With the Estonian Presidency of the Council of the EU taking up its duties for the second half of 2017, EUROPE is publishing a dossier summarising the political priorities of the Estonian government. These priorities were outlined by the Deputy Minister for European Affairs, Matti Maasikas, who has been appointed Special Representative of the Estonian Presidency to the European institutions. Finally, the dossier includes a calendar of the principal institutional events taking place in Brussels, Luxembourg, Strasbourg and Tallinn. (Dossier by Camille-Cerise Gessant)
I. - INTRODUCTION
Estonia, the most northerly of the three Baltic states and with a population of 1.3 million, took up the Presidency of the Council of the EU of the second half of the year on 1 July. This is the first experience of the kind for the country, a member state of the EU since 2004 and of the single currency since 2011. For its great debut, Tallinn has mobilised 1,300 people and staff numbers at its Permanent Representation to the European institutions in Brussels have more than doubled, rising from 90 to 190. The Presidency budget stands at €75 million.
The Estonian Presidency is focusing on unity, under the motto ‘Unity through Balance’. “There is no priority, objective or indicator more important than a strong and united Europe”, said Prime Minister, Jüri Ratas. The Presidency intends to “find a balance between the different views, traditions and interests in Europe today to achieve the best possible outcome for the European citizens”. This does not, however, mean seeking out the lowest common denominator, the Presidency warns.
Tallinn also plans to communicate the benefits of the existence of the EU. Ratas believes that one of the EU’s greatest challenges is to regularly explain its added value and to show that it is working. “We need to prove that we are willing and able to make tough decisions and show genuine results. The EU is a response to crises, or at least a means of alleviating them”, the Prime Minister explained.
The Estonian Presidency will be based around four priorities: - an open and innovative European economy; - a safe and secure Europe; - a digital Europe and the free movement of data, and; - an inclusive and sustainable Europe. The digital dimension and the Eastern Partnership will be cross-cutting dossiers.
As well as these stated priorities, Estonia will have to deal with the negotiations for the withdrawal of the United Kingdom from the EU. However, it is determined that Brexit will not monopolise its six-month Presidency. “We have to accept that the negotiations will take place under our Presidency and that they will affect the environment in which we are working. Brexit is neither the main theme nor the priority of the Presidency. Even though we have a role in this process, the European Commission will shoulder the bulk of the burden”, Ratas stressed.
The Estonian Presidency has, moreover, been brought forward by six months, after the UK renounced its turn in the wake of the victory of the ‘Leave’ vote in the British referendum of June 2016. It is also worth noting that the German general elections of September may have an effect on work at European level.
II. - AN OPEN AND INNOVATIVE EUROPEAN ECONOMY
The Estonian Presidency intends to work for an open and innovative European economy, by protecting and promoting the four freedoms: the free movement of goods, persons, services and capital.
“The single market is not yet complete and much of the potential of the European economy is still untapped”, Ratas explained. He argues that it is vital to create an environment conducive to job creation that will allow businesses to develop and operate within the single market with no unnecessary barriers.
The Estonian Presidency will ensure that it is as easy as possible to provide services and to start up a company in the EU. For instance, Estonia aims to make inroads in the negotiations on the ‘services’ package, including the services e-card and the service notification procedure, and the proportionate evaluation of professional qualifications.
Tallinn considers that it is important to create new financing opportunities for businesses and to guarantee a stable banking sector. Ensuring fair competition by preventing tax evasion is another priority, for instance by establishing rules on tax advisers, on the basis of the Commission’s proposal of June 2017 (see EUROPE 11813), and through more effective cooperation between the national financial supervisory authorities.
Estonia will also work to set in place a stable and effective electricity market. Ratas feels that “the energy system in Europe requires change. It needs to become smarter, cleaner and more viable”. The Presidency plans to work on the clean energy package and make progress on renewable energy, the functioning of the electricity market and energy efficiency.
The Presidency also lays great emphasis on open external trade that is also reciprocal and contains safeguards. Over the next six months, negotiations with Japan may be concluded and the Commission may also ask member states for a mandate to negotiate with New Zealand and Australia.
III. - A SAFE AND SECURE EUROPE
As was also the case for the previous Presidencies, the questions of safety and security are high on Estonia’s agenda. Tallinn takes the view that it is only by working together and preserving its unity on the international scene that the EU can keep citizens safe and promote peace, prosperity and stability throughout the world. “We are open to the world, but our house must be safe and secure”, Ratas summed up.
“To guarantee a secure Schengen zone and safeguard the freedom of movement, we need better protection on the external borders of the EU and tighter controls on the movements of persons and goods”, the Prime Minister said.
Stepping up the fight against terrorism and organised crime – and their financing – is one of the Presidency’s priorities. Another priority is to reinforce internal security and the protection of the EU’s external borders by improving cooperation between the police and justice systems and making use of state-of-the-art information systems.
Tallinn is calling for the development of full common databases, including the European entry/exit system for the registration of border crossings, the European travel identification and authorisation system for travellers from third countries (ETIAS) and the database on asylum seekers (Eurodac). Ratas believes that the interoperability of these databases is the most important thing.
The Presidency also plans to work on a new Commission proposal to reinforce the European information system on criminal records, ECRIS, and on bolstering the mandate of the European agency Eu-LISA for the operational management of large-scale information systems within the space of freedom, security and justice (see EUROPE 11819).
Tallinn also intends to continue the work on reforming the common European asylum system and on managing the migration crisis. “We must find a balance between the front-line countries and those that feel they can contribute to the solution to the crisis by other means”, the Estonian Prime Minister said. The member states have until September to meet their commitments in terms of relocation. With migration flows in the Mediterranean on the rise, the Estonian Presidency intends to work on the policy of return of ‘economic’ migrants.
In the view of the Presidency, the security of the EU also depends on the situation in its neighbourhood – and beyond. “Maintaining the power and unity of foreign policy is vital for the EU”, the Prime Minister explained, calling for defence expenditure to increase alongside efforts in terms of cooperation to improve the EU’s capacities. “Defence capabilities can only be significantly improved by stepping up investment”, he said. Estonia will also aim for a close relationship with the United States and cooperation with NATO, both elements that are “essential to the EU’s security and defence needs”, for instance on the questions of cyber-attacks and hybrid threats. Tallinn, moreover, is home to NATO’s cooperative cyber-defence centre of excellence. NATO has deployed several hundred staff in Estonia, which has a border with Russia, as it has recently also done with Latvia, Lithuania and Poland, in order to reinforce its eastern flank.
Estonia will also defend the continuation of the EU’s policy towards Russia, with a two-pronged approach focusing on dialogue and sanctions.
One of Tallinn’s priorities during its Presidency is to improve relations with the countries of the Eastern Partnership (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine). Ratas stressed the importance of making sure that the partner countries feel the EU offers them all possible support. One of the highlights of the Presidency will be the Eastern Partnership Summit, to be held in Brussels on 24 November. The Presidency believes it is important that this major biennial event is held somewhere other than in one of the countries naturally involved in this political process, as has so far been the case with Prague, Warsaw, Vilnius and Riga. The summit must “offer the partner countries, their citizens and their businesses tangible results”, Ratas explained.
IV. - A DIGITAL EUROPE
Estonia, which is an ultra-connected country in which Internet access is seen almost as a human right, is making the digital Europe dossier its priority number one, but stresses that expectations must remain realistic. “I think we are expected to create a digital Europe, an ‘e-Europe’, in six months, but we must retain some realism. We have a pretty major programme in the field of digital technologies, which are critical for the future of Europe”, Ratas said.
He said that completing the digital single market could inject up to €400 billion into the European economy and create hundreds of thousands of new jobs every year. Digital represents 7% of Estonia’s GDP.
The Estonian Presidency considers that the free movement of data should be the fifth fundamental freedom. It therefore expects the Commission to launch a specific initiative in the autumn. The European Electronic Communications Code, which was proposed by the Commission in September 2016 and hailed by Tallinn as a “major revision of the telecommunications rules to prepare Europe for the age of mobile broadband” (5G), is another of Estonia’s priorities. The Presidency believes that the Code should promote investment, competition and the development of new services.
Estonia plans to work on developing cross-border electronic trade and services, arguing that this is an area in which results are visible to businesses and consumers. “In addition to putting an end to unjustified geo-blocking in the EU, we want make sure that consumers have the same rights and guarantees wherever they buy online”, the Prime Minister explained. The Presidency is hoping, amongst other things, to reach an agreement on the geo-blocking regulation.
Updating VAT for cross-border trade and VAT rates on e-books and online publications is another priority, as is reforming the legislation on copyright.
The Presidency’s programme also includes making progress on cross-border digital public services and creating an environment conducive to new innovative services. Tallinn furthermore hopes to “ensure modern and secured electronic communications that are available throughout Europe”. For instance, the Presidency aims to work on a renewed cyber-security strategy, to be presented by the European Commission in September.
Underlining the importance it attaches to digital, the President will hold a summit of heads of state or government in Tallinn on 29 September, devoted solely to the future of digital Europe.
V. - AN INCLUSIVE AND SUSTAINABLE EUROPE
The final major priority of the Presidency is an “inclusive and sustainable” Europe. Tallinn is aware that social issues, on which the EU has little competence, are a difficult subject. Even so, it intends to work on the Commission’s proposal to introduce a social pillar at EU level.
Estonia wants a Europe that supports “equal opportunities for high-quality education, employment, access to services and development of skills”. Closer links between education and the employment market are important to Estonia.
The Presidency will focus on modernising the rules in order to promote labour mobility and free movement of persons. It also hopes to work on equal opportunities in the labour market and social inclusion. “This means that we will lay emphasis on ensuring equal treatment for posted workers, the development of technologies to bring people living with a disability closer to society and improve their access to products and on helping to reconcile personal and professional life”, Ratas explained.
One of the most controversial dossiers of the next six months will be the question of posted workers. “Our job is to find the best solution, in other words a compromise. This debate must not split Europe into two camps”, Ratas told an interview with the French daily newspaper Le Monde (our translation). Estonia hopes that the Council will be able to adopt its composition in October (see EUROPE 11809).
The Presidency also wants a Europe that is fully committed to protecting the environment. It believes that overwhelmed and degraded ecosystems pose a direct threat to agricultural, industrial and energy production. “Striking a balance between the needs of nature and the economy is not simply possible, but imperative”, said the Estonian Prime Minister. The Presidency will place the spotlight on waste management policies. It believes that industry and consumption must move on to generate less waste and reuse or recycle as much waste as possible.
The climate will be a key dossier, against the backdrop of the decision of the United States to leave the Paris Agreement. The Presidency will focus on reforming the Community system for the trade in CO2 emissions quotas, reducing emissions from many sectors and the contribution of the forestry and agricultural sectors to fighting climate change. More than 50% of Estonian territory is forested.