European Council

It gives me great pleasure to again welcome the President of Georgia, Giorgi Margvelashvili, here in Brussels. 

Overall we are seeing good progress in our bilateral relations. And the strong pro-European stance of the Georgian people is a solid base for Georgia's continued progress in implementing reforms and strengthening democracy and the rule of law.

I am pleased to note that the EU-Georgia Association Agreement will fully enter into force on the 1st of July, and I look forward to working together to reap maximum benefits from it.

We spoke about Georgia's parliamentary elections, due to take place in October. Recent reports about violence against opposition politicians and members of the parliament are of real concern to me. I welcome the fact that the perpetrators have now been charged. Obviously, all steps must now be taken to prevent such incidents in the future. Thank you Mister President for your very clear and tough assessment of these events. What I have heard is really promising.

These elections will be an important test to the strength and resilience of Georgia's democracy. It is our expectation that the Georgian authorities will make every effort to guarantee a respectful, inclusive, and orderly election environment. Free and pluralistic media is an essential precondition for that. I noted with satisfaction the planned involvement of election observers.

I also reiterated to the President the EU's support for Georgia's sovereignty and territorial integrity within its internationally recognised borders. I underlined our firm commitment to conflict resolution and the policy of non-recognition and engagement. The EU Special Representative and the EU Monitoring Mission underscore this commitment.

Finally, we touched upon Georgia's visa-free aspirations. As you know, last December the European Commission confirmed that Georgia had achieved all the required benchmarks for a positive final decision, which I trust will be forthcoming soon. The Commission's proposal to grant Georgian citizens visa-free travel to the Schengen area is currently being discussed by the Council and the European Parliament.

Place:           European Convention Centre Luxembourg (ECCL)
Chair(s):       Ard van der Steur, Minister for Security and Justice
                      Klaas Dijkhoff, Minister for Migration

All times are approximate and subject to change

 Justice (9 June 2016)

+/- 08.30
Arrivals (live streaming)
+/- 09.25
Doorstep by Minister Van der Steur 

+/- 10.00
Beginning of the meeting (roundtable)
Adoption of agenda
(poss) Adoption of legislative A items (public session)
+/- 10.10
Digital agenda (public session)
+/- 10.40
Matrimonial property regimes and Registered partnerships (public session)
+/- 10.50
European public prosecutor's office - EPPO (public session)
+/- 11.50
Fight against fraud to the Union's financial interests by means of criminal law - PIF (public session)
+/- 12.20
European criminal records information system - ECRIS (public session)
+/- 12.55
Adoption of non-legislative A items

Ministerial lunch
"Enhancing cooperation between compensation funds for victims" 

+/- 15.00
Criminal justice in cyberspace 

+/- 17.00 
Press conference (live streaming) 

Home Affairs (10 June 2016) 

+/- 08.30
Arrivals (live streaming)
+/- 09.25
Doorstep by Minister Minister Van der Steur 

+/- 10.00
Beginning of the Mixed Committee meeting (roundtable)
Adoption of agenda
+/- 10.10
Weapons

+/- 11.15
Beginning of Home Affairs meeting
Roadmap to enhance information exchange and information management including interoperability solutions in the Justice and Home Affairs area
+/- 12.00
Fight against terrorism
+/- 12.30
Internal Security: Implementation report on the Renewed EU Internal Security Strategy (2015-2020)

+/- 12.45
Doorstep by Minister Klaas Dijkhoff 

+/- 13.05
Weapons (public session) 

+/- 13.15
Press conference (live streaming) 

Ministerial lunch
"External aspects of migration and challenges of the Central Mediterranean"

 +/- 15.00
Mixed Committee resumes
Migration
Visa liberalisation
European border guard 

+/- 17.35
Home Affairs Council resumes
Visa liberalisation (public session)
European border guard (public session)
+/- 18.10
Migration

+/- 18.45
Press conference (live streaming)

Brigadier General Eric Harvent, a Belgian national, has been appointed as mission commander for the EU training mission in Mali (EUTM Mali). He will take up his duties on 3 July 2016. He will take over from Brigadier General Werner Albl, who has held the post since December 2015.

EUTM Mali assists in the reconstruction of effective and accountable Malian armed forces capable of ensuring the long-term security of Mali and, under civilian authority, restoring the country's territorial integrity. To this effect, EUTM Mali delivers training to units of the Malian armed forces and develops autonomous training capability. The mission also provides advice to the Malian authorities on reforming the army. The mission was launched on 18 February 2013. Its mandate was recently extended to 18 May 2018. The headquarters of the mission are located in Bamako, Mali.

The mission is part of the EU's comprehensive approach to security and development in the Sahel. Two other CSDP missions are in place in the region: EUCAP Sahel Mali, which supports the Malian state to ensure constitutional and democratic order and the conditions for lasting peace as well as to maintain its authority throughout the entire territory; and EUCAP Sahel Niger, which supports the fight against organised crime and terrorism in Niger.

On 8 June 2016, the Permanent Representatives Committee (Coreper) agreed, on behalf of the Council, a negotiating stance on new rules on prospectuses for the issuing and offering of securities. 

The draft regulation is aimed at reducing one of the main regulatory hurdles that companies face when issuing equity and debt securities. It sets out to simplify and alleviate administrative obligations related to the publication of prospectuses in a manner that still ensures that investors are well informed. 

"This is an important reform that will help companies in need of finance to gain access to European capital markets", said Jeroen Dijsselbloem, minister for finance of the Netherlands and president of the Council. “The prospectus is an essential instrument for investors, but legal requirements must not create unnecessary barriers to raising capital."

The Council will confirm Coreper's agreement at a meeting on 17 June 2016, and will ask the presidency to start talks with the European Parliament. The aim is to adopt the regulation at first reading.

A reform of prospectus rules is amongst measures announced by the Commission under its 2014 “investment plan for Europe” with the aim of improving the business environment. 

And it is a second major building block of the EU's 2015 plan to develop a capital markets union. In December 2015, the Council reached a similar agreement on proposals to facilitate the development of a securitisation market in Europe. The capital markets union is due to be fully functioning by the end of 2019. The aim is to strengthen the role of market-based finance, alongside bank finance, in the EU economy. 

Prospectuses present information about a company that enables investors to decide whether to purchase securities issued or offered by that company. The law requires their publication when securities are offered to the public or admitted to trading. However SMEs in particular can be deterred from issuing or offering securities because of the paperwork and costs involved. The draft regulation therefore sets out to provide all types of issuers with disclosure rules that are tailored to their specific needs, whilst making the prospectus a more relevant tool for informing potential investors. 

Transforming an existing directive into a regulation, the text will moreover reduce divergences that have emerged in implementation by the member states. It will enhance the coherence of prospectus rules throughout EU single market, in keeping with the goals of the capital markets union. 

The proposal establishes specific rules for companies already listed on a regulated market that wish to raise additional capital buy means of a secondary issuance, as well as for SMEs. 

It also sets out to achieve greater convergence between prospectus rules and other disclosure rules.

The regulation requires a qualified majority for adoption by the Council, in agreement with the European Parliament. (Legal basis: article 114 of the Treaty on the Functioning of the European Union.)

Wednesday 8 June 2016
Justus Lipsius building - Brussels

from 11.30
Arrival of the President of Georgia Giorgi Margvelashvili
Welcome by the President of the European Council Donald Tusk
(VIP entrance, level 02 - photo/TV opportunity)

+/-12.00
Press Statements
(VIP entrance, level 02)

Access to the VIP entrance (level 02) for the photo opportunity will be granted to all journalists holding an EU Council 6-month badge. 
Journalists without the above badge must send a request by e-mail to press.centre@consilium.europa.eu - deadline Tuesday 7 June at 14.00.

On 7 June 2016 the Council adopted a general approach on a draft directive on the recognition of professional qualifications in inland navigation. The proposal aims to provide new career prospects and promote the mobility of people working in the sector. It sets up a common system of certificates for the entire crew, from apprentices to boatmasters. Holders of such a certificate will be able to practice their profession on inland waterways across Europe.

Melanie Schultz van Haegen-Maas Geesteranus, the Netherlands Minister for Infrastructure and the Environment and chair of the meeting, said: "Through this new EU certificate crewmembers of inland waterway vessels can work without restriction throughout Europe. Newcomers can earn this certificate by demonstrating that they have broad knowledge and skills agreed at the European level. This increases the mobility of workers in the sector and helps to reduce the shortages of qualified personnel."

A single competence-based system for all crew members

The current EU legislation on mutual recognition in the sector only covers boatmasters - and only when they operate on rivers and canals other than the Rhine. The rest of the deck crew is covered by the horizontal directive on the recognition of professional qualifications.

The draft directive will establish a single system that will apply to all deck crew working on any EU inland waterway falling within the scope of the directive, including the Rhine.

The new system will, following calls from the sector and member states, introduce a  competence-based framework similar to those used in other modes of transport.

Better careers in inland navigation

The new system is expected to lower barriers to entry into professions in inland navigation. It will improve career prospects in the sector, making the whole profession more attractive. Automatic mutual recognition will make it easier for people to take jobs wherever they are available. It will also help companies to recruit staff from across Europe. As many companies that are active in the sector are fairly small, increased interest in the profession could help them to expand their businesses, giving a boost to the whole sector. Competence-based qualifications should also improve safety and reduce accident costs.

Strengthening the role of CESNI

The draft directive is, as is the case with the directive on technical requirements for inland waterway vessels, closely linked with the European committee for drawing up standards in inland navigation (CESNI), an international body set up under the auspices of the Central Commission for Navigation on the Rhine (CCNR). CESNI will develop various standards in the field of professional qualifications for the Union and the CCNR. As soon as a standard becomes available, a reference to it will be included in the directive.

Taking into account member states' differing circumstances

The general approach introduces a degree of proportionality into the directive, to take account of the situation of member states with little or no inland navigation activity. In such cases, where objective criteria are met, member states will not be required to transpose the directive or certain parts of it.

How will it become law?

The general approach adopted today is the Council's position for talks with the European Parliament. The Parliament has not adopted its position yet. Both institutions must agree on the text before it can enter into force.

Bolstering the use of inland waterways

Inland navigation is a particularly cost-effective and environmentally friendly mode of transport. The draft directive is one of the measures which aim to improve its quality and promote its use, particularly for freight shipping (NAIADES II package).

On 7 June 2016 the Council adopted mandates that allow the Commission to start negotiations on comprehensive EU-level air transport agreements with four key partners: the Association of Southeast Asian Nations (ASEAN), Qatar, the United Arab Emirates and Turkey.

The agreement with ASEAN is set to become the first EU bloc-to-bloc aviation agreement. The UAE, Qatar and Turkey are among the most dynamic and fastest growing aviation markets. All agreements are directed at allowing market development and growth based on common rules and transparency.

Melanie Schultz van Haegen, the Netherlands Minister for Infrastructure and the Environment and chair of the Council meeting, said: "Europe is showing leadership in its external aviation policy with a balanced approach consisting of market opening based on fair and transparent market conditions."

The goal of comprehensive EU-level aviation agreements is to create new business opportunities, improve market access and ensure fair competition under transparent market conditions. They also aim to increase Europe's international connectivity and ensure a high quality of service for passengers. Airlines, airports and passengers will benefit from enhanced regulatory cooperation and convergence in areas such as aviation safety, aviation security and economic regulation.

The Commission will carry out the negotiations on behalf of the EU and its member states.

Wednesday 8 June 2016
11.30 Meeting with President of Georgia Giorgi Margvelashvili (photo opportunity - press statement ±12.00) - 6-month badge/special accreditation will be required to access the Justus Lipsius VIP entrance

19.00 Working dinner with NATO Secretary-General Jens Stoltenberg and European Commission President Jean-Claude Juncker

Friday 10 June 2016
15.30 Meeting with Prime Minister of Denmark Lars Løkke Rasmussen and the steering committee of the liberal party in Denmark

On 6 June 2016, the Council increased the budget of EUCAP Sahel Mali by EUR 4 925 000, bringing the total budget of the mission for 2016 to EUR 19 million. This EU civilian mission supports the three Malian internal security forces: police, gendarmerie and national guard.

Following security incidents in Bamako, notably the November 2015 attack against the Radisson Hotel, and the March 2016 attack against the EUTM Mali compound, the Council decided to increase the budget of EUCAP Sahel Mali. This will enhance the ability of the mission to support Malian security sector reform and ensure the mission' staff are protected by appropriate security measures.  

EUCAP Sahel Mali supports the Malian state to ensure constitutional and democratic order and the conditions for lasting peace as well as to maintain its authority throughout the entire territory. The mission provides training and strategic advice to the Malian police, gendarmerie and national guard as well as relevant ministries in order to support reform in the security sector. The mission is part of the EU's comprehensive approach to security and development in the Sahel. Two other CSDP missions are in place in the region: EUTM Mali which contributes to the restructuring and the reorganisation of the Malian Armed Forces through training and advice and EUCAP Sahel Niger which supports the fight against organised crime and terrorism.

EUCAP Sahel Mali was launched on 15 April 2014. The Head of mission is Mr. Albrecht Conze, from Germany. His mandate was recently extended to 14 January 2017. The headquarters of the mission are located in Bamako, Mali.

European Council President Donald Tusk will together with European Commission President Jean-Claude Juncker and US President Barack Obama hold an EU-US Leaders meeting in Warsaw in July. The meeting will take place in the margins of the NATO summit and will provide an opportunity to underline transatlantic unity and discuss common political, economic and international security challenges. More details will follow later.

When I look at Europe, one of the stronger elements that brings us and keeps us together is the culture of Europe. And some of that culture required - long, long ago - major investments. The Colloseum in Rome, the Acropolis in Athens and Alhambra in Granada required in their days major investments. And I'm pretty sure that the people who put the money on the table had they focussed on short-term quarterly figures, had not done those investments. Still today millions of tourists still visit Italy, Greece and Spain to see these major European landmarks.  

At the moment, in my mind, many businesses are preoccupied with the short term. If you will, they are preoccupied with keeping their shareholders satisfied in the short run. And spent too little time on their long-term prospects, too little time on competitiveness and innovation for the long run. This holds back the investment levels in Europe and holds back long-term growth and growth in jobs. So one of our biggest challenges is to ensure companies redirect a good amount of their attention from the next quarter to the next decade.

That requires a long-term vision, and explain that in a convincing way vision to their shareholders. Explain that companies need long-term investments to remain innovative, and expand the competitive advantage they have. That's the key question. To motivate these investments. I think basically it's about survival. Investing in time and in the right way. I understand that may reduce cash flows and dividends in the short term.
This is true for all sectors in the economy, be it households and businesses, but also the public sector. Because governments also face this challenge. We levy taxes today and ask our 'shareholders' - the electorate -  to allow us to invest in education and roads. 

To promote the shift towards the long term and to encourage long-term investments, I recently called on big businesses to stop publishing their quarterly figures. That was extreme, and you don't have to take it literally. I don't mean you should stop informing. I mean to shift the emphasis away from quarterly results. Several companies (Unilever, Aalberts Industries and Heineken) have stressed the importance of publishing relevant results instead of the current quarterly figures. Moreover, more and more investors think the same. That's why I'm glad Larry Fink has been hammering on this anvil for some time in his yearly letter to some of the largest companies in the world. And during a meeting I had last week with around 50 of the largest European multinationals, I felt there was a broad need for change. The CEOs of these companies, however, did stress that they cannot do this on their own, and they're absolutely right. We, the governments, need to built a stable foundation to increase long-term investments.

This can be seen on a European level, where over the last few years the economic and financial landscape has changed dramatically. To create a stable environment, governments needed to get their budgets on a sustainable path and countries needed growth-enhancing structural reforms. Many eurozone governments have delivered in this regard. For example, the labour markets in many countries have been reformed. In Spain for example. Moreover, product markets have been reformed. In Portugal and Italy this has opened up various sectors and stimulated economic growth in both countries. And in the Netherlands, we have reformed pensions and the housing market and lowered taxes on labour. These measures have laid the foundations for further economic growth.

We have also taken further steps to increase the supply of finance to the private sector, to allow it to flourish. This has given rise - among other things - to the Juncker-plan and other initiatives to get credit to the economy. We also set up two landmark initiatives: We established the Banking Union at unprecedented speed and started working on the Capital Markets Union. The Banking Union has been set up to make banks more stable and to weaken the link between banks and sovereigns, which was a major risk during the crisis. In other words, to ensure we are 'open for business' again. The Capital Markets Union is intended to cut the cost of raising capital and reduces the high dependence on bank funding throughout the EU. Both initiatives increase the stability and growth potential of the EU economy. 

At the moment under the Dutch Presidency, we have been working on European tax regimes Therefore we are negotiating new rules against corporate tax avoidance on a European level. The principal aim 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. I think we are close to a deal and I hope to see common rules before the end of the Dutch presidency. 

So on the one hand, we are providing clear, shared fundamentals to share our information and battle tax avoidance by European cooperation. On the other hand, we need to remain competitive. Supporting research and development are still welcome. 

I think in the end, we should be realistic about our tax policies. In my mind companies will look for all the legal tax-breaks they can find, but more than anything, businesses want certainty. They want predictable tax regimes that enable them to plan further ahead than next year. This is where governments should facilitate businesses. So the Juncker-plan, the Banking Union, the Capital Markets Union and our tax regimes should make Europe more shock-proof and encourage long-term investment. 

What stands in the way of long-term investments? There are three mechanisms at play in my mind, that cause short-termism.

The first mechanism is asymmetry of information. Shareholders can observe the short-term effects of company policies on share prices, but this is much harder for long-term effects. I think this is why shareholders tend to look back at the last three months instead of forward to the next three years. This means that companies have an incentive to boost short-term results at the expense of long-term results. And it's very hard for shareholders to figure out that this choice has been made. Moreover, following George Akerlof's 'market for lemons' model, shareholders cannot possibly be expected to distinguish a real long term strategy from a strategy that is presented as long-term, but is in fact only meant to cover short-term losses. According to Akerlof, if a company fails to produce the short-term results that shareholders like to see, managers can quite easily claim that the disappointing short-term numbers are not disappointing at all, because the company has increased its long-term value, even if this is not the case. 

We need to address this. I think accountancy can play a vital role in this regard. Accountants can help us figure out relevant indicators to measure a company's long-term strategy. They can help us enrich the meaning of a company's value. Solid, reliable reporting on its long-term strategy can help shift the attention of shareholders and firms from quarterly numbers to the long term.

The second mechanism is remuneration. The current remuneration models depend on short-term results. The experiences of the financial sector during the crisis have learned how harmful this can be for the economy as a whole. But I also think this issue deserves wider attention beyond the financial sector. We can solve this problem by rethinking variable remuneration structures. In the Netherlands, for example, clawback and malus schemes are incorporated into Dutch law. And our Corporate Governance Code seeks to promote remuneration policies that stimulates long-term value creation. The question is, of course, is this enough?

The third and final mechanism simply is human nature. From behavioural economics, we know that people are poor planners who tend to extrapolate future performance from past results. What's more, we tend to overstate the importance of short-term results and disregard future challenges. This is what's known as the 'planning fallacy', which was described by Nobel prize-winner Daniel Kahneman and his collaborator Amos Tversky. The idea is that the time and capital required to complete future tasks and the risks entailed are systematically underestimated. According to Kahneman and Tversky, we succumb to the planning fallacy even when we know that similar tasks in the past took more time and capital, and involved greater risks than envisaged. 

I have no illusions that we can change human nature very easily. But being aware is the start of changing behaviour. We must remove impediments that prevent firms from acting in their own long-term interest and investing for the future. But this can only be done if we work together. Governments can create a level playing field and establish the right parameters. Accountants have to work out a way to calculate long-term figures and assess long-term strategy in a reliable and relevant way.
And companies need to invest. With information that reflects a realistic ambition. With remuneration that reflects the interest of the firm. And with focus on the next decade rather than next quarter. 

We need to establish a business climate with a level playing field, string institutions, a stable and clear policy environment, banks that are open for business and well functioning capital markets. Allowing European businesses to redirect their attention from ticking the investor's box to long-term investments for growth in Europe.

Thank you.

On 2 June 2016, the EU-U.S. Ministerial Meeting on Justice and Home Affairs, hosted by the Netherlands Presidency of the Council of the EU, took place in Amsterdam. This meeting is held usually twice a year, to evaluate and advance Trans-Atlantic cooperation in the areas of freedom, security and justice.

Dutch Minister of Security and Justice Ard van der Steur welcomed representatives of the United States of America, Attorney General Loretta E. Lynch and Deputy Secretary of Homeland Security Alejandro Mayorkas. He also welcomed Commissioner for Migration, Home Affairs and Citizenship, Dimitris Avramopoulos and Commissioner for Justice, Consumers and Gender Equality, Věra Jourová, representing the European Union.

In this Ministerial meeting, the EU and the United States reaffirmed their commitment to  closer cooperation, especially in the context of evolving and shared challenges that affect the security and rights of citizens on both sides of the Atlantic.

Today's signing of the "Umbrella" agreement[1] represented a major step forward in EU-U.S. relations. The agreement sets high standards for the protection of personal data transferred by law-enforcement authorities. It also strengthens legal certainty and enhances the rights of citizens which in turn will facilitate EU-U.S. cooperation to combat crime, including terrorism. The EU and the United States are committed to work together in the implementation of this agreement to ensure that it benefits both citizens and law enforcement cooperation. The next step will be to seek approval by the European Parliament.

During the Ministerial Meeting, the delegations focused on ways to address the migration crisis, on their respective visa policies, and on information sharing in the context of security, on counterterrorism policies and terrorist financing, on money laundering, data protection and on practical cooperation to tackle transnational organised crime.  The exchange of views covered issues including the protection of refugees, global resettlement efforts, effective border management and dismantling organised criminal migrant smuggling networks.

The EU and the United States first discussed ways to address global migration by developing safe, regular and orderly migration processes whilst ensuring international protection for those who need it. The discussion focused on opportunities to mutually reinforce and coordinate their actions in this respect while also establishing high security standards. They agreed that the current migration and refugee challenges require global solutions through increased international cooperation and regional action.  In this respect they reaffirmed their commitment to work together in the lead-up to the upcoming UNGA High Level Meeting addressing large movements of refugees and migrants and to the U.S. hosted Leader-Level Refugee Summit, to be held in September 2016 in New York.

The EU and U.S. exchanged views on visa issues and the respective legal frameworks. They agreed to maintain their constructive dialogue at all levels to achieve mutually beneficial solutions. 

The EU and the U.S. discussed initiatives to improve counterterrorism efforts, including border security, screening of travellers and information sharing, as well as cooperation to better identify terrorist and foreign fighter travel.  They also agreed to reinforce their dialogue on Chemical, Biological, Radioactive and Nuclear material and on its possible use by terrorist networks. They discussed legislative initiatives to improve information sharing, and to streamline efforts to combat terrorist financing and money laundering.

They also discussed a 5 year review of the 2010 EU-U.S. Mutual Legal Assistance Treaty, a key mechanism for transatlantic criminal justice cooperation. The EU and the U.S. confirmed that the Treaty is working effectively and identified areas for further practical improvement. The US and the EU committed to implementing those recommendations. These recommendations include enhancing training and specialisation of practitioners, improving the way joint investigation teams work together, using technology to avoid delays, and making it easier to track criminal proceeds by identifying bank accounts.  Facilitating access to electronic evidence is a particular concern of the review, and the participants committed to improving their practices through which they obtain such evidence.

Following up to the commitment made at the EU - U.S. Summit in March 2014, the EU and the U.S. reiterated their desire to tackle jointly the issue of transnational child sex offenders, acknowledging the operational conclusions of an EU - U.S. expert meeting held in September 2015. The EU and the United States recognized the importance of improving operational cooperation to protect children from transnational sex offenders.

Concluding the discussions, Europol and the US jointly presented the results of a successful EU-U.S. operation that brought together law enforcement authorities from across Europe and the US to dismantle an important drug trafficking network and seize the proceeds of their crimes.

The EU and the United States committed to continuing their regular dialogue and to hold another Ministerial meeting in the second half of 2016. 

 [1] Agreement between the European Union and the United States of America on the protection of personal data when transferred and processed for the purpose of preventing, investigating, detecting or prosecuting criminal offences, including terrorism. 

Thank you for having me here tonight.

It's a good coincidence that at this difficult - perhaps even dramatic - time in the history of the European Union, I have the opportunity to address business people, entrepreneurs and managers. Because today Europe really needs the features that are typical of your environment: responsibility, pragmatism, common sense and numeracy skills. Your sense of practicality has told you to concentrate on the issues linked to your activity. And rightly so, because in fact it is you who decide about things that are crucial for ordinary people: employment, wages, the quality of our everyday environment. Today, however, we must all together think about the challenges of a more general nature. Whether or not we rise to these challenges will affect not only the economic future of Europe, but also its very existence as we know it. At stake is the liberal-democratic order, along with whole catalogue of values and principles, which have become a foundation of Western civilization.

Key to this civilisation was - and still is - a multidimensional notion of freedom as well as respect for rules established precisely to protect that freedom. The birth of that system was directly linked to the needs and desires of those who hundreds of years ago were creating European trade and entrepreneurship. It was for them  the merchants, producers, the sailors  for whom freedom and efficient law enforcement were vital. And it was the economy that determined the establishment of a liberal-democratic order, at the same time becoming its main beneficiary. The history of this part of Europe with its trade centres of Antwerp, Brussels, Bruges and Amsterdam, is the best illustration of this. Please forgive me the historical remark: I am not mentioning this because I am a historian by profession, but because of the necessity of the moment. Simply speaking: from many angles - and for different reasons - the foundations of democratic capitalism as well as Europe's political and axiological position are being questioned. If we fail to interpret these threats accurately, if we make political mistakes or commit the sin of omission, we will not survive in our current shape. That's why it is so important that Europe's business circles do not leave politics to the politicians alone, because that would be gambling in its purest form. It is politics - whether good or bad - that will ultimately decide the future of our continent, including your fields of activity. Politics has returned to the stage. And whether you like it or not, you must also play a part in it, because it is also your right, your duty and your interest to keep a watchful eye on the politicians. Both here in the European institutions, and in national capitals.

Let us focus on two issues. One, we must at all costs maintain and strengthen the political unity of the West. I mean the West in a political - not geographical - sense. We discussed this at the G7 Summit in Japan, among other things. Today it is becoming increasingly clear that a new international order may not necessarily follow our rules. Above all it is about the rule of self-restraint of the most powerful. Today, respect for the rules, agreements, and the institutions which supervise those rules, is not entirely a common phenomenon. And in a world without rules, the most brutal and insolent will be the ones who win, while the weaker and decent ones will lose. If we want to globally and effectively counter events such as violations of territorial integrity, vide Ukraine and Russia, territorial claims at sea, as in South-East Asia, breaching world trade regulations, as in the overcapacity in the steel industry, to mention but a few issues discussed at the last G7 Summit, we must stand united. A world which respects the standards present in the EU and the US, in Canada and Japan, and this is not a full list, is a better world than the one defined by a lack of rules, the use of force and short-term interests. That's why it is so important that in our debate about TTIP, CETA (the agreement with Canada), or EPA (with Japan), we remember about the strategic and geopolitical dimensions of those agreements.

Two, we have to maintain the internal European order. I don't need to explain to anyone present here what dramatic consequences, also economic, would be brought about by Brexit. An interesting forecast was presented by José Angel Gurria, Secretary General of the OECD at the G7 summit. According to him, a UK exit would be a major negative shock to the UK economy, with economic fallout in the rest of the OECD, particularly in other European countries. By 2020, UK's GDP would be over 3% smaller than otherwise. And by 2030, in a central scenario, GDP would be over 5% lower.

It is even worse when we look at the effects of a possible break-up of Schengen. The European Commission calculates the direct costs of 'non-Schengen' to be between 5 and 18 billion euros per year. A study by the Bertelsmann Foundation is even more dramatic when it says that Germany alone would face additional costs of between 77 and 235 billion euros in total by 2025.

Such may be the economic costs of our political mistakes and omissions. But we know that there are more threats, and the migration crisis has shown how difficult it is today to agree a common European answer and foster common determination in the decision process. However, the greatest threat to Europe is self-doubt and a lack of energy in the pro-European mainstream, as opposed to excessive energy among the radicals and extremists. There is no worse prospect for the European economy than the omen of a triumph of anti-liberal and Eurosceptic political forces, whether left or right. We must and can avoid this scenario. The condition is to depart from utopian dreams and move on to practical activities, such as for instance reinforcing the EU's external borders or consistently completing the Banking Union. Forcing lyrical and in fact naïve Euro-enthusiastic visions of total integration, regardless of the obvious good will of their proponents, is not a suitable answer to our problems. Firstly because it is simply not possible, and secondly because - paradoxically - promoting them only leads to the strengthening of Eurosceptic moods, not only in the UK. As one of the key players of European integration Hubert Védrine recently said: "You see governments and parties all over jumping up and down asking for 'more Europe, more Europe!'” “If you want people to massively reject Europe, just keep on." 

While remaining liberal, creative and brave in our social, intellectual and economic lives, in our political lives we should rather be guided by a conservative reflection. Radical and violent political changes will lead us towards entropy and chaos, not towards a better order. Europe in its present shape deserves more patience. An ideological drive forward can end in a disaster. That's why what we desperately need today is cool heads and warm hearts. Not the opposite. 

And let us not forget: when you look too far ahead, you can easily trip over and fall. Thank you.

On 1 June 2016, the Permanent Representatives Committee (Coreper) endorsed, on behalf of the Council, a decision to provide a maximum of €500 million in macro-financial assistance to Tunisia.

The aim is to support economic stabilisation of the country and a substantive reform agenda, contributing to reducing its external financing gap. The support will be shared with the IMF, which on 20 May 2016 extended the arrangement under its extended fund facility for Tunisia for US$2.9 billion.

The European Parliament is expected to approve the decision at first reading at its plenary session on 6‑9  June 2016. The Council will then be called on to adopt the text, as agreed with the Parliament, with no amendments to the Commission's proposal.

Loans

The assistance will be available for a period of two and a half years. It will be provided in the form of loans, to be disbursed in three instalments. The loans will have a maximum average maturity of 15 years.

Conditionality

The assistance will be subject to a memorandum of understanding (MOU), to be agreed between the Commission and Tunisia. The MOU will lay down clearly defined economic policy and financial conditions, focusing on structural reforms and sound public finances.

A precondition for granting macro-financial assistance will be that Tunisia respects effective democratic mechanisms and the rule of law, and guarantees respect for human rights.

The Commission and the European External Action Service will monitor the fulfilment of this pre-condition throughout the life-cycle of the macro-financial assistance.

On 2 June 2016, the European Union and the United States of America signed the so-called "Umbrella agreement" which puts in place a comprehensive high-level data protection framework for criminal law enforcement cooperation. The agreement improves, in particular, EU citizens' rights by providing equal treatment with US citizens when it comes to judicial redress rights before US courts.

The agreement was signed by Dutch minister Ard van der Steur and Commissioner Jourová on behalf of the EU and  by Attorney General Loretta Lynch on behalf of the US authorities. Minister Van der Steur said: "This agreement symbolises the values the United States and the European Union share. It will improve cooperation between US and European Law enforcement authorities when combatting serious crime and terrorism. It will advance the full respect for fundamental rights whenever personal data is being transferred between us."

The "Umbrella agreement" covers all personal data exchanged between police and criminal justice authorities of the EU member states and the US federal authorities for the purpose of prevention, investigation, detection and prosecution of criminal offences, including terrorism.

The agreement will facilitate criminal law enforcement cooperation while, at the same time, providing safeguards and guarantees of the legality of data transfers. Those include, for example, provisions on clear limitations on data use, the obligation to seek prior consent before any onward transfer of data, the obligation to define appropriate retention periods, the right to access and rectification, etc.

The agreement will complement existing and future EU-US and member state-US agreements between law enforcement authorities. It is not in itself a legal instrument for any transfer of personal information to the US but it supplements, where necessary, data protection safeguards in existing and future data transfer agreements or national provisions authorising such transfers.

Next step

After the signature and before the agreement can be finally concluded, the European Parliament will need to give its consent. 

Place:    European Convention Centre, Luxembourg
Chairs:  Henk Kamp, Minister for Economic Affairs of the Netherlands
               Melanie Schultz van Haegen, Minister for Infrastructure and the Environment of the Netherlands

All times are approximate and subject to change

Monday 6 June - ENERGY

+/- 08.30
Doorstep by Minister Kamp

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

+/- 10.15
Adoption of legislative A items (public session)

+/- 10.20
Intergovernmental agreements and non binding instruments between Member States and third countries in the field of energy (public session)

+/- 10.40
Measures to safeguard the security of gas supply (public session)

Messages from the Presidency on electricity market design and regional cooperation

Other business
a)    Communication from the Commission: EU Strategy for liquefied natural gas and gas storage
b)    Security of supply of medical radioisotopes
c)    External relations
d)    Work programme of the incoming Presidency
e)    SET-Plan on nuclear safety

+/- 16.30
Press conference (live streaming)

*           *           *

In the margins of the Council meeting:
09.15
Signing of a Political Declaration on energy cooperation between the North Seas countries

 

Tuesday 7 June - TRANSPORT

+/- 09.05
Doorstep by Minister Schultz van Haegen

+/- 09.30
Beginning of Council meeting (roundtable)

+/- 09.50
NOx emissions from diesel cars + AOB Implications of the emissions irregularities
(public session)

+/- 11.20
AOB - European GNSS programmes (EGNOS/Galileo)

+/- 11.30
Recognition of professional qualifications in inland navigation (public session)

+/- 11.50
AOB - Passenger ship safety package (public session)

+/- 12.05
AOB - Road safety (poss. public session)

+/- 12.15
AOB - Report on the Informal Transport and Environment Council (14-15 April 2016)
(Declaration of Amsterdam) (poss. public session)

+/- 14.30
AOB - Aviation strategy for Europe
-    Conclusions of the European Aviation Summit (Amsterdam, 20-21 January 2016) (poss. public session)

+/- 14.40
Air transport agreements with third parties
-    Association of Southeast Asian Nations (ASEAN)
-    Qatar
-    United Arab Emirates
-    Turkey

+/- 15.30
AOB - EASA Task Force Conflict Zones (poss. public session)

+/- 15.40
AOB - Latest developments in aviation security (public session)

+/- 15.50
Common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency (public session)

+/- 16.10
Preparation of the ICAO Assembly concerning a Global Market Based Measure (Montreal, 27 September-7 October 2016) (poss. public session)

+/- 17.10
AOB - Work programme of the incoming presidency (poss. public session)

+/- 17.20
Press conference (live streaming)

On 1 June 2016, the Council authorised, on behalf of the EU, the signature and provisional application of the economic partnership agreement (EPA) between the EU and the South African Development Community (SADC) EPA Group. The South African Development Community EPA group comprises Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland. 

The signing ceremony of the SADC-EU EPA is due to take place in Kasane (Botswana) on 10 June 2016.

The economic partnership agreements are intended to enhance regional integration and economic development in the African, Caribbean and Pacific (ACP) countries. They are based on the principle of asymmetrical market opening, meaning that they provide a better access to the EU market for ACP partners. They notably offer unprecedented market opportunities for agricultural and fisheries products.  EPAs replace the previous market access regime of unilateral preferences for ACP countries.

Conclusions adopted by the Council on enhancing integrity, transparency and good governance in major sport events proposes several measures to implement these principles at national and European level during all stages of such events (feasibility, bidding, preparation, organisation, evaluation, legacy), including after their closure. 

The conclusions also underline the need for a regular dialogue between member states, the Commission and the sports movement and the role of national, regional and local public authorities in financing, infrastructure, environmental protection, safety and security aspects, as well as in planning and ensuring the sustainability of major sport events.

The Hague, 16 May 2016

Mrs. Emily O'Reilly
European Ombudsman

Subject: Recent initiatives to improve Eurogroup transparency

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

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

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

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

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

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

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

Kind regards,

Jeroen Dijsselbloem
President of the Eurogroup

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

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