European Council 28/29 June 2012 - Conclusions

EUROPEAN COUNCIL

Brussels, 29 June 2012

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COVER NOTE

from :

General Secretariat of the Council

to :

Delegations

Subject :

EUROPEAN COUNCIL

28/29 JUNE 2012

CONCLUSIONS

Delegations will find attached the conclusions of the European Council (28/29 June 2012).

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Conclusions – 28/29 June 2012

During the last two and a half years, the European Union has taken important and far-reaching

steps to overcome the crisis and improve the governance of the EMU. However, Europe is once

again going through a period of heightened tensions. The crisis surrounding sovereign debt and the

weakness of the financial sector, together with persistent low growth and macroeconomic

imbalances, are slowing down economic recovery and creating risks for the stability of EMU. This

is having a negative impact in terms of unemployment and may weigh down Europe's potential to

benefit from a gradual improvement of the global economic outlook.

We are therefore committed to taking resolute action to address financial market tensions, restore

confidence and revive growth. We reaffirm our commitment to preserve the EMU and put it on a

more solid basis for the future. Strong, smart, sustainable and inclusive growth, based on sound

public finances, structural reforms and investment to boost competitiveness, remains our key

priority.

This is why today the Heads of State or Government decided on a "Compact for Growth and Jobs",

encompassing action to be taken by the Member States and the European Union with the aim of relaunching growth, investment and employment as well as making Europe more competitive. We also

endorsed the country-specific recommendations to guide Member States' policies and budgets.

Finally we emphasised the role that the forthcoming Multiannual Financial Framework should play

in strengthening growth and employment. The President of the European Council presented the

report "Towards a Genuine Economic and Monetary Union".

We are determined to take the measures required to ensure a financially stable, competitive and

prosperous Europe and thus enhance the welfare of citizens.

I.

GROWTH, INVESTMENT AND JOBS

1.

The European Union will continue to do everything necessary to put Europe back on the path

of smart, sustainable and inclusive growth. Recalling the importance of fiscal consolidation,

structural reform and targeted investment for sustainable growth, the Heads of State or

Government decided on a "Compact for Growth and Jobs", providing a coherent framework

for action at national, EU and euro area levels, using all possible levers, instruments and

policies (see annex).

They invited the Council to rapidly examine how to improve cooperation between the

institutions in order to ensure the timely implementation of the provisions of this Compact

requiring EU legislation.

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2.

The European Council generally endorsed the country-specific recommendations which

Member States will translate into their forthcoming national decisions on budgets, structural

reforms and employment policies, thus bringing the 2012 European Semester to a close.

3.

Heads of State or Government of the participating Member States agreed on the solution for

the last outstanding issue of the patents package, namely the seat of the Central Division of

the Court of First Instance of the Unified Patent Court (UPC). That seat, along with the office

of the President of the Court of First Instance, will be located in Paris. The first President of

the Court of First Instance should come from the Member State hosting the central division.

Given the highly specialised nature of patent litigation and the need to maintain high quality

standards, thematic clusters will be created in two sections of the Central Division, one in

London (chemistry, including pharmaceuticals, classification C, human necessities,

classification A), the other in Munich (mechanical engineering, classification F).

Concerning actions to be brought to the central division, it was agreed that parties will have

the choice to bring an infringement action before the central division if the defendant is

domiciled outside the European Union. Furthermore if a revocation action is already pending

before the central division the patent holder should have the possibility to bring an

infringement action to the central division. There will be no possibility for the defendant to

request a transfer of an infringement case from a local division to the central division if the

defendant is domiciled within the European Union.

We suggest that Articles 6 to 8 of the Regulation implementing enhanced cooperation in the

area of the creation of unitary patent protection to be adopted by the Council and the

European Parliament be deleted.

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II.

REPORT ON EMU

4.

The report "Towards a Genuine Economic and Monetary Union" presented by the President

of the European Council, in cooperation with the Presidents of the Commission, Eurogroup

and ECB, sets out "four essential building blocks" for the future EMU: an integrated financial

framework, an integrated budgetary framework, an integrated economic policy framework

and strengthened democratic legitimacy and accountability.

Following an open exchange of views, where various opinions were expressed, the President

of the European Council was invited to develop, in close collaboration with the President of

the Commission, the President of the Eurogroup and the President of the ECB, a specific and

time-bound road map for the achievement of a genuine Economic and Monetary Union,

which will include concrete proposals on preserving the unity and integrity of the Single

Market in financial services and which will take account of the Euro Area statement and, inter

alia, of the intention of the Commission to bring forward proposals under Article 127.

They will examine what can be done within the current Treaties and which measures would

require Treaty change. In order to ensure their ownership, Member States will be closely

associated to the reflections and regularly consulted. There will also be consultations with the

European Parliament. An interim report will be presented in October 2012 and a final report

before the end of the year.

III. MULTIANNUAL FINANCIAL FRAMEWORK

5.

The European Council held an in-depth discussion with the President of the European

Parliament on the future Multiannual Financial Framework.

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6.

The European Council welcomed the progress achieved under the Danish presidency, which

provides a basis and orientations for the final stage of the negotiation during the incoming

Cyprus presidency. The Negotiating Box will be further developed with a view to reaching an

agreement by the end of 2012, while respecting the principle that nothing is agreed until

everything is agreed. Work should also be accelerated on the relevant legislative texts with a

view to rapid adoption, following the procedures enshrined in the Treaty. In this process, all

competent institutions are invited to cooperate closely, in line with Treaty competences.

IV.

OTHER ITEMS

(a)

The European Council welcomed the statement of the Euro Area Summit of 29 June

2012 and the use of the existing EFSF/ESM instruments that will be implemented

according to existing guidelines which detail the relevant procedures.

(b)

Enlargement: the European Council endorsed the decision taken by the Council to open

accession negotiations with Montenegro on 29 June 2012.

(c)

Justice and Home Affairs: the European Council welcomed the progress achieved on the

Dublin Regulation, the Directive on Reception Conditions and the Directive on Asylum

Procedures, and in relation to resettlement. It reiterated its commitment to the

completion of the Common European Asylum System by the end of 2012. It also

underlined the importance of free movement within the Schengen area and noted the

state of play on the proposals relating to its governance and to the Visa Regulation. It

underlined the importance of solidarity and cooperation in the management of external

borders, asylum and the fight against illegal immigration. It also emphasised the

importance of enhancing cooperation with countries of the neighbourhood. It will return

to these matters as necessary.

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(d)

Nuclear energy: the European Council invited Member States to ensure the full and

timely implementation of the recommendations presented in the report from ENSREG

further to the completion of the nuclear safety stress tests. The Commission and

ENSREG have agreed that further work is needed. The European Council noted the

Commission's intention to present a comprehensive communication later this year. It

called for the rapid implementation of the recommendations of the Ad Hoc Group on

Nuclear Security . It called for further efforts to enhance the EU's cooperation with all

the EU's neighbours on nuclear safety and security.

(e)

Syria: the European Council:

•

strongly condemned the brutal violence and massacres of civilians and urged the

Syrian regime to stop immediately its attacks against the civilian population;

•

called for an international, transparent, independent and prompt investigation into

violations of international law and human rights with a view to ensuring

accountability for those responsible;

•

called for a complete cessation of violence by all parties; reiterated that the main

responsibility for achieving the cease fire, implementing the Special Envoy Kofi

Annan's six-point plan, allowing full and unhindered humanitarian access and

ensuring the safety of the United Nations observers in Syria lies with the regime;

•

encouraged the Syrian opposition groups to agree on a set of shared principles for

working towards an inclusive, orderly and peaceful transition in Syria to a future

free of Assad and his brutal regime;

•

recalled its full support to Kofi Annan's plan and welcomed his efforts to work with

key international partners to move the political process forward;

•

called for united action by the UN Security Council to add more robust and

effective pressure, including the adoption of comprehensive sanctions under

Chapter VII; and, in this context, welcomed the adoption of additional restrictive

measures by the Council of the EU and agreed to keep further measures under

consideration.

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(f)

Iran: The European Council stressed its serious concerns about the nature of Iran's

nuclear programme and the urgent need for Iran to comply with all its international

obligations, including full implementation by Iran of UNSC and IAEA Board of

Governors resolutions. The European Council fully endorses the High Representative

and the E3+3 efforts in that regard. In light of the recent talks between the E3+3 and

Iran in Istanbul, Baghdad and Moscow, the Council urges Iran to decide whether it is

willing to commit to a serious negotiation process aimed at restoring the confidence in

the exclusively peaceful nature of the Iranian nuclear programme. Iran has to engage

constructively by focussing on reaching an agreement on concrete confidence-building

steps and addressing the concerns of the international community. The European

Council welcomes the full entry into force of the EU embargo on Iranian oil on 1 July

2012.

(g)

Human rights and democracy: the European Council welcomed the adoption by the

Council of the EU Strategic Framework for Human Rights and Democracy and the

related Action Plan and underlined the importance of keeping human rights and

democracy at the centre of EU foreign policy.

(h)

ODA: the European Council welcomed the second annual report on European Union

Official Development Assistance and reaffirmed its commitment to achieve

development assistance targets by 2015 as set out in its June 2005 conclusions.

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ANNEX

"COMPACT FOR GROWTH AND JOBS"

The Heads of State or Government

Expressing their determination to stimulate smart, sustainable, inclusive, resource-efficient and jobcreating growth, in the context of the Europe 2020 Strategy,

Stressing the need to mobilise at every level of governance in the European Union all levers,

instruments and policies to that end,

Recalling the importance of sound public finances, structural reform and targeted investment for

sustainable growth,

Have decided on the following Compact:

ACTION TO BE TAKEN AT THE LEVEL OF THE MEMBER STATES

1)

All Member States remain fully committed to taking the immediate action required at national

level to achieve the objectives of the Europe 2020 Strategy. The European Union's new tools

for economic governance must be applied fully and effectively and recourse to "peer

pressure" should be enhanced. The pending proposals aimed at completing this framework

(the "two-pack") must be adopted swiftly.

2)

In the implementation of the country-specific recommendations, Member States will put

particular emphasis on the following aspects:

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(a)

pursuing differentiated growth-friendly fiscal consolidation, respecting the Stability and

Growth Pact and taking into account country-specific circumstances; particular attention

must be given to investment into future-oriented areas directly related to the economy's

growth potential and ensuring the sustainability of pension systems. The Commission is

monitoring the impact of tight budget constraints on growth enhancing public

expenditure and on public investment. It will report on the quality of public spending

and the scope for possible action within the boundaries of the EU and national fiscal

frameworks;

(b)

restoring normal lending to the economy and urgently completing the restructuring of

the banking sector;

(c)

promoting growth and competitiveness, notably by addressing deep-rooted imbalances

and going further in structural reforms to unlock domestic potential for growth,

including through opening up competition in network industries, promoting the digital

economy, exploiting the potential of a green economy, removing unjustified restrictions

on service providers and making it easier to start a business;

(d)

tackling unemployment and addressing the social consequences of the crisis effectively;

pursuing reforms to improve employment levels; stepping up efforts to increase youth

employment, notably to improve young people's first work experience and their

participation in the labour market, with the objective that within a few months of

leaving school, young people receive a good quality offer of employment, continued

education, an apprenticeship, or a traineeship, which can be supported by the ESF; and

developing and implementing effective policies to combat poverty and support

vulnerable groups. Member States will swiftly implement their National Job Plans and

develop more ambitious and precise National Job Plans for the next European Semester

ones. Member States should use the possibilities of financing temporary recruitment

subsidies from the European Social Fund;

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(e)

modernising public administration, in particular by tackling delays in the judicial

system, reducing administrative burdens and developing e-government services. Best

practices in this respect should be shared.

THE CONTRIBUTION OF EUROPEAN POLICIES TO GROWTH

AND EMPLOYMENT

3)

Further urgent measures are needed at the level of the European Union in order to boost

growth and jobs, enhance the financing of the economy in the short to medium term and make

Europe more competitive as a location for production and investment.

(a)

Deepening the Single Market by removing remaining barriers will be a key factor in

promoting growth and jobs, in particular in digital and network industries. The

Commission intends to present further growth-enhancing measures to that end in

autumn 2012 as part of the second Single Market Act. Important progress has already

been achieved on the measures which are part of the first Single Market Act, including

the adoption of the proposal on standardisation and the agreement reached in the

Council on the proposals on accounting, venture capital and social entrepreneurship

funds and alternative dispute resolution and online dispute resolution. Agreement

should be reached as soon as possible on the proposals on public procurement, esignature and the recognition of professional qualifications. The Commission's

communication to improve Single Market governance is welcomed. Member States and

the Commission will ensure better implementation and enforcement of Single Market

rules and the Commission will monitor performance, including through an annual report

in the framework of the European Semester. The Commission communication on the

implementation of the Services Directive is also welcomed and should be implemented

immediately, including through rigorous peer review of national restrictions and swift

action to remove unjustified barriers. Additional economic gains of up to EUR 330

billion could be reaped within the scope of this Directive. The European Council will

review progress by the end of 2012.

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(b)

Swift progress is required to achieve a well- functioning Digital Single Market by 2015,

which will provide new dynamism to the European economy. In particular, priority

should be given to measures aimed at further developing cross-border online trade,

including by facilitating the transition to e- invoicing, and promoting the cross-border

use of e- identification and other e-services. It is also crucial to boost demand for the

roll-out of high-speed internet, modernise Europe's copyright regime and facilitate

licensing, while ensuring a high level of protection of intellectual property rights and

taking into account cultural diversity.

(c)

Further efforts are needed to reduce the overall regulatory burden at EU and national

level. The Commission will present a communication on further steps in "smart

regulation", including measures to support micro-enterprises, by the end of 2012.

(d)

Fully completing the internal energy market by 2014 in accordance with the agreed

deadlines and ensuring that that no Member State remains isolated from the European

gas and electricity networks after 2015 will significantly contribute to the EU's

competitiveness, growth and employment. Following the formal adoption of the Energy

Efficiency Directive, Member States must rapidly implement it, making full use of its

provisions in order to exploit the significant potential for job creation in this sector.

Agreement should be rapidly reached on the proposal on trans-European energy

infrastructure.

(e)

Efforts must continue in order to ensure that research efforts are swiftly translated into

innovations meeting market demands and thus strengthen Europe's competitiveness and

help respond to societal challenges. The European Research Area must be strengthened,

in particular by improving support to R&D and investment opportunities for innovative

start-ups and SMEs. The future programme for the competitiveness of enterprises and

SMEs (COSME) and the Horizon 2020 programme will help innovative SMEs access

financing. It is of particular importance to strengthen key enabling technologies which

are of systemic importance for the innovativeness and competitiveness of industry and

the whole economy, including in areas such nanotechnology, biotechnology and

advanced materials.

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(f)

For some countries, the reformed cohesion policy offers an opportunity to invest out of

the crisis as it is a major tool for investment, growth and job creation at EU level and for

structural reforms at national level. It accounts for an important share of public

investments in the EU and contributes to deepening of internal market.

(g)

The agreement reached today on the Unitary Patent will lead to considerably reduced

costs for SMEs and give a boost to innovation, by providing an affordable, high quality

patent in Europe, with a single specialised jurisdiction.

(h)

It is crucial to boost the financing of the economy. EUR 120 billion (equivalent to

around 1% of EU GNI) are being mobilised for fast-acting growth measures:

−

The EIB's paid- in capital should be increased by EUR 10 billion, with the aim of

strengthening its capital basis as well as increasing its overall lending capacity by

EUR 60 billion, and thus unlock up to EUR 180 billion of additional investment,

spread across the whole European Union, including in the most vulnerable

countries. This decision should be taken by the EIB Board of Governors so as to

ensure that it enters into force no later than 31 December 2012.

−

The Project Bond pilot phase should immediately be launched, bringing additional

investments of up to EUR 4.5 billion for pilot projects in key transport, energy

and broadband infrastructure. Provided that the interim report and evaluation of

the pilot phase are positive, the volume of such financial instruments could be

developed further in all countries in the future, including in support to the

Connecting Europe Facility.

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−

Where appropriate, and respecting de-commitment rules, Member States have the

possibility under existing rules and practices to work with the Commission in

using part of their Structural Funds allocation to share the EIB loan risk and

provide loan guarantees for knowledge and skills, resource efficiency, strategic

infrastructure and access to finance for SMEs. The Structural Funds have

reallocated funds in support of research and innovation, SMEs and youth

employment and a further EUR 55 billion will be devoted to growth enhancing

measures in the current period. Support to SMEs should be further strengthened,

including by ensuring their easier access to EU funds.

Member States also have the possibility to consider reallocations within their

national envelopes, under existing rules and in cooperation with the Commission.

−

The action of the European Investment Fund should be developed, particularly as

regards its venture capital activity, in liaison with existing national structures.

(i)

The European Union's budget must be a catalyst for growth and jobs across Europe,

notably by leveraging productive and human capital investments. Within the future

Multiannual Financial Framework, spending should be mobilised to support growth,

employment, competitiveness and convergence, in line with the Europe 2020 Strategy.

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(j)

Tax policy should contribute to fiscal consolidation and sustainable growth. Work and

discussions should be carried forward on the Commission proposals on energy taxation,

on the common consolidated corporate tax base and on the revision of the Savings Tax

Directive. As noted at the Council on 22 June 2012, the proposal for a Financial

Transaction Tax will not be adopted by the Council within a reasonable period. Several

Member States therefore will launch a request for an enhanced cooperation in this area,

with a view to its adoption by December 2012. The Commission is pursuing work on

concrete ways to improve the fight against tax fraud and tax evasion and will soon

present an Action Plan including options to that end. Rapid agreement must be reached

on the negotiating directives for savings taxation agreements with third countries.

Member States participating in the Euro Plus Pact will continue their structured

discussions on tax policy issues, notably to ensure the exchanges of best practices.

(k)

Boosting employment, for both women and men, in particular for young people and the

long-term unemployed, is a clear priority. The Council will swiftly examine and decide

on the proposals contained in the Commission's "Employment package", putting

emphasis on quality job creation, structural reform of labour markets and investment in

human capital. It is crucial to address youth unemployment, in particular through the

Commission's initiatives on youth guarantees and the quality framework for

traineeships. It is also important to promote the reactivation of older workers. EU

governance, including multilateral surveillance of employment policies, must be

improved.

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(l)

Labour mobility within the EU should be facilitated. The EURES portal should be

developed into a true European placement and recruitment tool; the possibility of

extending it to apprenticeships and traineeships should be examined as should further

support for the preparatory "Your first EURES job" action. New EU instruments to

better track new skills required should be developed, the recognition of professional

qualifications and language skills improved, the number of regulated professions

reduced and the acquisition and preservation of cross-border pension rights and other

social security rights for EU workers strengthened. Work on the proposal on the

enforcement of posted workers' rights should also be taken forward.

(m) Trade must be better used as an engine for growth. The European Union is determined

to promote free, fair and open trade whilst at the same time asserting its interests, in a

spirit of reciprocity and mutual benefit especially in relation to the world's largest

economies. The proposal of the Commission on access to public procurement markets

in third countries should be rapidly examined. Whilst strengthening the multilateral

system remains a crucial objective, the ongoing and potential upcoming bilateral

negotiations have a particularly high economic importance. More efforts should in

particular be geared to the removal of trade barriers, better market access, appropriate

investment conditions, the protection of intellectual property and the opening up of

public procurement markets. Agreements which have been finalised must be rapidly

signed and ratified. The Free Trade Agreements with Singapore and Canada should be

finalised by the end of the year; negotiations with India need a new impulse from both

sides, and work should continue towards the deepening of the EU's trade relationship

with Japan. Heads of State or Government look forward to the recommendations of the

EU-US High Level Working Group on Jobs and Growth and commit to working

towards the goal of launching in 2013 of negotiations on a comprehensive transatlantic

trade and investment agreement.

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(n)

Financial stability is a prerequisite for growth. The report "Towards a genuine

Economic and Monetary Union" sketches out important ideas in that respect. There are

areas where the Member States sharing a single currency, and others willing to join the

effort, want to go further in their efforts to coordinate and integrate their financial, fiscal

and economic policies within the European Union framework, fully respecting the

integrity of the Single Market and of the European Union as a whole.

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استنتاجات المجلس الأوروبي (28-29 حزيران/ يونيو 2012) وفيها قسم عن سورية: يدين العنف والمجازر بحق المدنيين، ويطالب النظام بوقف هجماته فورًا، ويدعم خطة عنان.