European Council 1/2 March 2012 - Conclusions

EUROPEAN COUNCIL

Brussels, 2 March 2012

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CONCL 1

COVER NOTE

from :

General Secretariat of the Council

to :

Delegations

Subject :

EUROPEAN COUNCIL

1/2 March 2012

CONCLUSIONS

Delegations will find attached the conclusions of the European Council (1/2 March 2012).

________________________

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Conclusions – 1/2 March 2012

The European Council discussed the implementation of the EU's economic strategy. This strategy

pursues both continued fiscal consolidation and determined action to boost growth and jobs;

sustainable growth and jobs cannot be built on deficits and excessive debt levels. The measures

taken to stabilize the situation in the euro area are bearing fruit.

The European Council endorsed the five priorities for 2012 set out in the Commission's Annual

Growth Survey. It looked at action that has to be taken at national level. Member States must make

faster progress towards the targets of the Europe 2020 Strategy and step up efforts on the reforms

taken up in the 2011 Country-Specific Recommendations. They are expected to indicate the

measures they intend to take to that effect in their National Reform Programmes and their Stability

of Convergence Programmes. The European Council also discussed action required at the EU

level, pushing ahead with completing the Single Market in all its aspects, both internal and

external, and boosting innovation and research.

In the margins of the European Council the participating Member States signed the Treaty on

stability, coordination and governance in the EMU.

The European Council set the EU's priorities for the forthcoming G20 meeting and UN Rio+20

Conference, with a particular emphasis on growth-enhancing measures and reforms. It took stock

of developments concerning the Arab Spring and set guidance for future EU action to support that

process.

The European Council granted candidate status to Serbia.

It agreed that the Council should revert to the issue of Bulgaria and Romania's accession to the

Schengen area in order to adopt its decision in September

Finally, the European Council re-elected Herman Van Rompuy as its President.

I.

ECONOMIC POLICY

1.

The European Union is taking all necessary measures to put Europe back on the path to

growth and jobs. This requires a two-pronged approach, covering both measures to ensure

financial stability and fiscal consolidation and action to foster growth, competitiveness and

employment.

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Conclusions – 1/2 March 2012

2.

"Europe 2020" is Europe's strategy for jobs and growth and its comprehensive response to the

challenges it is facing. In particular, the five targets set out for 2020 remain fully relevant and

will continue to guide the action of Member States and the Union to promote employment;

improve the conditions for innovation, research and development; meet our climate change

and energy objectives; improve education levels and promote social inclusion in particular

through the reduction of poverty.

3.

However, efforts undertaken to date remain insufficient to meet most of these targets. It is

therefore urgent to concentrate on the implementation of reforms, with a particular attention

to measures which have a short-term effect on jobs and growth.

4.

For 2012, the European Council endorses the five priorities set out in the Commission's

Annual Growth Survey for action taken at the EU and national level to:

–

pursue differentiated, growth-friendly, fiscal consolidation,

–

restore normal lending to the economy,

–

promote growth and competitiveness,

–

tackle unemployment and the social consequences of the crisis, and

–

modernise public administration.

Action at the national level

5.

The European Council discussed preliminary findings and best practices relating to the

implementation of the 2011 Country-Specific Recommendations and commitments under the

Euro Plus Pact.

6.

While important measures have been taken by all Member States, reforms in certain areas are

lagging behind and implementation is uneven, as is described in the Commission's Annual

Growth Survey and the Presidency's report on the European semester.

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Conclusions – 1/2 March 2012

7.

Furthermore, the Commission's recent Alert Mechanism Report, which constitutes the first

step of the new procedure on the prevention and correction of macroeconomic imbalances,

points to certain challenges and potential risks raised by macroeconomic imbalances in some

Member States. The Council will examine the report closely. The European Council invites

the Council and the Commission to fully, effectively and swiftly implement the procedure and

Member States to act accordingly.

8.

Fiscal consolidation is an essential condition to return to higher growth and employment. It

must be differentiated according to Member States' conditions. All Member States should

continue to respect their commitments according to the rules of the Stability and Growth Pact,

which allow the automatic stabilisers to work around the agreed path of structural fiscal

adjustment, while ensuring the long term sustainability of public finances. Countries under an

assistance programme should stick to the targets and structural reforms agreed in the

programme. Similarly, Member States under market pressure should meet agreed budgetary

targets and stand ready to pursue further consolidation measures if needed. While pursuing

consolidation efforts, particular care must be given to prioritising expenditure that constitutes

an investment in future growth, with a particular emphasis on education, research and

innovation.

9.

Tax policy can contribute to fiscal consolidation and growth. In line with the Council

conclusions of 21 February, and recognising Member States' competences in this area, the

European Council invites Member States, where appropriate, to review their tax systems with

the aim of making them more effective and efficient, removing unjustified exemptions,

broadening the tax base, shifting taxes away from labour, improving the efficiency of tax

collection and tackling tax evasion. The Council and the Commission are invited to rapidly

develop concrete ways to improve the fight against tax fraud and tax evasion, including in

relation to third countries and to report by June 2012.

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Conclusions – 1/2 March 2012

10.

Bringing the employment rate to 75% by 2020 requires resolute action. The orientations set

by the Heads of State or Government on 30 January provide further specific guidance to

Member States, particularly on youth unemployment and the elaboration of their National Job

Plans in the framework of their NRPs. Tackling poverty and social exclusion requires the

implementation of active inclusive strategies encompassing labour market activation

measures. In line with the Council conclusions of 17 February 2012, and respecting the role of

social partners and national systems for wage-formation, Member States should :

−

increase efforts to make it easier and more attractive for employers to hire people,

where necessary by improving wage-setting mechanisms;

−

remove barriers to the creation of new jobs;

−

and implement active labour market policies, notably with a view to strengthening the

participation of young people, women and older workers.

11.

The European Council looks forward to the Commission's forthcoming "employment

package", focusing on strengthening growth through the mobilisation of Europe's workforce,

promoting job creation in key sectors of the economy, improving management of skills needs,

promoting labour market transitions and improving geographic mobility. It stresses the

importance of making progress on enhancing the mutual recognition of professional

qualifications, reducing the number of regulated professions and removing unjustified

regulatory barriers.

12.

It is of the utmost importance that Member States fully reflect these priorities and challenges

through more precise, operational and measurable commitments in their National Reform

Programmes and Stability or Convergence Programmes. The Member States that participate

in the Euro Plus Pact should also include further commitments focused on a small number of

essential, timely and measurable reforms to achieve the objectives of the Pact.

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13.

In this process, in which social partners and regions have an important role to play, full use

will be made of the tools offered by the European Union's new economic governance. The

European Council calls for the adoption by June of the two outstanding proposals aimed at

further strengthening euro area surveillance.

Action at the EU level

14.

In its meetings of October and December 2011, the European Council set out a clear

framework for a series of growth-enhancing proposals. The informal meeting of 30 January

2012 looked at some particularly urgent measures on which the Council will report next June.

Work must continue on all fronts to press ahead with this package of measures.

15.

In particular, efforts will continue in order to:

−

bring the Single Market to a new stage of development by strengthening its governance

and improving its implementation and enforcement; in this connection the European

Council looks forward to the presentation next June of the Commission's

communication on the Single Market and its report on the Services Directive as well as

its report on the outcome of sectoral performance checks. It welcomes the Commission's

intention to propose in the second half of this year a new round of measures designed to

open up new growth areas in the Single Market. In this connection, the European

Council stresses the importance of completing the Single Market and removing

remaining barriers;

−

complete the Digital Single Market by 2015, in particular by adopting measures to boost

confidence in on-line trade and by providing better broadband coverage, including by

reducing the cost of high-speed broadband infrastructure; the European Council looks

forward to the forthcoming Commission proposals on copyright;

−

reduce the administrative and regulatory burdens at EU and national level; the European

Council welcomes the Commission's intention to present a communication on further

steps towards minimising regulatory burdens, including measures to support microenterprises. It invites the Commission to consider sectoral targets;

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−

to remove trade barriers and ensure better market access and investment conditions in

line with the conclusions of October 2011 and the statement of January 2012; the

European Council welcomes the Commission's new report on trade and investment

barriers. The European Council will next June review progress and discuss how the

Union can deepen its trade and investment relationships with key partners.

16.

The European Council considers that enhanced "peer pressure" can help raise the ownership

and responsibility at the level of Heads of State or Government as regards the Council's and

individual Member States' role in developing the Single Market and complying with its rules.

To this effect, the European Council invites :

−

the Commission to provide transparent scoreboards as a basis for appropriate benchmarking;

−

the President of the European Council to promote regular monitoring by the European

Council of progress achieved on key Single Market proposals in the various Council

formations.

17.

Promoting a more resource-efficient, greener and more competitive economy is crucial. The

European Council calls for agreement to be reached on the Energy Efficiency Directive by

June. Recalling its conclusions of December 2011, it also calls for rapid progress on the lowcarbon 2050 strategy and on the implementation of the roadmap towards a resource-efficient

Europe.

18.

Innovation and research are at the heart of the Europe 2020 strategy. Europe has a strong

science base but the ability to transform research into new innovations targeted to market

demands needs to be improved. On the basis of a report presented by the Presidency, the

European Council took stock of the progress achieved in implementing its conclusions of

February 2011 and agreed that efforts must be stepped up with a view to:

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–

completing the European Research Area by 2014; in this connection the European Council

welcomed the Commission's intention to propose an ERA framework in June 2012;

–

improving the mobility and career prospects of researchers;

–

rapidly establishing and implementing the inventory of EU-funded R&D and the single

innovation indicator;

–

an intellectual property rights valorisation instrument at the European level;

–

the participating Member States reaching a final agreement in June 2012 at the latest on

the last outstanding issue in the patent package;

–

creating the best possible environment for entrepreneurs to commercialise their ideas and

create jobs and putting demand-led innovation as a main driver of Europe's research and

development policy; in particular, creating an effective EU-wide venture capital regime,

including an "EU passport", a financing scheme in support of innovative SMEs,

considering a "fund of funds" to provide cross-border risk capital and making more

effective use of pre-commercial public procurement to support innovative and high tech

businesses;

–

strengthening key enabling technologies which are of a systemic importance for the

innovativeness of industry and the whole economy.

19.

As regards energy, it is important to implement the orientations agreed in February and

December 2011, delivering on the commitment to complete the internal energy market by

2014, including through the full implementation of the Third Energy Package in recognition

of agreed deadlines, and to interconnect networks across borders. The European Council

looks forward to the Commission's communication expected by next June assessing the

degree of liberalisation and integration of the internal energy market.

20.

The European Council stresses the important role played by industry for European growth,

competitiveness, exports and job creation and as a driver for productivity and innovation.

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21.

Work and discussions should be carried forward on the Commission proposals on energy

taxation, on the common consolidated corporate tax base, on the financial transactions tax and

on the revision of the Savings Tax Directive. The negotiating directives for savings taxation

agreements with third countries should be rapidly adopted. The Council and the Commission

will regularly report on the state of play in this field, starting in June 2012.

22.

It is likewise important to rapidly complete the regulatory reform of the financial sector.

Building on the political agreement recently achieved, the European Market Infrastructure

Regulation should now be adopted as rapidly as possible. Furthermore, the proposals relating

to bank capital requirements and to markets in financial instruments should be agreed,

respectively by June and December 2012, bearing in mind the objective of having a single

rule book, and ensuring timely and consistent implementation of Basel III. The amendments

to the Regulation on Credit Rating Agencies should be adopted as soon as possible. The

European Council looks forward to the outcome of the Commission's ongoing review of

mandatory references to the ratings from credit rating agencies in EU legislation.

23.

It is important to restore investor confidence in the EU banking sector and to ensure the flow

of credit to the real economy, in particular through the strengthening of banks' capital

positions without excessive deleveraging and, where required, measures to support bank

access to funding. The Council will closely monitor the implementation of decisions taken

last October in this regard. The Commission is invited to consider the possible strengthening

of the current framework relative to executives pay.

24.

Given the need to stimulate the private financing of key infrastructure projects, work on the

pilot phase of the Europe 2020 project bond initiative should be stepped up with a view to

reaching agreement by June.

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II.

INTERNATIONAL SUMMITS

G20 and G8

25.

The European Council agreed that the following priorities should be pursued with a view to

the G20 summit:

–

ensure effective coordination at the global level for strong, sustainable and balanced

growth and progress in the implementation of the Cannes Action Plan;

–

implement the G20 commitments on financial market reform, including strict monitoring,

to ensure a global level playing field;

–

implement the 2011 Action Plan on Food Price Volatility and Agriculture; enhance

transparency in commodity markets; further implement the Seoul Development Action

plan focusing on infrastructure and green growth;

–

promote green growth and sustainable development; combat climate change in particular,

and mobilise sources for climate change finance;

–

fight protectionism and support an active WTO negotiation agenda, including for the least

developed countries;

–

26.

address the social dimension of globalisation, in particular youth unemployment.

The European Council was informed of the discussions at the G20 level on the substantial

increase in the IMF's resources. It recalled that euro area Member States have already

committed to provide EUR 150 billion through bilateral loans to IMF General Resources, and

that other EU Member States have also indicated their willingness to take part in the process

of reinforcing IMF resources. It encouraged G20 Finance Ministers to continue their work

with a view to reaching agreement on an increase in the IMF's resources at their next meeting

in April, in order to enhance the IMF's capacity to fulfil its systemic responsibilities in support

of its global membership.

27.

The European Council was informed of the state of play regarding preparations for the G8

summit.

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Rio+20 United Nations Conference on Sustainable Development

28.

The European Council underlined its strong support for an ambitious outcome at the Rio+20

UN Conference on Sustainable Development. It stressed the need for a strong participation

from the private sector and civil society at the Conference. It set out some key principles that

will guide the EU in its preparations:

–

the Conference should advance the global transition towards a green economy, thus

promoting environmental protection, contributing to poverty eradication and stimulating

low carbon and resource-efficient growth;

–

it should work towards clear operational targets and concrete actions at national and

international level within agreed time frames;

–

it should contribute to a strengthened global institutional framework for sustainable

development which should include the upgrade of UNEP to a specialised agency;

–

it should advance the work on global and coherent post-2015 goals for sustainable

development, also having regard to the review process of the Millennium Development

Goals.

III. FOREIGN POLICY

29.

One year after the start of the Arab Spring, the European Council discussed emerging trends

and lessons learnt from developments in the region and assessed the implementation of EU

support to date. The EU is promoting and supporting the democratic transformation in its

Southern Neighbourhood and across the wider Middle East and Gulf region. It remains

committed to developing partnerships with the Southern Neighbourhood countries, based on

differentiation, mutual accountability and the adherence to universal values, including the

protection of religious minorities (including Christians). In line with the principles and

objectives defined in its earlier declarations and in the Council conclusions of 20 June 2011,

the European Council agreed that the following orientations will guide the EU's further

engagement and contribution to the process:

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–

the EU encourages all countries in its Southern Neighbourhood to undertake significant

political reforms designed to build and consolidate democracy, establish and strengthen

the rule of law and to uphold respect for human rights and civil liberties with particular

attention to women's and minorities' rights.

–

bearing in mind the context of the economic and financial challenges facing many

countries in the region, the EU will continue to mobilise its instruments, placing greater

emphasis on assistance focused on governance and job creation and continue its efforts in

the framework of the "Task Force" meetings, including business stakeholders; the

European Council called in this connection for a swift ratification of the extension of the

EBRD's mandate;

–

in this context the EU is determined to match support to the level of democratic reform,

offering more support to those partners that make progress towards inclusive democratic

systems, while reconsidering support to governments in cases of oppression or grave or

systematic violations of human rights;

–

the EU will continue to strengthen its partnership with civil society, including through the

launch of the Neighbourhood Civil Society Facility;

–

rapid progress is needed in the ongoing trade negotiations and in the preparation of

negotiations for Deep and Comprehensive Free Trade Agreements that will progressively

integrate partners' economies into the EU Single Market and increase market access

opportunities;

–

the dialogues on migration, mobility and security will be extended with a view to fostering

people-to-people contacts, business contacts and mutual understanding; in this context,

joint efforts will be pursued also to prevent illegal immigration, in line with the EU's

Global Approach to Migration.

30.

The European Council invites the Commission and the High Representative to present by the

end of this year a roadmap to define and guide the implementation of the EU policy vis à vis

our Southern Mediterranean partners, listing its objectives, instruments and action, focusing

on the synergies with the Union for the Mediterranean and other regional initiatives.

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31.

The European Council is appalled by the situation in Syria and endorses the Council

Conclusions of 27 February 2012. In line with the United Nations Human Rights Council

resolution of 1 March, it demands that Syrian authorities immediately stop the massive

violence and human rights abuses inflicted to the civilian population. The European Council

remains determined to ensure that those responsible for the atrocities being committed in

Syria are held accountable for their actions and will coordinate closely with and assist those

working to document these appalling crimes. The European Council confirms its commitment

to further increasing the pressure on the Syrian regime as long as the violence and human

rights abuses continue, and invites the Council to prepare further targeted restrictive measures

against the regime. It calls on president Assad to step aside to make room for a peaceful

transition for the sake of the country. As soon as a democratic transition begins, the EU is

ready to develop a new partnership and provide assistance.

32.

The European Council reiterates the importance of full and unhindered access for independent

humanitarian agencies so that assistance may be provided to those in need in line with

humanitarian principles. The Union has already mobilised humanitarian funding and stands

ready to step it up as soon as conditions on the ground will allow humanitarian organisations

to expand relief operations.

33.

The European Council recalls its support for the efforts by the League of Arab States to end

the violence in Syria, and lends its full support to the missions undertaken by former UN

Secretary General Kofi Annan as the Joint Special Envoy of the United Nations and League

of Arab States on the Syrian crisis. It supports the launching of the Group of the Friends of the

Syrian People and the conclusions of its first meeting on 24 February 2012.

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34.

The European Council calls once more on all members of the United Nations Security

Council, particularly Russia and China, to work together in an effort to stop the violence. The

European Union supports the Syrian opposition in its struggle for freedom, dignity and

democracy, recognises the Syrian National Council as a legitimate representative of Syrians

and calls upon all members of the Syrian opposition to unite in its peaceful struggle for a new

Syria, where all citizens enjoy equal rights. The European Union calls on all parties to

promote a process aiming at a political solution.

35.

The European Council stresses the responsibility of the Syrian authorities regarding the

security of foreign nationals in Syria, including journalists, in particular by facilitating the

evacuation of those who need it.

36.

The European Council welcomes the Somalia Conference held in London on 23 February

2012. The European Council recalls the EU's Strategic Framework for the Horn of Africa

adopted by the Council on 14 November 2011 and, building on the outcome of the London

Conference, invites the Council, the Commission and the High Representative to maintain

comprehensive engagement with Somalia. In line with the EU Strategic Framework, the

Foreign Affairs Council should report back to the European Council in October on the

implementation of agreed actions.

37.

The European Council welcomes the progress the Eastern Partnership achieved in

furthering political association and economic integration with the EU. The partnership is

based on a commitment to common values, where those most engaged in reforms will benefit

more from their relationship with the EU. The European Council looks forward to the Eastern

Partnership Roadmap with a view to the next Eastern Partnership Summit in the second half

of 2013.

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38.

The European Council expresses its serious and deepening concern over the further

deterioration of the situation in Belarus. It welcomes the decision reached at the Council to

extend the list of those responsible for serious human rights violations or the repression of

civil society and the democratic opposition or supporting or benefitting from the Lukashenko

regime to be targeted by a travel ban and an asset freeze. The European Council invites the

Council to proceed with its work on further measures. It reiterates the Union's commitment to

strengthening its engagement with the Belarusian civil society and to supporting the

democratic aspirations of the Belarusian people.

IV.

OTHER ISSUES

39.

The European Council endorses the Council conclusions of 28 February 2012 on Enlargement

and the Stabilisation and Association Process, and agrees to grant Serbia the status of

candidate country.

40.

The European Council, recalling its discussions in 2011, reiterates that all legal conditions

have been met for the decision on Bulgaria's and Romania's accession to the Schengen area to

be taken.

41.

The European Council also acknowledges the continuous efforts undertaken by Bulgaria and

Romania.

42.

The European Council requests the Council, during the intervening period, to identify and

implement measures which would contribute to the successful enlargement of the Schengen

Area to include Romania and Bulgaria.

43.

The European Council asks the Council to revert to this issue in order to adopt its decision at

the meeting of the JHA Council in September 2012.

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44.

The European Council recalls its conclusions of June 2011, on the strengthening of the

Schengen area governance and underlines, in particular, the importance of reaching a swift

agreement on the Regulation on the establishment of an evaluation and monitoring

mechanism to verify the application of the Schengen acquis. This mechanism should also

address the required functioning of the institutions involved in the application of the Schengen

acquis.

45.

The European Council re-elected Mr Herman Van Rompuy President of the European

Council for the period from 1 June 2012 until 30 November 2014.

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استنتاجات المجلس الأوروبي (1-2 آذار/ مارس 2012) وفيها قسم عن سورية: يدين العنف ويطالب السلطات بوقفه فورًا، ويؤيد استنتاجات مجلس الشؤون الخارجية، ويؤكد محاسبة المسؤولين.