Developments in the European Union - Foreign Affairs Committee Contents


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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