The European Council met in Brussels on 12 December 2003. The meeting was preceded by an exposé by the President of the European Parliament, Mr Pat Cox, followed by an exchange of views concerning the main items on the agenda.
ECONOMIC GROWTH
European Action for Growth
- the EIB, in accordance with the ECOFIN Council report, to implement the financial instruments aiming at leveraging private capital, and to develop Securitisation Trusts and within the limits of the Bank's Statutes and subject to Eurostat rules work with the Member States as they seek to mobilise resources by bringing infrastructure assets to markets,
- Member States to complement the Action for Growth by national measures and programmes and, together with the Commission, to act rapidly to eliminate technical, legal, administrative and accounting obstacles to the implementation of PPPs, TENs and innovation and R&D projects and improve the non-financial framework conditions for these projects,
- the Commission, in accordance with the ECOFIN Council report, to redirect expenditure where appropriate towards growth-enhancing investment in physical and human capital and knowledge, and, in cooperation with the Member States, to further examine the necessity of developing a specific Community guarantee instrument for certain post-construction risks in TEN transport projects, to report on the results of that examination and, if appropriate, to present a proposal in this regard,
- the Commission and the EIB, to provide a mid-term evaluation of the Action for Growth by the end of 2007, on the basis of the following criteria: (i) effects on growth; (ii) impact on the internal market and cohesion in the enlarged EU; (iii) mobilisation of private sector capital, (iv) acceleration of the implementation of TENs and innovation and R&D projects including environment projects; (v) progress in reducing regulatory barriers; (vi) the impact on the environment and employment.
The European Council endorses the European Action for Growth, on the basis of the reports presented by the ECOFIN Council, the Commission and the EIB. The Action covers material as well as immaterial investments in two broad areas: the trans-European network infrastructure (TENs) including transport, telecommunications and energy, and innovation and R&D including environmental technology. It is an important step in the implementation of the Union's Lisbon agenda to improve competitiveness, employment and the enlarged Union's growth potential through higher investment in both physical and human capital to complement structural reform. The European Council welcomes the work carried out by the Commission, the EIB and the relevant formations of the Council on the establishment of a "quick start programme" and on the identification, according to a strict set of criteria, of a provisional list of projects for immediate action; these projects will be considered by the EIB and EIF in accordance with the principles set out in the ECOFIN Council report. If other projects fulfil the same criteria the list may be complemented, in accordance with the procedure followed for its establishment, in the framework of the annual reporting cycle to the Spring European Council.
The Action for Growth rests on close collaboration between the Member States, the Council, the Commission and the EIB. All relevant actors have to play their role in order for the Action to succeed, in particular by taking the necessary steps to ensure implementation of the "quick-start programme", so that the EIB and other relevant actors can provide appropriate financing. The mobilisation of private resources to finance qualifying projects is the cornerstone of the Action for Growth. The Action for Growth assumes the part-financing of projects from national budgets, in particular by optimising the use of existing public resources, a contribution from the EU and the EIB and enhanced coordination between all relevant sources of financing. The European Action for Growth will be consistent with the BEPGs, the Stability and Growth Pact, the Financial Perspective and the agreed framework for the EIB's capital. The European Council welcomes the political agreement in the Council on the TENs financial regulation providing for a higher rate of Community co-financing for some specific projects or sections of projects.
The European Council therefore invites:
Connecting the Internal Market
Transport TENs
The European Council welcomes the Council's political agreement on the new Community guidelines for the development of the Trans-European Transport Network, based on the work carried out by the Van Miert Group. These will allow all Member States of the enlarged Europe to participate fully in the Internal Market.
The priority projects identified by the guidelines are crucial to the strengthening of Internal Market cohesion, especially in view of the forthcoming enlargement of the European Union and of the need to remove bottlenecks and/or complete missing links in the circulation of goods (transit) across natural or other barriers or across borders.
As far as transport TENs in the context of the Action for Growth are concerned, the European Council takes note with satisfaction of the political agreement by the ECOFIN Council to increase the upper EU contribution from 10% to 20% for cross-border projects, and emphasises how the Action for Growth, in the case of transport, is entirely in line with the transport priority projects proposed by the Commission and approved by the Council on 5 December.
The European Council welcomes the presentation by the Commission of a proposal for a new Eurovignette Directive. It urges the Council to speed up its work in order to allow agreement on the Community-wide framework by March 2004 and, subsequently, to find an agreement with the European Parliament.
Telecommunications
The European Council invites the Commission to propose in its telecommunications report to the Spring 2004 European Council concrete actions to be taken by the Member States to improve the conditions of 3G mobile communications and broadband development in Europe.
Competitiveness
The European Council takes note with interest of progress on defining an integrated horizontal approach to competitiveness, i.a. through coherence, synergies and complementarities between policies, and invites the Council to assess further the Commission's communication, in particular identifying, in cooperation with the Commission, proposals having a significant impact on competitiveness or creating an excessive burden for certain sectors of industry. In this context further cost-effective ways of implementing EU decisions in the field of climate change and the potential cost of inaction should be considered. Conscious of the importance of the industrial sector for the competitiveness of the European economy and in view of the objectives set by the Lisbon strategy, the European Council looks forward to receiving the Commission's report on de-industrialisation in the first half of 2004.
The European Council welcomes the important agreement on a general approach on take-over bids, which is an essential component of the Financial Services Action Plan for the integration of European financial markets by 2005. The European Council also recalls the need to approve the Community patent on the basis of the common political approach already reached in March 2003. It stresses the need to develop broadband telecommunications and for the full and effective transposition of the new regulatory framework for electronic communications.
In view of the forthcoming international meeting in Washington on 19 December 2003 the European Council welcomes the decisions reached in the Competitiveness Council on the European candidate site for hosting ITER and supports the efforts to ensure the success of this candidacy.
Employment
- increasing adaptability of workers and enterprises,
- attracting more people to the labour market,
- more and more effective investment in human capital,
- ensuring effective implementation of reforms through better governance.
The European Council welcomes the report on "Creating more employment in Europe" presented by the Task Force chaired by Mr. Kok as well as the results of the work of the extraordinary Social Summit for Growth and Employment of 11 December on this issue.
The Task Force Report underlines the need to accelerate the implementation of the necessary reforms on employment. Europe has a large gap to bridge to achieve the employment objectives set at Lisbon. Economic growth is insufficient and unemployment is much too high. This is all the more urgent in the light of the wider, longer-term challenges Europe faces, such as globalisation, worldwide economic transformation and the consequences of the ageing society.
The European Council stresses that, in accordance with the view of the Task Force, improving the EU's employment performance in the context of the Employment Strategy depends on meeting four essential requirements:
The European Council underlines that employment will be one of the central aspects of the 2004 Spring European Council. It therefore invites the Commission and Council to consider the Task Force report in the preparation of the Joint Employment Report.
FREEDOM, SECURITY AND JUSTICE
Managing the Union's common borders
The European Council welcomes the political agreement reached by the Council on the main elements of the Commission proposal for a Council Regulation establishing a European Agency for the Management of operational cooperation at the common borders. It also invites the JHA Council to finish examining this important proposal as soon as possible so that it can be adopted in time to allow the Agency to become operational by 1 January 2005.
The European Council also welcomes the adoption of the programme of measures to combat illegal immigration across the maritime borders, which takes into account the results of the feasibility study carried out for the Commission on maritime borders. It calls on the JHA Council, in close cooperation with the Commission and the Member States, to ensure the implementation of the measures set out in the programme in order for the European Council to evaluate the results.
In the context of enlargement, the European Council welcomes the measures aimed at easing control procedures at the borders between Member States and acceding States, as well as those aimed at supporting the latter in their process of alignment with the acquis on external borders.
Controlling migratory flows
The European Council welcomes the general approach reached by the Council on the two Commission proposals for Council Regulations on biometric identifiers in visas and residence permits and invites the Commission to submit in due time a proposal for the introduction of biometric identifiers in passports. On the basis of the forthcoming Commission communication, it invites the Council to take the necessary decisions on the development of the Visa Information System (VIS) as soon as possible.
The European Council calls for more rapid progress in the field of return. Moreover, confirming the request it made in Thessaloniki, it invites the Commission to present at the beginning of 2004 a proposal for a financial instrument aimed at supporting a common approach in the area of return policy.
The European Council welcomes the significant progress achieved in the negotiations on the adoption of the two Council Directives on asylum qualification and procedures. It takes note of the persisting political obstacles that have been delaying the conclusion of these negotiations. On the other hand, it reaffirms the importance of developing a common European policy on asylum and invites the JHA Council to complete its work as soon as possible to ensure that the first phase of the establishment of a European Asylum system is fully implemented within the deadline set in Tampere.
Finally, the European Council reaffirms the importance of the dialogue with third countries of origin and transit of migratory flows and underlines the importance of continuing to assist those countries in their own efforts to stem such migratory flows. This was also emphasised at the meeting of five Western Mediterranean EU Member/Acceding States and the five countries of the Maghreb Union held in Tunis on 5 December 2003. It welcomes the interinstitutional agreement reached by the European Parliament and the Council on the Regulation establishing the new financial instrument relating to cooperation with third countries in the area of asylum and migration. It also welcomes the adoption by the Council of the mechanism for monitoring and evaluating third countries in the area of the fight against illegal migration and invites the Commission to present the first report on its implementation by the end of 2004 at the latest.
Judicial and Police Cooperation
The European Council welcomes further progress achieved by the Council in the area of police cooperation, taking into special consideration the signature of the Protocol amending the Europol Convention. On this basis, Europol will assume an increasingly important role in the action carried out by Member States in fighting organised crime and terrorism.
The European Council urges the Council to invite the competent authorities of the Member States to use more effectively the existing instrument of judicial and police cooperation, including joint investigation teams. It also welcomes progress in the intensification of police cooperation with several third countries of strategic importance for the EU as far as the fight against organised crime is concerned.
The European Council also welcomes the political agreement reached by the Council on the Commission proposal for a Council Framework Decision laying down minimum provisions on the constituent elements of criminal acts and penalties in the field of drug trafficking. The European Council welcomes the adoption of the Resolution on the importance of the role of the family in preventing drug abuse by adolescents, the Resolution on the posting of liaison officers with particular expertise in drugs to Albania, the Resolution on combating the impact of psychoactive substances use on road accidents and the Decision concerning control measures and criminal sanctions in respect of new synthetic drugs.
Interfaith Dialogue
The Heads of State or Government were informed of the results of the Conference on Interfaith Dialogue which took place in Rome on 30 and 31 October 2003 and took note with satisfaction of the Statement on Interfaith Dialogue and Social Cohesion adopted by Ministers of the Interior. Conscious of the importance of this issue, they encourage the relevant Ministers to support a sustained, open and transparent dialogue with the different religions and philosophical communities as an instrument of peace and social cohesion in Europe and at its borders.
The Heads of State or Government reaffirm the EU's firm commitment to oppose any form of extremism, intolerance and xenophobia, which undermine peaceful and democratic coexistence, and their condemnation of any type of violence and terrorism.
The Heads of State or Government underline its deep concern at the increase in instances of anti-semitic intolerance and strongly condemns all manifestations of anti-semitism, including attacks against religious sites and individuals.
ENLARGEMENT
The European Council welcomes the findings and recommendations of the Commission contained in its Comprehensive Monitoring Reports, the Strategy Paper and the Regular Reports presented on 5 November 2003.
New Member States
The Union looks forward to welcoming the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia as full members of the Union on 1 May 2004. Integrating the new Member States into the European family will fulfil the aspirations of European citizens throughout our continent.
The European Council invites the new Member States in the run-up to accession to intensify and complete their final preparations for membership. The European Council endorses the Council conclusions of 17 November 2003 on monitoring their state of preparedness for EU membership. In this context, it notes the Commission's determination to take, wherever necessary, all appropriate measures to safeguard the smooth functioning of all EU policies in the enlarged Union.
The European Council also notes with satisfaction the advanced state of the ongoing process of ratification of the Accession Treaty and looks forward to its timely completion.
Bulgaria and Romania
The European Council underscores the continuity and irreversibility of the ongoing enlargement process of which Bulgaria and Romania form an integral part. Over the past year, these countries have significantly brought forward their preparations for membership, which is reflected in the well-advanced state of their accession negotiations.
Welcoming Bulgaria and Romania in January 2007 as members of the Union, if they are ready, is the common objective of the Union of 25. Negotiations will be concluded on the same basis and principles applied to the ten acceding States. Bulgaria and Romania should continue energetically their preparations and make further progress on the ground, so that the accession negotiations can be brought to a successful conclusion in 2004 on the basis of own merits, and the Accession Treaty can be signed as soon as possible in 2005. The European Council underlines the determination of the Union to facilitate this time line. To this end, it is crucial for both countries to bring their administrative and judicial capacity up to the required level.
Furthermore, the European Council encourages Bulgaria and Romania to continue on the path of economic and structural reform in order to take full advantage of the benefits offered by the accession process. Close monitoring by the Union of the commitments undertaken and of the effective implementation of the acquis will continue to guide Bulgaria and Romania in their membership preparations.
Regarding the financial framework for Bulgaria and Romania, the Commission is invited to submit its proposal at the beginning of 2004, so as to enable the Council to give the necessary guidance for the Commission to present draft Common Positions on the relevant negotiating chapters in Spring 2004. In this context, the European Council takes note of the Commission's intention to base its proposal on the principles and methodology developed for the negotiations with the ten acceding States. The European Council restates its resolve that discussions or agreement on future policy reforms, or the new financial perspective, will neither impede the pursuit and conclusion of accession negotiations nor be prejudged by the outcome of those negotiations.
Turkey
The European Council welcomes the considerable and determined efforts by the Turkish government to accelerate the pace of reforms, many of which are significant in political and legal terms. The legislative packages so far adopted, the first important steps taken to ensure effective implementation, as well as the progress in addressing many priorities under the Copenhagen political criteria and in the revised Accession Partnership have brought Turkey closer to the Union. Turkey has also made significant progress in meeting the Copenhagen economic criteria. However, further sustained efforts are needed, in particular as regards strengthening the independence and functioning of the judiciary, the overall framework for the exercise of fundamental freedoms (association, expression and religion), the further alignment of civil-military relations with European practice, the situation in the Southeast of the country and cultural rights. Turkey also has to overcome macro-economic imbalances and structural shortcomings.
The European Council underlines the importance of Turkey's expression of political will to settle the Cyprus problem. In this respect a settlement of the Cyprus problem, based on the principles set out in section IV. below, would greatly facilitate Turkey's membership aspirations.
The European Council encourages Turkey to build on the substantial progress achieved so far in its preparations for launching accession negotiations and underlines its commitment to working towards full implementation of the pre-accession strategy with Turkey, including the revised Accession Partnership, in view of the decision to be taken by the European Council in December 2004 on the basis of the report and recommendations of the Commission.
CYPRUS
In line with its relevant conclusions, the European Council reiterates its preference for a reunited Cyprus to join the Union on 1 May 2004, in order to allow all Cypriots to enjoy a secure and prosperous future and the benefits of EU accession. It considers that there is a good prospect of reaching a just, viable and functional settlement by 1 May 2004, consistent with the relevant UN Security Council resolutions. The European Council therefore again urges all parties concerned, and in particular Turkey and the Turkish Cypriot leadership, to strongly support the UN Secretary General's efforts and, in this context, calls for an immediate resumption of the talks on the basis of his proposals. The Union reiterates its willingness to accommodate the terms of a settlement in line with the principles on which the EU is founded. In this context, the European Council welcomes the Commission's willingness to offer assistance for a speedy solution within the framework of the acquis. Following a settlement, the Union is ready to provide financial assistance for the development of the northern part of Cyprus and the Commission would be called upon to prepare all necessary steps for lifting the suspension of the acquis, in accordance with Protocol 10 to the Act of Accession.
EXTERNAL RELATIONS, CFSP, ESDP
External Relations
Western Balkans
The European Council takes note of the positive developments since the EU-Western Balkans Summit in Thessaloniki on 21 June 2003. The future of the Western Balkans lies within the European Union and the speed of movement ahead lies in the hands of the countries of the region. The Commission's report on the preparedness of Bosnia and Herzegovina to negotiate a Stabilisation and Association Agreement (SAA) has been presented and a similar feasibility report for Serbia and Montenegro is being prepared. The negotiations on an SAA with Albania continue. The SAAs with the former Yugoslav Republic of Macedonia and with Croatia are under ratification. The Croatian application for EU membership is currently under examination by the Commission, whose opinion is expected in Spring 2004. Concrete progress has been made in promoting regional cooperation, particularly in the areas of free trade, energy and infrastructures.
In certain cases, however, the pace of the reform process remains slow. The European Council therefore calls on the countries of the region to intensify their reform efforts, especially in areas which are essential for EU integration, in particular public administration, the judicial system and the fight against organised crime and corruption. It also expects all countries of the region and parties concerned to cooperate fully with the ICTY. In this respect, the European Council welcomes the Joint Conclusions of the meetings of Foreign Ministers and of Ministers responsible for Justice and Home Affairs, held on 9 December and on 28 November 2003 within the framework of the EU-Western Balkans Forum, and expects the relevant commitments to be rapidly translated into concrete actions.
Recalling its conclusions in Thessaloniki, the European Council reiterates its determination to fully support the European perspective of the Western Balkan countries. It welcomes progress already made in enriching the Stabilisation and Association Process with elements drawn from the enlargement experience: a draft Council regulation for individual European Partnerships during Spring 2004 is under examination; preparations for the participation of the Western Balkan countries in Community programmes and agencies are ongoing; twinning is about to be extended to the entire region; economic dialogue will start in early 2004; political dialogue and cooperation in CFSP matters have been enhanced.
Euro-Mediterranean Partnership
The European Council reaffirms the strategic importance of the Mediterranean for the European Union, and confirms its resolute determination to reinforce cooperation significantly with the Mediterranean partners.
The European Council notes with satisfaction the successful outcome of the VIth Conference of Euro-Mediterranean Foreign Ministers recently held in Naples and welcomes the results of the Euro-Mediterranean Conferences held in Palermo (trade), Venice (agriculture) and Rome (energy, infrastructures and investment).
In particular, the European Council emphasises the spirit of cooperation displayed by all participants at the Naples Conference and notes that following the establishment of the Euro-Mediterranean Parliamentary Assembly and the Euro-Mediterranean Foundation for the Dialogue of Cultures, and the reinforcement of the Euro-Mediterranean Facility for Euro-Mediterranean Investment and Partnership, the Barcelona Process now has more effective instruments for pursuing its objectives. The achievements of Palermo, Venice, Rome and Naples open up new avenues for cooperation between the Euro-Mediterranean partners and help to bring the civil societies in the region closer to the Barcelona Process.
In this context the European Council welcomes the ECOFIN Council decision to develop further the Facility for Euro-Mediterranean Investment and Partnership (FEMIP) by reinforcing the FEMIP within the European Investment Bank. In line with the Barcelona European Council remit, the decision was taken on the basis of the performance of the FEMIP, which was evaluated positively, and consultation with Mediterranean partner countries. The European Council invites the ECOFIN Council to assess the incorporation of an EIB majority-owned subsidiary dedicated to the Mediterranean partner countries in December 2006, on the basis of an evaluation of the reinforced Facility's performance, and taking into account the outcome of consultations with the Barcelona Process partners.
Iraq
The European Council reaffirms that the stability of Iraq is a shared interest and reiterates the Union's commitment to supporting the political as well as the economic reconstruction of the country, within the framework of the relevant UNSC Resolutions. It stresses that an adequate security environment and a strong and vital UN role are essential elements for success. The European Council underlines the need for full implementation of UNSC Resolution 1511.
The European Council repeats its wholehearted condemnation of terrorist attacks on Iraqis, multinational forces, and international organisations and staff, designed to undermine the political and economic reconstruction processes in Iraq.
The European Council welcomes the agreement establishing a timeline and a programme for an accelerated transfer of sovereignty to a transitional Iraqi government, and calls on all parties involved to keep the political process moving forward in an orderly and peaceful manner. It stresses the importance of ensuring the widest popular participation in the political and constitutional process.
The European Council recognises and encourages the efforts under way by the Iraqi Governing Council and its Ministries to assume more direct responsibilities and executive powers, particularly in the security field.
The European Council urges all countries in the region to contribute actively to the stability and economic reconstruction of Iraq. A free, democratic and prosperous Iraq, whose territorial integrity is preserved, will be essential for the stability of the region and beyond.
Terrorism
The European Council unequivocally condemns all recent terrorist attacks, including in Istanbul, which killed or injured many people of different nationalities and faiths. The Union reiterates its solidarity with Turkey and reaffirms its determination to defeat terrorism together with others in the international community and to provide a common response to this global threat.
Middle East Peace Process
The European Council remains firmly committed to the clear objective of two States, Israel and a viable and democratic Palestinian State, living side by side in peace and security, in the framework of a comprehensive peace in the Middle East, as laid out in the Road Map drawn up by the Quartet. The European Council welcomes the international support for the Road Map, as expressed by the unanimous adoption of UNSCR 1515. The European Council therefore calls again on both parties, Israel and the Palestinian Authority, to immediately and simultaneously fulfil their obligations and responsibilities under the Road Map. The European Council stresses the
