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Image header Agence Europe
Europe Daily Bulletin No. 7931
SPECIAL EDITION EUROPEAN
COUNCIL STOCKHOLM,
23 AND 24 MARCH 2001 /
(eu) eu/european council of stockholm

Persson welcomes "breakthrough" at Summit on financial markets, Single Sky and liberalisation of postal sector - Prodi pleased with results on Galileo, but not so for European patent - Liberalisation of energy markets: no date as yet, but Commission will soon make a proposal

Stockholm, 25/03/2001 (Agence Europe) - During this summit, "we have built the first storey of the ten-storey house" that we pledged to build in Lisbon, by 2010, said Swedish Prime Minister Göran Persson during the press conference that closed the European Council of Stockholm, on 24 March. Mr Persson pointed out that the Heads of State and Government have now added four new areas to the objectives set out in the Lisbon strategy: the EU's ageing population, the role of biotechnology in favour of European economic growth, sustainable development, and the inclusion of candidate countries in the Lisbon Process (we recall that Finnish Prime Minister Paavo Lipponen had hoped they would participate at the European Council of Stockholm). Mr Persson believed the summit was successful with three "breakthroughs" on: the financial markets (Lamfalussy Report), Single Sky (see point 17) and the liberalisation of the postal services. Regarding the fact that the Presidency's Conclusions do not contain a date for liberalisation of the electricity and gas markets, he said that a date would have been given if a qualified majority decision had been taken, but that the European Union "respects the will of Member States" and cannot impose solutions if a Member State has a major internal policy problem. What is important, is that the liberalisation process should continue, and that there is no "stand still" in this process, he affirmed, noting that the Commission was invited to "come back as soon as possible with a proposal and with a time-table". The Commission received a "broad political mandate" and was "empowered" to make proposals, stressed Romano Prodi, who took part in the final press conference (as did EU Council President Anna Lindh, Ecofin Council President Bosse Ringholm and High Representative for CFSP Javier Solana).

Mr Persson summarised the results of the summit as follows:

  • Economic reform. Göran Persson cited: - integration of financial markets, "for which the impact must not be under-estimated". Just one week ago, "nobody would have give a penny" to bet that there would be agreement on the Lamfalussy report, Mr Prodi said, for his part; - liberalisation of postal services (the conclusions of the Summit request the adoption of the directive on postal services before the end of the year). Mr Persson commented that he was not at all certain an agreement would be reached on this in Stockholm; - the liberalisation of the electricity and gas markets. Mr Persson pointed out that the discussion on Saturday morning had mainly covered this issue (Spanish Prime Minister José Maria Aznar, who noted that the target dates had disappeared from the text, insisted on the problem of public enterprise which is competing with private enterprise on liberalised markets. The Conclusions take this concern into account in specifying - see point 16 - that the European Commission will ensure the competition rules are complied with and that public enterprise enjoying a monopoly situation does not take undue advantage of the liberalisation of the other markets). Companies working in a protected market must not be able to exploit liberalisation in other markets and cause a distorted competitive situation, stressed Mr Persson.

Employment and social policy. Mr Persson mainly noted: - the fixing of the 50% employment target, by 2010, for men and women aged 55 to 64; - the fixing of an intermediary target for the employment rate, in 2005 (67% in general and 57% for women); - the introduction of indicators on employment quality (to be presented in good time for the European Council of Laeken in December this year).

As far as the other work of the European Council is concerned, Mr Persson spoke of:

- The meeting with President Putin. "My childhood was lived in fear of Russia", said the Swedish Prime Minister, to show that we have come a long way since then. It is very important for the EIB to be able to finance the future of environmental projects in Russia, Mr Prodi said. He noted that the projects concerning Saint-Petersburg are of interest to Finland, and that those concerning Kaliningrad are "very important" for future EU Member States. Furthermore, in answer to questions on the parallel drawn by President Putin between Chechnya and Macedonia (see EUROPE of 24 March, p.3), Mr Persson said it is always dangerous to make comparisons between conflicts, as each conflict has its own historic roots and its own specific dynamic.

- Korea. Mr Persson pointed out that he would be returning to North and South Korea with Javier (Solana) and Chris (Patten), if possible before end May in order to confirm the EU's support to the process for bringing the two Koreas closer together. An EU fact-finding mission was in the country to verify whether the conditions for such a visit were appropriate, and the Deputy Prime Minister of North Korea confirmed, in Stockholm, that our conditions (broad agenda, covering human rights as well as the problem of missiles) have been accepted, said Mr Persson.

Romano Prodi mainly noted:

- The lack of firm conclusions on the Community patent (the conclusions are very vague on this subject: see point 44). "We shall try again", said Mr Prodi (EUROPE has reason to believe that the Commission President was considerably annoyed by the insistence on the part of some countries to use their own languages, a factor that would of course entail higher costs).

- The affirmation by the Heads of State and Government of the need to launch the Galileo project without delay (see point 41 of the Conclusions, where the European Council mainly calls on the Council to define arrangements for launching the next phase of the project). In response to questions, Mr Prodi said that the EUR 200 million in private sector funding had been "well taken", also by countries that had expressed reticence, like the Netherlands and Germany. But this is only the first phase, and there must be a second, he added, noting that developments have been positive as the "big" political objections initially expressed by some Member States against the project have now been overcome.

- The importance of the message of solidarity given by the Heads of State and Government with regard the BSE and foot-and-mouth crises.

- The message given on Friday evening by himself and External Relations Commissioner Chris Patten to Macedonian President, Boris Trajkovski. We assured President Trajkovski of our support, while insisting that action by Skopje to stabilise its borders (with Kosovo) should not exceed "reasonable" limits, stressed President Prodi.

Liberalisation of energy markets: responses from Messrs Schröder, Schüssel, Juncker and Simitis

Most participants at the Summit were questioned during their press conferences on the fact that no dates were given in the conclusions for liberalisation of the electricity and gas markets. There are no dates, but it is clear there must be liberalisation, said German Chancellor Gerhard Schröder, noting that France is in a situation of a particular kind, and that Germany did not wish to "turn this into a conflict". "We should have been bolder", said Austrian Chancellor Wolfgang Schüssel, who felt the Stockholm Summit has mainly produced "left-overs". Austrian Finance Minister Karl-Heinz Grasser added: "We would have liked to set a record a Stockholm (with regards liberalisation), but we find ourselves at the training stage". Luxembourg Prime Minister Jean-Claude Juncker, on the other hand, did not have the impression that things had gone backward in Stockholm. He said that France is in fact hoping for liberalisation, but does not wish to state this out loud. Greek Prime Minister Costas Simitis made it clear that Greece would not have had a problem with a target date for liberalisation, but that it was also necessary to give consumers quality and supply guarantees.

Italian Prime Minister Giuliano Amato was mainly asked questions on the indications that growth has declined in Italy. He said that he is leaving behind him a country "in good health" (he will not be running to continue as prime minister in the elections on 13 May).

Wim Kok welcomes move forward in the Lisbon Process

Dutch Prime Minister Wim Kok welcomed the progress made in the social package since the Lisbon Summit and mainly in the integration of the social agenda in the Lisbon Process. In future, said Wim Kok, "we shall get down to the new labour markets, to the increased rate of participation by women and the elderly on the labour market, to the quality of employment, to training and to education for all". Furthermore, Wim Kok said he was delighted by the "compromise accepted by France, which does not wish to set a date for total energy liberalisation but which has agreed this should be done without delay". Foreign Minister Jozias Van Aartsen welcomed the EU's support for Macedonia so that it may continue to live with all its ethnic components". Concerning the recent economic and financial developments in Turkey, Finance Minister Gerritt Zalm pointed out that the EU welcomes the agreement reached with the IMF on a framework programme for economic policy aimed at restoring economic and financial stability.

Jacques Chirac: Lisbon strategy is a winning strategy

"We have the feeling that Stockholm has allowed fresh impetus to be given to Lisbon. It is our trust in the strength of the European economy that we wished to express. The Lisbon strategy is a winning strategy to be followed through", declared French President Jacques Chirac, in his comments on the results of the Summit. "The consolidation of a social Europe is currently at the heart of European construction, the social agenda has an essential role to play and its timetable should be kept to", continued Mr Chirac. Regarding the fight against the greenhouse effect ("a French initiative"), Jacques Chirac welcomed the "clear and firm declaration by the Fifteen on their determination to achieve the Kyoto objectives, a declaration that will be forwarded in the form of an official letter from the Swedish Presidency to the President of the United States". In answer to various questions, President Chirac noted on the subject of the foot-and-mouth epizootic that "it is the CAP that is responsible for developing industrial agricultural policy, so everyone is responsible, but France a little less as it has always fought against a fall in prices which was the aim of the CAP from the outset". He insisted on the need "not to question the EU's vocation as exporter", and on the need to respect the Agenda 2000 for which the agreement was signed in Berlin. Mr Chirac said "the United States has but one idea in mind, that of eliminating Europe and France in particular" (France being the world's second largest exporter of processed goods) from "Green Power". Concerning the liberalisation of public services, President Chirac said he was satisfied with the compromise reached at the Summit along the same lines, as "France has refused that liberalisation should be kept to fixed dates, considering that the procedure for freer markets should be done gradually".

Poul-Nyrup Rasmussen: Stockholm is the guarantee of a sound and strong European economy

The Danish Prime Minister said "the Summit is a success and guarantees a sound and strong European economy". The conclusions on the social accountability of enterprise is specific demonstration of this, a subject on which Denmark is organising a major conference in June, the ethical dimension of biotechnology, and the intermediary objectives for employment.

Mr Verhofstadt deplores blocking of Community patent

Belgian Prime Minister Guy Verhofstadt welcomed the fact that the Stockholm Summit had shown that Europe must prepare to play a leading role in the global economy. He deplored the fact that deadlines for liberalisation of the gas and electricity markets had not been fixed. He stressed that the European Council, on the other hand, had found "an instrument for preventing monopolistic enterprises from taking advantage of their weight and influence in the States that are further forward with liberalisation". He welcomed the idea of coordinating the Luxembourg process, the Lisbon agenda and the Broad Economic Policy Guidelines (BEPGs) so that the European Council may devote its spring session to its role of guidance and political impetus. "It is important for Europe to use an integrated working method rather than tackling everything issue by issue if it wants to send out strong signals", specified Mr Verhofstadt. Concerning the social agenda, Belgium pledged in Stockholm to define, during its forthcoming Presidency, social indicators that are not only qualitative but also quantitative, the Prime Minister insisted. He explained that the indicators must be complete in order to give a valid translation of comparable situations. For example, he cited the compulsory school-leaving age, which varies between countries and distorts employment figures. Mr Verhofstadt deplored the lack of progress made at the level of the Community patent, and noted that the "European Council has called on the Commission to assume its responsibilities and not to simply note that things are not moving forward". He also regretted that "liberalisation of air space is blocked by a conflict between the United Kingdom and Spain, which cannot go on for ever". Belgian Foreign Minister Louis Michel said, for his part, that the stakes of the Stockholm Council were not real but purely intermediary.

Mr Aznar regrets the lack of progress made in market liberalisation

Spanish Prime Minister José-Maria Aznar regretted the fact that the Member States had not reached an agreement, in Stockholm, for going further forward towards market liberalisation. He restated his country's support to liberalisation of airspace, a process blocked by a quarrel between Spain and the United Kingdom over Gibraltar. Mr Aznar confided that he hoped consultations between Spain and the United Kingdom would result in time for the Gothenburg Summit. "We would have liked the results on liberalisation of the electricity market to be more spectacular", he declared. Mr Aznar also insisted that the European Commission is keeping a close eye on companies located in countries that have not opened their market up to competition but which are seeking to enter into markets already open to freer competition. He stressed that the preparation of the next Barcelona Summit would be difficult, but possible. Mr Aznar expressed concern regarding the turn of events in the Middle East and said he hoped there would be an end to unilateral actions.