Hampton Court, 28/10/2005 (Agence Europe) - Speaking to reporters on Thursday evening, UK Prime Minister and President of the European Council, Tony Blair, said the British Presidency was pleased with the outcome of the special Hampton Court Summit because the Presidency had got what it wanted, namely 'broad agreement' among Member States on the guidelines put forward by the European Commission to enable the EU to tackle globalisation. We have to improve R&D and extend the knowledge based society; we must reform our universities to make them more competitive with competing universities in the United States, India and China; we must establish a common energy policy with European grids and interconnections; we must improve coordination of policies and action in the field of immigration in order to be better able to combat illegal immigration and also take full advantage of legal immigration; we must do more to help people reconcile work and family life, said Blair. In all these areas, he said, the European Commission, British Presidency and the Austrian Presidency will be working together over the next few months to come up with concrete proposals so decisions and conclusions can be reached under the Austrian Presidency at the Spring 2006 European Council on economic issues (R&D, education and energy), and at the June 2006 European Council on immigration and demographic ageing. The first outline will be submitted to the 15/16 December European Council. Tony Blair said that in December, it would also be possible to unveil concrete proposals on combatting illegal immigration (an issue raised on Thursday by the Spanish prime minister Jose Luis Rodriguez Zapatero).
The British pm said it had clearly emerged from the discussions that 'the EU sometimes needed to do more, sometimes less, but anyway it needed to do it better'. He said there had been broad agreement on the need for the EU to reduce and streamline EU legislation. The new Member States had made a huge contribution to the debate by providing new energy and it had been refreshing to see the Barroso Commission focussing on what was necessary in terms of new legislation, restricting its action to areas where Europe can provide value-added, said Tony Blair, when asked about this by reporters.
The President of the European Commission, Jose Manuel Barroso, welcomed the 'great meeting', that had taken place in such a great atmosphere and where European leaders had given strong backing to the European Commission document. He said they had avoided falling into the trap of comparing and contrasting Europe's different social models and instead of that, had reached consensus that Europe had to modernise (a subject close to Barroso's heart). He said the Commission and the British Presidency would now be working on an interim report on concrete action to be taken in each of the priority areas for the December European Council and hoped the first decisions would be taken at the March 2006 European Council. Barroso said Europe was on the move again, going from analysis to action and concrete results. Broad agreement exists on priorities, he said, 'we need to put them into action.' Citizens don't want us to hold interminable discussions about the institutions, but want us to talk about concrete issues that matter to them and make the EU stronger, like R&D, education, immigration, the environment and energy, said Barroso. He said Europe could win the globalisation battle if it modernised.
The Globalisation Adjustment Fund mooted by the Commission was generally welcomed, but several leaders said they wanted to see what it would mean in practice before they made any firm decisions (see EUROPE 9058). Blair said that was only to be expected, because they clearly had to be certain that setting up a Globalisation Adjustment Fund would not add to the EU's overall budget, and the money would go to help redundant workers adapt and find a new job rather than helping companies that aren't up to the job of facing globalisation. Here too, the British Presidency and the Commission will be working together to prepare concrete proposals for the December Summit so the Globalisation Adjustment Fund can be part of the final Financial Perspectives package, Blair explained.
How will the Hampton Court discussions impact on reaching agreement on the Financial Perspectives 2007-2013? Tying up the 2007-2013 budget in December would be tough, 'an enormous challenge', said Tony Blair, adding that it would be a lot easier now with the guidelines set at the Summit. We now have the necessary background to progress the budget negotiations into the final stage, he explained. Jose Manuel Barroso said the direction for the EU discussed at Hampton Court on Thursday was the 'right setting' for reaching agreement on the budget in December. 'I am more optimistic today than I was yesterday,' commented the President of the European Commission, adding that reaching agreement in December was vital - particularly for the new Member States. He warned that if agreement was not reached in December, the new Member States would not get their money on time.
Jacques Chirac: We should hold a summit like this every year
At a press conference, the French President, Jacques Chirac, said the Hampton Court Summit had been very useful and had reminded him of 'fireside chats' organised by Georges Pompidou (President of France from 1969 to 1974). I think it's a good idea to have regular moments of reflection among ourselves, he said, adding that it was very useful to do something other than fighting to defend immediate interests. He said it would be a good idea to have such a summit at least once a year. Asked about areas of conflict, like the EU's budget for 2007-2013, Chirac said that virtually all Member States wanted agreement as soon as possible on the basis of proposals put forward in June 2005 by the Luxembourg Presidency. The French President said France's relationship with Germany was indispensable, even after his friend Gerhard Schroder hands over to the next Chancellor, conservative Angela Merkel. Chirac said there would not be any changes in Franco-German relations and it would be boosted even in the field of agriculture because the new German government and Chancellor have views that are spontaneously much closer to those of France, which can only strengthen France's position.
Chirac said he fully backed Barroso's idea of setting up a Globalisation Adjustment Fund, but that it had yet to be decided how it was to be funded. In order to avoid increasing the overall budget (which most countries would not agree to, he acknowledged), he suggested using each country's Structural Funds (which are often spent late). Funding could be released when particular problems arise, he said, like company relocation. Speaking to reporters, Chirac stressed the need for greater effort in R&D and innovation, repeating his suggestion that the European Investment Bank set up a new EUR 10 bn loan facility to mobilise a total of EUR 30 bn by 2013 for investment in R&D.
On immigration, France and Spain are suggesting that the EU adopt an approach combining firmness, respect for human dignity and partnership with the countries in question. To tackle the wealth gap on either side of the Mediterranean, Chirac called for innovation funding (a special international tax), saying that the suggested tax on airline tickets was a modest, experimental project. On Europe's demographic decline, Chirac stressed the urgent need to assess future demographic prospects and policies in this field to help raise awareness and get people to work together.
Another issue brought up by France was climate change. Jacques Chirac urged EU Member States to establish a common energy policy to provide security and diversity of supply and set new binding international targets for cutting greenhouse gas emissions after 2012. It would also be necessary to boost cooperation between the EU and developing countries to help them design their own growth model, said Chirac. To deal with widescale disasters, like the aftermath of the earthquakes in Kashmir, the EU should develop a rapid response unit, he said, like the European Rapid Intervention Force mooted by France following the December 2004 tsunami in the Indian Ocean.
Gerhard Schroder's last stand
The outgoing German Chancellor, Gerhard Schroder, for whom the Hampton Court Summit was the last European Council, used his final speech to his colleagues to focus on the need to reach agreement on the budget in December (when Germany will be represented by the new Chancellor, Angela Merkel). We are expecting a lot from Tony Blair, said Schroder, issuing the warning that Germany would not be able to contribute more to the EU budget (over and above what is set out in the Luxembourg Presidency compromise). Schroder said the new German government also agreed that no further EU funding would be forthcoming from Germany, which was why Germany was highly sceptical about the funding of the mooted Globalisation Adjustment Fund. The German Chancellor rejected the idea of parallel budgets to finance such a fund. He called for a harmonisation of tax policy across the EU. Angela Merkel's government will be increasing German R&D spending to 3% of GDP by 2012, he said. Schroder said he had received a farewell present from Tony Blair, joking that no, it wasn't a cactus (in recent years, Schroder and Blair have clashed on several occasions over issues like liberalising the economy and the war on Iraq). Schroder said the British prime minister had wished a very warm farewell to the two outgoing political leaders at the Hampton Court Summit, Gerhard Schroder and the Polish prime minister Marek Belka. Schroder added that though he had quarrelled with Blair, that had not damaged their personal relationship, but it was not exactly a love affair.
Zapatero, Schussel, Persson and Kalvitis are optimistic
The Spanish prime minister Jose Luis Rodriguez Zapatero said the outcome of the Summit was clearly positive, demonstrating desire to get Europe moving in the right direction. On the tragic events of Ceuta and Melilla, he suggested to his EU partners that they earmark EUR 400 mil from the EU budget (2007-2013) to boost aid to the countries illegal immigrants hail from and travel through. Zapatero said he was sure his suggestions would be turned into concrete measures at the December European Council. He also suggested special aid for Sub-Saharan Africa to stimulate growth, employment and education.
The Austrian Chancellor Wolfgang Schussel, who will be chairing the European Council in the first half of next year, said he was delighted with the priorities decided at the Summit to cope with globalisation. He told reporters that R&D, education, renewable energy and illegal immigration were difficult but highly important topics. He added that all these priorities would have to be covered by the 2007-2013 budget.
Swedish prime minister Goran Persson said the British Presidency would have to find agreement on the Financial Perspectives to avoid giving the impression of not having achieved anything. He said it would be more difficult for Tony Blair to make concessions once the Presidency is handed over to Austria at the end of the year. Persson said the UK has a key role because it has to give up some of its rebate and it would be more difficult for the British pm to do that in a foreign country rather than at home.
Guy Verhofstadt's four pillars
At a press conference, Belgian prime minister Guy Verhofstadt said the Summit had been very useful after four months of silence from the EU on the European political front. It's good to see everyone and everyone was able to set out their ideas on the future of the EU, he added. The Summit was able to discuss a vital issue - how should the EU respond to globalisation? Since the fall of the Berlin Wall, he said, we have been living in a bi-polar world with the United States at the top both politically and militarily. But we are moving towards a multi-polar world with the arrival of Chain, India, Japan and Asia. In a few years, he added, China will be the world's biggest economy, which will have an impact on the political and military front too. For this reason, he went on, the central question for the EU is what role it wants to play (and will be able to play) in this multi-polar world. If it wants to play an important role, more European integration will be required, said Verhofstadt, and a political Europe will have to be created in the decades to come, rather than just a Common Market.
How can this be achieved? Guy Verhofstadt called for the establishment of four 'pillars': 1) A stronger, more coherent foreign policy with a bigger budget.
This will be included in the draft Financial Perspectives 2007-2013 in December, said Verhofstadt; 2) European defence, strengthening the military cell and setting up integrated units; 3) creating a European area of justice and security. Guy Verhofstadt called for an extension of the current Schengen system to as many EU countries as possible, and welcomed the fact the British Presidency said it was prepared to drop Council unanimous voting requirements in this field and place it under the first pillar; 4) socio-economic governance, meaning a convergence policy should be developed in the EU, or at least in the eurozone (and therefore in Eurogroup). The Belgian prime minister also called for an appropriate method for modernising Europe in a globalised world, quoting a European Commission study published in June 2005 showing that a sharp cut in charges on labour would boost growth in the EU and also the number of jobs.
How can such a political Europe, capable of playing a role in the world, be achieved? Guy Verhofstadt said it had to be a Europe that developed convergent policies, particularly in the eurozone. He said it was clear that a mix-and-match 'a la carte' Europe could not continue. The Belgian prime minister said a European energy policy had to be developed but this task should not be given to an intergovernmental working group since it was the Energy Commissioner's job. The Commission should take on the most important role here, he said. Verhofstadt said that everybody agreed to increase the budget for innovation, but it was more important to reach agreement on the European Patent.
Jan Peter Balkenende - much better atmosphere for budget negotiations
Dutch prime minister Jan Peter Balkenende said Europe had to clearly tell citizens what meaning it wanted to give to its future and how it is planning to improve their quality of life, especially after the no vote in the French and Dutch referendums on the Constitutional Treaty. The Hampton Court Summit was not about choosing between Member States' different social systems - we still have 20 million unemployed in Europe, he pointed out. The Dutch pm told reporters one had to be pragmatic - there were several plans on the table, like the Lisbon Strategy and The Hague Programme. He expressed doubs about the Globalisation Adjustment Fund idea, but said it would be discussed in the next few weeks in the discussions on the Financial Perspectives 2007-2013. On the Financial Perspectives, Balkenende said there was now a much better atmosphere than in June 2005 with a more solid foundation for resuming negotiations. He said he was leaving Hampton Court feeling very optimistic.
Silvio Berlusconi snipes at ECB's policies
Italian prime minister Silvio Berlusconi took advantage of the Summit to again criticise the Stability Pact and the European Central Bank's policies, both with his colleagues and in the press conference. He told reporters that the ECB's main concern is to keep inflation down, but with a stagnating economy, a new perspective was needed - the economy should be backed by public spending even where there is a deficit in public spending. He pointed out that the countries which have overshot the 3% GDP Maastricht ceiling on public deficit accounted for 75% of the EU's GDP.
Josep Borrell says European values should be exported, not just European products
During the Summit, the President of the European Parliament, Josep Borrell (who attended the entire special summit at Hampton Court, whereas the EP President would normally only attend European Councils at the start of proceedings) said all the action proposed for R&D, innovation and excellence was necessary but not sufficient, warning that there were plenty of losers from globalisation and it would take time to absorb shocks. He said that China, where the freedom to organise trade unions does not exist, will soon be selling technology to the EU, not just T-shirts. If people want a cohesive society that citizens feel part of, losers will have to be given compensation. Demographic differences and the pay gap are so big that we cannot carry on as at present, he said, but societies have the right to express a collective preference in terms of farming, the environment, etc. Let us focus on exporting European values and not just European products, added Borrell. Commenting on immigration, he said the EU needed immigrants, warning that it should not be forgotten that in the next fifteen years, the expanding desert would force twenty million Africans to leave their land.
Commissioner Verheugen is disappointed
Günter Verheugen, European Commissioner with responsibility for Industrial Policy and Enterprise, was not satisfied with the result of the Summit of Hampton Court (where the Commission was represented solely by President Barroso and, in the same way, the Heads of State and Government were not accompanied by any ministers, whereas the High Representative for CFSP Javier Solana took part in the work). Mr Verheugen told Bayerischer Rundfunk, quoted by AFP, that what he had heard about the Summit made him " very pensive, even sad". In his view, the meeting went "in the wrong direction".
Commissioner Spidla voices satisfaction
The Commissioner in charge of Social Policy, Vladimir Spidla, issued a statement in which he welcomed the results of the Summit and the support voiced by Tony Blair, in his address to the European Parliament on Thursday, for the creation of a Globalisation Adjustment Fund. "This fund will be used directly to help workers who have fallen victim to crisis situations", the Commissioner underlined. "If a boat sinks, it's not the boat that needs rescuing straight away, but the sailors!", he said, stressing the fact that "this fund must be an instrument which can intervene rapidly and non-bureaucratically".