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"Mr President, ladies and gentlemen, I stand before you today to illustrate the work of the Italian Government, which has presided over both the Union Council and the Intergovernmental Conference in this six-month term of office, which is about to come to an end.
In the course of the most recent bilateral meetings that the Presidency conducted at a spanking pace through the days and nights of Thursday, Friday and Saturday, a solution to some of these issues appeared possible, although all the Heads of State or Government assembled felt the need to point out that the institutional framework of the future Union should ultimately be evaluated in its entirety by means of a general, all-encompassing agreement.
Agreement on the composition of the Commission and on the matter of the qualified majority was within arm’s reach. As regards the number of Members of Parliament, Mr President, there was practically no debate: the countries with smaller populations asked for one more Member, taking the number from four to five, and all the other countries assented.
On the other hand, it was not possible to bring positions sufficiently close on the point qualified majority voting despite all our efforts, and, therefore, after consulting all the delegations, we decided to put an end to a debate that was in danger of causing conflict and that, at best, might have resulted in a watered-down compromise of the kind we had excluded from the very beginning. True failure would have been precisely a watered-down agreement incapable of ensuring the proper functioning of the Union in the future and its ability to act as a decisive political entity on the world stage.
As the meetings concluded, all my colleagues expressed great appreciation of the work of the Italian Presidency which, of course, gave my team and myself great pleasure but, most importantly, I can tell you that I perceived the firm desire not to waste the heritage that we have built up in the negotiations of these past months. Indeed, we counted 82 points on which agreement has been reached – 82 points which, before that, were under discussion and many of which even seemed impossible to resolve.
Thus, an
of negotiations remains from the Conference which all felt to be important and, I would add, not to be reopened. For this reason, all the speeches made at the Council table recommended that the Conference’s next task should be to focus on the points, or rather the point, on which agreement has not yet been reached. We should not reopen the chapters of the major work carried out on the other points, in which all the delegations of the Member States were involved.
It will therefore be possible to resume the constituent process completing the great project launched by the Convention, on the basis of the Conference’s precious
of negotiations, which covers almost all the previously controversial points. I have to tell you that we were genuinely close to concluding the agreement. Late on Friday night, agreement seemed possible, for some of the countries who had initially appeared to have taken up certain specific defensive positions became much more open, but then, the following morning, a step backwards was taken and, by mutual agreement with all the delegation heads, we decided that everyone needed more time. Some even asked to be able to consult their national parliaments. Thus, rather than starting a debate which would have given the failure to achieve an agreement a higher profile, we decided to close while everyone was feeling positive. All expressed the willingness to resume the debate, to preserve the
on which all had agreed and to proceed with the goal of giving Europe a Constitution which would make it able to function properly, to take timely decisions and to act on the world stage as a political giant, not just an economic giant.
Mr President, ladies and gentlemen, I would now like to illustrate the most important results of the European Council that has concluded the Italian Presidency’s six-month term of office. I do so with particular satisfaction, not only because we addressed important matters, but also because the decisions we have adopted are the result of intense work carried out with all the countries sharing responsibility. The tangible results affect the direct interests of the European citizens and reinforce the Union’s overall image. These results have been made possible by an excellent relationship of cooperation with the Commission - which I would like to thank - and worked on in a spirit of open, constructive dialogue with Parliament, to which I would like to express my appreciation once again.
I would like to begin precisely with the economic issues that we addressed in order to boost development, to boost employment, to increase the competitiveness of European industry and to complete all elements of the internal market. Firstly, the December European Council formally approved what we have called the ‘European Initiative for Growth’, a measure proposed by the Italian Presidency which was developed by Ecofin and the Commission with a contribution from the EIB. This is an initiative with which you are familiar, seeking to promote a substantial programme of investment in the sector of major trans-European infrastructure that includes transport, trans-European energy networks and the telecommunications sector, as well as investment in human capital, in other words in research and development, innovation and technology.
We set ourselves a two-fold objective: to create, by means of these projects, the conditions for improving the quality of material and immaterial infrastructure networks dedicated to linking up the great European market, especially with a view to enlargement, but also help to boost economic growth overall, and therefore employment, with adequate financial support. We are hoping to use both public funding - from the Union budget and, in part, from the individual Member States - and private sector financing, thanks, not least, to the decisive role of guarantor played by the European Investment Bank. I would like, in this regard, to stress that this is the first major economic policy manoeuvre at European level decided on in a framework which fully complements the Lisbon Strategy and is also fully compatible with the Stability Pact. There is no point in hiding the fact that, as individual States, now that the single currency has been adopted, we have no means of implementing monetary policy or economic policy; we cannot devalue our currency in order to support our products and exports; we cannot use deficit spending policies, even medium-term policies, to observe the Maastricht criteria. This right, this power, which the individual States no longer have, must, therefore, be replaced with a higher power. Unfortunately, our European Bank, the European Central Bank, has the task of controlling price increases, of controlling inflation, that is; it does not have the task of supporting the economy, unlike, for example, its counterpart in the United States of America, the Federal Reserve. Therefore, Europe must muster the will and give itself the ability to take steps to support its economy.
With regard to a different, more specific matter, although still in connection with strengthening the internal market and boosting growth, we then reached agreement on the adaptation of the trans-European transport networks TENs to the new context of an enlarged Europe. In this same framework, the European Council has ratified the agreement on the decision to double the contribution from the Union budget increasing it from 10%, as provided for up till now, to 20% for interventions on cross-border sections. This is a highly significant result in terms of the capacity to mobilise private funding for large-scale infrastructure projects.
With regard to the Conference, Italy has been committed from the very beginning to achieving consensus on a high-profile document, without any watered-down compromises; a document that would allow the Union of the future to function and to stand as a leader on the world stage. Added to this commitment was the hope that the enlarged Union would be able to establish a genuine Constitution on the basis of the draft drawn up by the Convention, within the timeframes agreed at Thessaloniki and thus in time for the European Parliament elections next June. As we know, the hope we all shared that the constitutional negotiations would be concluded within the 60 days we had available from the opening of the Conference in Rome has not been fulfilled. This fact must be accepted calmly, without drama or exchanges of recriminations but, at the same time, with a clear vision of how we are to proceed now. Our commitment to keep clear of compromises and agreements, which are difficult for our citizens to understand, has been fully respected. This was an obligation on which our Presidency focused from the very beginning of this complex negotiation process, for we felt that the contributions of the national parliaments and the Union’s institutions, first and foremost – as you said, Mr President - your own, and the work of the Chairman, Mr Giscard d’Estaing, and the Vice-Chairmen, Mr Amato and Mr Dehaene, combine them into a document, which should form the basis on which to build a unanimous agreement, without further delays on the key points of the draft approved last July.
The European Council has stressed the importance, in terms of the free movement of goods, of overcoming the difficulties posed by mountain passes and natural barriers, and by traffic congestion along the main communication routes. We hope that, on this basis, it will be possible in the near future for the Commission to evaluate and quantify the negative impact of mountain passes and natural barriers on the proper functioning of the single market. I would say that, as regards trans-European networks, extremely important work has been carried out, in that we are completely without roads and communications, both rail and road, to provide links with the countries which are to become the new Members of the Union as of 1 May. It was absolutely essential to update the plan of trans-European networks, which was laid down some years ago, and this has been done. There is something else I would add: we have produced a list, known as the quick start list, which provides for a series of projects. I would, however, like to make it clear that this is not a closed list: quite the opposite, it is an open list to which all the projects which are ready for implementation can be added, projects which are ready for presentation to give the go-ahead for contracts and for the necessary funding to be sought.
Among the matters on the Lisbon agenda, we have focused, in particular, on the issue of employment and competitiveness in order to underline once again the need to pursue structural reforms. These reforms have already been launched by a number of Member States, and are measures that, at times, impose short-term sacrifices and costs on society but which constitute the necessary conditions for ensuring reinvigoration of the economy. I am talking about labour market and pension reforms.
With regard to employment, we have assessed and evaluated the report by Mr Wim Kok’s Task Force and its recommendations. I have to say, Mr President, that Mr Kok has done a truly outstanding job and his work is the fruit of his experience as both a trade union leader and a head of government. We all owe him thanks, for not only has he identified solutions to general problems but his Task Force has gone into the situations in the individual countries and has recommended for each individual country the measures that it feels need to be taken. I can say that, where my own country is concerned, the Task Force’s analysis is absolutely spot-on. It is to this report that the extraordinary Social Summit was dedicated, which I chaired on the eve of the European Council, a summit of trade associations and trade unions. This summit revealed the shared desire of the social partners to proceed with the implementation of the European Employment Strategy within a framework of greater flexibility and commitment to the greater enhancement of human capital.
With regard to competitiveness, the European Council has noted the progress made over these six months in line or almost in line with the expectations of European enterprises and economic operators. I must make something clear regarding this point: I was able to participate in a conference held by UNICE last month in Brussels. The symbol of the conference was a giant created by Jonathan Swift, the giant Gulliver, held prisoner by the Lilliputians. The image was intended to convey to the political representatives of the individual States and Europe that the European economy is a giant held in the grip of too many traps and snares – as industrialists call the excessive amount of regulations, directives and laws which prevent them competing fully with external economies.
We must give this fact all due consideration, for the European economy is going through a difficult time, which I fear will become even more difficult given that the economy is gripped in a vice consisting, on the one hand, of the United States economy, which is expanding rapidly with the support of an injection of USD 350 billion decided upon by the Bush administration, an economy sustained, first and foremost, by rates of taxation which are the lowest in the Western world, and, on the other, by the Far East economy, which is in a state of almost total anarchy, with no rules being observed where either workers or the environment are concerned and not even minimal fiscal control.
European entrepreneurs welcomed the creation of the Competitiveness Council, which will, from now on, have the task of assessing the impact of measures adopted by authorities and European institutions on the competitiveness of our businesses. We must all cultivate awareness of this dimension if we do not want our economy to stop being competitive with other economies.
I would also like to mention the understanding reached recently on the proposal for a directive on takeover bids. This is a highly significant political agreement that brings to a close almost 15 years of negotiations. Thanks to this agreement, we can now say we have helped to define a key element for the completion of the internal market. In this connection, I must thank the Italian minister, Mr Buttiglione, who engineered this agreement. Much work remains to be done, however, to give firms operating in Europe those general conditions associated with the legislative framework and the state of the job market that can guarantee their genuine competitiveness on world markets. This is an important undertaking to be pursued in the coming months and to be formalised at the spring European Council.
This brings us to the matter of security. With the objective of putting the Community institutions increasingly in touch with the citizens’ real needs and interests, the Italian Presidency has worked on strengthening the security of the Union’s citizens in the knowledge that, even more so than other issues, it is on this matter which is particularly relevant to the daily lives of us all that the effectiveness of the Union’s action will be judged by public opinion. One of the central themes of our work has been the development of common strategies in the field of the management of migratory flows. In the first place, the concept of ‘common external borders’ has been further reinforced, and, in that sense, the European Council has taken note of the agreement reached on the main constituent elements of a special Community border management agency. The decision has been taken to set up the agency and the Commission has committed to making it operational as of 1 January 2005.
The European Council has also taken note of the adoption, at the Presidency’s proposal, of a special programme of measures on immigration by sea, a tangible sign of the Union’s particular concern over the often tragic phenomenon of the attempts of illegal immigrants to reach our coasts with results, I would point out, that are often genuinely disastrous. As regards this point, too, we must inform the European Parliament of the meeting, held in the presence of the Presidency and the Commission, of the five European countries bordering on the Mediterranean and the five countries of the North African coast. These countries are traversed by increasing migratory flows which they describe as characteristic of our time, by citizens travelling from Africa to Europe, which they see as heaven on earth. These countries, when invited to take part in bilateral agreements by individual European countries, declared themselves willing to participate in cooperation, which would make it possible to control departures from their coasts. However, during this ‘five plus five’ meeting, they did call for greater involvement in this measure and, of course, for us to bear the substantial financial costs which they incur for the benefit of Europe. In this connection, the Council has invited the Commission to look into the matter and put forward solutions.
At the formal opening of the Intergovernmental Conference, the Presidency’s intention was to reaffirm these concepts by means of the Declaration of Rome adopted by the Heads of State or Government of Member States, of acceding countries and candidates to the European Union, President Cox and President Prodi. We have remained faithful to this approach throughout the negotiations, reconciling the desire to preserve the Convention’s draft to the greatest extent possible with the obligation to give due consideration to the legitimate needs of all the Member States with regard to their priority issues.
The Presidency has paid due attention both to the issue of the reception and integration of legal immigrants and to the issue of persons in need of international protection. We are awaiting, in particular, a Commission study on the relationship between legal and illegal immigration, a study that should also include the matter of the establishment of European entrance quotas. We have, nevertheless, taken note of the progress that has been made in the matter of asylum, even though I am afraid that it has not been possible, as we had hoped, to reach agreement on the two directives under examination, relating, respectively, to minimal procedural regulations and to the definition of the status of refugee and beneficiary of subsidiary protection.
Effective management of migratory flows must, moreover, go hand in hand with fruitful cooperation with third countries of origin and transit. To this end, we have gone ahead with the process of fully integrating migration issues into the Union’s external relations. We have noted the implementation of a mechanism for the evaluation of third countries in combating illegal immigration. This is a mechanism called for by the Thessaloniki Summit, on which we very quickly achieved an interinstitutional agreement with the European Parliament by means of a regulation establishing a new programme of technical and financial assistance to third countries in the field of asylum and immigration. This programme will endow a sensitive sector with new financial resources, EUR 250 million for the coming five-year period, as the first step in a more substantial increase in funds for immigration, an increase that should take place with the next Financial Perspective.
Still on the subject of immigration, but with aspects clearly associated with citizens’ security and combating terrorism, as the European Council we noted the agreement reached on the inclusion of biometric data in visas and residence permits. In the near future, this innovation will be extended to the passports of Community citizens as well.
Significant results have also been obtained with regard to combating drug abuse. I would mention, in particular, the political agreement on the framework decision on combating drug trafficking an agreement patiently brokered by the Presidency. The European Council has highlighted the importance of interfaith dialogue, a matter to which the Italian Presidency dedicated a special conference in Rome in October as an instrument in the integration of the immigrant communities in Europe and, more generally, as an instrument to aid understanding and cooperation in international relations. The issue of relations between the West and Islam, between Christians and Muslims, is a matter which comes up every time we meet with the countries of the Arab League. We need to work hard on this, for an Arab minority is still emerging which sees the challenge as to be taken up at all costs. There can be nothing worse than going down that road. I believe, therefore, that we must make every effort to achieve genuine, ongoing, constant, far-reaching dialogue between the West and the Muslim countries. I would also point out that the Heads of State or Government have formally confirmed their firm opposition to every form of extremism and intolerance and their condemnation of terrorism and all other kinds of violence, and their explicit, unambiguous condemnation of all forms of anti-Semitism.
The European Council has also adopted the European Security Strategy: an excellent document, the work of Mr Solana and his team, which analyses security threats to the Union and how to address them. On this basis, we should be able to improve our capacity for intervention in the area of both conflict prevention and crisis management. Finally, the European Council has noted the progress achieved in the development of the CFSP. Acquiring more capability remains our primary commitment and, to this end, the decision to create a European agency specifically dedicated to fostering the development and acquisition of new military capability has particular importance. In this context, the European Council’s decision to accept the proposal presented by the Presidency, on the basis of discussions with various partners, to boost the Union’s planning capacity according to procedures compatible with the role of Nato and the ‘Berlin Plus’ agreements, takes on special significance. With this decision, a matter that, up until a few months ago, was the object of far-reaching division among the Members of the European Union has now been brought to a positive conclusion in an institutional framework.
Lastly, I would like to mention that, at the Brussels Summit, the agreement on the location of 10 European agencies was concluded something that had been left on hold for about two years. On the basis of this agreement, which was the result of diplomatic preparatory work in the months preceding the Summit, we will now be able to work with greater peace of mind to provide the operating conditions in the respective locations for agencies which will supplement the work of the Union institutions in a number of major sectors. The Italian Presidency is justifiably proud of this major agreement, which deserves to be emphasised all the more as it was achieved under conditions certainly not facilitated by the difficult negotiations over the Constitutional Treaty taking place at the same time.
Mr President, ladies and gentlemen, the Brussels European Council has taken place just a few months before the entry into force of the Accession Treaty. The enlargement set to take place in 2004 looks increasingly set to be a complete success, thus confirming the wisdom of the decisions taken by the Heads of State or Government at Copenhagen in December 2002. We noted that the acceding countries are continuing with the full transposal of the Community
and will, I am sure, by the deadline of 1 May 2004, be capable of shouldering the responsibilities deriving from their full membership. The Commission’s recent strategy document has confirmed without a doubt that Bulgaria and Romania have made considerable progress towards entry into the Union. These two countries are now ready to complete the decisive steps that precede accession. The European Council has drawn up a timetable with specific deadlines: 2004 for the conclusion of negotiations: 2005 for the signing of the Accession Treaty and, finally, accession to the Union in January 2007. Turkey, too, has completed a substantial part of its institutional reforms and has made further progress towards compliance with the Copenhagen political criteria. We have therefore duly recognised these positive developments in the conclusions of the European Council. Moreover, we have also given Turkey our recommendations and encouragement to continue in this direction, while also highlighting the areas in which Ankara is being asked to make a particularly intense effort. The medium-term goal remains Turkey’s adequate preparation with a view to the decision to be adopted by the European Council one year from now.
Mr President, ladies and gentlemen, the European Council has also devoted great attention to the major developments which have taken place over these six months in the European Union’s relations with its partners, its neighbours and the rest of the world. We have, first and foremost, noted significant progress being made towards achievement of the objectives of the Stabilisation and Association Process for the Balkans and the major work carried out by the Italian Presidency in this field, and we have reiterated the Union’s determination to support the European prospects of the countries of that region, inviting them to intensify their commitment to reforms, especially in the sectors essential for integration into the Union. Equal importance was accorded to the results achieved in these six months in the context of the Euro-Mediterranean Partnership and, in particular, on the occasion of the Conference of Foreign Ministers held in Naples on 2 and 3 December 2003. I would like to point out that, on that occasion, the creation of the Euro-Mediterranean Parliamentary Assembly was formalised, we agreed to set up the Foundation for Dialogue between Cultures and Civilisations and we provided for a substantial increase in the EIB’s Euro-Mediterranean Facility, all in the anticipation and hope of a genuine Euro-Mediterranean Bank being set up handling capital from the countries of the African continent too.
Transatlantic relations remain an irreplaceable cornerstone in the Union’s external relations. The European Council has devoted a specific declaration of major political importance to the matter. Moreover, it comes at the end of a period that we will remember as one of the most difficult in relations between Europe and the United States. Among the declaration’s most important points, I would mention the statement that constant dialogue between the Union and the United States on an equal footing is necessary and fundamental if we are to deal successfully with global challenges. Therefore, the Union will have to commit itself to strengthening cooperation with the United States in order to convert that community of values that lie at the root of our historic relationship into a community of actions. A common commitment to combating terrorism and the proliferation of weapons of mass destruction will be central in this regard. Lastly, the development of the CFSP and the EU-Nato strategic partnership will increase the overall effectiveness of the transatlantic community.
We have also stressed the strategic value of our relationship with the Russian Federation and the importance of developing a broad-based partnership with Moscow aimed at facilitating and promoting the increasing integration of Russia with the European institutions.
Our working method has been visible and transparent. We have fully involved the European Parliament representatives in the work of the IGC, going beyond what was done in previous Intergovernmental Conferences, and we have ensured that all the documents presented during the negotiations were made fully public and available for consultation.
Mr President, ladies and gentlemen, as outgoing President-in-Office of the Council of the European Union, I would like to leave you with a message of confidence. Indeed, I can assure you that all the countries have defended legitimate interests with respectable arguments, and, most importantly, that no one has denied the existence of a prevailing common European interest at all. It is normal now that there be a pause in which our countries and public opinions can reflect more deeply on the debate, but we are certain that the negotiations will be resumed on the basis of the Convention’s draft and of the results achieved through the work carried out by our Presidency and all the Member States together. Each Member State will have to make its contribution in the coming months to the process of integration, for the European undertaking must remain unified and inclusive, without shortcuts or fragmentation. The Constitutional Treaty is a goal that will certainly be reached. The upcoming presidencies, with your support and the support of the future European Parliament, will certainly be able to work to this end thanks, not least, to the work already done and the results already achieved.
Mr President, ladies and gentlemen, I will end by thanking you for having responded so actively to my invitation to cooperate closely in every phase of the work of the Intergovernmental Conference. I have handed over the texts of the agreements already concluded to the Irish Presidency with my very best wishes for successful work in creating that great Europe that we all want.
Thanks to this impressive, patient, meticulous work – for which I would like publicly to thank all those involved, in particular the Minister for Foreign Affairs, Mr Frattini, who is sitting here on my right we have been able to resolve almost all the questions raised by the IGC participants without much diminishing the overall level of ambition of the Convention’s draft.
During the initial exchanges of the Conference, we reviewed over 80 controversial issues on which the different States were in disagreement, and for each one of them, with the exception of a purely institutional point, adequately mediated solutions were found. I would add that, on some aspects in particular that absolutely crucial aspect of defence the IGC has supplemented and improved on the Convention’s draft, succeeding in defining permanent structured cooperation that is fully compatible with the Atlantic framework and respectful of the political needs of certain Member States.
This fundamental step forward will be made in accordance with the decision-making procedures of the Union using an inclusive approach that will allow some countries to proceed more rapidly on the basis of a specific protocol governing the military capabilities required for participation in this permanent structured cooperation.
In practice, to start with, this point seemed very problematic. We succeeded in reaching agreement, fully in harmony with Nato summits, and, as you know, the three pillars on which the Spring Council can take action and decisions have been taken on board by all. The first pillar – the regulation establishing structured cooperation and making it operational – will have to be approved by the European Council; the second pillar will make it possible for each Member State to become part of cooperation at any time; the third pillar stipulates that European defence – necessary to give Europe independent power and dignity, enabling it to sit down at all tables with the other world military powers – must not be seen as in opposition to Nato but must, on the contrary, work hand in hand with Nato, the means having been found to establish a European military planning and command cell in the Nato operational base in Europe.
The final IGC session has thus had to concentrate its efforts on the major institutional issues which, because of their particularly high political sensitivity, it had not been possible to resolve in the previous phases of the negotiations. Thus, the final meeting had to decide on the composition of the European Parliament and the Commission, there were still some points to be clarified regarding the extension of qualified majority voting in the Council, and, most importantly, the method of calculating that vote remained to be defined."@en1
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