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Europaudvalget 2009-10, Det Udenrigspolitiske Nævn 2009-10
Det Europæiske Råd 17/6-10 Bilag 5, UPN Alm.del Bilag 102
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COUNCIL OF

THE EUROPEAN UNION

Brussels, 11 June 2010

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CO EUR-PREP 40

NOTE

from :

to :

Subject :

The General Secretariat of the Council

General Affairs Council

European Council (17 June 2010)

– Draft conclusions

In accordance with article 2(3)(a) of the Council's Rules of Procedure, delegations will find

attached the draft conclusions prepared by the President of the European Council, in close

cooperation with the member of the European Council representing the Member State holding the

six-monthly Presidency of the Council and with the President of the Commission.

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The EU has met the worldwide financial crisis with united resolve and has done what was

necessary to safeguard the stability of the Economic and Monetary Union. In particular, in May

agreement was reached on a support package for Greece as well as on a European financial

stabilisation mechanism, which was finalised in June. We have been laying the foundations for

much stronger economic governance. We remain committed to taking all necessary action to put

our economies back on the path of sustainable and job-creating growth.

To that end, today:



we adopt "Europe 2020", our new strategy for jobs and smart, sustainable and inclusive

growth. It constitutes a coherent framework for the Union to mobilise all of its

instruments and policies and for the Member States to take enhanced coordinated

action. It will promote the delivery of structural reforms. The emphasis must now be on

implementation, and we will guide and monitor this process. We will discuss further,

over the coming months, how specific policies can be mobilised to unlock the EU's

growth potential, starting with innovation and energy policies;

we reaffirm our collective determination to ensure fiscal sustainability, including by

accelerating plans for fiscal consolidation where warranted;

we confirm our commitment to ensuring financial stability by addressing the gaps in

regulation and supervision of financial markets, both at the level of the EU and at the

G20. We agree to rapidly advance on key legislative measures so that the new

supervisory bodies can start work from the beginning of next year and set an ambitious

position for the EU to take at the Toronto Summit;

we fully agree on the urgent need to reinforce the coordination of our economic

policies. We agree on first orientations as regards the Stability and Growth Pact and

budgetary surveillance as well as broader macroeconomic surveillance. We look

forward to the final report of the Task Force in October.



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A NEW EUROPEAN STRATEGY FOR JOBS AND GROWTH

Finalising and implementing the Europe 2020 Strategy

The European Council today has finalised the European Union's new strategy for jobs and

smart, sustainable and inclusive growth. The strategy will help Europe recover from the crisis

and come out stronger, both internally and at the international level, by boosting

competitiveness, productivity, growth potential, social cohesion and economic convergence.

The new strategy responds to the challenge of reorienting policies away from crisis

management towards the introduction of medium- to longer-term reforms that promote

growth and ensure the sustainability of public finances.

Member States are determined to ensure fiscal sustainability. They will continue to adopt a

differentiated speed in fiscal consolidation taking both fiscal and non-fiscal risks into account.

In order to safeguard the credibility of the exit strategy, it is of utmost importance that

budgetary targets are achieved without delay. Several Member States have recently

strengthened and frontloaded budgetary consolidation; other Member States where risks are

particularly high should also consider action. Priority should be given to growth-friendly

budgetary consolidation strategies mainly focused on expenditure restraint. Increasing the

growth potential should be seen as paramount to ease fiscal adjustment in the long run.

The European Council confirms the five EU headline targets (annex) which will constitute

shared objectives guiding the action of Member States and the Union as regards promoting

employment; improving the conditions for innovation, research and development; meeting our

climate change and energy objectives; improving education levels and promoting social

inclusion in particular through the reduction of poverty. It agrees on the quantification of the

education and social inclusion/poverty indicators, as agreed by the Council. It gives its

political endorsement to the Integrated Guidelines for economic and employment policies,

which will be formally adopted following the European Parliament's opinion on the latter.

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Member States must now act to implement these policy priorities at their level. They should,

in close dialogue with the Commission, rapidly finalise their national targets, according to

their national decision-making procedures. They should also identify the main bottlenecks to

growth and indicate, in their National Reform Programmes, how they intend to tackle them.

Progress towards the headline targets will be regularly reviewed.

Work must also be taken forward at the European level, mobilising all EU instruments and

common policies, including the agricultural policy and policies aimed at promoting economic,

social and territorial cohesion. Full use should be made of the strategy's external dimension,

notably via the trade strategy that the Commission will present by the end of the year. Efforts

should seek to address the main bottlenecks constraining growth at EU level, including those

related to the working of the internal market and infrastructure.

In particular, Europe's Single Market needs be taken to a new stage, through a comprehensive

set of initiatives. The European Council welcomes the report presented by Mr Mario Monti on

a new strategy for the Single Market and the Commission's intention to follow it up by

presenting concrete proposals. The European Council will revert to this matter in December

2010.

Further to the presentation by the Commission of the first flagship initiative on a 'Digital

Agenda for Europe', the European Council endorses the establishment of an ambitious action

agenda based on concrete proposals and calls upon all institutions to engage in its full

implementation, including the creation of a single digital market. The Commission is invited

to report on progress achieved by the end of 2011.

The European Council looks forward to the presentation of the other flagship initiatives

before the end of the year.

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Enhancing economic governance

The crisis has revealed clear weaknesses in our economic governance, in particular as regards

budgetary and broader macroeconomic surveillance. Reinforcing economic policy

coordination therefore constitutes a crucial and urgent priority.

10.

The European Council welcomes the progress report of the President of the Task Force on

economic governance and agrees on a first set of orientations.

11.

As regards the strengthening of budgetary discipline, it agrees on :

a) strengthening the preventive arm of the Pact, with possible sanctions or incentives attached

to the consolidation path towards the medium term objective; these will be reviewed so as to

have a coherent and progressive system, ensuring a level playing field across Member

States, while taking into account Member States' participation in the euro area;

b) giving a much more prominent role to debt levels in budgetary surveillance, as originally

foreseen in the Stability and Growth Pact;

c) from 2011 onwards, presenting to the Commission in the spring Stability and Convergence

Programmes including budgetary plans for the upcoming years, taking account of national

budgetary procedures;

d) adoption by all Member States of national budgetary rules and medium term budgetary

frameworks in line with the SGP; these should be assessed by the Commission;

e) ensuring the quality of statistical data, essential for a sound budgetary policy and budgetary

surveillance; national statistical offices should be fully independent for data provision.

12.

As regards macro-economic surveillance, it agrees on:

a) developing a scoreboard to better assess competitiveness developments and imbalances and

allow for an early detection of unsustainable or dangerous trends;

b) developing a monitoring framework, reflecting the particular importance of this issue for

euro area Member States.

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13.

The European Council invites the Task Force and the Commission to rapidly develop further

and make operational these orientations. It looks forward the final report of the Task Force,

covering the full scope of its mandate, for its meeting in October 2010.

Regulating financial services

14.

The necessary reforms to restore the soundness and stability of the European financial system

must be completed urgently. The resilience and transparency of the banking sector must be

ensured. Progress in the next few months is essential. The Commission's communication on

"Regulating Financial Services for a sustainable growth" of 2 June 2010 sets out a

comprehensive list of initiatives to be undertaken and completed before the end of 2011. The

EU must demonstrate its determination to bring about a safer, sounder, more transparent and

more responsible financial system.

15.

In particular, the European Council:

(a)

calls on the Council and the European Parliament to rapidly adopt the legislative

proposals on financial supervision to ensure that the European Systemic Risk Board and

the three European Supervisory Authorities can begin working from the beginning of

2011;

(b)

calls for agreement on the legislative proposal on alternative investment fund managers

before the summer and for the swift examination of the Commission's proposal on the

improvement of the EU's supervision of credit rating agencies;

(c)

looks forward to proposals announced by the Commission on derivative markets and in

particular appropriate measures on short selling (including "naked" short selling) and

credit default swaps.

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16.

The European Council agrees that a levy on financial institutions should be introduced to

ensure that they contribute to the cost of crises. Such a levy should be part of a credible

resolution framework. Further work is urgently required on its main features and issues of

level playing field should be carefully assessed. The European Council invites the Council

and the Commission to take this work forward and report back in October 2010.

II.

G 20 TORONTO SUMMIT

17.

The Union's response to the crisis must continue to be coordinated at the global level. The

action it is taking to boost competitiveness, consolidate public finances and reform its

financial sector will enable it to put forward strong positions for similar international action at

the forthcoming G20 Summit. As outlined above, there is agreement at the EU level on the

application of a levy on all banks. The EU should lead efforts to set a global approach with a

view to maintaining a world-wide level playing field and will strongly defend this position

with its G20 partners.

18.

With a view to the Toronto Summit, the European Council confirms the orientations agreed

by the Council and reflected in the Terms of Reference prepared for the Busan Ministerial

Meeting. Given the major risks that late exit from extraordinary fiscal stimulus would entail

for public accounts' sustainability, the G20 should agree on a coordinated exit strategy to

ensure sustainable public finances. All major economies need to do their part to achieve the

agreed objective of a strong, balanced and sustainable growth. The G20 must reaffirm its

commitment to the reform of the financial system and make rapid progress in a consistent and

coordinated manner on the whole range of actions agreed upon in Pittsburgh, to strengthen the

resilience and transparency of our financial system, including through better quality additional

capital and new liquidity buffer. In the IMF, quotas should be reviewed as part of a wider

package of IMF governance issues, covering all elements agreed in Pittsburgh and Istanbul,

and be completed, as a single and comprehensive package by November 2010.

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III. MILLENNIUM DEVELOPMENT GOALS

19.

The forthcoming UN High Level Plenary Meeting on the Millennium Development Goals

constitutes a unique opportunity to strengthen our collective endeavours and our partnerships

with developing countries to eliminate global poverty, hunger and inequality. The conclusions

adopted by the Council on 14 June provide the European Union with a strong position for this

meeting.

20.

The European Union remains determined to support the achievement of the MDGs globally

by 2015. This is possible if all partners demonstrate firm political commitment, implement

necessary policy changes and take concrete action. The European Union calls on the High

Level Plenary Meeting to agree on concrete actions aimed at: increasing ownership by

developing countries; focusing efforts; improving the impact of policies; mobilising more and

predictable financing for development; and making more effective use of development

resources. The European Council reaffirms its commitment to achieve planned development

aid targets by 2015.

IV. CLIMATE CHANGE

21.

The European Council takes note of the Commission's communication analysing options to

move beyond 20% greenhouse gas emission reductions and assessing the risk of carbon

leakage. In line with the conclusions of the Council of 11 June, the Commission will

undertake further analyses, including at Member State level, and the Council will examine

further the issues raised in the communication. As shown in the ECOFIN report, the EU and

its Member States have advanced in the implementation of their fast start commitments for

2010 and will report at the Cancun conference in a coordinated manner on progress achieved.

The European Council will revert to climate change in the autumn, in advance of the Cancun

conference.

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OTHER ISSUES

22.

The European Council expresses its appreciation for the work achieved by the

Reflection

Group.

The Group's report on "Project Europe 2030 - Challenges and Opportunities" will

provide useful input for the European Union's work in the future.

23.

The European Council welcomes the progress achieved in implementing the

European Pact

on Immigration and Asylum

and endorses the conclusions of the Council of 3/4 June.

24.

The European Council welcomes the Commission opinion on

Iceland's

application for

membership of the EU and the recommendation that accession negotiations should be opened.

Having considered the application on the basis of the opinion and its December 2006

conclusions on the renewed consensus for enlargement, it notes that Iceland meets the

political criteria set by the Copenhagen European Council in 1993 and decides that accession

negotiations should be opened.

25.

The European Council invites the Council to adopt a general Negotiating Framework. It

recalls that negotiations will be aimed at Iceland integrally adopting the EU acquis and

ensuring its full implementation and enforcement, addressing existing obligations such as

those identified by the EFTA Surveillance Authority under the EEA Agreement, and other

areas of weakness identified in the Commission's Opinion, including in the area of financial

services. The European Council welcomes Iceland’s commitment to address these issues and

expresses its confidence that Iceland will actively pursue its efforts to resolve all outstanding

issues. The European Council confirms that the negotiations will be based on Iceland's own

merits and that the pace will depend on Iceland's progress in meeting the requirements set out

in the negotiating framework, which will address i.a. the above requirements.

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26.

The European Council congratulates

Estonia

on the convergence it has achieved, based on

sound economic and financial policies, and welcomes its fulfilment of all the convergence

criteria as set out in the Treaty. It welcomes the Commission's proposal that Estonia adopt the

euro on 1 January 2011.

27.

p.m.

Iran

28.

Confirming its previous conclusions of December 2008 and June 2009, and following on its

decision of December 2009 to examine transitional measures regarding the addition of 18

seats in the

European Parliament

until the end of the present 2009-2014 parliamentary term,

the European Council adopts a decision (doc. EUCO 11/10) to pursue the necessary procedure

to adopt those measures.

_________________

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ANNEX

NEW EUROPEAN STRATEGY FOR JOBS AND GROWTH

EU HEADLINE TARGETS

aiming to raise to 75% the employment rate for women and men aged 20-64, including

through the greater participation of young people, older workers and low-skilled

workers and the better integration of legal migrants;

improving the conditions for research and development, in particular with the aim of

raising combined public and private investment levels in this sector to 3% of GDP; the

Commission will elaborate an indicator reflecting R&D and innovation intensity;

reducing greenhouse gas emissions by 20% compared to 1990 levels; increasing the

share of renewables in final energy consumption to 20%; and moving towards a 20%

increase in energy efficiency;

the EU is committed to taking a decision to move to a 30% reduction by 2020 compared

to 1990 levels as its conditional offer with a view to a global and comprehensive

agreement for the period beyond 2012, provided that other developed countries commit

themselves to comparable emission reductions and that developing countries contribute

adequately according to their responsibilities and respective capabilities;

improving education levels, in particular by aiming to reduce school drop-out rates to

less than 10% and by increasing the share of 30-34 years old having completed tertiary

or equivalent education to at least 40%;

promoting social inclusion, in particular through the reduction of poverty, by aiming to

lift at least 20 million people out of the risk of poverty and exclusion.

____________________

The population is defined as the number of persons who are at risk-of-poverty and exclusion according to three

indicators (at-risk-of poverty; material deprivation; jobless household), leaving Member States free to set their

national targets on the basis of the most appropriate of these indicators.

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