 2015, and the EU-Liechtenstein agreement on 28 October 2015.

On 8 December 2015, the Council adopted a directive aimed at improving transparency on tax rulings given by member states to companies in specific cases about how taxation will be dealt with. 

The directive is one of a number of initiatives aimed at preventing corporate tax avoidance. 

It will require member states to exchange information automatically on advance cross-border tax rulings, as well as advance pricing arrangements. Member states receiving the information will be able to request further information where appropriate. 

The Commission will be able to develop a secure central directory, where the information exchanged would be stored. The directory will be accessible to all member states and, to the extent that it is required for monitoring the correct implementation of the directive, to the Commission.

A tax ruling is an assurance that a tax authority gives to a taxpayer on how certain aspects of taxation will be dealt with in that specific case. An advance pricing arrangement is a type of tax ruling, issued by a tax authority to determine the method and other relevant details of pricing to be applied to a transfer of goods or services between companies. 

Tax planning

Tax planning by companies has become more elaborate in recent years, developing across jurisdictions. It involves, for example, the shifting of taxable profits towards states with more advantageous tax regimes, or eroding the tax base. 

The directive will ensure that where one member state issues an advance tax ruling or transfer pricing arrangement, any other member state affected is in a position to monitor the situation and the possible impact on its tax revenue. 

International fora 

The directive is in line with developments within the OECD and its work on tax base erosion and profit shifting. G20 leaders approved the outcome of that work at a summit in Antalya on 15 and 16 November 2015. 

Application 

The Council reached political agreement on the directive on 6 October 2015. The European Parliament gave its opinion on 27 October 2015. 

The new rules will be applied from 1 January 2017. In the meantime, existing obligations for member states to exchange information will stay in place. 

Concerning rulings issued before 1 January 2017, the following rules will apply: 

• If advance cross-border rulings and advance pricing arrangements are issued, amended or renewed between 1 January 2012 and 31 December 2013, such communication shall take place under the condition that they are still valid on 1 January 2014.
• If advance cross-border rulings and advance pricing arrangements are issued, amended or renewed between 1 January 2014 and 31 December 2016, such communication shall take place irrespectively of whether they are still valid or not.
• Member states will have the possibility (not an obligation) to exclude from information exchange advance tax rulings and pricing arrangements issued to companies with an annual net turnover of less than €40 million at a group level, if such advance cross-border rulings and advance pricing arrangements were issued, amended or renewed before 1 April 2016.  However, this exemption will not apply to companies conducting mainly financial or investment activities.

Package of measures

The Commission proposed the directive as part of a package of measures in March 2015. The text amends directive 2011/16/EU on administrative cooperation in the field of taxation, which sets out practical arrangements for exchanging information.

On 7 December 2015, the Luxembourg presidency of the Council reached an informal agreement with the European Parliament on common rules to strengthen network and information security  (NIS) across the EU.

The new directive will set out cybersecurity obligations for operators of essential services and digital service providers. These operators will be required to take measures to manage cyber risks and report major security incidents, but the two categories will be subject to different regimes.

Xavier Bettel, Luxembourg's Prime Minister and Minister for Communications and the Media, and President of the Council, said: "This is an important step towards a more coordinated approach in cybersecurity across Europe. All actors, public and private, will have to step up their efforts, in particular by increased cooperation between member states and enhanced security requirements for infrastructure operators and digital services".

Stronger rules for essential operators

The directive lists a number of critical sectors in which operators of essential services are active, such as energy, transport, finance and health. Within these sectors, member states will identify the operators providing essential services, based on clear criteria laid down in the directive. The requirements and supervision will be stronger for these operators than for providers of digital services. This reflects the degree of risk that any disruption to their services may pose to society and the economy.

A more uniform regime for digital service providers

The following digital services will be covered by the directive: e-commerce platforms, search engines and cloud services.

Digital service providers are typically active in many member states. To ensure that they are treated in a similar way across the EU, the rules will apply to all operators providing such services, with the exclusion of small companies.

National and EU-level frameworks to counter cyber threats

Each EU country will be required to designate one or more national authorities and set out a strategy to deal with cyber matters.

Member states will also step up their cooperation on cybersecurity. An EU-level cooperation group will be created to support strategic cooperation and exchange of best practices among member states. A network of national computer security incident response teams (CSIRTs) will be set up to promote operational cooperation. Both are also expected to help develop confidence and trust between member states.

Deadlines

Member states will have 21 months from the directive's entry into force to adopt the necessary national provisions. Following this period, they will have 6 further months to identify their operators of essential services.

How will it become law?

For the Council, the deal still has to be confirmed by member states. The presidency will present the agreed text for approval by member states' ambassadors at the Permanent Representatives Committee (Coreper) on 18 December. To conclude the procedure, formal adoption by both the Council and the Parliament is required.

Good evening everyone and welcome to this press conference. I was going to say that we've had busier turnouts - looking at the audience tonight - but it makes sense, because we also had a short Eurogroup meeting. 

Let me first make a couple of remarks on Greece, which was one of the countries discussed today. After successful implementation of the first set of milestones last month, today we took stock of the implementation of the second set of milestones. Which as you know are connected to the last sub-tranche of €1 bn. The design of the second set has been agreed by the EWG at the end of November. We called on the Greek authorities to implement these milestones as soon as possible and as agreed. The objective is to settle this by mid-December, so that we can focus on some of the major fiscal and structural reforms that are still open and need to be finalised for the first review early next year.  

Recapitalisation of the four significant banks is almost finalised. We expect the last disbursement to be made tomorrow after approval of the ESM Board of Directors. Overall, a good success with significant involvement from private investors. The exercise will cost the programme less than €5½ bn, well below, as you know, initial estimates.  

Secondly, we welcomed Danièle Nouy, the SSM chair. She joined us for one of our regular exchanges of views as part of what's called the accountability arrangements for the SSM. She informed us on the execution of the supervisory work by the SSM, in particular the recent Comprehensive Assessments and the Supervisory Review and Evaluation Process (SREP), as well as on the SSM's key policy challenges and priorities going forward.  

We had a thematic discussion on pensions and pension reforms, which are central to fiscal sustainability in the euro area. Top of the agenda in many member states that have already enacted considerable pension reforms. But pension expenditure is still one of the main challenges for long-term sustainability. Alongside addressing pension expenditures, we need a range of policies to ensure that retirement incomes remain sufficient in the future. There is also a strong link, which was mentioned by a number of colleagues, to reforms on the issue of long-term care, the costs of care, which are also linked to the aging of our populations. And also reforms of the labour market, making sure that also all employees can still participate in the labour market. We will come back to those issues, the issues of pension reforms, over the course of the next year. We've asked both the Commission to come forward with some sustainability scenarios, also scenarios with more downside risks, to check whether stresses in our systems, and we've asked EWG to do more work on also the possibility of benchmarking pension reforms. So we will come back to those issues in a second round next year.  

As I've said, we also discussed some country issues. A post-programme surveillance of Ireland took place in November 2015. The institutions informed us about the main findings of the review. I don't need to tell you all this. Very strong economic growth. Continued improvement on the fiscal and financial side. Overall an impressive performance by Ireland.  

Two years after the end of the programme, I think Ireland once again demonstrates that determined implementation of an adjustment programme can turn an economy around, to the benefit of citizens.  

We also discussed Portugal, in a different way. We welcomed the new Portuguese finance minister, Mário Centeno, to the Eurogroup, and his state secretary Ricardo Mourinho Félix. The minister outlined the new government's economic policy priorities and has assured us that he will come with a draft budgetary plan as soon as possible, probably at the beginning of the January 2016, for us to be able to discuss that with the Commission's opinion in our February meeting. This is how I see it in the planning.  

Finally one remark: we've come to an agreement on the constituency for the AIIB, the Asian Infrastructure Investment Bank. We discussed it last month, had a silent procedure; after that only Finland said that they can not enter in the constituency at this point, but the other countries will make a start with a eurozone constituency and we will now concentrate on setting up what is called a constituency agreement. Work will be done on that by the EWG. So that is very good news as we have an agreement for that.

Place
Justus Lipsius building, Brussels 

Chair
Pierre Gramegna, Minister for Finance of Luxembourg 

All times are approximate and subject to change 

+/- 08.00
ESM Board of Directors 

+/- 08.45
Doorstep by Minister Gramegna

+/- 09.00
Ministerial breakfast
Roundtable 

+/- 10.15
Informal session on SRM (bridge financing) 

+/- 10.45
Beginning of ECOFIN Council meeting
Adoption of the agenda
Approval of legislative A items (in public session)

+/- 10.25
Financial transaction tax
Common consolidated corporate tax base
Banking union - European deposit insurance scheme
Any Other Business
Approval of non-legislative A items
Implementation of banking union
Terrorist financing
Business taxation - Code of conduct
Business taxation - Base erosion and profit shifting
Economic governance - 2016 European Semester
Flexibility under the Stability and Growth Pact
EU statistics
EU budget discharge - Court of Auditors report 

14 .00 (At the end of the meeting)
Press conference

The Council appointed Angel Losada Fernandez as the EU Special Representative (EUSR) for the Sahel until 28 February 2017.

Mr Losada replaces Mr Michel Dominique Reveyrand - De Menthon, who was appointed on 18 March 2013.

EUSRs promote the EU's policies and interests in troubled regions and countries and support the work the High Representative of the Union for Foreign Affairs and Security Policy, Federica Mogherini. Mr Losada will lead the EU's contribution to regional and international efforts for lasting peace, security and development in the Sahel. He will also coordinate the EU's comprehensive approach to the regional crisis, on the basis of the EU Strategy for Security and Development in the Sahel.

Mr Losada is a senior Spanish diplomat with more than 30 years' experience. He recently served as ambassador of Spain to Nigeria and Kuwait.

I am writing to let you know where we stand on the issue of a UK in/out referendum before we address it at the December European Council.

In November Prime Minister Cameron set out the four areas where he is seeking reforms to address the concerns of the British people over UK membership of the European Union. On this basis, we, in close cooperation with the Commission, held extensive bilateral consultations at Sherpa level with all Member States. We also discussed it with representatives of the European Parliament.

Clearly this is a significant and far-reaching agenda. Consultations have shown that the issues raised by the British Prime Minister are difficult. At the same time there is a strong will on the part of all sides to find solutions that respond to the British request while benefiting the European Union as a whole.

We have been looking at the four baskets mentioned by PM Cameron. Let me briefly set out my assessment of where we are in this respect.

1. On the relations between the euro ins and outs we could search for an agreement around a set of principles that will ensure the possibility for the euro area to develop further and be efficient while avoiding any kind of discrimination vis-à-vis Member States that are not yet, or, in some cases, will not be part of the euro. We are also looking into the possibility of a mechanism that will support these principles by allowing Member States that are not in the euro the opportunity to raise concerns, and have them heard, if they feel that these principles are not being followed, without this turning into a veto right.

2. On competitiveness, there is a very strong determination to promote this objective and to fully use the potential of the internal market in all its components. Everybody agrees on the need to further work on better regulation and on lessening the burdens on business while maintaining high standards. The contribution of trade to growth is also very important in this respect, in particular trade agreements with fast growing parts of the world.

3. The third basket concerns sovereignty. There is wide agreement that the concept of "ever closer union among the peoples" allows for various paths of integration for different countries. Those that want to deepen integration can move ahead, while respecting the wish of those who do not want to deepen any further. There is also a largely shared view on the importance of the role of national parliaments within the Union as well as strong emphasis on the principle of subsidiarity.

4. The fourth basket on social benefits and the free movement of persons is the most delicate and will require a substantive political debate at our December meeting. While we see good prospects for agreeing on ways to fight abuses and possibly on some reforms related to the export of child benefits, there is presently no consensus on the request that people coming to Britain from the EU must live there and contribute for four years before they qualify for in-work benefits or social housing. This is certainly an issue where we need to hear more from the British Prime Minister and an open debate among ourselves before proceeding further.

All in all it is my assessment that so far we have made good progress. We need some more time to sort out the precise drafting on all of these issues, including the exact legal form the final deal will take. We also have to overcome the substantial political differences that we still have on the issue of social benefits and free movement. The December European Council should address all the political dilemmas related to this process. Based on a substantive political discussion we should be able to prepare a concrete proposal to be finally adopted in February.

Let me finally share with you some political remarks. All involved must take their part of responsibility. I will act as an honest broker but all Member States and the institutions must show readiness for compromise for this process to succeed. Our goal is to find solutions that will meet the expectations of the British Prime Minister, while cementing the foundations on which the EU is based. Uncertainty about the future of the UK in the European Union is a destabilizing factor. That is why we must find a way to answer the British concerns as quickly as possible.

In times when geopolitics is back in Europe, we need to be united and strong. This is in our common interest and in the interest of each and every EU Member State. The UK has played a constructive and important role in the development of the European Union and I am sure that it will continue to do so in the future.

The EU-Ukraine Association Council held its second meeting on Monday 7 December 2015 in Brussels.

The Association Council took stock of developments in EU-Ukraine relations since the first Association Council held in December 2014 and welcomed the significant progress realised since. Both sides reaffirmed the significance they attach to the partnership, as well as their continued commitment to deepening the political association and economic integration of Ukraine with the EU on the basis of respect for common values and their effective promotion.

The Association Council welcomed the ratification of the Association Agreement by a large majority of Member States and looked forward to its full entry into force.

Ukraine and the EU will provisionally apply the Deep and Comprehensive Free Trade Area (DCFTA) part of the Association Agreement as of 1 January 2016. Ukraine and the EU agreed on the need to ensure full compliance with the commitments undertaken in the context of the DCFTA, including by further enhancing Ukraine's preparatory efforts. The Association Council also took stock of the trilateral talks on DCFTA implementation. The EU and Ukraine reiterated their readiness to continue talks at the ministerial and expert levels by using the flexibilities offered by the DCFTA. They underlined that any solutions found must respect relevant WTO provisions and commitments.

The EU welcomed substantial progress in implementing reforms that have been achieved this year in particular the launch of work of the National Anti-Corruption Bureau and new national police, completion of the selection process of the Anti-Corruption Prosecutor, adoption by Verkhovna Rada in the first reading of amendments to the Constitution on decentralisation and adoption of the law "On natural gas market" aimed at bringing the gas sector of Ukraine in compliance with the Third Energy Package.

The EU welcomed the strong political commitment of the Ukrainian authorities to bring  the reform process forward, despite the challenges faced by the country, notably the conflict in eastern Ukraine. 

The Association Council acknowledged the importance of swift and thorough implementation, and enforcement, of new policies and legislative frameworks and of further acceleration of political and economic reforms in the following areas in the short term:

• constitution;
• fight against corruption;
• justice system;
• public administration;
• electoral legislation;
• decentralisation;
• civilian security sector;
• energy;
• public finance management;
• business climate.

 The Association Council recognised that reforms have to be made first and foremost in the interest of Ukrainian people.

The EU reiterated its firm commitment to a political and peaceful solution to the conflict in eastern Ukraine based on the respect for Ukraine's independence, sovereignty and territorial integrity, including through the complete implementation by all sides of the Minsk agreements. In this regard, the Association Council endorsed all diplomatic efforts within the Normandy format and the Trilateral Contact Group, and recalled that the duration of EU economic restrictive measures against the Russian Federation is linked to the complete implementation of the Minsk agreements. Furthermore, it expressed concern over the recent increase in the number and gravity of cease-fire violations, and stressed that all hostages and illegally detained persons related to the conflict in eastern Ukraine, including Nadiya Savchenko should be released, in accordance with the Minsk agreements.

The Association Council highlighted the need to continue addressing the humanitarian situation resulting from theconflict and encouraged Ukraine to facilitate the delivery of humanitarian aid into conflict-affected areas as well as to comprehensively address the rights and longer term needs of Internally Displaced Persons. The EU expressed its willingness to step-up its support to de-mining activities in eastern Ukraine.

The Association Council expressed concern over the deterioration of the human rights situation in the Crimean peninsula, including that of the Crimean Tatar communityand called for the provision of full, free and unrestricted access to the Autonomous Republic of Crimea and the City of Sevastopol to international human rights actors. The EU reiterated its demand for the immediate release of Mr Sentsov and Mr Kolchenko and their safe return to Ukraine. The EU recalled that it does not recognise and continues to condemn the illegal annexation of Crimea and Sevastopol by the Russian Federation.

Ukraine and the EU took stock of the progress made in relation to the respect of human rights and fundamental freedoms, and agreed on the need for continued efforts. The EU welcomed the good overall conduct of the local elections held on 25 October 2015, demonstrating progress in the respect for democratic principles. 

The Association Council welcomed the progress made so far by Ukraine towards visa liberalisation. Both sides looked forward to the next progress report on the implementation of the Visa Liberalisation Action Plan, which will be published later this month. 

The Association Council welcomed the first signs of economic stabilization in Ukraine and called for a continued implementation of sound macroeconomic and financial policies.

The Association Council acknowledged the significant financial support of over €7 billion by the EU and European Financial Institutions provided since 2014. Itunderlined that this financial support is helping Ukraine stabilize its economy, reforming it in line with international standards and improving the livelihoods of its citizens over time. 

The Association Council welcomed the adoption on 2December 2015 of a new EU programme in support of decentralisation worth €97 million (€90M from the EU budget, €6M from Germany and €1M from Poland), as well the complementary support under the Instrument contributing to Stability and Peace for the restoration of governance and peacebuilding in the eastern part of Ukraine worth €10 million.  

The Association Council also welcomed the signing of the Administrative Arrangement between the European Defence Agency and the Ministry of Defence of Ukraineby the High Representative Federica Mogherini in her capacity as Head of the European Defence Agency and the Minister of Defence of Ukraine Stepan Poltoraktoday.  

Both sides looked forward to putting into practice the enhanced mandate of the EU Advisory Mission for Civilian Security Sector Reform (EUAM Ukraine) aiming at better responding to Ukraine's needs in its efforts to reform the country's civilian security sector, taking into account current security challenges. The Association Council also noted the recent extension by two years of the European Commission Border Assistance Mission to the Republic of Moldova and to Ukraine (EUBAM), as well as the agreement signed enhancing the mission's mandate in respect to border and customs related aspects of the Association Agreements and the implementation of the DCFTAs.

As additional demonstration of deepening relations, the Association Council welcomed Ukraine's accession to Creative Europe and progress towards the accession of Ukraine to the EU Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises, COSME as well as the shared aim to open negotiations toprovide satellite-based Augmentation Services in Ukraine based on the European satellite Navigation Programme EGNOS. Both sides positively assessed the progress made towards the association of Ukraine to the Euratom Research and Training Programme 2014-2018 complementing the EU Programme on Research and Innovation “Horizon 2020”, which will allow an effective association from 1 January 2016 onwards.

The Association Council welcomed the energy reforms initiated this year, in particular in the gas sector, and underlined the need to finalise the legislative framework on energy regulation and on electricity market. Both sides expressed readiness to continue cooperation on energy efficiency and the modernisation and operation of the Ukrainian gas transportation system and on storages and on securing gas supplies between Ukraine and the EU. Ukraine and the EU looked forward to the launching of the negotiations on a Memorandum of Understanding for a Strategic Energy Partnership.

Recalling the commitment made in the 17th EU-Ukraine Summit and the latest Summit of the Eastern Partnership in Riga to conclude the EU-Ukraine Agreement on Common Aviation Area, as referred to in the Association Agreement, at the earliest possible date in 2015, the EU renewed its commitment to a prompt signature of the Agreement. 

The Association Council welcomed the joint Communication of the High Representative and the Commission on the European Neighbourhood Policy (ENP) review adopted on 18 November and committed to its implementation stressing the non-confrontational nature of the ENP. It will be the subject of further discussion in 2016, while work will continue on the basis of existing contractual arrangements. Differentiation and enhanced ownership will be the hallmark of the reviewed ENP.

Finally, Ukraine and the EU stressed the importance of effective strategic communication and agreed to close cooperation to this end, including through the newly established EU Strategic Communications Task Force focused on the Eastern Neighbourhood and beyond.

The meeting was chaired by Mr Arseniy Yatsenyuk, Prime Minister of Ukraine. Ukraine was also represented by ministries of Foreign Affairs, Economic Development and Trade, Justice and Defence. The EU was represented by the High Representative for Foreign Affairs and Security Policy, Federica Mogherini and the Commissioner responsible for European NeighbourhoodPolicy and Enlargement Negotiations, Johannes Hahn.

I am happy to see so many of us here in Valletta today to discuss migration between our continents.

I would like to thank Prime Minister Muscat once again for kindly hosting us here in Valletta. I would also like to thank our senior officials for their hard work (until the early hours of this morning) in the preparation of a successful Summit.

As you know this meeting was suggested after the tragedy on 19 April, when hundreds of people lost their lives in the Mediterranean sea. This called on us to increase our efforts to try to stop such things from happening. The European Union took on the heavy responsibility of trying to save as many lives as possible. But this is dealing only with the symptoms. 

The only way we can manage migration is  by working together. Our purpose today is to agree a joint approach and concrete steps so that migration becomes fruitful exchange between our peoples, and not a tragic loss to all. We have a joint responsibility, and we must deliver on it in partnership and solidarity. That is why we are here.

Migration creates both challenges and opportunities and it affects us all - countries of origin, transit and destination. The number of people on the move globally has never been so big. Both Africa and Europe are put under heavy pressure trying to manage the scale and its effects on local communities.

Firstly, one of our biggest responsibilities is to address the root causes of the movements we are seeing. It is our job, as leaders, to ensure that people do not feel the need to risk their lives to achieve their aspirations. Security and opportunity are things that Europe and Africa already work on together. And we will continue to do so.

This means making our extensive development assistance more efficient, more targeted; creating more opportunities for young people to work. It also means stepping up our efforts to prevent and stop conflicts, and to help countries build systems of government that are accountable and open, that reinforce the rule of law, that respect human rights.

Secondly, people's aspirations and needs have to be met first and foremost at home. Legal migration can offer opportunities for some, but not for all. Routes for legal migration to Europe should remain open; mobility between our continents is a driver for growth on both sides.

Thirdly, and this is a crucial area for urgent action, we must do more to prevent the trafficking of human beings and the illegal smuggling of migrants by criminal gangs whose only motive is their own profit.

Fourthly, the EU and African countries have a history of protecting those entitled to international protection. We are ready to step up our support to you to help you deal with the displaced persons within Africa. At the same time, we will continue to offer international protection to those entitled to it.

Last, but definitely not least, proper return and readmission of those not entitled to international protection is essential. This is an international norm, and a responsibility of states to citizens. To keep the doors open for refugees and legal migrants, irregular migrants should be returned effectively and quickly. Voluntary return is always preferable. But when it is not possible, non-voluntary return is a pre-requisite for a well-managed migration policy. And once returned, we must all work together to reintegrate these people and provide them with the means to meet their aspirations.

Europe is taking its responsibility - saving lives, welcoming refugees and those entitled to international protection, offering more organised routes for legal migration, and dismantling criminal organisations.

We need our African partners to help us better address our common challenges. We have no choice but to be partners in this.

One of the strengths of our partnership is that we can have open and honest conversations about even difficult subjects.  We have these within the EU all the time.  Migration is a sensitive political topic within and amongst the EU Member States, as I am sure it is among African states too.  But we have to discuss it to find the right way forward for all of us. 

I look forward to our open and honest discussions. And more than that, I hope we will take the necessary action to forge our future cooperation. We have to turn our principles into action. Thank you.    

The School Fruit and Vegetables Scheme and the School Milk Scheme are currently separate programmes under which EU aid is allocated to member states. In January 2014, the Commission presented two proposals merging the schemes and amending the new Single Common Market Organisation (single CMO) regulation under the reformed Common agricultural policy (CAP)  and the regulation fixing certain aids and refunds. 

Following the examination of the proposal in the Council, on 12 October 2015 the Special Committee on Agriculture (SCA) granted the Presidency a mandate to enter the first trilogue with the European Parliament on this proposal. The first trilogue took place on 20 October. The main issue at the time was the legal basis of the proposal, on which the mandate prepared for the 2nd trilogue shows some opening.

At the end of the 2nd trilogue on 11 November, while recalling its attachment to reach a positive conclusion of this issue, the Presidency deems that it is appropriate to wait before setting the date of the next trilogue. It considers that further informal contacts in the meantime will allow to clarify some elements discussed and will facilitate those negotiations to resume efficiently as soon as possible.

Getting the green light for placing novel foods on the EU market will become faster and cheaper while the high level of protection of human health will be preserved. That's the main purpose of a draft regulation that the Council's Permanent Representatives Committee approved on 11 November 2015. The draft regulation was voted by the Parliament on 28 October 2015. Novel foods are foods not consumed in the EU to a significant degree before May 1997. They include for instance foods to which a new production process is applied. 

"The compromise approved today is a needed step towards faster innovation in the novel foods market while guaranteeing high levels of consumer protection for the European citizens", said Lydia Mutsch, member of the Luxembourg government and President of the Council. 

Cutting red tape 

Under the new rules the authorisation procedure for a novel food is expected to take on average around 18 months compared to three years under the current rules. The draft regulation also helps to reduce administrative burdens by switching to an EU-level procedure and providing for generic authorisations. This means that once authorised and added to the EU list a novel food may be placed on the market by any food business operator. This avoids the re-submission of new applications by other companies for the same novel food and should benefit in particular SMEs. Under the current rules, novel foods are authorised at national level and valid only for the applicant.

Easier access for traditional foods

The new rules will also facilitate the access to the EU market for traditional foods from third countries having a history of safe food use. For these foods an applicant must demonstrate that they have been safely consumed by a significant part of a third country's population for at least 25 years. 

Nanotechnology

The scope of the novel food rules explicitly covers food containing engineered nanomaterials. The Commission is mandated to adapt the definition of engineered nanomaterials to technical progress or the definitions agreed at international level. 

Insects

The new regulation provides also clarity that insects are covered and are hence subject to an authorisation procedure. 

Cloning

Food from animal clones will remain subject to the novel food rules. Commission proposals establishing specific rules on cloning are currently discussed in the Council and the European Parliament. 

Next steps

The Council is expected to formally adopt the new regulation on 16 November before it is published in the Official Journal of the EU. It will enter into force 20 days after its publication and will be applicable two years later. 

Background

The novel foods authorised under the current rules in the EU include for instance "rapeseed oil high in unsaponifiable matter", "rye bread with added phytosterols/phytostanols", "milk type products and yoghurt type products with added phytosterol esters", "coagulated potato proteins and hydrolysates thereof" and "phospholipids from egg yolk", "chias seeds" and "baobab extracts".

It is a pleasure to be here in this newly built parliament, a fresh and solid expression of a proud democracy. In fact, it is the first national parliament that I have addressed as President of the European Council. Thank you again for the invitation.  

Malta has always been at the crossroads of European history. This was true in the Great Siege of 1565 and also during the pivotal defence of this nation in World War II. Today, it is again true - although in quite a different way - in this new age of great migrations. And that is why Valletta is a particularly fitting place for African and European leaders to meet this week to begin really managing the disruptive and dynamic migration phenomenon through a rekindled partnership.  

I want to first of all thank Prime Minister Muscat. Following the tragic mass drownings at sea last April, he immediately offered to host what I hope will be an historic conference of African and European leaders this week. The Maltese authorities have been tireless, professional and highly effective in working with us on the preparations. Thank you for your hospitality and selflessness. We are in your debt.  

I also want to thank Malta for its assistance in tackling the refugee crisis whether it is supporting the work of the European Asylum Support Office here in Valletta, contributing to the hotspots in Greece and Italy or participating in the rescue missions across the Mediterranean. As a direct result of our collective actions, thousands of people were saved at sea this year who would otherwise have been lost. EU governments are reviewing over a million asylum applications between them, an all-time record number that would test any developed democracy. European leaders have helped to end donor fatigue to the World Food Programme and UN agencies to ensure that the basic needs of refugees in and around Syria are met.   

Nevertheless, there is still much more to do and we are under incredible pressure of events. Implementation of the actions the European Union has agreed at five summits this year devoted to tackling migration issues needs to be speeded up. This is why European leaders will also meet separately on Thursday to review where we are with our internal European efforts and in our contacts with Turkey.

The single most significant global development in the last century is that humanity has increased four times over, including in Africa. According to UN projections, the African population is set to double over the next 35 years, and then keep growing at this rate. With the enlargement of the Schengen area in 2007, Europe has only recently regained a freedom to travel internally that has not existed since the outbreak of the First World War. We have seen recently how this newly regained freedom remains fragile in many respects. These realities - alongside the deteriorating security situation in many Middle Eastern and African countries - are testing Europe's internal solidarity today. Facing them will challenge and change the European Union as fundamentally as any treaty amendment, national election, or monetary crisis.

With our African partners, we have a shared challenge which is much more profound than a refugee crisis. It is long-term, structural, deeply rooted in the economic situation of Africa where even economic growth does not entail immediate job creation but rather triggers social inequalities and increased urbanisation. This is intimately connected to the growing instability that can be observed in the Sahel, or in the Horn of Africa. Such complexity calls for a genuine solidarity between the two sides and a recognition that security and sustainable prosperity are the birth-right of Africans and Europeans, alike and equally.

This week, Africa and Europe are not inventing a new political framework for migration and development. We have it already, most recently reaffirmed at our last EU-Africa Summit in Brussels. Rather, we are setting out a very concrete roadmap to put some meat on the principles both sides agree on. Whether it be on visa facilitation, making the most of remittances for development or fighting smugglers together, this summit is about action, concrete and operational action. Fresh political energy will be injected by over 60 African and European leaders in attendance.

While acting together in this field, Europe must be inspired by respect for Africa's sovereignty, as well as a great empathy and common concern for the continent's pressing concerns. Economy, stability and security as well as governance and the rule of law are the three key challenges. There are many ways in which we are going to be more active and smarter in how we tackle them in partnership. One is a new Emergency Fund for Africa with seed funding of €1.8 billion. On top of our existing development aid to Africa, this new fund will help us - working together - to offer the peoples of Africa a better future at a time when young Africans today often only have a choice between unemployment or radicalisation. This is also why Europe will double the places available to African students and researchers via our Erasmus+ and Marie Skłodowska-Curie programmes.

Our African partners can help at a time of intense migratory pressure by working with us to put in place by the end of 2016 at the latest an administrative infrastructure that can be a model for others on how to manage migration better. This includes making much more progress on poverty reduction and conflict prevention. It also includes the issue of taking back in an efficient manner those who do not yet qualify for a visa, or those who do not require international protection. African officers based in our countries could help us to identify and document their nationals in Europe who may have destroyed their passports to avoid returning home when asked. But the European involvement will not end there: we will help African governments to re-integrate their own nationals and offer them meaningful socio-economic opportunities, including by funding training and educational programmes and creating new revenue streams for struggling communities. We will provide administrative help and more resources to assist African countries to deal with the huge migrations happening within Africa itself.

For over a decade, Malta has warned of the need for a more coherent European approach on migration. In 2005, the appearance of just a few hundred boat people was considered a very serious phenomenon. This year, according to the latest statistics, 1.2 million people have entered the Union irregularly, mainly by sea. But, through breakthrough initiatives like this week's summit, we hope to be in a much better place one year from now. Leaders will hopefully be able to work out a range of priority actions this week for how we get there, and get there quickly.  We want to create a more stable environment for legal migration.

But as I have underlined for many weeks in all my public appearances, and will continue to do so, like Scipio about Carthage: The precondition for conducting our own European migration policy is restoring effective control over our external borders.  

Migration will continue to be a politically destructive issue until true partnership is found between ourselves and others outside Europe, where each country, including our African partners, takes responsibility for its own borders and citizens.  

Equally, European countries have to take co-responsibility for the needs and aspirations of sending and transit countries so that we have real operational partnership on the ground, not just in the language of carefully crafted diplomatic texts. This is our mission here in Valletta. We have not come to make strangers of each other, but to become much closer and better neighbours.   

I want to thank Malta, its prime minister and its people, for everything you have done so far to help. Thank you.

On 10 November 2015, the Council adopted its position at first reading on the reform of the European trade mark system.

The reform of the current system will improve the conditions for businesses to innovate and to benefit from more effective trade mark protection against counterfeits, including fake goods in transit through the EU's territory.

The new legal framework is also aimed at making trade mark registration systems throughout the European Union more accessible and efficient for businesses in terms of lower costs and complexity, increased speed, greater predictability and legal certainty.

The Dutch delegation abstained from voting and the UK delegation voted against the adoption of the draft regulation. The Commission issued a statement.

Next steps

The European Parliament is expected to vote in second reading at a plenary session before the end of the year, thus approving the Council's position at first reading without amendments and ending the legislative process.

Afterwards, the legal texts will be published in the Official Journal of the EU.

The Council adopted the following conclusions: 

1. REAFFIRMS that the EU and its Member States are committed to scaling up the mobilisation of climate finance in the context of meaningful mitigation actions and transparency of implementation, in order to contribute their share of the developed countries' goal to jointly mobilise USD 100bn per year by 2020 from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources of finance. STRESSES the need for fair burden sharing amongst developed countries.  

2. HIGHLIGHTS the contribution of EUR 14.5bn[1] in climate finance from the EU and its Member States for the year 2014, an increase compared to 2013. UNDERLINES that the EU and its Member States support both activities that reduce greenhouse gas emissions and activities that enable adaptation to the consequences of climate change.  HIGHLIGHTS that the EU and some EU Member States have announced scaled up amounts of public climate finance foreseen in the coming years thereby also increasing predictability.   

3. WELCOMES the report by the Organization for Economic Co-operation and Development (OECD) with the support of the Climate Policy Initiative (CPI), at the initiative of the French and Peruvian COP presidencies. WELCOMES the report's preliminary estimates of approximately USD 62bn in 2014 and USD 52bn in 2013 of public and private climate finance mobilised by developed countries, which indicates that substantial progress is being made.  Yet further efforts are needed    and developed countries need to continue to work together towards further scaling-up climate finance to fulfil the 2020 goal. 

4. WELCOMES the important climate finance contributions by some emerging economies and a number of developing countries and REITERATES its call for emerging economies and other countries in a position to do so to contribute to financing adaptation and mitigation of climate change in line with their respective capabilities, circumstances and responsibilities. WELCOMES the recent commitments made by most multilateral development banks to strengthen the integration of climate mitigation and resilience considerations throughout their portfolios including their commitments to scale up their climate related investments. 

5. RECOGNISES that climate finance will be an important part of the 2015 Agreement as a means to reaching the agreed goal of limiting the global average temperature increase to below 2°C above pre-industrial levels, achieving transformational change to climate resilient, low GHG emission, sustainable economies and supporting adaptation to deliver climate resilient sustainable development. PROPOSES provisions on climate finance in the Agreement that are dynamic, outcome-oriented and enable Parties to adapt their approaches to all relevant aspects, in particular future needs and changing economic, fiscal and environmental realities, ensuring that all Parties take action in accordance with their evolving capabilities and responsibilities. STRESSES that such a process should be collective by including all Parties and comprehensive by including all sources and all types of efforts that contribute to the mobilisation of climate finance and the transformation of investment flows supporting the overall objectives of the Paris Agreement. The process should encourage the effective and efficient use of public funds, include periodic reviews and should lead to a more predictable, collectively scaled up mobilisation of climate finance and progression of efforts, while it should not entail automatic public climate finance commitments. This dynamic process should build on the existing processes, institutional arrangements and experiences gained under the Convention with a view to promoting confidence, effective implementation and transparency. 

6. REITERATES that public climate finance will continue to play an important role in the post 2020 period and CONFIRMS that the EU and its Member States will continue to provide public climate finance for mitigation and adaptation action in developing countries including a particular focus on support to the poorest, most vulnerable and those with the least ability to mobilize other resources. UNDERLINES that it should be used in the most cost-effective and efficient way in order to deliver the greatest possible impact whether through mitigation, adaptation or capacity building. 

7. RECOGNISES the private sector as a key source for climate finance and other relevant investment flows and EMPHASIZES that the 2015 Agreement should send a strong signal to the private sector to reorient financial flows to low-carbon, climate resilient investments. ACKNOWLEDGES that private sector finance is complementary to, but not a substitute for public sector finance, where public finance is needed. UNDERSCORES that one role of public finance together with public policy measures is to  reorient and mobilise private finance, for example via carbon pricing, financial instruments such as Green Bonds and public-private partnerships. NOTES that the EU and its Member States have in place and will continue to develop a broad set of instruments to mobilise private sector finance for international climate actions including mobilised local private sector finance. 

8. RESTATES that scaling up climate finance is an iterative process which goes hand in hand with national governments creating enabling environments via domestic development plans, climate strategies, policies, instruments and mechanisms and conducive regulatory frameworks which should contribute to the facilitation of private sector action. HIGHLIGHTS the need for increasing climate-resilient and low-GHG emission sustainable investments including by phasing down high carbon investments. 

9. UNDERLINES that carbon pricing is one of the key components of an enabling environment and can be achieved through a variety of tools, including regulation, emission trading and taxes. In this context, SUPPORTS carbon pricing initiatives as well as initiatives promoting the phasing out of environmentally and economically harmful subsidies.

10. CONFIRMS the EU and its Member States' commitment to report on climate finance in a transparent manner via the UNFCCC reporting process. SUPPORTS strengthened transparency and acceleration of the work towards a robust, common internationally agreed framework for measuring, reporting and verification (MRV) of climate finance flows. WELCOMES the joint statement and methodology on tracking mobilised private climate finance presented by donor countries on 5-6 September 2015. LOOKS FORWARD to the continued improvement of methodologies for reporting over time.  APPRECIATES the joint methodologies developed by the Multilateral Development Banks and the International Development Finance Club for reporting climate finance, the work of the OECD Research Collaborative on tracking private climate finance and the OECD Development Assistance Committee work stream on the Rio markers review. PROPOSES that the 2015 Paris outcome should include provisions for transparency on a broad range of flows (including those between developing countries) and on specific efforts that contribute to mobilising climate finance, developing enabling environments and mainstreaming. 

11. HIGHLIGHTS the importance of supporting adaptation to help make developing countries' development strategies and livelihoods increasingly climate-resilient. UNDERLINES the importance of a balance between adaptation and mitigation finance in line with countries' own priorities and objectives, and HIGHLIGHTS that the EU and its Member States collectively are making, and will continue to make efforts to channel a substantial share of public climate finance towards adaptation, especially by addressing the needs of the poorest and particularly vulnerable developing countries.  

12. STRESSES the importance of support for capacity building for mitigation and adaptation planning and efficient implementation. Further STRESSES the need for developing a pipeline of attractive projects and programs in order to crowd in financial resources and maximise effectiveness. HIGHLIGHTS the EU and Member States' continued support for capacity building for developing countries in need, including in the field of technology cooperation, in the context of Nationally Determined Contributions (NDCs), Low Emission Development Strategies (LEDS), Nationally Appropriate Mitigation Actions (NAMAs) and national adaptation planning processes, including where appropriate, National Adaptation Plans (NAPs). 

13. WELCOMES the operationalisation of the Green Climate Fund, including the decisions to aim for a 50:50 balance between mitigation and adaption over time, and the first approval of projects and programmes. HIGHLIGHTS that a substantial share of the funds committed (46 per cent) and made available comes from EU Member States. UNDERLINES the importance of all countries finalising their contribution agreements. WELCOMES contributions from developing countries to the Green Climate Fund and URGES all countries that are in a position to do so to contribute. PROPOSES that the financial mechanism of the Convention should serve as the financial mechanism of the new Agreement. 

14. WELCOMES the outcome of the Addis Ababa Conference, which strengthens the framework to finance sustainable low-carbon and climate resilient development in the universal 2030 Agenda, and clearly confirms that climate finance is an integral part of sustainable development. NOTES the EU and its Member States' determination to meet their commitment for the provision of Official Development Assistance; EMPHASISES that climate objectives and standards will continue to be important for the EU and its Member States in their Official Development Assistance by mainstreaming these objectives into development planning while focusing on the needs of the poorest and most vulnerable countries.

15. WELCOMES the adoption of the "Transforming Our World: 2030 Agenda for Sustainable Development" and its comprehensive and ambitious set of 17 Sustainable Development Goals, including the goals of taking urgent action to combat climate change and its impacts and the goal to strengthen all means of implementation (financial and non-financial, national, international, public and private) and revitalise the Global Partnership for Sustainable Development. 

 [1]  This figure includes climate finance sources from public budgets and other development financial institutions. The EU and its Member States contributed EUR 9.5bn in climate finance in 2013. The EU and its Member States have collectively scaled up their bilateral and multilateral climate finance from 2013 to 2014. The 2014 figure also includes climate finance from the EIB of EUR 2.1bn and a more complete set of figures based on OECD data on imputed multilateral contributions. 

Directive 2003/48/EC, which since 2005 has allowed tax administrations better access to information on private savers, was repealed by the Council on 10 November 2015.

Repeal of the directive follows a strengthening of measures to prevent tax evasion. A significant overlap had developed with other legislation in this field, and the repeal eliminates that overlap.

Directive 2003/48/EC required the automatic exchange of information between member states on private savings income. This enabled interest payments made in one member state to residents of other member states to be taxed in accordance with the laws of the state of tax residence. The directive was last amended in March 2014 to reflect changes to savings products and developments in investor behaviour since it came into force in 2005.

In December 2014, the Council adopted directive 2014/107/EU amending provisions on the mandatory automatic exchange of information between tax administrations. It extended the scope of that exchange to include interest, dividends and other types of income. Directive 2014/107/EU will enter into force on 1 January 2016.

Directive 2014/107/EU is generally broader in scope than directive 2003/48/EC. It provides that in cases of overlap of scope, directive 2014/107/EU is to prevail.

International developments

Directive 2014/107/EU implements a single global standard developed by the OECD for the automatic exchange of information. The OECD standard was endorsed by G20 finance ministers in September 2014. EU agreements with Andorra, Liechtenstein, Monaco, San Marino and Switzerland, initially based on directive 2003/48/EC, are currently being revised to be aligned with directive 2014/107/EU and the new global standard.

Repeal of directive 2003/48/EC is part of a tax transparency package presented by the Commission in March 2015.

Transitional measures

The repeal was enacted by a directive adopted by the Council, which also provides for transitional measures. These concern in particular a derogation granted to Austria under directive 2014/107/EU, allowing it to apply that directive one year later than other member states.

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

On 5 October 2015, the Council adopted Council Decision (CFSP) 2015/1781[1].

The Council Decision extends existing measures for one person until 6 March 2016 and updates the statement of reasons relating to this person.

The Candidate Countries Montenegro* and Albania, and the EFTA countries Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine and the Republic of Moldova align themselves with this Decision.

They will ensure that their national policies conform to this Council Decision.

The European Union takes note of this commitment and welcomes it.

[1] Published on 6.10.2015 in the Official Journal of the European Union no. L 259, p.23. 

Montenegro and Albania continue to be part of the Stabilisation and Association Process.

On 1 October 2015, the Council adopted Council Decision (CFSP) 2015/1764[1]. The Council Decision allows certain operations concerning specific pyrotechnics referred to in the Common Military List of the European Union necessary for European space programmes. Prior authorisation must be obtained for any of these operations from the relevant competent authority.

The Candidate Countries Montenegro* and Albania*, and the EFTA countries Liechtenstein and Norway, members of the European Economic Area, align themselves with this Decision.

They will ensure that their national policies conform to this Council Decision.

The European Union takes note of this commitment and welcomes it. 

 [1] Published on 2.10.2015 in the Official Journal of the European Union no. L 257, p. 42.

 * Montenegro and Albania continue to be part of the Stabilisation and Association Process.