Feira, 20/06/2000 (Agence Europe) - "It is with great satisfaction that I can announce to you that, with the Feira Summit, all the elements, I repeat, all the elements of the mandate given to the Portuguese Presidency have been fulfilled", thanks in particular to the European Council's agreement on the package on taxation of savings presented by the Ecofin Council, announced to the press, on Tuesday afternoon, European Council President Antonio Guterres. After 12 years of work, at last we have clear guidelines on the principles of the future tax directive, he continued, praising the constructive cooperation of all the Member States and mentioning in particular Austria (twice), Luxembourg, the United Kingdom, Belgium and Greece. "Was there a deal on sanctions against Austria to reach agreement on the tax package", asked a reporter. "Absolutely not", replied Mr Guterres. "How did you get Austria to change her mind on the tax package?" "We all changed our minds", in the course of the negotiations, replied Mr Guterres. The compromise is neither "the start nor the end of the world, but this agreement was necessary", said Portugal's Prime Minister, exclaiming: "It is not possible that a Union with a single market, a single currency and an open method of consultation on economic and social policy can remain idle on taxation." In this agreement, "there are neither winners nor losers; Europe is the winner, and when Europe wins, we all win", he added, noting that, following the Feira agreement, all Member States will have to accept "serious adjustments".
Commenting on this considerable success by the Portuguese Presidency, Commission President Romano Prodi, at the same conference, asserted: "This European Council, which we saw as a sort of 'bridge-summit', managed to take significant decisions, because Mr Guterres never became discouraged."
Ecofin Council President Mr Pina Moura indicated three important dates for the process leading to a directive on savings taxation: a) the period from now to the end of the year, during which the French Presidency and "all the members of the Ecofin Council will concentrate on defining the content of the directive"; b) the years 2001 and 2002, which will see the start of "dialogue with third countries" on provisions equivalent to this content. Before the end of 2002, the Ecofin Council will have to take a unanimous decision on adoption and implementation of the directive; c) starting in 2003, a seven-year period during which a gradual transition will be organised in the states using withholding at the source, which will switch to the information sharing system (for more on the negotiation of the tax package, see pages 8 and 9).
This summit was also a "festive occasion" because of Greek entry into the euro area, and "we celebrated this event as an extremely important moment for the European undertaking", said Mr Guterres, adding that the Feira European Council was "rich in decisions" marking progress in all aspects of the Union's action. "We could not have reached this result without the exemplary cooperation of Romano Prodi and the Commission", he commented, insisting in particular on the concrete decisions taken in the context of follow-up to Lisbon, enlargement of the IGC agenda to enhanced cooperation, confirmation of the dynamic of the enlargement process, approval of the report on ESDP, relations with Russia and the Balkans (here, he paid tribute to the "wonderful cooperation" with Javier Solana, who also participated, with General Affairs Council President Jaime Gama, in the final press conference).
Prodi: "I hope there will be no referendum in Austria on sanctions"
President Prodi commented that the decisions on the IGC mark "great progress", recalling that the Commission had argued in Helsinki for keeping the "door open" to expansion of the conference agenda. "Now we can discuss enhanced cooperation, codecision, reform of the judicial system", he said. In his opinion, the important thing that happened in Feira is that "we rediscovered the joy, the capacity of taking decisions". Concerning the Charter of Fundamental Rights, he said he hoped Roman Herzog, "after what happened to him" (his wife's death, Ed.) will be able to "resume his role" and he stressed the necessity of coming up with a text that is both "modern" and coherent with the European Convention on Human Rights.
Regarding the Balkans, he stressed the appearance in the Summit's Conclusions (see following pages) of a "new expression", that of "potential applicants" for EU membership, an expression used for the countries of this region. It is an expression that, in an unofficial way, I have often used, but it is important for it to appear in this official document", he said.
On the subject of the "Austrian problem", Mr Prodi recalled the constant attitude of the Commission, consisting of preventing Austria from isolation, while adding that the Commission cannot play the role of ombudsman. He said he hoped a solution would be found to this problem "within not too long a time", but also expressed the hope that there would not be a referendum in Austria on bilateral measures, because it would not be an adequate instrument for settling this problem.
Mr Solana welcomes the concrete results concerning ESDP
The Secretary General of the Council/High Representative Javier Solana welcomed, for his part, the conclusions on the development of European Security and Defence Policy (ESDP). "Only six months after Helsinki, we have nearly all the instruments in place", he said, stressing that this would not have been possible without the impressive work accomplished by Mr Guterres and Mr Gama.
Comments from Messrs Schüssel, Juncker, Schröder and Amato
Chancellor Schüssel told the press that Austria had "held fast" on the taxation issue regarding its fundamental position, that is, to safeguard the banking secret. It was important to find a "way for all Fifteen", he added, stressing the contribution finally made by Austria for seeking a compromise. In his comments on the very hard remarks by Mr Eichel regarding Vienna (see other article), Wolfgang Schüssel noted that the German finance minister should have remained in Feira until the end as he would have seen what the reality was … Forming a link between the Austrian attitude in this affair and sanctions, he said it is now the turn of the others". In my capacity as Head of the Austrian Government, I could not fail to raise the problem of sanctions in Feira", he also said. "Don't speak of Austria, speak with Austria. There, that's what I told my colleagues", said Mr Schüssel, stating that, since his government was formed, there has been no violation of EU values in Austria. It is unacceptable that there should not be a deadline, or procedure, for lifting sanctions and, above all, that there should be no dialogue on this subject with us", he hammered home. It is "unacceptable that we should be presented with a take it or leave it solution", repeated Wolfgang Schüssel (EUROPE has reason to believe that the exchange of views with Antonio Guterres during the luncheon had been rather hardgoing: Mr Schüssel apparently told Mr Guterres that he was making a mistake by refusing dialogue with Vienna, and the Portuguese Prime Minister replied that it was he who had made a mistake by forming an alliance with FPÖ).
Luxembourg national Jean-Claude Juncker, head of the government and finance ministers of the other main country concerned by the tax package, exclaimed that, in the final compromise, he had not obtained less than Schüssel and that, thanks to Schüssel, he had gained more than what the others had wanted to give him … By referring to Austria's domestic situation, he commented: "I cannot imagine that the Austrian Social Democrats should refuse abolition of the banking secret that myself, as a Conservative, was able to accept …"
One can truly speak of "breakthrough", Gerhard Schröder told the press concerning the results on the taxation package. The United Kingdom, Luxembourg and finally Austria also, have had to move, noted the German Chancellor, who asked, however, whether a country like Switzerland would accept, under international pressure, "to no longer act like a tax haven".
Italian Prime Minister Giuliano Amato considered the tax compromise "very tangled" but noted that Europe often moves forward like this, in a laborious manner. It is important that the possibility of concluding bilateral agreements in this field has been stressed, he said, pointing out that the United Kingdom had already expressed the wish to negotiate such an agreement with Italy.
Mr Amato explained to the press how the Ecofin Council had managed to reach a compromise on the taxation package, and stated that, whereas Austria continued to oppose the information exchange system, Chancellor of the Exchequer Gordon Brown told his Austrian colleague, after bringing out of the dossier the OSCE text on money laundering, that he has already agreed to some things by accepting this document …
Mr Aznar announces compromise on sanctions against Austria; Mr Jospin stresses the importance of broad economic guidelines; Mr Blair notes end of the "Great Britain against the rest of Europe "situation
Spanish Prime Minister José Maria Aznar remarked for his part, when speaking to the press, that the agreement on taxation comprised a "rich periphery of nuance and suffering". Furthermore, he pointed out that the Portuguese Presidency would be presenting, in the next few days, an initiative concerning sanctions against Austria on which there is already consensus.
On the subject of these sanctions, French President Jacques Chirac said, while noting that the situation has not changed, that he was "quite ready" to examine any proposal from the Portuguese government. Furthermore, he affirmed that, in Nice, the IGC must reach an ambitious agreement on institutional reform and not a cut price agreement. Prime Minister Lionel Jospin, speaking at the same press conference, pointed out that the taxation agreement "does not meet with our full satisfaction", but that it "opens prospects". Under French Presidency, he said, we shall examine the content of the directive. In the context of Monday's debate on economic and financial issues, Lionel Jospin had also announced that the "French Presidency will attach real priority to the implementation of the plan of action on the information society", approved by the summit, in Feira. In addition, he had recalled the importance granted by France to the broad economic policy guidelines. "The recommendations for 2000 are more complete, the subjects tackled are more numerous. In particular the themes of integration of financial markets, the environment and the new economy are evermore present. In the same way, the reference to consolidating discussions within the euro group contributes to greater understanding of the situation and the economic policies of the euro zone. In order for this exercise to fully play its role, we must accept the trial of mutual criticism all the more as since 1999, at our request, country specific recommendations have been presented", he declared.
British Prime Minister Tony Blair, who was obviously pleased with the results on taxation (while in his speech the day before he had been somewhat circumspect about the subject of enhanced cooperation), told the press: this European Council shows that the summits of the EU are not always for Great Britain situations of "Britain against the rest of Europe". "This summit should put this thought to rest", he affirmed. In his view, while certain things "divide us sometimes", the European Council of Feira has shown everyone's ability to reach serious and constructive solutions, which confirms the validity of the position of his government towards Europe.
Summit conclusions confirm inclusion of "enhanced cooperation" in agenda for institutional reform, specify guidelines on several aspects of external relations and place emphasis on expected economic progress
For the third time since Helsinki, the European Council managed to adopt Conclusions which do not exceed twenty pages (although there are annexes). Apart from the taxation aspect, these Presidency Conclusions mainly cover:
1) Institutional Reform. The European Council notes rekindled public debate and the renewed interest for the future of Europe, and mainly considers that the future work of the IGC should also cover provisions on enhanced cooperation.
2) Defence/security. Regarding implementation of ESDP, the European Council above all notes that the Member States have pledged to provide, by 2003, up to 5,000 police officers for international task forces covering the whole range of conflict prevention and crisis management operations, and to "be able to find and deploy up to 1000 police officers within thirty days". In addition, the European Council welcomes the "Commission's determination to contribute to civilian crisis management in the limits of its powers" and notes that the standing political and military structures of the ESDP at the EU Council will be set in place "as soon as possible" after the Nice Summit.
3) Enlargement. The European Council devotes six paragraphs to the membership negotiations, stressing above all that it is necessary, in order to "maintain a favourable outlook on enlargement" to keep the population informed in an appropriate way, not only in Member States but also in applicant countries. As far as Turkey is concerned, the European Council said it expects concrete progress in the field of human rights, the rule of law and the legal system, and invites the Commission to present as soon as possible proposals concerning the single financial framework for aid to Turkey and the accession partnership. Mr Gama told the press that the first thing he intends to do after the summit is to inform the applicant countries about its outcome.
4) Follow-up for Lisbon Summit. This is the fullest part of the Conclusions, four pages long, in which the European Council mainly invites the Commission to present a report on the development of energy markets together with proposals aimed at liberalising them more and pursuing work on a single European air space in order to present a final report in October this year "with a view to presenting appropriate proposals". The Heads of State and Government, moreover, invited the Council to examine as a matter of urgency the draft European social agenda so that it may be approved by the Nice Summit, and welcome the prospect of holding, in Stockholm "early 2001", their first "regular spring meeting on the economic and social policies and strategy", on the basis of the "annual summary report" to be presented by the Commission, bearing in mind the contributions of different Council formations. The social partners should also have the opportunity to "intervene on such matters before the European Council".
5) Economic, financial and monetary issues. The European Council invites the Ecofin Council to implement its conclusions on practical measures to be adopted in order to "highlight the role of co-ordinator that the broad economic policy guidelines must play, in close cooperation with the other Council formations concerned".
6) Europe and its citizens. Under this heading, the summit discusses food safety, the environment and sustainable development (the European Council of June 2001 will hold a "complete review of the process aimed at integrating requirements" in this respect into sector-specific policies), the area of freedom, security and justice (the European Council approved the anti-drugs plan of action and calls for the report which must be submitted to it in December 2001 in application of the Tampere Conclusions to contain a chapter on the implementation of the external dimension of this policy), the very remote regions (the Nice Summit will examine progress made in this respect) and the statute of MEPs (the European Council invites the French Presidency to continue work "on the basis of progress made".
7) External relations. The European Council discusses: a) the "sound and strong partnership based on common values" to be kept up with Russia: the heads of State and Government mainly call on the Council and the Commission to "evaluate the situation in July, in order to fully exploit the instruments available, mainly the TACIS programme"; b) the common strategy for the Mediterranean region: the Conclusions specify that this strategy (see annex) will contribute to peace, stability and security in the Middle East once an overall peace agreement has been signed; c) the Middle East peace process: in particular, the Fifteen invite the new Syrian leaders to follow the strategic choice of peace and give their assurance that these leaders have full European Union support for achieving this. Furthermore, the European Council invites the Council to examine on the basis of the proposals made by the Secretary General/High Representative, assisted by the Special Envoy and the Commission, "in what way the European Union can bring its aid to Lebanon" and participate in the efforts towards the reconciliation and recovery in this country; d) the Balkans: this is the most substantial section of the Conclusions on external relations. The European Council asserted, in particular, that all the countries concerned "are potential candidates for accession, and invites the Secretary General/High Representative to intensify co-operation with these countries in the field of justice and home affairs and "in other areas," under the authority of the Presidency and in full co-operation with the Commission. It also invites the Council and Commission to start works in view of organising the summit proposed by President Chirac with those, among the western Balkan countries, who are "the most advanced in their democratic development" (the summit could, it is said, take place in Zagreb); the seven year dimension: the European Council approved the action plan for the seven year dimension "in European Union external and cross-border policies 2000-2003," and welcomed the Swedish Presidency's intention to establish. In collaboration with the Commission, a complete report on this subject for the Gothenburg summit in June 2001; - Africa (see separate article).
Among the annexes to the conclusions, lies a text relating the trafficking in human beings. In referring to the "Dover tragedy", the European Council undertakes to intensify its co-operation against cross-border crime. The European Council invites the French Presidency and the European Commission to urgently push forward the conclusions of the European Council in Tampere from October 1999 in this domain, and insists, in particular, on the intensification of co-operation between Member States and EUROPOL so as to detect and dismantle crime networks involved in this trafficking and on the adoption of sever sanctions against those responsible.
The full text of the European Council conclusions will be reproduced in the next edition of our series EUROPE/Documents. Some of the annex (for example, the "common strategy" for the Mediterranean region) will also be reproduced in the following edition.