Memorandum from the Foreign and Commonwealth
Office
PROSPECTS FOR THE EUROPEAN COUNCIL
BRUSSELS, 11-12 DECEMBER
2008
December European Council
1. We expect the December European Council to
give priority to discussions on the next stage of the financial
crisis/economic downturn. This will be the priority issue at the
Council both for the UK and for the French Presidency. The Presidency
will also seek agreement on an ambitious 2020 Climate and Energy
Package, which we fully support. This is vital for sustaining
EU global leadership on climate change, and demonstrating to China
and to the new US administration that we are serious about moving
to a low carbon economy.
2. Other key issues which will feature at the
European Council will be: Ireland and the Lisbon treaty, CAP,
[Free Movement of Workers Directive], European defence and the
Eastern Partnership.
Economic and Financial Crisis
3. Following a mandate from the October European
Council, the Commission published its European Economic Recovery
Plan (EERP) on 26 November. We welcome the EERP on the basis that
it recognised that a significant coordinated fiscal stimulus package
is needed, and was consistent in terms of the four Commission
principles for fiscal stimuli (below) and the UK Pre-Budget Report:
— Timely, temporary, targeted and coordinated.
— Mix of revenue and expenditure instruments.
— Accompanied by structural reforms.
— Within the flexibility of the Stability
and Growth Pact.
It also supported actions on VAT reductions
and frontloading investment projects emphasised the importance
of the Lisbon Strategy and the necessity of a low-carbon economic
recovery. We expect the package to be discussed by Heads at the
December European Council.
2020 Climate and Energy Package
4. In the wake of the economic downturn some
Member States may try to water down or delay agreement on the
package. We are making the case that the downturn is not a reason
for delay—low carbon needs to be part of our recovery efforts.
We need to ensure any flexibility on delivery does not compromise
the deal's environmental integrity, and that all Member States
sign up. Agreeing a funding mechanism at the DEC for up to 12
CCS demonstration projects is vital for incentivising projects
to come forward ahead of international climate change negotiations
in Copenhagen 2009.
Ireland and the Lisbon Treaty
5. Ireland and the Lisbon Treaty is a priority
for the French Presidency. They will want to agree a roadmap on
the way forward at the December Council, based on Irish proposals.
These proposals are likely to stress the condition that the concerns
of Irish voters must be met before they could put any new proposals
to the Irish electorate. We have made clear to both the Presidency
and to Ireland that we do not support re-opening the Treaty text.
CAP
6. The Presidency has placed the Common Agricultural
Policy on the agenda for the December European Council. The UK
is clear that there can be no Conclusions on the long-term future
of CAP that pre-empt the EU Budget Review.
[Free Movement of Workers Directive
7. The UK would also like agreement on December
Conclusions on the application of the Free Movement of Workers
Directive. We believe free movement is a key EU achievement and
fundamental freedom, but that those enjoying this right must respect
the laws of host countries. We will seek support from other Member
States for Council Conclusions outlining the rights and responsibilities
of Free Movement.]
European Defence
8. French presidency proposals on European defence
are set to be discussed. We support more joined up civilian/military
strategic level planning structures in Brussels, refocused European
investment on the right sort of capabilities, and the setting
of a new capabilities-focused level of European ambition.
Eastern Partnership
9. We can support Poland and Sweden if they
seek conclusions on strengthening the EU approach to our Eastern
neighbourhood. This is a core part of our handling of Russia/Georgia.
Foreign and Commonwealth Office
2 December 2008
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