European Council

Good evening and welcome to this press conference. We have just finished the Eurogroup meeting and we've come to a positive conclusion on the proposals by the institutions. All the intense work of the last week has paid off and let me here also extend my thanks to the teams of the institutions and the team of the Greek government that had worked so hard these last months to reach an agreement. We also have reached agreement at the political level in the Eurogroup. We had a very constructive and good atmosphere. Of course there were differences, but we have managed to solve the last issues. We have issued a statement outlining the details of our agreement. I will therefore mention only the main elements. 

First, we welcomed the agreement that was reached between Greece and the institutions on policy conditionality. It is to our mind in line with the key objectives set by the euro summit on 12 July, and if implemented with determination -- of course it always boils down to determination -- it will allow the Greek economy to return to sustainable growth. 

Secondly, we commended the Greek authorities on the strong commitment shown in the last weeks in the normalisation of working methods with the institutions. I think that was very helpful to have a good and fruitful process and also we've seen important and determined legislative steps over the past weeks and days even, in Greece, and that has helped in the process of rebuilding trust; and many of the colleagues in the Eurogroup made that point. 

Thirdly, on the policy conditionality, we welcomed the broad scope of the policy measures contained in the Memorandum of Understanding (MoU), as agreed. It's a comprehensive and ambitious reform package, it addresses the main challenges both on reaching sound public finances to return to growth, but also structural policy frameworks to enhance competitiveness. And finally it safeguards financial stability; it deals with the issues with the banks. 

On the latter point, there will be later this year, this autumn, an asset quality review and stress test, and on the basis of that, recapitalisation will take place. In that process the bail-in instrument will apply for senior bondholders, whereas the bail-in of depositors is explicitly excluded. You will find this in our statement. 

Fourthly, the Eurogroup underlined that a significantly strengthened privatisation programme is a part of the new ESM programme. Therefore it is important that the independent fund which will be set up will be established in Greece at the latest by end-2015. It will be under the supervision of the relevant European institutions. It will take on board the privatisation of state assets and the proceeds of this fund will, for the first €25 billion, completely be used to repay debt and for the second part of the target of €50 billion, it will be 50/50: 50% to repay debt and 50% can be reinvested. This fund will be set up before the end of the year. Proposals have to be made already at the latest by end October 2015. The ownership of this fund will be transferred as soon as possible after the recapitalisation of the banks has taken place later this year. 

Fifth, on prior actions. We welcomed, as I already said, the comprehensive set of prior actions that has been legislated by the Greek authorities. The most recent prior actions legislated have been positively assessed by the institutions and I think this demonstrates that programme ownership has been picked up seriously and constructively by the Greek government. 

The overall financing envelope of the agreed ESM programme will amount to €86 billion. This includes a €25 billion bank buffer, which can be available if needed to address potential bank recapitalisation and resolution costs. This money will, later on, after the first review as I said, be transferred to segregated account in the ESM. Whether it is needed will be decided of course after the assessment of the banks and the stress test later this year. 

On debt sustainability - and this is of course the key issue - a debt sustainability assessment has been provided by the Commission, in a strong liaison with the ECB. The analysis basically concludes that debt sustainability can be achieved through a far-reaching and credible reform programme -- I think we have that in front of us -- and debt-related measures without nominal haircuts, because that was made explicit in the euro summit statement of 12 July. The Eurogroup stands ready to consider, after the positive completion of the first programme review, possible additional measures to ensure gross financing needs remaining at a sustainable level. “Gross financing needs” is the debt service approach that we will take when we look at the debt sustainability. We will do that after the successful completion of the first review. 

Finally, we welcomed the intention of the IMF Board to consider further financial support for Greece. They will do so in the autumn. We stressed that such IMF involvement for the Eurogroup is indispensable. We welcomed the positive assessment of IMF staff of the policy conditionality contained in the MoU. For the IMF Board to consider further financial support, there are two issues that are crucial and we realise and accept that. First of all there needs to be a full specification of fiscal, structural and financial sector reforms; and secondly that debt sustainability is ensured. On those reforms, just to mention one is the pension reform and we have again underlined that at the latest in October there has to be clarity on those pension reforms from the side of the Greek government, in agreement with the institutions. 

Finally, as regards the next steps, the necessary elements are all in place now to launch the relevant national procedures to get the formal approval of the ESM financial assistance programme. We expect that the ESM Board of Governors which will take the formal decision will be in a position to approve the proposal on Wednesday, 19 August, by the end of the day; and that it would also unlock the initial fist tranche of the programme. 

That will be all from me. I will now give the floor to Vice-President Dombrovskis and to Klaus Regling.

The Eurogroup welcomes the agreement that has been reached between Greece and the European Institutions, with input from the IMF, on the policy conditionality underlying the new ESM macroeconomic adjustment programme. The Eurogroup commends the Greek authorities for their demonstrated strong commitment as shown by the normalisation of the working methods with the Institutions and the conduct of the negotiations in a determined and swift manner. This agreement is in line with the parameters and key objectives set by the Euro summit on 12 July and provides a comprehensive framework for restoring the Greek economy to a sustainable path. 

The Eurogroup welcomes the wide scope of the policy measures contained in the Memorandum of Understanding (MoU), which, if implemented with determination, will address the main challenges facing the Greek economy. We are confident that decisive and as swift as possible implementation of the reform measures as spelled out in the MoU will allow the Greek economy to return to a sustainable growth path based on sound public finances, enhanced competitiveness, high employment and financial stability. 

Greece will target a medium-term primary surplus of 3.5% of GDP  with a fiscal path of primary balances of -0.25% in 2015, 0.5% in 2016, 1.75% in 2017 and 3.5% in 2018 to be achieved notably through upfront parametric fiscal reforms supported by measures to strengthen tax compliance and fight tax evasion. Greece will undertake an ambitious reform of the pension system aimed at ensuring its sustainability, efficiency and fairness. It will specify policies to fully compensate for the fiscal impact of the Constitutional Court ruling on the 2012 pension reform and to implement the zero deficit clause or mutually agreeable alternative measures by October 2015. Greece has furthermore committed to key labour and product market reforms to open up the economy to investment and competition, as well as to modernise and depoliticise the public sector. With regard to the financial sector, Greece has committed to take decisive measures to safeguard stability, including a recapitalisation of the banks as required, measures to enhance the insolvency framework and a significant improvement of the governance of the banks and the Hellenic Financial Stability Fund (HFSF). Following the results of the Asset Quality Review and Stress Tests before the end of the year, the bail in instrument will apply for senior debt bondholders whereas bail in of depositors is excluded. The Eurogroup stresses that the agreed conditionality needs to be further specified as requested by the IMF a matter of priority, in particular in the areas of pension reforms and financial sector strategy and governance, in agreement with the three Institutions in time for the completion of the first review under the ESM programme. Moreover, Greece will take urgently needed steps to tackle the non-performing loan (NPL) problem in the banking sector. Given the magnitude of the problem, we urge the authorities to develop all necessary instruments to that end, including opening the market for NPL servicing and disposal with the appropriate safeguards to protect vulnerable debtors and exploring the possibility of a bad bank. 

Compliance with the conditionality of the MoU will be monitored by the Commission in liaison with the ECB and together with the IMF, as foreseen in Article 13(7) of the ESM Treaty. 

The Eurogroup stresses that a significantly strengthened privatisation programme is a cornerstone of the new ESM programme. The Eurogroup welcomes the Greek authorities' commitment to adopt new legislation to ensure transparent privatisation procedures and adequate asset sale pricing, according to OECD principles and standards on the management of State Owned Enterprises (SOEs). To ensure a more ambitious privatisation process, an independent fund will be established in Greece under the supervision of the relevant European institutions by end-2015 and encompass the privatisation of independently valuated state assets, while avoiding fire sales. The Eurogroup expects the Greek government to endorse the plan for this fund by the end of October 2015 so that it can be operational by the end of the year. Its task will be to quickly identify, transfer over the lifetime of the programme, and manage valuable Greek assets through privatisation and other means, including minority shareholdings and to increase their value on a professional basis. This will include the shares in Greek banks after their recapitalisation, thus also enhancing banks' governance. This should ensure that a targeted value of EUR 50 bn can be realised, by putting the assets on the market, of which EUR 25bn will be used for the repayment of recapitalization of banks and other assets and 50 % of every remaining euro (i.e. 50% of EUR 25bn) will be used for decreasing the debt to GDP ratio and the remaining 50 % will be used for investments. The legislation to establish the Fund shall be adopted in agreement with European institutions. 

The Eurogroup appreciates that the Greek authorities have taken additional important legislative steps over the last few days. This supports the gradual process of rebuilding trust, demonstrating the authorities policy resolve and programme ownership. Those steps include notably additional fiscal measures on the tax and expenditure side, legislation on early retirement as well as an extensive set of actions in relation to the financial sector and product markets. In addition, in line with the Eurogroup statement of 16 July, the Greek authorities took measures to adjust and complete the legislation adopted on 15 July 2015. The authorities have also repealed a number of provisions backtracking on previous programme commitments. 

The Eurogroup welcomes that the implementation of those prior actions has been assessed positively by the Institutions. The Greek authorities have confirmed their intention to complete by September the follow up actions identified by the Institutions, including the need to bring the adopted household insolvency law in line with the proposal of the Institutions. 

Based on the assessment of the Institutions, the ESM financial assistance facility agreement will cover an amount of up to EUR 86 bn. This includes a buffer of up to EUR 25 bn for the banking sector in order to address potential bank recapitalisation and resolution costs. 

The first tranche under the ESM programme of EUR 26 bn will consist of two sub-tranches. The first sub-tranche of EUR 10 bn will be made available immediately in a segregated account at the ESM for bank recapitalisation and resolution purposes. The second sub-tranche of EUR 16 bn will be disbursed to Greece in several instalments, starting with a first disbursement of EUR 13 bn by 20 August, followed by one or more further disbursements in the autumn subject to the implementation of key milestones based on measures outlined in the MoU and to be specified by the European Institutions and agreed by the EWG. 

A second tranche for banking recapitalisation and resolution needs of up to EUR 15 bn can be made available after the first review and no later than 15 November, subject to the completion of the planned Asset Quality Review and Stress Test and the implementation of the financial sector deliverables of the review. These funds will initially be transferred to the segregated ESM account and can be released upon the agreement of the ESM Board of Directors. 

The debt sustainability assessment was conducted by the Commission, in liaison with the ECB, as foreseen in Article 13(1) of the ESM Treaty. The analysis concludes that debt sustainability can be achieved through a far-reaching and credible reform programme and additional debt related measures without nominal haircuts. In line with the Euro summit statement of 12 July, the Eurogroup stands ready to consider, if necessary, possible additional measures (possible longer grace and repayment periods) aiming at ensuring that Greece's gross financing needs remain at a sustainable level. These measures will be conditional upon full implementation of the measures agreed in the ESM programme and will be considered after the first positive completion of a programme review. The Eurogroup reiterates that nominal haircuts on official debt cannot be undertaken.

The Eurogroup considers the continued programme involvement of the IMF as indispensable and welcomes the intention of the IMF management to recommend to the Fund's Executive Board to consider further financial support for Greece once the full specification of fiscal, structural and financial sector reforms has been completed and once the need for additional measures has been considered and an agreement on possible debt relief to ensure debt sustainability has been reached. Resulting policy conditionality will be a shared one as the policy conditionality underlying the ESM macroeconomic adjustment programme is developed in parallel to the one of the IMF. Once approved, the full re-engagement of the IMF is expected to reduce subsequently the ESM financing envelope accordingly. The Eurogroup welcomes the positive assessment of IMF staff of the policy conditionality contained in the MoU as confirmed by the IMF Managing Director and looks forward to an IMF programme based on the latter.

The Eurogroup considers that the necessary elements are now in place to launch the relevant national procedures required for the approval of the ESM financial assistance. The Eurogroup expects that the ESM Board of Governors will be in a position to authorise the European Commission signing the MoU on behalf of the ESM and approve the proposal for a financial assistance facility agreement by 19 August, subject to completion of national procedures, and thereby unlock the initial tranche of up to EUR 26 bn.

On 13 July 2015, the Council adopted Council Implementing Decision (CFSP) 2015/1142[1] implementing Council Decision 2012/642/CFSP. 

The Decision amends the list of persons and entities subject to restrictive measures as set out in the Annex to Decision 2012/642/CFSP. 

The Candidate Countries the former Yugoslav Republic of Macedonia*, Montenegro*, Serbia* and Albania*, the country of the Stabilisation and Association Process and potential candidate Bosnia and Herzegovina, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine align themselves with this Decision. 

* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process. 

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

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

 [1] Published on 14.7.2015 in the Official Journal of the European Union no. L 185, p. 20.

* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.

On 2 July 2015, the Council adopted Council Decision (CFSP) 2015/1066[1] amending Decision 2013/183/CFSP.

The Council Decision expands the list of persons and entities, as set out in Annex II to Decision 2013/183/CFSP.

The Candidate Countries the former Yugoslav Republic of Macedonia*, Montenegro*, Serbia* and Albania*, the country of the Stabilisation and Association Process and potential candidate Bosnia and Herzegovina, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine, the Republic of Moldova and Armenia align with this Decision.

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

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

 [1] Published on 3.7.2015 in the Official Journal of the European Union no. L 174, p. 25.

* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process. 

 While we celebrate today the International Day of the World's Indigenous Peoples, we take stock of the progress achieved towards ending all forms of discrimination and in ensuring that indigenous peoples' rights are respected, protected and fulfilled. 

In September of last year, the EU contributed to the success of the World Conference on Indigenous Peoples and promoted equal participation of indigenous peoples in preparation of this meeting. We supported the Outcome Document of the conference which serves as a blueprint for actions at international and national level, bringing positive changes to the lives of indigenous peoples. 

As follow up to the World Conference, the EU is further developing its policy in line with the United Nations Declaration on the Rights of Indigenous Peoples and in close consultation with their representatives. 

Despite the many positive examples of progress achieved around the world, indigenous peoples, particularly women and girls, continue to experience multiple forms of discrimination, vulnerability and marginalisation in their lives. We are therefore committed to their empowerment. 

By reaffirming its support to the UN declaration on the Rights of Indigenous Peoples, the EU restates its determination to work closely with indigenous peoples, along with other partners and stakeholders in its endeavour to promote the recognition that human rights are equally guaranteed to all men and women. 

On 4 August 2015, the Council approved a regulation amending the European Financial Stabilisation Mechanism (EFSM) in order to protect non-euro area member states from any risk arising from financial assistance given to a euro area country. 

This principle was endorsed on 17 July 2015 by a joint statement of the Commission and the Council. It was agreed along with a decision to grant €7.16bn in short term financial assistance to Greece under the EFSM. 

Specifically, the regulation ensures that financial assistance from the EFSM to a euro area member state will only be granted if legally binding provisions are in place guaranteeing that non-euro area member states are immediately and fully compensated for any liability they may incur as a result of a failure by the beneficiary to repay the financial assistance in accordance with its terms. 

The regulation was adopted by written procedure. 

The EFSM provides financial assistance to EU member states in financial difficulties. It relies on funds raised by the Commission on the financial markets under an implicit EU budget guarantee. 

The Council adopted the first legal acts implementing the Joint Comprehensive Plan of Action (JCPOA), the agreement reached on 14 July 2015 in Vienna on the Iranian nuclear issue.

On 20 July 2015, the United Nations Security Council adopted a resolution endorsing the JCPOA. This resolution provides for certain derogations from restrictions currently in place so as to allow: 

- the shipment of certain nuclear-related equipment out of Iran, the modification of two cascades in Fordow and the modernization of the Arak reactor;
- transfers and activities necessary to implement certain nuclear-related commitments specified in the JCPOA or required for the preparation for the implementation of the JCPOA. 

The legal acts adopted by the Council translate into EU law these provisions. 

The legal acts are available in the Official Journal dated 1 August. They were adopted by the Council by written procedure.

On 22 June 2015, the Council adopted Decision (CFSP) 2015/973[1] implementing Council Decision 2013/255/CFSP. 

The Decision removes one person from the list of persons and entities subject to restrictive measures as set out in Annex I to Decision 2013/255/CFSP. 

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

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

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

 [1] Published on 23.6.2015 in the Official Journal of the European Union no. L 157, p. 52. 

* The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.

On 19 June 2015, the Council adopted Council Decision (CFSP) 2015/959[1]. The Council Decision extends existing measures until 23 June 2016. 

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

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

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

 [1] Published on 20.6.2015 in the Official Journal of the European Union no. L 156, p. 25. 

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

On 22 June 2015, the Council adopted Council Decision (CFSP) 2015/971[1]. The Council Decision extends existing measures until 31 January 2016. 

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

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

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

 [1] Published on 23.6.2015 in the Official Journal of the European Union no. L 157, p. 50. 

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

On 5 June 2015, the Council adopted Council Decision (CFSP) 2015/876[1]. 

The Council Decision extends existing measures for three of the four persons covered by measures applying until 6 June 2015. The measures are extended until 6 March 2016 for two of the persons concerned and until 6 October 2015 for the third person. 

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

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

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

 [1] Published on 6.6.2015 in the Official Journal of the European Union no. L 142, p. 30. 

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

Despite the efforts of the international community, and in particular the recent initiative of President Museveni with a view to facilitating an inter-Burundian dialogue, it seems clear that insufficient progress has been made in implementing the decisions adopted by the African Union on 13 June and by the East African Community on 6 July. Only by implementing those decisions in full would it have been possible to hold credible and inclusive elections in Burundi yielding representative results. In going ahead with the elections, the government has decided otherwise.

In the absence of a meaningful national dialogue which could lead to a political consensus, Burundi will be unable to return to the path of stability, democracy and development which started with the adoption of the Arusha Agreement. The EU will therefore launch the preparatory work for specific consultations as provided for in Article 96 of the Cotonou Agreement in order to ensure that the Burundian government makes the commitments necessary to remedy the crisis. Respect for human rights, democratic principles and the rule of law is an essential element of the cooperative relationship between the EU and Burundi, which is governed by the Cotonou Agreement.

The EU urges the government and the opposition parties to resume the dialogue in order to achieve a consensual outcome which will lead to the re-establishment of an inclusive and democratic political system. The EU fully supports the efforts being made to that end by the East African Community, the African Union and the United Nations.

The European Union is deeply concerned about the humanitarian, socioeconomic and security-related impact of the crisis in the country and in the region as a whole. In that context, we welcome the dispatch by the African Union of human rights observers and military experts to oversee the disarmament of the groups affiliated to the political parties. The European Union commends the generosity of neighbouring countries in sheltering refugees from Burundi and reaffirms its solidarity with the Burundian people and with the host communities, including through the mobilisation of humanitarian aid for the thousands of refugees.

The EU notes that violence cannot be used for political ends and once again calls on all stakeholders and political leaders to both condemn and discourage it. In particular, this refers to the activities of the armed groups, such as the recent attacks in the province of Kayanza. In line with the Council conclusions of June 2015, the European Union is preparing to adopt, where necessary, restrictive measures targeted at those whose actions might have led or might lead to acts of violence and repression and to serious human rights violations, and/or which might hamper the quest for a political solution.

The Candidate Countries Montenegro*, Serbia* and Albania*, the country of the Stabilisation and Association Process and potential candidate Bosnia and Herzegovina, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine, the Republic of Moldova, Armenia and Georgia align themselves with this Declaration. 

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

1. The EU firmly condemns the brutal attack which killed 38 tourists and wounded many others, on 26 June near Sousse, three months after the deadly attack at the Bardo. It reiterates its solidarity with the Tunisian people and with the families of the victims. 

2. While Tunisia embodies the success of a genuine democratic revolution and has made a transition to being the kind of society that protects fundamental freedoms and human rights, it is also a target for terrorism. These attacks strengthen the EU's determination, expressed by the European Council of 20 March, to support the Tunisian transition so that it can maintain its ambitious aim of democratic consolidation, and to deepen the privileged partnership between the EU and Tunisia which manifests, in many fields, the shared ambition to bring Europeans and Tunisians closer together.

3. The EU reasserts its support for the efforts of the Tunisian authorities to implement the Constitution fully, to ensure that all on Tunisian territory are safe and to undertake the reforms that are needed in order to meet the social and economic challenges that confront the young above all. It reiterates its commitment to further intensify its cooperation with Tunisia, through substantial technical and financial support, within an integrated approach designed to respond to the numerous challenges facing the country.

1. The EU commends the work carried out by the transitional Central African authorities over the last few months, which has allowed major political progress to be made, and particularly welcomes the Bangui Forum, which is a crucial step towards national reconciliation. To complete the transition, these efforts must be continued in a spirit of inclusiveness and responsibility. The international community remains committed to helping the Central African Republic (CAR) recover from the crisis. In this context, the Council welcomes the High-Level International Conference which was organised in Brussels on 26 May and attended by the transitional president, Catherine Samba-Panza. This event was an important opportunity to confirm the EU’s comprehensive approach in the CAR and has encouraged the mobilisation of additional resources for the Bêkou Trust Fund and humanitarian aid. The EU also welcomes the positive political engagement in the region – on the part of the ECCAS and the AU – in support of the transitional government.

2. The EU acknowledges the role played in the stabilisation of the CAR by all the international troops on the ground, the MINUSCA peacekeepers and the French troops involved in Operation Sangaris. The work begun by EUMAM RCA should help launch security sector reform, which is crucial for the country's recovery. This work must be continued, in coordination with other actions by the international community.

3. The preparations for elections have progressed in the last few weeks. The EU welcomes the publication of the revised election timetable and the first voter registration operations. The EU encourages the Central African authorities to take further action in this priority area, to allow for the organisation on the agreed dates of credible, transparent and inclusive elections for all, including displaced populations and refugees in neighbouring countries, focusing in particular on women. The Bangui Forum has created a drive towards inclusiveness which must be maintained. The EU is providing substantial financial support for the electoral process. In order not to undermine this process, and given that funding is still insufficient, the EU calls for costs to be rigorously controlled and for all potential donors to be mobilised. In addition to its financial support, the EU reiterates its continued readiness to support the electoral process, including in the field of election observation. 

4. The Disarmament, Demobilisation and Reintegration (DDR) process must quickly generate a controlled drive towards disarmament further to the agreement signed on 10 May 2015 by a large number of the armed groups. The EU will work with MINUSCA, which is supporting the Central African authorities in this field, including through measures to promote voluntary disarmament. With this in mind, the EU stresses that it already supports several community integration and reconciliation projects funded by the European Development Fund (EDF) and the Instrument contributing to Stability and Peace (IcSP), as well as the actions supported by the Bêkou Trust Fund to create jobs for young Central Africans. The EU welcomes the agreement signed between the transitional authorities, the UN and the armed groups regarding the demobilisation of children from the armed groups. It calls for full implementation of this agreement. It is important that UNICEF – supported by the EU – should help to promote the reintegration of these children into society.

5. In the wake of the DDR process, progress is urgently needed on security sector reform conducted under the auspices of MINUSCA in cooperation with Operation Sangaris and the CSDP mission EUMAM RCA, which must cover all relevant areas, including the whole of the criminal justice chain. The EU believes that the role of the armed forces (FACA), their location, size, composition and weaponry, including the individual reintegration of former combatants into the uniformed services, will have to be precisely defined after the elections and will have to form part of the SSR process, which must start now.

6. The EU remains concerned about the difficult budgetary situation of the Central African state. Through its budgetary support, the EU contributes significantly to the CAR's functioning, and hopes the economic upturn will continue, in order to enable the CAR to meet its basic needs. The economic recovery, which may become reality thanks in part to the considerable natural resources the CAR has at its disposal, requires, in addition to improved security and political stability, better management of state finances.

7. The EU stresses, as it did at the Bangui Forum, that there can be no reconciliation without justice. The adoption and enactment of the law establishing the Special Criminal Court constitutes an important step in the fight against impunity. It must start its work without delay and ensure the CAR participates fully in its operation, given how high public expectations are in this area. The Central African authorities' cooperation with the United Nations human rights mechanisms, as well as with the International Criminal Court, must also continue. 

8. In solidarity with the people of the Central African Republic, the EU intends to pursue its humanitarian efforts, both inside the CAR and in neighbouring countries which have taken in very large numbers of Central African refugees. Humanitarian needs remain vast. Despite an improvement in the security situation, access to the populations in need inside the country remains highly problematic. In this transition phase, it is essential to ensure that the international community is committed to working alongside the CAR to continue to address the humanitarian crisis with a comprehensive strategy in support of displaced populations, including in the neighbouring countries and taking into account the impact on the host communities. At the same time the EU reiterates its commitment to strengthening the population's resilience to the impact of the crisis, in particular through the implementation of the Bêkou Trust Fund, launched by the EU, which brings together the contributions of several donors. The EU is also committed in the longer term to addressing the need for capacity building and for the restoration of the state's essential functions throughout the country, building on its social services.

The Permanent Representatives Committee (Coreper) on 22 July 2015 approved, on behalf of the Council, an agreement reached with the European Parliament on a directive establishing new rules on insurance distribution.  

The text recasts and repeals directive 2002/92/EC on insurance mediation with a threefold objective. It seeks to improve retail insurance regulation in a manner that will facilitate market integration, and to establish the conditions necessary for fair competition between distributors of insurance products. It also sets out to strengthen policyholder protection, in particular with regard to life insurance products with an investment element.

Intermediaries play a central role in the distribution of insurance and reinsurance products. Various types of persons and institutions distribute insurance products, such as agents, brokers and insurance undertakings. Application of directive 2002/92/EC has shown a number of provisions to require greater precision.

More specifically, the new directive is aimed at: 

- extending the scope of application to all distribution channels, including proportionate requirements for those who sell insurance products on an ancillary basis; 

- identifying, managing and mitigating conflicts of interest; 

- strengthening administrative sanctions, as well as measures to be applied in the event of a breach of key provisions; 

- enhancing the suitability and objectiveness of insurance advice; 

- ensuring that sellers' professional qualifications match the complexity of the products they sell; 

- clarifying the procedure for cross-border market entry. 

In order to ensure consistency between financial sectors, the directive would take account of rules established for markets in financial instruments. 

The directive would not prevent member states from applying more stringent provisions to protect consumers, providing that such provisions are consistent with EU law. 

The agreement with the Parliament was reached during a trilogue meeting on 30 June 2015. The Council agreed its negotiating stance in November 2014. 

The directive will now be submitted to the European Parliament for a vote at first reading and to the Council for final adoption. 

Member states would have two years to transpose the directive into national laws and regulations.

Today President Aliyev and I had a wide-ranging discussion covering our extensive bilateral relationship. We talked about what we are already doing together now. But more important, we talked about what we should do together in the future, about the future direction of our important relationship in the years to come. 

Azerbaijan is our reliable and strategic partner in the energy field, and we want to take this partnership further. One aim of the European energy union is to exclude the possibility of using gas as a threat. The conflict in Ukraine shows that such threats are still possible. 

This is why the EU is dedicated to diversifying our supplies. And Azerbaijan is a main partner in this endeavour. Today, we agreed to stand united on developing the Southern Gas Corridor - a project which is in our common strategic interest - and to make sure it is completed on time, whatever our competitors do. For Europe, it is a question of diversifying supply. For Azerbaijan, it is a question of diversifying demand. 

Azerbaijan has the potential to become one of the EU's major commercial partners in the region. The EU is already Azerbaijan's main trade partner and one of its most important investors. We will expand these commercial relations further in the coming years. I recalled that good governance and rule of law are important for creating a favourable commercial and investment climate. The EU stands ready to assist here, if needed. 

I also hope very much that Azerbaijan will soon finalise its negotiations to join the WTO. 

We have discussed how best to move our relationship forward, through an ambitious new bilateral agreement. We agreed to set a brisk pace for our talks toward an Agreement on Strategic Partnership. 

I stressed the high importance we attach to human rights and fundamental freedoms. The EU believes that an open society is the best guarantee of long term stability and prosperity. I have discussed with the President our concerns with the detention of human rights defenders here and our hope that prompt action will be taken on the individual cases. We will continue to discuss these issues and to explore ways for good and mutually beneficial cooperation on human rights, also in the context of the future of our contractual relations. After this meeting, I will meet with representatives of the civil society. 

We also discussed the Eastern Partnership. The EU's intention is to better reflect the individual wishes and interests of each partner as we develop this policy. 

Let me also reiterate that the EU supports the territorial integrity, independence and sovereignty of Azerbaijan. The EU and its Member States have not recognised Nagorno-Karabach. 

The status quo is unsustainable and the peaceful resolution of the Nagorno-Karabakh conflict remains a priority for the EU. We continue to support the mediation efforts of the OSCE Minsk Group Co-Chairs. 

Finally, we discussed the mobility of people and our strong common wish to facilitate travel and direct contacts between our peoples. I applaud the entry into force of the Visa Facilitation Agreement and the Readmission Agreement in the autumn of last year. This was an important step. Last year there were 70,000 visitors from Azerbaijan to the Schengen area. An increase by almost 20% from the year before. And one third of the visas we issue are now long-term multiple entry visas. 

I look forward to continue strengthening our important relationship in the coming years, and hope my visit today has contributed to this aim. Thank you!

Dear soldiers, 

I want to thank you for your service to Europe and to peace and security abroad. Your hard work and sacrifice is appreciated in the European Union. I am personally very proud of you and of what you have done in Central African Republic. Thanks to you, your residence for sacrifice, your courage, your professionalism, your dedication, Georgia is maybe the best example of the international solidarity in the whole world. Thank you very much.

Our military operation in the Central African Republic has created security within a very difficult theatre, protected populations at risk and helped humanitarian aid reach the people that really need it. This is something we have done together on behalf of the global community, based on a UN Security Council mandate and part of wider international efforts.

Georgia's participation, as the second largest contingent in the operation, has been essential to its success.

I welcome your country's decision to stay engaged in these important efforts by providing the Immediate Reaction Team for the EU's Military Advisory Mission in the Central African Republic.

Together, we are achieving something very important in a spirit of both global and European solidarity and cooperation. I commend and thank you for your service. All the best.

I would like to invite you to an informal meeting of the Heads of State or Government of the euro zone and the President of the Commission on Monday 22 June 2015 at 19.00.

Given the outcome of the Euro Group meeting on 18 June, I consider that we cannot wait until our regular meeting to discuss the situation of Greece at the highest political level. The current economic assistance program to Greece runs out in 11 days. The purpose of the summit is to make sure that we all understand each other's positions and the possible consequences of our decisions. The summit will not be the final step and there will be no detailed technical negotiations. That remains the task of the finance ministers.

I have also invited the Presidents of the ECB, of the Euro Group and the Managing Director of the IMF to join us.

The situation of Greece is getting critical. The current economic assistance programme to Greece runs out in 11 days. Four months of negotiations have not led to the necessary compromise. The Eurogroup meeting yesterday did not manage to break the deadlock. The game of chicken needs to end, and so does the blame game. Because this is not a game and there is no time for any games. It is reality with real possible consequences, first and foremost for the Greek people.

This is why I have decided to convene a Euro Summit on Greece on Monday evening. The purpose of the summit is to make sure that we all understand each other's positions and the consequences of our decisions. We need to get rid of any illusions that there will be a magic solution at the leaders' level. The summit will not be the final step. There will be no detailed technical negotiations. That remains the job of the finance ministers.

We are close to the point where the Greek government will have to choose between accepting what I believe is a good offer of continued support or to head towards default. At the end of the day, this is and can only be a Greek decision and a Greek responsibility. There is still time, but only a few days. Let us use them wisely.

Watch the video

Monday 22 June 2015
14.30  Meeting with Mr Bill Gates from the Bill and Melinda Gates Foundation
19.00  Euro summit

Thursday 25 June 2015
12.30  European People's Party Summit (Académie Royale de Belgique)
15.00  Meeting with Prime Minister of Latvia Laimdota Straujuma
16.00  European Council

Friday 26 June 2015
10.00  European Council