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"Mr President, President Prodi, I am very pleased to be here with you today to report on the outcome of last week’s spring European Council. When I last had the honour to address this House in January on the priorities of the Irish presidency, I said that the overriding objective of our presidency was to secure outcomes that would have a positive impact on the lives of Europe's peoples. I believe that last week's European Council has contributed to securing positive outcomes in a very real way. The European Union has shown, yet again, that it has the ability to address new challenges. It has shown that when we move together, we can make a real difference to people's daily lives. I am particularly pleased that there was major progress in the Intergovernmental Conference. On the basis of my report, the European Council requested the presidency to continue its consultations. It also requested the presidency to arrange for the resumption of formal negotiations in the IGC as soon as appropriate. It decided that agreement on the new Constitution should be reached no later than the June European Council. When I spoke here in January, I made clear my commitment to seizing any opportunity to take forward the IGC, and, if possible, to conclude it during our presidency. But at that time, and indeed up until the European Council itself, it was not clear how far we would be able to go. We were not certain that it would be possible to relaunch the IGC, even though we very strongly wished to do so. Indeed, many people, during the initial stages of our presidency, told me that they thought there was little chance. We could not have reached agreement on a timeframe for the conclusion of the IGC without the political commitment of my colleagues in the European Council. Last week, we all rededicated ourselves to the Constitution, and acknowledged its value and importance. The sooner it is in place, the better. We also recognised that, even though the final negotiations will be difficult, there was no reason to believe that they would become any easier in time. Indeed, there was a general sense around the table that delay might even create further complications. There was also a sense of the need for flexibility and compromise on all sides. The development of this positive and constructive spirit made it possible to decide to go for it now. This is a huge step forward, and great credit is due to this Parliament. You have consistently urged the Member States collectively to drive forward the negotiations. Your very positive endorsement of the presidency's strategy has been deeply appreciated, and I look forward to continuing to work with you and your representatives over the period ahead. In our consultations with all delegations, we have been able to confirm that the great bulk of the Convention's text is not in dispute. We have also ascertained that many of the additional proposals made by the Italian presidency would have been acceptable to partners in the context of an overall agreement. There are still several outstanding issues, which vary considerably in complexity and sensitivity. We have, however, also been able to identify possible ways forward and believe that all of them can be resolved. This will not be easy. It will require give and take from all sides. But I believe that the key ingredient – the political will to reach agreement – is now there. Parliament’s representatives, like those of all other delegations, have made clear to us which issues are of particular importance to you. It is not possible for me to say that any delegation will secure every point it has raised. However, I can assure you – as I can assure everybody else – that the presidency will be open and even-handed in its dealings with everyone. I can guarantee that you will not be bypassed or blindsided in the negotiations. I want all participants to be able to recommend the final outcome to the people of Europe as fair, balanced and positive. As I said in my report, the most difficult issues remain the size and composition of the Commission, and the definition and scope of qualified majority voting. At last week's meeting, we did not enter into detailed discussions on these issues, nor did I try to draw conclusions. But I offered my broad sense of which avenues for compromise might be most productively explored. I recognise that the Commission must be both effective and legitimate. I feel that these two perspectives should be reconciled through maintaining for an extended period a Commission comprising one national of each Member State, moving thereafter to a reduced size on the basis of equal rotation. It is clear that only a voting system based on double majority can command a consensus. It is also vital that we keep the requirement for increased efficiency firmly in view, while paying due regard to balance among the Member States and to their specific concerns. It should be possible to reach an outcome that meets the concerns of all. I believe this could be done through some adjustments of the population and Member State thresholds and through arrangements for confirmation of the transition to double majority. But clearly, further consideration of the details is required. The significant progress made at last week's European Council was due to many factors. One important factor, I am convinced, is the excellent working relationship that has been built up between the Council, the European Commission and the European Parliament. The theme of the Irish presidency is 'Europeans – working together'. The European Council has clearly shown how much can be achieved when we succeed in doing this. As regards the scope of qualified majority voting, there is a general desire – shared, I know, by Parliament – for its extension, with a view to promoting efficient decision-making in a larger Union. At the same time, there is also a need to take account of the particular concerns of Member States in relation to a number of specific issues. I believe that a satisfactory overall outcome, which will involve a growth in the number of areas subject to QMV and codecision, in comparison with the present Treaties, will be found. These issues are unlikely to be finally resolved until close to the end of the negotiations. However, in the period ahead, it will be essential to reach agreement on as many subjects as possible, to boil down to the minimum the number of outstanding questions. In this process, the presidency intends to make use of the full range of channels, including bilateral meetings and official-level discussions. But the IGC is, of course, conducted at political level, and I will be asking Foreign Ministers to take forward work on a range of issues during the final negotiations at the level of Heads of State or Government. Like you, I would very much wish to conclude the IGC at the earliest date. However, account will have to be taken of a number of factors, including the formation of new governments in some countries and the number of issues still to be resolved. I assure you that if we discover that there is a real opportunity to finish before June, we will do so. We should not underestimate how far forward we have come. Only a few short weeks ago, few would have been optimistic about our chances of finishing by June at all. So far, as presidency, we have sought to keep expectations modest but ambitions high. No ambition is higher than the achievement of our common objective of a Constitution that will deliver for our citizens and help make the Union more effective at home and in the wider world. With your help, I look forward to reaching that goal. When I spoke to this House in January, I set out the high priority that the Irish presidency was giving to the Lisbon Agenda and of our firm determination that the spring European Council should serve to revitalise and reinvigorate the Lisbon process. I was greatly encouraged by the response of the European Parliament to our ideas at that time. I am pleased to report that the European Council had a fruitful discussion last week. We focused on the key issues where action is crucial if we are to re-inject momentum into the Lisbon Agenda. My colleagues agreed with my proposal that discussions should be on two overarching themes – sustainable growth and employment – as the key challenges needed to be tackled urgently. The European Council agreed that we need a balanced approach if we are to ensure that future growth will be sustainable. We need to maintain sound macro-economic policies while promoting greater competitiveness and innovation. At the same time, social cohesion must remain central to our approach. Equally, future growth, to be sustainable, has to be environmentally sound. The European Parliament’s constructive engagement with the Council has been pivotal in enabling us to make real progress on all aspects of the Union’s work, not least in legislative work directly related to the Lisbon Agenda. Legislation agreed in recent weeks ranges from financial services to rail market opening, to intellectual property rights and to environmental liability. I look forward to more results in the weeks immediately ahead. It is highly important for the continuing credibility of the Lisbon Agenda that we meet our objectives. I am delighted in this context to welcome your approval yesterday of two important legislative proposals – the Financial Instruments Markets Directive and the Transparency Directive. A key challenge identified at the European Council was in the services sector, which remains highly fragmented. Success in creating a true single market in this area will yield considerable benefits for the European consumer. The services sector has accounted for 70% of job creation and growth over the past ten years. I am pleased to report that the European Council, seeing the potential for expansion in this area, agreed that the draft directive on services, currently under consideration in the Council, should be agreed as a matter of high priority. The development of better regulation will lead to enhanced competitiveness and productivity. The European Council welcomed the four-presidency initiative led by Ireland, the Netherlands, Luxembourg and the UK, which will drive this issue forward as a priority over the next two years. We will return to the issue of better regulation at the November 2004 European Council. If we are truly to encourage competitiveness, innovation and entrepreneurship throughout Europe, we must have a strong science and research capacity. Progress in the research area is a central element of the Lisbon Agenda. We must work to ensure that researchers remain in Europe, and are attracted to working in Europe. The European Council agreed, as a first step in this process, that the European Framework Programme for Research and Development should be made more user-friendly, to facilitate greater R[amp]D investment by small and medium-sized enterprises and start-up companies. The European Council also stressed the need for investment in basic research. Such research is an essential building block for innovation and competitiveness. At the meeting, as honourable Members will be aware, the European Council adopted a Declaration on Combating Terrorism. We agreed to resume our negotiations in the Intergovernmental Conference and to reach agreement no later than at our meeting in June. We identified what needs to be done in practical terms to promote sustainable growth and more jobs. We discussed a range of foreign policy issues, including the Middle East, Afghanistan, Iraq, the Balkans and Russia. Growth must be not only economically sustainable but also environmentally sustainable. One of the most interesting new areas in this regard is that of environmental technologies. The European Council recognises the importance of enabling companies to exploit new technologies, and has called for the rapid implementation of the Environmental Technologies Action Plan. We have also invited the Commission and the European Investment Bank to see how financial instruments could be mobilised to promote such technologies. The Commission is to prepare a report for next year’s European Council on progress in this area. Of course, growth and competitiveness are not ends in themselves: they are the means to secure and develop the European social model, with its emphasis on sustainability and inclusion. Protecting the most vulnerable members of our society is an essential part of the Lisbon Agenda. The European Council placed employment at the very core of its agenda. Creating more and better jobs is the most urgent issue to be addressed over the coming year. The European Council agreed that Member States should give urgent attention to four particular structural challenges, identified by the Employment Taskforce and reinforced in the Joint Employment Report. These are to promote greater adaptability by companies and workers, attract more people into the labour market, improve the quality of employment, and encourage greater investment in human capital. There is a real benefit from taking action now to maximise employment opportunities. High employment will boost growth and also provides the best route out of poverty and social exclusion. Next year’s spring European Council will review progress made in this area over the course of the year. Particular attention will be given to the extent to which national actions have boosted progress towards the Lisbon employment goals. The Council and the Commission have been invited to jointly prepare a concise synthesis report, drawing on the joint employment report, specifically for that discussion. As I indicated earlier, Parliament’s role has been pivotal in enabling us to advance the Lisbon Agenda. One of the areas on which we hope to make progress over the coming weeks is that of a mobility package aimed at enabling workers to move more easily between Member States. We have worked together cooperatively on Regulation (EEC) No 1408/71 which, once agreed, should bring significant benefits in terms of better coordination of social security systems and easier access to entitlements. I hope that we can finalise this dossier jointly before the end of the term. Equally, I look forward to fruitful cooperation on the related dossiers of Europass and the Mutual Recognition of Professional Qualifications Directive, which are aimed at making it easier to have educational qualifications recognised in other Member States. Governments alone cannot bring about the range of changes required to reach the Lisbon goal. All stakeholders have a vital role to play in progressing and facilitating change. To this end, the European Council agreed to the presidency's proposal to establish Reform Partnerships in each Member State, according to national arrangements and traditions, involving the social partners, civil society and the public authorities. These partnerships will provide a useful mechanism for building commitment for change and reform. We all recognise that much more needs to be done if Lisbon is to be implemented within its original timescale. Next year's mid-term review will provide a critical opportunity for us to take stock of what needs to be changed if we are to speed up the implementation process. We need to build our preparations for the mid-term review on a good foundation. To this end, Heads of State or Government invited the Commission to establish a high-level group, chaired by Mr Wim Kok, to carry out an independent review to contribute to this exercise. Wim Kok’s appointment will provide continuity with the earlier work of the Employment Taskforce. His unparalleled experience will provide a vital and invaluable impetus for the mid-term review. We have asked the High Level Group to report by 1 November of this year, to enable the Commission to bring forward its own recommendations to next year’s spring European Council. The European Council reviewed a number of issues on the international agenda and adopted conclusions on the Middle East Peace Process, Iraq, the Strategic Partnership with the Mediterranean and the Middle East, Russia, Afghanistan and the Ivory Coast. We also considered Cyprus. The European Council reviewed the situation in Kosovo following the recent outbreak of ethnically motivated violence. The situation appears to have stabilised, but remains tense. It is essential that the primacy of the political process be reasserted and that local politicians take responsibility for that situation. The European Union remains fully committed to a stable future for a secure, democratic, prosperous and multi-ethnic Kosovo. The Union will continue to support fully the efforts of the Special Representative of the UN Secretary General, Mr Harri Holkeri, and the Standards before Status process. Sadly, as we are all too well aware, last week's European Council took place in the shadow of the terrible attack in Madrid on 11 March. I want to express, yet again, my sympathies to the families of the victims. I know that all here will agree with me when I say that this attack was a grave challenge to all that the European Union stands for. In considering how to respond to this threat, the European Council wished to ensure that everything that can be done is being done to protect our citizens from the scourge of terrorism. At the same time, fundamental human rights in our democracies must be protected. The Council also discussed the situation in the Middle East, which continues to be of grave concern. The presidency is maintaining close contact with the leaders of the principal Arab States to ensure that momentum in the peace process is not lost. Foreign Minister Cowen has visited Cairo and Damascus in the last two days and has emphasised the need for a concerted effort to advance our common goals of peace and security in the region through a just resolution of the conflict. On Afghanistan, the European Council looks forward to the international conference on Afghanistan that is taking place today in Berlin. The European Union remains firmly committed to the reconstruction of Afghanistan. Foreign Minister Brian Cowen is representing the EU at this important conference together with Mr Javier Solana and Commissioner Patten. The negotiations on a Cyprus settlement are in the final phase as we meet here today. The accession of a united Cyprus on 1 May remains the strong preference of the European Union. In our conclusions, the European Council reiterated the Union’s support for the UN-led negotiations and reaffirmed our readiness to accommodate the terms of a settlement in line with the principles on which the European Union is founded. This European Council took place at a critically important time in the history of the European Union. As we set out in our presidency programme, the first half of 2004 represents a time of great change and challenge, but also of great hope and opportunity for the Union. The first of May will mark the end of the post-war division of the continent and enable us to move forward together towards a better, more inclusive Europe. Terrible events like those of 11 March only serve to reinforce our determination to work together to forge agreements that will, in every sense, make Europe work. I look forward to continuing to work in full cooperation with the European Parliament and the European Commission. I particularly thank you today for all your cooperation over the last months. As we stand on the threshold of enlargement, we can continue to show that the new Europe, working together, has both the will and the determination to deliver the positive outcomes and decisions that our people deserve. I believe that the Declaration on Combating Terrorism adopted by the European Council strikes the appropriate balance. It highlights our existing cooperation, it seeks to improve and emphasise the need to implement what we have agreed. I am glad to say also that the Declaration endorsed a proposal made by European parliamentarians to declare 11 March a European Day commemorating the victims of terrorism. The Declaration contains a number of specific areas for action. These include measures to improve intelligence sharing, to strengthen border controls and the security of travel documents, enhanced protection for our transport systems and measures to counter the financing of terrorism. It also contains a commitment to effective cooperation with third countries and other international organisations, in particular the United Nations. A Counter-Terrorism Coordinator, Mr de Vries, has been appointed, reflecting the need for coordinated action across the European Union. The European Council will look again at the Action Plan on Terrorism in June and we will all agree the key tasks and the deadlines by which these tasks are to be achieved. The European Council also agreed a Declaration on Solidarity against Terrorism. This commits the Member States to act jointly in a spirit of solidarity if one of them is the victim of a terrorist attack. The Declaration represents an important political signal of our solidarity in the fight against terrorism. I appreciate very much that President Cox participated in the first session of our meeting on terrorism. The solidarity shown by the institutions of the Union conveyed an important message. The threat of terrorism is a threat to our security, our democracies and our way of life in the European Union. We will do everything in our power to protect our people from this threat."@en1
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