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Europe Daily Bulletin No. 9157
THE DAY IN POLITICS / (eu) eu/spring summit

Mr Schüssel hopes to set "ambitious objectives and timetables" to implement revised Lisbon Strategy -Papers on energy from Benelux, Poland and Spain -Debate on enlargement - Italian letter against" economic protectionism"?

Brussels, 22/03/2006 (Agence Europe) - The Austrian Presidency of the Council of the EU is maintaining its idea of introducing "ambitious objectives and timetables" into the conclusions of the Spring Summit of 23 and 24 March, for the implementation of "priority actions" to be retained by the Heads of State and Government for the implementation of the revised Lisbon Strategy. "This year's Spring European Council will be a particular opportunity for the European Union and the Member States to bring a concrete contribution to the implementation of the partnership for employment and growth. At the European Council, we will discuss a range of priority actions and we will have the opportunity to indicate ambitious objectives and timetables to implement the strategy", wrote the Austrian Chancellor and President of the European Council, Wolfgang Schüssel, in his letter of invitation to his colleagues, dated 21 March.

Although nobody is challenging the fields of priority actions listed in the draft conclusions- which are mostly along the lines of investing more in knowledge and innovation, of using companies' potential to the full, particularly that of SMEs, increasing the opportunities for employment for "priority categories", and developing a joint energy strategy for the EU- the Austrian Presidency's determination to give these priority actions targeted objectives and specific timetables has led to reservations on the part of many Member States, as demonstrated by the debate at the "General Affairs" Council on Monday (see EUROPE 9155). On Tuesday, the President of the Commission, José Manuel Barroso, said that he was in favour of the inclusion of targeted objectives, as long as these are realistic and achievable, and that they have consensus at the Council (see EUROPE 9156). The question of targeted objectives and deadlines to achieve the priority actions is still open at this stage, and is likely to be decided on by the Heads of State and Government themselves.

At a press conference in Vienna on Wednesday, Mr Schüssel stressed the fact that at this European Council, "it is our intention to speak very specifically about ways of stimulating opportunities for employment and the future of the European economy (...). After the reflection phase, we will then have to enter into our phase of action". The President of the European Council said that the "atmosphere (in the EU) would be better today if expectations in terms of economic growth in Europe had been achieved". He reiterated his commitment to precise and verifiable objectives: "an environment should be created to permit 1% growth in employment and the creation of 2 million new jobs per annum".

Exchange of views with President of ECB -First direct involvement of
social partners in a European Council

The European Summit will kick off late on Thursday afternoon (5 p.m.) with a short exchange of views with the leaders and the President of the European Central Bank, Jean-Claude Trichet, the President of the European employers' association (UNICE), Ernest-Antoine Seillière, and the President of the European Trade Unions Confederation, Candido Mendez Rodriguez. The finance and foreign affairs ministers, and the President of the European Parliament, Josep Borrell, will also be taking part. "For the first time, the social partners will address the European Council directly and thereby take part in its deliberations" on the Lisbon Strategy, said Mr Schüssel on Wednesday. "I consider it an enrichment of the economic policy debate to include in our discussions those who, at the end of the day, actually create the jobs and economic growth. Austria is called upon to contribute to strengthening the role of the social partners", added the Chancellor, speaking at his press conference in Vienna.

The meeting of European Council with the President of the European Parliament will take place at 5: 30 p.m.

The first working session of the Heads of State and Government will start at 6 p.m., and will be given over to the implementation of the revised Lisbon strategy. The Austrian Presidency has called on the Finnish Prime Minister, Matti Vanhanen, to introduce the debate on the subject "Investing in Knowledge and Innovation". The Prime Minister of Slovenia, Janez Jansa, will give an address on the subject of "Improving the Context for Businesses, particularly for Small and Medium-Sized Enterprises", whilst José Socrates of Portugal will speak on the subject "Improving the Employment Opportunities for Priority Categories".

This initial work session will be followed around 20H by dinner during which leaders will discuss the EU's future energy strategy. German Chancellor, Angela Merkel, will introduce this debate. In his letter of invitation, Wolfgang Schüssel underlines that the “gas crisis” last January demonstrated that energy is a sector “that cannot be tackled by Member States alone” but had to be discussed “at a European level”. Mr Schüssel writes that, “during our meeting last Thursday and Friday, we sought to begin a new phase and initiate an energy policy for Europe. Schüssel explained that this European energy policy had to focus on Europe's security of energy supply, competitiveness and sustainability, as well as develop a common concept for external relations and energy related trade aspects. He concluded that “The Commission's Green Paper and the work of Energy Ministers will be an important contribution” to the work of the European Council.

On Thursday evening during the separate working dinner, Foreign Affairs Ministers will discuss “the future of Europe”, particularly the EU's future enlargement strategy. The Austrian Presidency considers this debate as preparation for the general debate on the future of Europe, which will dominate the next European Council in June.

In parallel, on Thursday evening, Finance Ministers will focus their working dinner on the adoption of conclusions for the European Council, which is expected to finish with the customary press conferences around 13H.

Energy: Benelux Memorandum - Common position of Spain and Poland on energy security

In view of Thursday's debate on energy strategy, the Benelux countries this week presented a joint statement on energy security and foreign policy in which Belgium, Luxembourg and the Netherlands appeal for a common energy strategy that “reconciles the areas of Community policy and foreign policy”. The Benelux document undermines that in order to reduce its vulnerability, the Union, “needs to conduct a policy that increases the interest producer countries have in a steadily growing EU demand for their energy, while at the same time increasing producers' dependence on the EU”. The document says that the partnership with supplier countries proposed by the Commission's Green Paper does not go far enough, “the partnership…needs to be augmented with a foreign-policy perspective”. The EU should help producer countries that want to diversify their economic activity, often dependent on energy revenues (creation of a framework for long term contracts, assistance in know-how for exploiting difficult to access oil and gas fields). The document also says, “energy security needs to be stressed more emphatically, for instance, in developing the Neighbourhood Policy”. Benelux countries say that reliability and security of energy transport routes are also an essential element. The document explains that, “In a tighter energy market, transport routes to the EU are more prone to be attacked by terrorists or otherwise interrupted, for instance for political reasons (as between Russia and Ukraine)”. It also calls for “an effective dialogue with the most relevant transit countries and the development and use of the EU's instruments to promote the realisation of essential energy infrastructure, which will contribute to a more secure and safe transit of energy to the EU”. Benelux counties (which are also for the first time publishing a common document in a long time) therefore propose that a risk analysis of the energy supply routes is carried out under the supervision of High Representative Javier Solana. One of the original elements in the position of Guy Verhofstadt, Jean-Claude Junker and Jan Peter Balkenende is the recognition of the need for strengthening of cooperation between energy consumer countries, particularly India and China whose countries have a strong demand for energy and “that demand in these countries is met as efficiently and cleanly as possible”. The document also underlines the need to enhance cooperation between consumer countries - members and non-members of the International Energy Agency (IEA) of Paris, of which 17 Union countries are members. The EU also has to “come up with a response to the growing influence energy has on the behaviour of states towards counties like Iran and Sudan”.

Spain and Poland also presented a join statement on energy security in Europe this week. In this paper, presented to the General Affairs Council on Monday, the two countries emphasised the principles of “solidarity” and “collective action” between Member States, diversification of sources of energy supply and cooperation with non EU supply countries. Madrid and Warsaw also consider that efforts carried out by the European Commission and Member States to enhance European energy policy should envisage practical solution for the purchase, storage and transport of energy sources that take into account how the system between energy network interconnections work (oil, gas and electricity).

Spanish and Polish Prime Ministers José Luis Zapatero and Kazimierz Marcinkiewicz also restated the objective set by the Barcelona European Council (but not yet reached by all Member States) to achieve a level of electric interconnection, equivalent to at least 10% of their installed production capacity. Poland presented to the Council its proposal for an Energy Treaty on a voluntary basis allowing for a solidarity mechanism to come to the assistance of a country whose energy safety was threatened (see EUROPE 9151). Although Poland may not yet have managed to convince its partners, whether EU members or NATO members, to join such an ambitious project, Mr Marcinkiewicz nonetheless assured the press on Monday that Warsaw was aware that putting forward such a treaty was taking great strides forward and that only such an ambitious objective would lead to final decisions that were satisfactory to the EU.

Immigration: Spain will inform European Council of situation in Mauritania

On Thursday evening, during the dinner of foreign minsters, Spanish Minister Miguel Angel Moratinos intends to brief his colleagues on the situation created by the new migratory pressure from Mauritania (see EUROPE 9154). Spain has sent a letter to the Austrian Presidency and to the High Representative for EU foreign affairs, Javier Solana, asking that the matter be tackled during the dinner. The Presidency has agreed to this. A spokesman for Mr Moratinos said in Madrid that the minister hopes to seize this opportunity to inform the other Member States on the subject of immigration and, in concrete terms, on the situation in Mauritania. Spain hopes to receive EU funds to intervene directly in the countries of origin, as it has done in Mauritania, by creating host centres or by providing patrol services to this country, according to sources close to the Spanish authorities. In his letter, Mr Moratinos writes, according to the Spanish daily ABC, that over 3,500 African immigrants have arrived since January in the Canary Islands, that the Red Cross considers over one thousand have died since the beginning of the year by attempting to cross the Spanish archipelago and that some 1,200 or more are waiting in northern Mauritania to take to the sea to enter Europe via this route. During the extraordinary European Hampton Court Council in October 2005, Spanish Prime Minister José Luis Zapatero had already presented a proposal on behalf of France and Spain to unify EU migration policy, with common border controls (see EUROPE 9059 in particular).

Debate on “economic protectionism” may be taken up at European Council

On the eve of the summit, Italy was finalising a letter to the Austrian EU Presidency on Wednesday, denouncing the protectionist upsurge in Europe and seeking to rally several other Member States to its cause. Italy's Finance Minister Giulio Tremoni had diffused a draft letter among his counterparts last week, slamming the “economic nationalism” in some Union countries. This warning was no doubt inspired not only by the current European context of company mergers but also by the fact that Italy's legislative elections are drawing nearer fast. The other Member States, however, did not seem to give their assent. Approached in this way by the Italian authorities, the Netherlands announced on Wednesday that they would not sign the letter, although they uphold the content which had been submitted to them but which, according to The Hague, comes at an untimely moment and in an inappropriate manner. Also urged to put its signature to the text, Ireland denied having the intention to do so, as did Sweden and Denmark. The United Kingdom, whose government is clearly hostile to any form of protectionism, was not able to say on Wednesday whether it would back the Italian request. Although the final version of the document had not yet reached him, Chancellor of the Exchequer Gordon Brown was busy defending his annual budget before the House of Commons. With most of the countries likely to subscribe to the message desisting, Rome's position seemed more fragile. According to several diplomatic sources, it is therefore not certain whether Mr Tremonti will continue with the approach on his own. Despite the possible backing of London, several observers felt it unlikely that a powerful message would be finally sent despite the press announcement of so many potential signatories. On the side of the Italian minister for the economy, assurance was given that the letter did indeed exist although it was still not available late Wednesday afternoon. According to other diplomats in Brussels, the project was quite simply withdrawn. Nonetheless, with or without a letter, the question of protectionism should be discussed at the debate between the Heads of State and Government.

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