European Council

Place:        Justus Lipsius building, Brussels
Chair:        Jean Asselborn, Minister for Foreign and European Affairs of Luxembourg

All times are approximate and subject to change

+/- 08.00
Arrivals

+/- 09.10
Doorstep by Minister Asselborn

+/- 09.30
Beginning of Council meeting
Presentation of the working programme - Luxembourg Presidency  (in public session)

+/- 09.50
Approval of A items (in public session)

from 10.00
Preparation of the European Council (15-16 October 2015)
Commission Working programme 2016

Good afternoon and welcome to this press conference. We briefly discussed the economic situation in the Eurozone, I will let Commissioner Moscovici say more about that. We had a follow-up discussion on the issue of structural reforms, in particular on the tax wedge on labour, which is becoming a test case for us on how we can strengthen our cooperation in the field of structural reforms, how can we push the reform agenda jointly in the Eurozone.

Today we discussed and have decided to develop the instrument of benchmarking for the tax burden on labour to follow and stimulate developments in countries of the Eurozone on this issue.

It has to do with competitiveness and the functioning of the labour market, and there is a lot of potential there for us to improve. We will both benchmark on the EU average and also closely follow how we do in relation to the OECD average. There is a statement which will be distributed to you on the issue of benchmarking structural reforms and specifically on the tax wedge on labour, so I will refer for time's sake to that statement.

On Greece, we took stock of latest developments, we were informed by our Greek colleague, who is of course part of the caretaker government. He confirmed that preparatory work of the caretaker government is thus continuing and that implementation, for as far as it does not require further parliamentary decisions, will continue. All of that, of course, in order to lose as little time as possible. From our perspective we can of course only respect the democratic process and will await the election results. Timely implementation of reforms and next steps to take, after the election, is of course crucial and time is limited.

Then on Cyprus, the institutions briefed us on the positive outcome of the seventh review. We all welcomed the progress. Economic recovery is under way in Cyprus and it's actually stronger than was expected at the beginning of the year, picking up quite strong fiscal outturns also above forecast, and the determined reform implementation by the Cypriot government is bearing its fruit.

We endorsed in principle an updated MoU and the eighth ESM disbursement, perhaps Klaus can say more on that. National procedures can be launched on this and hopefully we will have formal approval early in October.

Finally on the Banking Union, the Commission very sternly spoked to us on the implementation process of both BRRD and the IGA. Luckily, all ministers could report progress on this. Progress is being made in different countries; only last week in the Netherlands, parliament agreed to the BRRD, and the IGA was also ratified in the senate, so we are also doing our part. This is also the case in other member states and it's crucial of course because these elements need to be fully operational on the 1st of January 2016.

Those were the key issues for me for now. Thanks for your attention and I pass the floor to Commissioner Moscovici and MD Regling.

The Eurogroup welcomes the successful conclusion of the seventh review mission in the context of Cyprus' macroeconomic adjustment programme, which took place in July. The fiscal developments continue to exceed expectations, the financial situation of the banks is showing signs of gradual improvement and some progress has been noted on important growth-enhancing reforms. The Eurogroup is encouraged that the economic recovery in Cyprus is gaining strength, the labour market showing signs of stabilization, although unemployment remains at a high level, and that the economy showed overall resilience in the past months. 

The Eurogroup recalls that addressing the excessive level of non-performing loans remains a top priority for Cyprus in order to reignite credit growth and ensure that banks continue to improve their resilience. In this regard, we stress the importance of an effective implementation of the recently enacted insolvency legislation and of the enhanced foreclosure framework, together with other measures adopted recently to speed up the reduction of arrears. The determined pursuit of financial sector reforms, including legislation to facilitate the sale of loans, remains necessary to secure a decisive reversal of the non-performing loan trend.

The Eurogroup commends the Cypriot authorities for the progress that has been made to date, and calls on them to keep up the reform momentum. The timely implementation of the growth-enhancing reform agenda, including privatisation and public administration reform, is essential in order to restore Cyprus' growth potential, while safeguarding the protection of the most vulnerable groups.

The Eurogroup agrees to endorse in principle the updated Memorandum of Understanding as well as the disbursement of the next tranche of financial assistance to Cyprus. We consider that the necessary elements are now in place to launch the relevant national procedures, paving the way to the formal approval by the ESM governing bodies of a disbursement of EUR 500 million in October. Concurrently, the IMF Executive Board is expected to decide on the disbursement of about EUR 125 million.

Following our agreement in September 2014 on common principles guiding euro area Member States' reforms to reduce the tax wedge on labour, the Eurogroup has discussed benchmarking as a tool to further inform and support reforms in this area.

The Eurogroup recalls that lowering the tax burden on labour has the potential to boost growth and support employment, as well as contributing to the smooth functioning of the EMU. The reforms undertaken recently in this area are steps in the right direction, and additional efforts should be pursued. Against this background, the Eurogroup considers benchmarking to be a useful tool for highlighting the possible need and scope for reform in this field in individual Member States and in the euro area as a whole.

The Eurogroup has agreed to benchmark euro area Member States' tax burden on labour against the GDP-weighted EU average, relying in the first instance on indicators measuring the tax wedge on labour for a single worker at average wage and a single worker at low wage. We will also relate this to the OECD average for purposes of broader comparability. This benchmark fulfils a number of criteria which should be met for a benchmark to be effective. It is simple, measurable and under the control of policy makers.

This benchmarking exercise, together with a continued exchange of best practices within the Eurogroup, can provide valuable support for further labour tax reform initiatives at the national level where applicable, thus giving fresh impetus for carrying reforms forward in euro area Member States. The benchmarking exercise will take place within the context of existing processes and surveillance mechanisms, in particular the European semester monitoring. The Eurogroup will also take stock of the state of play in the reduction of the tax burden on labour when discussing the draft budgetary plans of euro area Member States.

As the tax burden on labour interacts with other labour market features, monitoring needs to be part of a more comprehensive approach, examining the level of labour taxation in its full country-specific policy context, in line with the common principles adopted in September 2014. A full assessment of the urgency - and the potential benefit - for any given Member State to reduce the labour tax wedge should also make use of, indicators and country-specific information on, inter alia, the actual economic situation, in particular employment levels in specific demographic groups and overall, the  level and design of social protection (including its impact on the level of social security contributions), total labour costs dynamics over the medium run and other labour market features. Moreover, in line with the common principles adopted in September 2014, given limited fiscal space, reducing the tax burden on labour should be accompanied by either a compensatory reduction in (non-productive) expenditure, or by shifting labour taxes towards taxes less detrimental to growth, in full respect of the existing EU economic surveillance framework, in particular the Stability and Growth Pact.

"We would like to sincerely congratulate Prime Minister Lee on his reappointment in this historic year for the people of Singapore. We wish him every success in his renewed mandate and look forward to continuing the excellent cooperation we enjoy.

Our Free Trade and Partnership and Cooperation Agreements will deepen our bilateral ties and enable us to better address emerging global challenges. These Agreements will also serve as stepping stones for greater engagement between the EU and Southeast Asia.

 As Singapore prepares for the future, we look forward to meeting Prime Minister Lee to discuss the next chapter of our relationship."

 

Monday 7 September 2015
20.30 Keynote speech at the Bruegel Annual Dinner (Brigittines Performing Arts Centre)

Tuesday 8 September 2015
Visit to Israel
17.00 Meeting with President Reuven Rivlin
19.30 Joint press statements with Prime Minister Benjamin Netanyahu followed by working dinner

Wednesday 9 September 2015
Visit to Israel
09.00 Visit to the Holocaust History Museum Yad Vashem

Visit to Ramallah
13.30 Meeting with President of the Palestinian Authority Mohamud Abbas

Visit to Turkey
Meeting with President Recep Tayyip Erdoğan followed by press statements

Thursday 10 September 2015
Visit to Turkey
Meeting with Prime Minister Ahmet Davutoğlu (time tbc)
Visit of a refugee camp

Friday 11 September 2015
Visit to Cyprus
11.20 Meeting with President Nikos Anastasiades followed by press statements
13:00 Official working lunch hosted by President Nikos Anastasiades
15:00 Meeting with the leader of the Turkish Cypriot community Mustafa Akıncı

Thank you for that introduction and those thoughts. I am very glad to be here this evening. First, I want to congratulate Bruegel on a successful decade spent shaping and influencing Europe's economic debate. Not only in Brussels, but in many European capitals. I am personally very happy that my own country, Poland, was one of the founding members of your think-tank. Congratulations once again and keep up the great work. 

To begin with, I must confess that I have a kind of an eccentricity, or at least a political extravagance: I am very proud of Europe and really happy that I was born on this very continent. Contrary to all of today's radicals, notoriously outraged intellectuals and the European Union's external adversaries, I still perceive Europe as the best place on Earth. I am also ready to risk being criticized by modern and progressive politicians and thinkers, when I declare my allegiance to liberal democracy, the free market and a political philosophy founded on common sense and moderation. This also means the readiness to protect Europe the way she is now, together with all her problems, the "decadent Europe", as she is called by her enemies, without a strong ideology, diverse and very difficult to govern, with her never ending negotiations, just like the Greek poleis, arguing with each other even in the face of the Persian threat. 

Surely the European Union is not the best of all possible worlds.  But for sure it is the best of the existing ones, and in my view, the best among those that humankind has seen across the centuries. Europe is relatively safe and prosperous, and shows respect for the rule of law and rights of individuals. The poor are offered help, universal education and medical care are provided for. We are not perfect, but are still doing better than at any other time or anywhere else. Europe has also found a way how to durably substitute conflict and violence for dialogue and consensus. 

What also fills me with great pride is that Europe is the only place where the idea of solidarity is treated as a supreme political principle, or even more, as the main purpose of her existence. Today's disputes about how to apply solidarity in practice, especially in the context of refugees, show us that although we are far from perfect, we address this idea with all seriousness. 

Is this not enough to defend Europe? We should defend Europe hic et nunc, here and now, the Europe that exists in reality, and not as an ideal appearing in the dreams and visions of ultra-European ideologists. We all know that beautiful ideas, in particular the idea of progress, the better they sound the more destructive potential they may have. As a historian and a man with a painful personal experience of ideological experiments, (I lived under a Communist regime for the first half of my life) I am driven by very firm convictions in this regard. 

Life has also taught me that values are more important than ideologies, while realistic pragmatism is more important than utopian visions. That is why today, in the face of different crises and threats, I propose that we abandon revolutionary thinking and reflect on how to strengthen the Union in its current framework. 

In that regard, let us recall where the European Union was this time ten years ago, when Bruegel started its work. In September 2005, the Union was in a deep political crisis after the rejection of the constitutional treaty by voters in France and the Netherlands. That period of constitutional confusion ended four years later when the Lisbon treaty was finally ratified in 2009. What was the reason for wasting those years? I believe that the European project had drifted too much towards political day-dreaming and too far away from real life. 

In today's Europe there are even more risks than what we experienced 10 years ago. It is therefore necessary to properly assess them but above all we need to see everything in the right proportions. Problems do not imply catastrophe, neither today nor tomorrow, and even the loudest choir of today's Cassandras will not change this fact. We must not give in to hysteria nor put faith in empty promises of the third way or the new order because this might actually lead us to the brink of disaster. 

Instead of revolutionary thinking and sudden systemic changes (for instance big treaty changes) we should use every possibility to improve and correct the current system. Most importantly we should try and apply the rules and principles existing today with greater determination and engagement. Following the current rules would help us to avoid the many problems of the Eurozone, as well as those resulting from the new migratory pressure. Step-by-step action is a fine European tradition. This is why I prefer evolution to revolution and that is how our community was built. I can understand people's impatience. We all would like things to happen quickly. But let us get a proper perspective. Compared to the dollar, the currency of a federal nation for over 200 years, the euro is the currency of sovereign nations and is only 16 years old. Therefore, it is a much more difficult project and so it demands much more patience from us all. 

How to improve our Economic and Monetary Union? The missing links towards realising this vision were pointed out by the 5 Presidents' report, prepared by the presidents of the European institutions. Tonight let me mention three key elements that in my view require special attention. These are: a proper European deposit insurance scheme, a true capital markets' union and a euro area system of competitiveness authorities. These are the natural next steps in the evolution of the EMU and are in my opinion, politically more realistic, although still far from easy, than any treaty change. 

Let us start with the common deposit insurance scheme that would complement the banking union and make it more compatible with monetary union. Being here tonight in the company of distinguished economists I will not dare to pretend that I know more about the economic benefits of such a scheme than you. And so I will refrain from explaining them in detail. But as a politician let me share with you one political benefit of this EMU reform. However difficult the reform may seem, it does not require a treaty change. I am well aware that some politicians, not least in Germany, would disagree but their claims are either an overstatement or an excuse not to change. Legal advice is clear on this. We can introduce the European deposit insurance scheme within the current legal framework. Therefore before asking for more ambitious changes let us give this one a try. I assume most economists would agree that introducing a common deposit insurance scheme will strengthen the EMU. And not only because it would help avoid the unfortunate scenes that we witnessed outside banks and ATMs in Greece earlier this year. 

If someone is not convinced then I invite them for a trip across Europe to check the chances of a harmonious treaty change ratification process. My bet is zero. Let us therefore try to introduce the changes that are politically realistic and at the same time very ambitious. I apologise for the simplification but a little piece of something is better than all of nothing. And I am convinced that the very real political obstacles that exist, such as concerns about moral hazard, can be overcome through a prudent design of the system. 

Another evolutionary step towards financial union is the creation of a single European capital market. Again I do not need to state in this room that an integrated capital market is key to making the single currency work better. 

Finally, I would like to refer to an idea that was also developed here at Bruegel, namely a Eurozone system of independent competitiveness councils. Divergences in competitiveness within the Eurozone contributed greatly to the recent crisis and still remain a serious issue. Therefore a renewed focus on this in each and every state, as well as at European level, deserves proper reflection. 

Let me use this opportunity to appeal to finance ministers, who are now working to implement the 5 presidents' report, to speed up the work on the ideas I have just mentioned. EMU can be reformed now and it is up to Member States to deliver. 

Tonight, I am making a plea for pragmatism and moderation. These are the very same principles that should guide our response to the other challenge facing Europe: the huge and increasing number of refugees. EU countries will not change their migratory policies overnight. But our attitude to refugees is in fact an expression of European solidarity inside of Europe. The countries that are not directly affected by this crisis and have experienced solidarity from the EU in the past should now show it to those in need. Today, it is truly a paradox that the biggest countries in Europe, like Germany and Italy, need solidarity from others. 

At the same time we should seriously address containing the uncontrolled migration by strengthening the borders and getting the keys to our continent back from the hands of smugglers and murderers. The two approaches of solidarity and containment need not be mutually exclusive. It would be unforgivable if Europe split into advocates of containment symbolized by the Hungarian fence and advocates of full openness voiced by some politicians as the policy of open doors and windows. 

Today, I call on all EU leaders to redouble their efforts, when it comes to solidarity with the members facing this unprecedented migratory wave. Accepting more refugees is an important gesture of real solidarity but not the only one. An enormous effort is also demanded of the European institutions. Humanitarian efforts to contain migratory flows will require much greater engagement from Europe. It means a major increase in spending. When we talk about new reception centres, better protection of the borders or development aid for the countries outside the EU, much more money will be needed. The consultations I have had with the leaders in the recent days seem very promising and their pledges clear. Crucial in this matter will be cooperation with third countries. This is the reason why I am going to visit Turkey and organise a summit on migration in Malta with the African countries. But let us have no illusions that we have a silver bullet in our hands to reverse the situation. The present wave of migration is not a one-time incident but the beginning of a real exodus, which only means that we will have to deal with this problem for many years to come. Therefore it is so important to learn how to live with it without blaming each other. Also, we should not feel ashamed of our emotions. Compassion is one of the foundations of solidarity, but in order to be able to help others we ourselves must be pragmatic at the same time. We are now experiencing one of the most classical political dilemmas, that is a conflict between the protection of our borders and solidarity towards the refugees. Wise politics doesn't mean having to choose one value over the other, but to reconcile the two to the degree possible. In this case pragmatism should be the First Commandment. 

My background makes me incurably suspicious of political actors offering illusions to the naïve. I grew up with the consequences of that kind of politics. I have been a politician for 25 years and I can assure you that this is a time when those on the political extremes will waste everyone's time by promising the impossible. That includes those populist parties that call the Eurozone "a mousetrap" and advocate undoing reforms that Europe needs. It also includes those who promise zero immigration and tell their voters that they can shut out the world if they get elected. 

Democratic capitalism is still the best model of organising the economy because - unlike rigid ideology - it does not break in tough times, it adapts to its environment. The best proof of this is the unique experience of my country and its clear success in the last twenty five years where we undertook   permanent actions to reconcile democratic capitalism with solidarity. And please let us not forget that we were coming out of a much harder crisis than the Greek one. (My point of view is that of a practitioner not a theoretician.) 

Pragmatic European leadership, both on the level of national states and pan-European institutions, must focus on practical solutions. Problems that we encounter presently can be overcome on condition that they do not become an excuse to turn Europe upside down. Equally important are mutual loyalty and solidarity among European players. 

On every issue on today's agenda: migration, the Greek crisis, war in Ukraine, terrorism, a potential Brexit; we take action, which - if only we are sufficiently loyal to one another and stand united - will bring about positive results. We will continue to live with the problems longer than we would like to - but this is not the reason to question our European principles. 

We need to think about our Europe with greater tenderness and patience. We need to protect her not only against external threats when they appear, but also against internal temptations for revolutionary and total changes. The European Union certainly needs to adjust and improve itself, and it must do so constantly, but under no condition should we undermine the very essence of Europe or the political and legal norms of the Union. In that respect, our patience will achieve more than our force in these times, as Edmund Burke once said. Thank you.

Ladies and gentlemen,  

Let me start by thanking my esteemed colleague in the Eurogroup and your Minister of Finance Hans Jörg Schelling for his kind invitation to visit beautiful Tyrol.

Since February the spotlight has been on Greece. I was not very happy about that. We spent many meetings before reaching an agreement on a new program. Greece is in many respects lagging behind the positive outlook for the Eurozone. Almost all countries are leaving the crisis behind. Eurozone-averages on growth, employment and deficits have all improved and continue to do so. Only a year ago the eurozone was considered a liability to the global economy, now it is one of the stronger regions internationally.  

Greece will require ownership and strong implementation of the program and of course political stability, which is key. Other former program countries have recovered strongly; Ireland even leads the growth-chart.

That's where we are now: Greece deserves attention, the rest of the eurozone is getting back on track.

Yet we cannot sit back and relax. The potential growth in the eurozone is not high enough, our capacity to adjust and compete is not good enough. In order to strengthen our monetary union economically and politically we need to restart the convergence-machine. 

That is why, in the report president Juncker, Draghi, Tusk, Schulz and myself wrote before the summer, we put much emphasis on realizing reforms to strengthen and create competitiveness of all of our countries and convergence within the Eurozone. 

We need convergence in a number of areas like labour markets, product markets and investment. But convergence can't be achieved automatically. It doesn't come easily. 

When the euro was launched, many politicians assumed that trailing member states would spontaneously catch up with higher-income economies.

And in fact, in the first years of the new millennium per capita GDP actually rose among the euro's early adopters with relatively weaker economies. 

As a consequence, the economy of the eurozone as a whole flourished, which in turn helped boost public support for monetary union. Unfortunately a lot of the growth was based on cheap credit. Credit used for consumption and investments in the wrong sectors of economy, in stead off improving the structural strength of the economy. We incurred debt to finance prosperity. So the rise turned out to be temporary.

When the global financial crisis struck, the catch-up process was rapidly reversed. Member states even started drifting further apart. Now it's time to restart the convergence process in order to strengthen the eurozone.  

It's no coincidence that per capita GDP development is expected to be above the eurozone average in countries without economic imbalances. Countries like the Baltic States and Slovakia. And countries that have implemented ambitious reform agendas, like Spain, Portugal, and Slovenia, have also followed an upward trajectory. However, more still needs to be done.  

It's a legitimate question whether the lack of convergence is a problem for the eurozone as a whole. Does the discrepancy in income levels put the monetary union in jeopardy? Can the eurozone survive despite diverging member states? Maybe it can. But it would be difficult to stop public support from unraveling either directly or indirectly because of increasing economic differences. Public support is the basis for our work on achieving sustainable growth and preserving the European social model. In the Eurogroup we are very aware that the EMU's existence is justified only as long as people are convinced it enables them to build a prosperous life. Without that support, the union has little in the way of foundations.   

There are of course other, more economic arguments for fostering convergence. Let me mention three I see as especially compelling.

Firstly, within the euro area business-cycle symmetry seems to be higher for countries with comparable income levels. This increases the effectiveness of monetary policy. Secondly, the policies that stimulate convergence in our union also strengthen the resilience of its member states to economic and financial shocks. And thirdly, our internal market makes it possible for the eurozone as a whole to benefit from a higher real income in individual member states.  

Although the argument for convergence is convincing, I'm aware there is also an aspect that's less appealing to member states. Eurozone countries cherish their individuality. We are used to doing things our own way. But we must realize that we can't be part of a union and at the same time approach economic policy as a purely domestic matter. Sustainable convergence will require more policy coordination. But there will still be plenty of room for the member states to make their own choices.  

Now let's take a look at Austria. Its strong economic performance in terms of GDP per capita over the last two decades certainly sets an example. Unemployment is relatively low and labour force participation is high. 

This country has been able to make full use of its less restrictive and less complex rules and regulations for its product markets. You've also increased your R&D expenditure to three per cent. That's well above the eurozone average. 

The question is how other parts of the eurozone can adopt the policy elements that have led to these successes. And you in turn might consider how Austria can learn from its fellow member states in order to boost its GDP further.  

The tax burden on labour is a good example of an area in which we have a lot to gain. As you know, the tax wedge in euro area member states is among the highest in the world. This reduces the incentive to find a job and to hire new staff. Shifting the tax burden away from labour will boost growth, external competitiveness and employment. We've discussed this issue in the Eurogroup and made countries aware of it. We've compared ourselves in this area and affirmed our commitment to reducing the tax wedge and making reforms.  

We're seeing the first results already. Let me give you some examples. Estonia has taken several measures across the board to reduce the tax wedge on labour. France and Italy have lowered the tax burden on labour for low-earning households. 

Spain has introduced a simpler tax system, including lower personal income tax rates. This summer the Belgian government announced a tax shift from labour to revenue sources that are less harmful to growth. In the Netherlands we're about to announce lower cost for both workers and employers. And last but not least, Austria is taking action as well. This government has presented a comprehensive tax reform that will reduce the entry rate for personal income tax. 

At the next Eurogroup meeting we will explore the scope for benchmarking the tax burden on labour, and we will closely follow the progress made.  

But the tax wedge is just one area we need to focus on. We should also address the broader issue of labour markets, opening up product markets and improving our investment climate. And more importantly, if we want to remain a strong and competitive partner for trade and investment, we simply cannot afford to be average. We need countries to commit to catching up with - or even exceeding - the eurozone's highest level.  

As mentioned, we've reiterated the importance of convergence for the EMU's smooth functioning in the Five Presidents' report.

Stepping up economic policy coordination in the eurozone requires political ownership. It should be a concerted effort, in which the member states wave the baton as much as the European Commission. I will promote these discussions in the Eurogroup to help identify the policy areas which are essential for real convergence.

We need to translate this into a common ambition by setting simple, measurable benchmarks that foster best practices and concrete timelines. And let me stress again that, for the eurozone, achieving the average is not ambitious enough.  

 

Ladies and gentlemen,

Time for me to conclude. After a period of crisis management the Eurozone has come out of the crisis in a strong way. The situation in Greece has not damaged the recovery path of any of the other countries. We have build a new fiscal policy, the ECB has done “whatever it takes”, we have realized in record-time a banking union which has made a successful start. Now we must deal with our structural issues. To become once again a leading economic region.

And the Eurogroup will play an active role in this. To quote conductor Claudio Abbado, who once said about the Vienna Philharmonic: 'I don't conduct them; I make music together with them.' And when the musicians play together in tune, the orchestra never ceases to amaze the world. 

The Eurozone must do the same.

Thank you.

 

Place:             Justus Lipsius building, Brussels 
Chair(s):        Mr Fernand Etgen Luxembourg's Minister for Agriculture,
                        Viticulture and Consumer Protection

All times are approximate and subject to change 

+/- 14.30
Adoption of the agenda

+/- 14.45
Market developments

AOBs:
- Drought in Eastern Europe
- African swine fever

+/- 18.00
Press conference

On 4 September 2015, the Council adopted by unanimity its position on the draft 2016 EU budget. This confirms a political agreement reached by the Permanent Representatives Committee in July.

The Council's position constitutes the basis on which the European Parliament will decide by the end of October whether it adopts amendments. In this case, the Council's position will serve as a mandate to the Luxembourg presidency for subsequent negotiations with the Parliament.

"I am pleased that today the Council formally adopted its position on the draft EU budget for 2016. The unanimous support provides the presidency with a particularly strong mandate for the negotiations with the European Parliament in the autumn which we wish to hold in a spirit of loyalty and good inter-institutional cooperation. The current economic situation requires resources to be focused on jobs, investments and growth while respecting budgetary discipline and sound financial management. I am convinced that the Council's position strikes the right balance between Europe's priority investment needs and member states' economic and budgetary constraints", said Pierre Gramegna, minister for Finance of Luxembourg and President of the Council.  

Balanced position, adequate funding  

The Council's position provides for €153.27 billion in commitments and €142.12 billion in payments. Taking into account both past implementation rates and likely future absorption capacities, these are realistic amounts which will allow for proper policy implementation and allow the EU to ensure adequate financing of its priority areas. These include measures to stimulate economic growth, create jobs, and manage migratory flows. The Council's position reflects the payment plan agreed with the Parliament on the phasing out of outstanding payment claims for the 2007-2013 cohesion programmes. And it respects the deal reached with the Parliament on the European fund for strategic investments.  

Substantial payment increases for priority areas  

The policy areas with the largest payment increases compared to the 2015 EU budget (as amended) include external policy (+22.4%), action in the area of security and citizenship, including migration (+15.4%) as well as research and other measures aimed at increasing competitiveness (+8.6%).  

Sufficient margins  

The Council's position foresees a reduction of €563.6 million in commitments and €1.4 billion in payments compared with the Commission's original proposal. This shows that the Council is determined to avoid placing unnecessary burdens on member state budgets at a time of fiscal consolidation. At the same time it means that the EU will have sufficient margin within the budget to react to unforeseen events and needs.  

A summary of the Council's position is set out in the table below:

  Appropriations by headingbillion €commitmentspayments

1. Smart and inclusive growth:

a) Competitiveness for growth and jobs

b) Economic, social and territorial cohesion

69.6

18.8

 

50.8

65.9

17.1

 

48.8

 

2. Sustainable growth: natural resources:

of which market related expenditure and direct payments

62.9

42.7

55.6

42.7

3. Security and citizenship:2.62.24. Global Europe:8.79.15. Administrative expenditure (for all EU institutions):  8.9  8.9  Special instruments:0.50.4Total appropriations153.3142.1In % of EU-28 GNI1.040.97 Next steps

If the European Parliament adopts amendments to the Council's position, a three-week conciliation period will start on 29 October 2015. The aim of this conciliation process is to arrive at a joint position of both institutions on the budget. This should happen by 18 November 2015 at the latest.

Good morning. Prime Minister Orbán has requested to see me and other leaders of the European institutions to discuss the situation in Hungary as a matter of urgency. Not everyone is a fan of the controversial solutions proposed by Prime Minister Orbán and I can understand why. However, one thing is clear, Prime Minister Orbán took action to strengthen the protection of the EU borders.

But in light of the huge and increasing number of refugees, European countries need to do more. Everyone realises that EU countries will not change their migratory policies overnight. But everyone should also realise that today our attitude to refugees is in fact an expression of European solidarity inside of Europe. The countries that are not directly affected by this crisis and have experienced solidarity from the EU in the past should show it to those in need. Today it is truly a paradox that the biggest countries in Europe, like Germany and Italy, need our solidarity. So does Hungary.

At the same time we should seriously address the containment of the wave of migration by strengthening the borders and getting the keys to our Europe back from the hands of smugglers and murderers. The two approaches of solidarity and containment must not be mutually exclusive. It would be unforgivable if Europe split into advocates of containment symbolised by the Hungarian fence and advocates of full openness voiced by some politicians as the policy of open doors and windows.

Now are times of a major test for all EU members. Therefore I call on all EU leaders to re-double their efforts, when it comes to solidarity with the members who face this unprecedented migratory wave. Accepting more refugees is not the only but an important gesture of real solidarity. Fair distribution of at least 100.000 refugees among the EU States is what we need today.

If leaders do not demonstrate good will, solidarity will become an empty slogan and will be replaced by political blackmail, divisions and a new blame game.

Reception centres where asylum requests are handled should be built closer to conflict areas outside Europe, where refugee camps already exist. These centres should be a way to get to the European Union for all asylum seekers. The EU should increase our assistance to the countries bordering with conflict areas in ensuring protection to those who are in danger. We are talking about Turkey, Jordan, Lebanon, Morocco and other partners in the region.

It will also demand an enormous effort of all institutions. Humanitarian efforts to contain migratory flows will require much greater engagement of Europe. It means a major increase in spending. When we talk about the new reception centres, better protection of borders or the economic development aid for countries outside the EU, much more money will be needed. Therefore leaders will need to decide on this as well when we meet in October.

Finally let me make a personal comment with reference to PM Orbán's article in Frankfurter Allgemeine Zeitung . I want to underline that for me, Christianity in public and social life carries a duty to our brothers in need. Referring to Christianity in a public debate on migration must mean in the first place the readiness to show solidarity and sacrifice. For a Christian it shouldn't matter what race, religion and nationality the person in need represents. Thank you.

I am very happy to be here with you today. The more difficult the times, the more important it is to be in good company. The timing could not be better. Nor could you have chosen a more fitting theme for your annual conference: "The European Union in a changing global environment". The Union's representatives, delegations and missions abroad are our eyes and ears - and our voice - on the ground. Perhaps it sounds like a slogan but I really mean it. And I know it not only in theory or from documents and articles but also from my own experience. You are an indispensable part of Europe's response to a global environment that has grown more challenging and you will have an even more crucial role to play in the coming months. I will speak in more detail about the priorities in a minute.

First, I would like to thank you sincerely for the help you have given me since I took up the responsibility as President of the European Council, to represent the Union externally. Whether it has been hosting summits, visiting third countries, from Washington to Tbilisi, Yerevan to Baku, Tunis to Kiev, Tokyo to Chisinau, or engaging with foreign leaders, I have felt completely supported every step of the way.  Thank you very much, from my heart, not only an official compliment, I was really impressed.

When I took up office last December, my external priorities were:
To protect the fundamental values of the European Union from external threats;  
To make the Union strong internationally, starting with securing our borders and supporting those in the neighbourhood who share our values;
To prioritise strengthening the transatlantic relationship since the ties between Europe and the United States are absolutely essential to both our futures.

You will find that nothing has changed in my thinking since then except that these priorities are more urgent than ever and the consequences of failure more apparent.

When President Poroshenko visited Brussels last week, it was an opportunity to review the ongoing conflict in Ukraine and our response. The new call to respect the ceasefire, in place since Tuesday, and the vitally important deal on debt reduction for Ukraine are very welcome. Let us hope for the proper implementation of the Minsk agreement, which has come dangerously close to falling apart over the past few months. The latest dramatic events in Kiev only prove how difficult the process has been.   

Of course, I am pleased that the Union has maintained its unity on the sanctions imposed on Russia after the illegal annexation of Crimea. The way forward is to re-double our efforts to support the reform process in Ukraine and to resist attempts to destabilize the country. Ukraine's case is a test of Europe's fundamental values in the neighbourhood. Countries in the region are watching to see whether sovereign borders can be violated, because this has huge implications for their own security. They want to know whether the future is the rule of law, or the mix of muscle and corruption they have known in the past. Ukraine's future is a mirror image of the European Union's future as a global actor.

Securing our borders is the most immediate and toughest test facing us.  It is safe to assume that we will see over half a million irregular arrivals at Europe's external border this year, who are in part genuine asylum seekers from Syria and elsewhere. To rise to this challenge, the Union must mobilise all available tools - internal and external. We are fulfilling and will fulfil our responsibilities under the UN refugee convention. But that cannot be done if we sacrifice public order in the process. I am now working with the Presidency and with leaders to build a new consensus between governments on how the Union responds to sudden influxes of asylum seekers. After the last European Council, we have moved slightly closer to achieving a common position among the Member States, but there is still a long way ahead of us. We take note of some tensions between the countries, sorry to use a something like a simplification, of a divide between the East and West of the EU. Some member States are thinking about containing the wave of migration, symbolized by the controversial Hungarian fence. Others expect greater solidarity in advocating inter alia a so-called obligatory basis for quotas. Therefore the key challenge is to find for them all a common yet an ambitious denominator.         

Coping with mass population movements must become a de facto theme of both Europe's neighbourhood policy and its global agenda. First, we need new strategic alliances in our wider neighbourhood on migration and asylum. I recall that the European Council, already in June 2014, agreed that the key to dealing with many of our migration challenges "lies in relations with third countries, which calls for improving the link between the EU's internal and external policies." I want to impress upon you that this means working intimately with your host governments on migration and asylum matters and then making the link back to colleagues on the home affairs and development side here.

Our first goal is to ensure that people in need of international protection receive it, preferably as close to their home country as possible. Second, we must gain more control over mass population flows. To achieve both of these goals, it is necessary to have a successful outcome to both the Valetta and possible Budapest conferences in the coming months. Words are no longer enough in this matter. We need to deliver.

I have just returned from the Balkans, which has become the new route for the people smugglers. We should accelerate the parts of the enlargement process related to immigration and asylum so that these countries have a better infrastructure for handling migration challenges. And there is a clear need to revitalize links with Turkey so that we are once again confident friends and partners on this and in other matters.

Men, women and children are fleeing to our borders as a result of insecurity and economic decay in our immediate neighbourhood and the countries in neighbouring regions: Syria, Iraq, Afghanistan and so on. Europe's limited ability to stabilise the situation is not just a result of the shortcomings of the Union's neighbourhood policy. The regions in question are facing unprecedented threats like the rise of ISIS, which controls an area larger than the country of Britain on Turkey's border. This needs to be a matter of reflection for the democracies of the West and the international community more generally. The Gulf countries could do more to help stabilise the refugee situation, for example. This is a point I will be making at the UN General Assembly later this month.

While everyone is momentarily focused on the situation at our south-eastern frontier, the situation in Libya remains extremely serious. The Union continues to support the efforts of Bernardo Leon, the UN special representative, and we earnestly hope that a Government of National Accord can be agreed over the next weeks. Can I just say here that I particularly appreciated the speed at which our new naval mission in the Mediterranean was designed and deployed by our military staff last July. It is important to move to the next phase of the EUNAVFOR mission quickly.   

In three months, Paris will see one of the most important international events of the year: the UN climate conference, whose goal is to adopt a new climate change agreement. Climate change may put at risk not only the environment, but also prosperity, poverty reduction or even more broadly stability and security. It is also having an impact on migration flows that we know is real, even if hard to quantify at the present time.

The European Union was the first major economy to submit its contribution in March - a binding, emissions reduction target of at least 40% by 2030, compared to 1990 levels. This is the most ambitious contribution presented to date. It is important that other major economies make similar commitments, not least for our future competitiveness. Some G20 countries such as Argentina, Brazil, India, Indonesia, Saudi Arabia, South Africa and Turkey did not do it. EU diplomacy should encourage these countries to come forward with ambitious contributions without delay.

I know the negotiations are advancing too slowly. But it is clear to me from recent meetings I attended, for example the G7 in June where we agreed on long-term objectives, the EU-China summit or the EU-CELAC summit that there is political will to reach an ambitious global climate agreement.

This topic will be on the agenda of the forthcoming United Nations General Assembly in September and the G20 in Turkey in November, which I will attend. With your help we need to prepare the ground well to avoid the traps of the past. I would like to wish France bon courage for the preparations ahead of December.

I want to stress again that I see the speedy agreement of TTIP as important. This is especially pressing now after the new economic uncertainty in Asia and since the Trans-Pacific Partnership, the world's biggest trade agreement for many years, will soon be concluded.

There are many other issues that I would like to discuss with you. But let me just say a brief word on the eurozone since I know that you have been facing many questions on this from your interlocutors on the ground over the past year. I will not give you a blow-by-blow account of events from January, as we worked to settle Greece's future in the eurozone. I am grateful that the authorities in Athens are now really showing their commitment to working constructively with the institutions following the agreement of a new ESM programme in August. Decisive and swift implementation by the incoming government will allow the Greek economy to return to a sustainable growth path based on sound public finances, enhanced competitiveness, high employment and financial stability. In the meantime, the eurozone as a whole is moving on to take the next steps towards strengthening economic and monetary union following on from the publication of the so-called 5 Presidents' report.

"May you live in interesting times": you know this Chinese curse. Indeed, we live in sobering ­- shocking - times. But this needs to be a spur to action, rather than the easy indulgence of apocalyptic thinking. I can never remember a time in politics when the world wasn't supposedly in chaos. So I  tend to take declarations of existential crises with a pinch of salt.

As we move forward as a team to prove that Europe remains a serious force in the world in our time, I can only recall the words of an ancient European, Virgil: Olim meminisse juvabit  ("It will be pleasant to remember former troubles.")

I wish you fruitful discussions and I look forward to achieving much together over the next few months. I am sure however that we are going to meet sooner rather than later in the countries of your daily work. Thank you very much again for your help and engagement.

Good afternoon. Let me begin by thanking Prime Minister Milanović for his hospitality and welcoming me in Zagreb. Today, we had a very fruitful discussion about the policy challenges facing Europe in the coming months.

We talked at length about the ongoing migration crisis. We had a good exchange on what the European Union is already doing and how we can better and more effectively target our efforts. Especially on how to support front-line EU countries under the greatest migratory pressure. In two weeks the European Union's justice and home affairs ministers will meet in an emergency council to assess the situation on the ground and discuss the next steps. This will include Frontex, the EU border agency, the European Asylum Office, more work on our return policy, international cooperation as well as how to fight and prevent the trafficking and smuggling of migrants. Migration will also be on the agenda of the European Council in October. And later this autumn, European and African leaders will meet in Valletta to discuss cooperation with the countries of transit and origin. Likewise is a high-level conference on migration routes in the Western Balkans being organised. Migration is a shared European challenge, and therefore we need a common European answer in a spirit of unity, solidarity, and responsibility.

The migration crisis is not Europe's fault, but we need to do more at European level to respond. I look forward to Croatia's constructive collaboration, as we implement a European response.

We have gone through the agenda of the October European Council and discussed the economic situation and Greece, as well as the UK's future in the EU. In the next months we will need to take further steps to strengthen our Economic and Monetary Union. The 5 Presidents' Report has given a new impetus to the debate. We might  have an opportunity to come back to this issue in October. In Greece, irrespective of the political situation, it is imperative that the new programme is implemented as agreed. As for the UK, we should consider British concerns, but only in a way which will be safe for all of Europe. We will come back to this in December.

We also discussed the situation in the Western Balkans and how the European Union can help the countries in the region on their path to greater stability and prosperity. I firmly believe that the enlargement perspective is still our strongest leverage to promote reforms and EU values. We will continue to do all we can to help the countries of the region on their European path. History has taught us that a stable Balkan is not only good for the people here in the Balkans but for all of Europe. Thank you.

Let me first thank President Kolinda Grabar-Kitarović for her kind invitation to Zagreb, the warm welcome I have received, and the good exchange of views we had. Equally, I look forward to meeting Prime Minister Milanović later today.

Our discussions focused on challenges facing Europe both within our continent and beyond. Many challenges stand out. I have no doubt that creating and keeping unity within the European Union is key to responding to any of them.

We talked about the ongoing migration crisis on our borders and what the European Union can do to help to solve it. Europe's priority remains preventing migrants from losing their lives when trying to reach Europe. Whatever the challenges migration might bring, there is never a justification for hostile, racist or xenophobic reactions to migrants.

Another important issue that I had a chance to discuss with the President is the situation in the Western Balkans. I came here to listen. I am always very happy to hear first-hand from countries like Croatia how you see the situation in our neighbourhood. We agreed that enlargement, despite the prevailing mood of some kind of enlargement fatigue, should remain a strong priority for the European Union. This is also my personal deep belief. In this context, I thank the Presidents of Croatia and Slovenia for their joint letter on enlargement that I received yesterday. Good cooperation between your two countries on regional cooperation and European integration is a promising sign. For sure we need it, especially in this region.

We also discussed Russia and the crisis in Ukraine. We are rapidly approaching the deadline for the complete implementation of the Minsk agreements. It is critical that everyone makes every effort to ensure that this deadline is respected. Let me add that I am concerned about the violence in Kiev yesterday. In a sense this shows the strong determination of the Ukrainian government and parliament to honour their obligations and implement the Minsk agreements, also on very sensitive issues such as granting special status for parts of Ukraine. It shows Ukraine is ready to pay a high price for peace.

To conclude. All of these challenges are very serious. All of them can only be overcome by a united European response. And I strongly believe in the determination and political will of all EU countries to prevail. Thank you.

I have recently read an article by Ivan Krastev, which reminded me of a book I came across more than thirty years ago, written by Raymond Aron and entitled "In Defence of Decadent Europe." As a then editor of an illegal periodical, (it was the time of the Communist regime in Poland) I was looking for inspiration, something that would help me go beyond the simple division: the political power versus the underground opposition. The reflections on freedom of authors such as Raymond Aron, Michael Novak, Friedrich Hayek, Karl Popper or Isaiah Berlin formed a foundation for my personal and political optimism, mixed with cautious scepticism. Today, I feel duty-bound to undertake an effort, both intellectual and political, to once again defend the decadent Europe along with her old-fashioned values, above all freedom and democratic capitalism. By a fortunate coincidence, I am saying these words on the 35th anniversary of the birth of the Solidarity Movement, which was also my experience, maybe the most important in my life.  

When Aron was writing his defence of Europe in the mid -1970s, the prevailing mood was one of pessimism and doubts about the future of democracy and free market, as well as about Europe itself. Religious violence ran riot, with geo-political consequences. Nationalists rose on the left and right; the energy crisis shook the European economy, discrediting mainstream politics. Terrorist groups emerged, particularly aggressive in Italy and Germany while the students' revolts and radical movements, often backed by Soviet secret services, shattered societies from within. Europe was losing clout on the world stage and many thought that they had found themselves at a crossroads of blind alleys, as Ivan Krastev so aptly described.

The voice of Raymond Aron, barely audible in the seventies and drowned out by the avant-garde outcry of radical intellectuals, proved to be the voice of reason and shrewdness. Europe and her traditional values which constitute liberal democracy, have not only survived, but have also become, once again, a universal positive model for millions of people, not only Europeans.

There exists a good number of reasons also to defend today´s decadent Europe. To every sensible observer of the global scene, Europe is still clearly the best place on Earth. In fact, migrants who put their lives at risk to find their way across to our continent know it better than anybody else, unintentionally becoming the most obvious proponents and advocates of the decadent Europe. One can´t help but notice the stark contrast to some of today's European intellectuals who are always outraged, ready to offer scathing criticism of their own community and at the same time being completely unable to find practical solutions. By the way, in the past the main task of intellectuals was to think while today it is to be outraged. They are too busy looking for an ideal, ready to abandon reality for destructive projects which look and sound creative and attractive. The last thing Europe needs today is new theories and grand visions. In fact what we really need today is sound judgment, determination in action and common sense.

For sure the European Union is not the best of all possible worlds. But surely it is the best of the existing ones and in all likelihood the best among those that human kind has seen across the centuries. Europe is safe and prosperous and shows respect for the rule of law and the rights of individuals. The poor are offered help, universal education and medical care are provided for. We are not perfect, but are still doing better than at any other time or anywhere else. Europe has also found a way how to durably substitute conflict and violence for dialogue and consensus.  Isn`t this enough to defend her?

I often hear that what Europe lacks today is energy, vitality and bravery. We are surrounded by nations and civilizations powered by the energy that they draw from nationalisms, religious orthodoxies and ideologies. It is often poverty that lies at the source of this energy, which was also our experience in Europe`s remote past. Today however, the attractiveness of Europe stems partly from the fact that our continent is largely free from these potent and dangerous emotions. Europe is secular, multinational, tolerant, wealthy and pluralistic. In a sense she was conceived and designed as an alternative to the 20th century´s hell of nationalism and totalitarian ideologies. Surely no-one in their right mind would want us to return to those sources of energy.

In fact, the question if anybody would like to go back in time is irrelevant. It is simply impossible if we want to continue to think about Europe as a political entity, about Europe as a whole. No European nationalism, just like no one European nation will emerge. It is also unlikely for one religion or ideology to conquer the hearts and minds of most Europeans. This is why our energy and determination must be powered by other emotions.

One such emotion is pride. Today we need to feel more proud about our common Europe, simply because Europe deserves it. Pride about our culture, wealth and the political idea of solidarity. I have in mind the same kind of pride which the ancient Greeks felt for themselves and for the barbarians. Not because the barbarians were worse, but because the Greeks lived differently. Pride is this galvanising value which breeds the feeling of dignity and the need to fight for it. Incidentally, we Europeans must today restore the ability to distinguish between pride and hubris. All too often we show hubris to our neighbours, and weakness to the stronger, forgetting that hubris is accompanied by weakness while pride is accompanied by strength. In the history of politics an arrogant weakling has been a most pathetic figure.         

We need to think about our Europe with greater tenderness and patience. We need to protect her not only against external threats when they appear, but also against internal temptations for revolutionary and total changes. The European Union certainly needs to adjust and improve itself, and it must do so constantly, but under no condition should we undermine the very essence of Europe or the political and legal norms of the Union.

There is more and more talk about the need for the new legitimacy of the European Union, as the historical reasons for its creation, the reaction to the tragedy of the Second World War and to the threats from the side of the Soviet Union will no longer suffice. New generations will look for new justifications but what will most certainly endure will be the positive legitimacy of who we are today and who we want to be in the future. And I have no doubt that we want to remain free, tolerant, wealthy and safe citizens of the national states organized in one European community.

If we stay true to our values we will win our future. To achieve this we need to be strong and smart, the most priceless assets in politics. Instead of concentrating on predictions about the distant future and long-term planning we need to stay in shape.  As the saying goes: "If you want to make God laugh, tell him about your plans."  More important than ambitious visions are therefore our prowess, resilience, courage and determination. If we are able to rebuild them, we won´t be afraid of the new challenges, even if they take us by surprise.    

Pragmatic European leadership, both on the level of national states and pan-European institutions, must focus on practical solutions. Problems that we encounter presently can be overcome on condition that they do not become an excuse to turn Europe upside down. Equally important are mutual loyalty and solidarity among European players, in particular vis a vis external enemies. I don´t suppose anybody has any doubts that they exist.

On every issue on today´s agenda, the Greek crisis, war in Ukraine, migration, terrorism, potential Brexit, we take action, which - if only we are sufficiently loyal to one another and stand united - will bring about positive results. We will continue to live with the problems longer than we would like to - but this is not the reason to question our European principles.              

Is global disorder the new global order? No. In fact disorder has existed since the beginning of time. And indeed, the moderator of our session, Mr Nik Gowing, who in his very long and amazing career as an international broadcaster covered such dramatic events as the terrorist attack on Twin Towers, the Gulf War, Kosovo, Mumbai, the death of Lady Diana, the financial meltdown, and the imposition of the Martial law in Poland, which is especially important to me, is living proof that disorder and chaos are an immanent part of our human existence. Perfect order has always been a dream, while the world around us has always been full of conflicts and surprises. The real challenge is not to change the status quo in search of the perfect order. It is beyond human  reach. Therefore, the real challenge is to preserve and consolidate our imperfect order which we have enjoyed within the European community. Thank you.

Let me start by thanking Prime Minister Cerar for his invitation, hospitality and for welcoming me in Bled. This place is one of the most beautiful in Europe and the world. Unfortunately, the reality is not as nice as this place.

My visit to Slovenia, and later to Croatia, is the first one after the summer break. But the challenges facing Europe take no holidays. First of all, we talked at length about the ongoing migration crisis. This is the most important issue for Europe today. The summer has confirmed that migration will remain a key issue for Europe in the years to come.

The European Union cannot and should not be blamed for the migration crisis, but we need to do more at European level to solve it. We have to alleviate the unbearable human suffering and tragedies that have become almost daily news stories in Europe now. In short, the European Union has to help provide solutions to the major problems facing European citizens and countries today.

And this is exactly what we are trying to do. In April I called an emergency summit on the migration crisis in the Mediterranean. In June, the European Council agreed a new policy for relocation, resettlement and return that is now being implemented. In October the European Council is meeting again. In November, I will chair the Malta Conference where European and African leaders will meet and try to find practical solutions to this shared problem. Likewise will there be a high-level conference on migration along the Western Balkans route. And only yesterday, the Luxembourg Presidency of the Council called an emergency meeting of Justice and Home Affairs ministers to assess the situation on the ground, discuss next steps - to strengthen the European response. This will include Frontex, the EU border agency, the European Asylum Support Office and more work on our return policy, international cooperation as well as investigation and measures to prevent trafficking of migrants. Today this may be the most urgent challenge. As we have witnessed both in Austria and in the Mediterranean, human trafficking and smuggling of migrants are not only a dirty business, it is in fact mass murder. And smugglers today are potential mass murderers. We must do everything we can to stop it.

So a lot of work is ongoing. But the truth is that this is a very complex problem and requires a complex set of actions. There are no quick-fixes. Had there been, they would have been used long time ago. The reasons for the unprecedented levels of migration are war, conflict, failing states and poverty. I have no doubt that in the short term, we need to concentrate our efforts on containing the inflow of migrants - obviously in a humane way respecting all legal obligations.

Today, the Prime Minister and I had a good exchange on what the European Union is already doing - in terms of assistance and migration - and how we can target our efforts even more. This is as much a problem in the South as in the Western Balkans.

Finally, we also discussed the situation in the Western Balkans. Slovenia's experience and knowledge of the region is of great value. The Prime Minister and I shared ideas how the European Union can and should help create more stability and prosperity. And we agree that enlargement should remain a strong priority for the EU. Thank you.

Sunday 30 August 2015
Visit to Slovenia
16.00  Meeting with Prime Minister Miro Cerar
19.30  Working dinner hosted by Prime Minister Miro Cerar

Monday 31 August 2015
Visit to Slovenia
11.00  Meeting with Prime Minister Miro Cerar
11.45  Joint press conference
13.00  Meeting with President Borut Pahor followed by working lunch
16.00  Keynote address at the 2015 Bled Strategic Forum panel "Global Order: Confrontation or Partnership"

Tuesday 1 September 2015
Visit to Croatia
10.30  Meeting with President Kolinda Grabar-Kitarović
11.35  Joint press conference
12.10  Working lunch hosted by President Kolinda Grabar-Kitarović
14.00  Meeting with Prime Minister Zoran Milanović
15.15  Press statements

Wednesday 2 September 2015
12.00 Meeting with President of the European Commission Jean-Claude Juncker (Berlaymont)

Thursday 3 September 2015
09.00  Address at the annual EU Ambassadors' conference (Charlemagne building)
11.00  Meeting with Prime Minister of Hungary Viktor Orbán (photo opportunity)

Good afternoon. Let me begin by saying how pleased I am to have my first meeting of the autumn political season today with President Petro Poroshenko. Thank you, Petro, for your presence here. This for sure shows that EU-Ukraine relations take no holidays.

I am especially glad to see President Poroshenko on a day that started with good news for Ukraine: I very much welcome the deal that was reached between Ukraine and its creditors. In addition, the Contact Group for Ukraine has reached an agreement on a new ceasefire to start on 1 September. Both of these pieces of news are cause for optimism.

During our talks today we discussed three main topics.

First, President Poroshenko briefed me on the recent increases in violations of the Minsk ceasefire. I am especially worried about the targeting of the OSCE Special Monitoring Mission and call on all parties to make sure this does not happen again. Thank you for your information, Petro. After our meeting I am absolutely sure about your determination to help the Special Monitoring Mission in their duty. We are rapidly approaching the deadline for the complete implementation of Minsk so it is critical that everyone does their utmost to make it succeed. I hope that the new ceasefire agreed yesterday is a first step.

Second, we talked about the domestic situation in Ukraine, including the economic outlook, upcoming local elections and constitutional reforms. I welcome progress on amending the constitution to allow for greater decentralisation and encourage Ukraine to move more quickly on judicial reform.

Third, we discussed how Ukraine is implementing the Association Agreement, in particular those parts on visa liberalisation. We want to see free travel between Ukraine and Europe sooner rather than later. That is why I encouraged President Poroshenko to move quickly on this issue. As you know we are here in Brussels, both Jean-Claude Juncker and me, very engaged and supportive for this project. I am really satisfied when it comes to progress on your side.

I would also like to touch upon one more issue. Two days ago Oleg Sentsov was sentenced to twenty years in a labour camp in Russia. Sentsov protested against the annexation of Crimea, where he lived with his two children. Sentsov, Kolchenko, Savchenko and all other Ukrainians held illegally in Russia as well as EU citizens such as Eston Kohver are blatant acts of injustice. They are also symbolic of the cynicism that dominates Russian politics. As long as Oleg Sentsov and others stay in prison, all honest and decent people will not remain indifferent to their fate.

President Poroshenko and I agreed to be in contact early and often over these vital coming months. Thank you very much again, Petro.

Thursday 27 August 2015
Justus Lipsius building - Brussels

from 12.30    Arrival of President of Ukraine Petro Poroshenko
                        Welcome by the President of the European Council Donald Tusk
                        (VIP entrance, level 02 - photo/TV opportunity)

+/- 14.00        Press statement (VIP entrance, level 02)

Today, we, countries in the eurozone have mandated the ESM to make up to the maximum of €86 billion available to finance Greece. Of course this programme for the coming three years goes with strict conditions, aiming at:

• Setting right public finances and administration; and
• Dealing with the economy and problems in financial sector.

I am glad to say that the Greek government has already taken some credible first steps. A lot of work will still have to be done to stabilize the economy in Greece for the return of confidence both in Greece and in within the eurozone.

We have a lot of work to do in the coming years but I think that the decisions taken in the last couple of weeks and especially today are a big step in that direction.