Brussels, 25/10/2002 (Agence Europe) - At the Brussels Summit on Friday, the Heads of State and Government of the Fifteen reached an agreement on the last common positions (phasing-in of direct agricultural aid, Structural Funds, budgetary compensations) necessary to complete accession negotiations with the candidate countries by the European Council of Copenhagen on 12 and 13 December.
Following difficult negotiations, and on the basis of the Franco-German agreement secured Thursday evening (see yesterday's EUROPE p.4), they also managed to agree on the ceiling for agricultural spending between 2007 and 2013 at the level of spending provided for for 2006 (increased by 1% a year to take account of inflation) and to pursue the "budgetary discipline decided at the European Council of Berlin" (in 1999) in other Community policies post-2007.
An initial version of the draft conclusions by the Danish Presidency provided for a reference to stabilisation of expenditure in other policies (such as the Structural Funds and the British rebate), but the formula according to which "the principle of stability applicable to the common agricultural policy must also serve as principle in other fields of Community funding", was finally withdrawn from the text of the final conclusions. While a majority of the delegations supported this formula, several so-called cohesion countries (Spain, Portugal, Greece) insisted on less explicit wording that does not prejudge future reduction of structural aid.
The British rebate, however, was not discussed. "The rebate is simply not on the agenda" and the decisions taken in Berlin in 1999 remain "fully valid" even after 2006, Tony Blair said.
Both Jacques Chirac and Gerhard Schröder, however, clearly stressed after the Council that control and stabilisation of spending after 2006 should also aim at the other policies than the CAP, including the structural policies and "specific expenditure", like the budgetary correction that the including the British benefit from since the Fontainebleau Summit of 1984.. "It is clear that the reduction of such expenditure will be one of the central themes of the next budgetary negotiation", Mr Schröder stressed. "These are not forgotten themes", even if the Council conclusions do not explicitly mention them, he said.
The ceiling for agricultural expenditure after 2006 is to Germany's full satisfaction, stressed the Chancellor, as the "success of enlargement, that Germany has always wanted, will also depend on cutting expenditure".
British Foreign Minister Jack Straw said the main thing is that the EU should reaffirm its commitment to proceed to mid-term reform of CAP. "For those of us who are determined to reach CAP reform, this is an important day. The pressure for reforming CAP is on", he said.
Anders Fogh Rasmussen, the president of the European Council, obviously welcomed this "great success" of the Summit, which, in his view, will allow negotiations to be concluded at the Copenhagen Summit in December.
Main points subjects of agreement
At the end of the afternoon, the Fifteen had reached agreement on the following:
1. Designation of the countries to be part of the first wave of accessions. Fully approving the Commission's recommendation, the European Council officially designated the ten candidate countries that will be able to conclude negotiations at the European Council in Copenhagen in December, sign the Accession Treaty in April 2003 in Athens and - after ratification - be part of the first wave of accessions in 2004. The countries in question are: Poland, Hungary, Czech Republic, Estonia, Lithuania, Latvia, Slovakia, Slovenia, Cyprus and Malta. The Netherlands, which had expressed doubt about the state of real preparedness of some candidates, finally give its agreement to the list of ten countries on condition that safeguard clauses would be strengthened and the period of application extended from two to three years (see below).
2. "Financial package" for enlargement. The Fifteen agreed to propose the following common negotiating positions to candidates on the various financial and budgetary elements still pending: a) direct aid to farmers. The new members will benefit from "phasing in" of aid according to the scheme and timetable proposed by the Commission, that is, 25% in 2004, 30% in 2005, 35% in 2006 and 40% in 2007. Aid will then be increased by 10% annually in order to reach 100% in 2013. In conformity with the Franco-German agreement, phasing-in should be accomplished in a "context of financial stability" on the basis of 2006 expenditure. The Netherlands (apparently supported by some other delegations, of which diplomats cited Sweden and the United Kingdom) would have wished to stabilise CAP spending in a Union enlarged to 27 members at the ceiling level for 2006, valid even after accession by Bulgaria and Romania, but this suggestion was finally dismissed by the large majority of delegations; b) structural aid. The overall financial volume of commitment appropriations earmarked for the Structural Fund and the Cohesion Fund for the years 2004-2006 is said to be EUR 23 billion (the Commission had proposed 25.5 billion, while the net contributors and Germany in particular, called for 21.5 billion). The budget will be shared out between the new member countries according to the percentages that have already been the subject of an agreement in the context of accession negotiations on the "regional policy" chapter; c) budgetary compensation to the new net contributor members. The Commission's proposal was accepted: - compensation is foreseen in every case where a future member finds itself, in 2004, in a net financial situation that is less favourable that that just before its accession, in 2003. These payments will be sliding and temporary, limited to the years 2004-2006.
3. Monitoring and safeguard clauses. The Commission's proposal on monitoring was accepted as it was. The Commission should closely follow the measures that candidates take in 2003 to comply with all the commitments taken regarding adoption and implementation of the acquis communautaire. Six months before the time of enlargement, the Commission will present a final monitoring report. As far as the safeguard clauses are concerned, the Fifteen agree to introduce, in the Accession Treaty, three different safeguard clauses: - a so-called "general" economic clause (identical to that of the previous enlargements). The "appropriate" measures that the Commission may take on the basis of this clause (at the request of a Member state or on its own initiative) may be addressed to each of the 25 EU members; - a specific clause concerning the functioning of the internal market. At the Netherlands' request, this cause will also apply to "all sectoral policies that concern economic activity with a cross-border effect", i.e. a large part of the acquis communautaire; - another "specific" clause covering justice and home affairs. Measures taken under these two specific clauses may only be addressed at the new Member States not having honoured their undertakings. The three clauses may be invoked during a three year period following enlargement, and measures taken on this basis may remain in force beyond two years. The Heads of Government also agreed that the three clauses may be invoked already before accession of the new members, if the Commission's final monitoring report demonstrates that a candidate has not applied all undertakings made. Inclusion of the safeguard clause in the accession Treaty should therefore be the subject of agreement with the candidate countries in accession negotiations.
4. Bulgaria and Romania. The Fifteen back the Commission's analysis by which the process having to lead to their accession is now "irreversible". The Commission is invited to prepare, for Copenhagen, the necessary decisions to offer Bulgaria and Romania a revised roadmap with a timetable, as well as additional pre-accession aid. At the request of the majority of delegations, the Presidency's draft conclusions were amended to include a reference to the date of 2007 that Bulgaria and Romania have set for their accession: the Fifteen say they are ready to help them attain that objective.
5. Cyprus. The European Council reiterated its "preference" for Cyprus joining as reunified island, on the basis of a comprehensive settlement. The two parties are called upon to seize the opportunity to reach an agreement before the end of accession negotiations. The EU will continue to support the efforts of the UN Secretary General, but, without an agreement, the decisions to take in Copenhagen over Cyprus "will be taken on the conclusions of the European Council of Helsinki of 1999".
6. Turkey. The European Council welcomed the progress made by Turkey (an initial version of the conclusions simply referred to "noting" progress) towards the respect of the Copenhagen political criteria, as well as regarding economic and legislative alignment. "This has brought forward the opening of accession negotiations with Turkey", say the draft conclusions. Ankara is encouraged to continue down that path, and the EU Council is invited to prepare the necessary elements to take a decision in Copenhagen, on the "next stage" of Turkey's candidacy. No date was cited for the opening of negotiations.