UPN, Alm.del - 2013-14 - Bilag 164: Konklusioner fra mødet i Det Europæiske Råd den 20.-21. marts 2014, EUCO 7/14

The European Council held an in depth discussion on the situation in Ukraine. It adopted a strongmessage of support to Ukraine and agreed on a number of concrete measures in that respect. TheEU and its Member States signed the political provisions of the Association Agreement withUkraine. The European Council strongly condemned the annexation of Crimea and Sevastopol tothe Russian Federation and will not recognise it. In the absence of any steps towards de-escalation,the European Council decided on an extension of the visa ban and asset freeze and cancelled thenext EU-Russia summit. While remaining open for dialogue, the European Council did not excludeadditional and far reaching consequences for relations with Russia in case of any further steps bythe Russian Federation to destabilise the situation in Ukraine and asked the Commission and theMember States to prepare possible targeted measures. It also decided to advance the signature ofthe Association Agreements with Georgia and Moldova.Europe is emerging from the financial and economic crisis. The European economy is recovering,after several years of limited or even negative growth. The recovery is expected to strengthen thisyear. The European Council had an exchange of views on the economic and social situation andoutlook. It discussed in particular the most appropriate policy response for the short and mediumterm. It concluded the first phase of the European Semester and had a first discussion on theimplementation of the Europe 2020 Strategy ahead of the mid-term review at the Spring 2015European Council. It also focused on a stronger European industrial competitiveness as a driverfor economic growth and jobs. It held a first policy debate on the framework for climate and energyin the period from 2020 to 2030 and agreed on the way forward. It underlined the important linkbetween the Europe 2020 strategy, industrial competitiveness and climate and energy policies.The European Council hailed the agreement reached on the SRM regulation which will open theway to the completion of the Banking Union. This represents another crucial step towards astronger and more resilient Economic and Monetary Union. Finally, it cleared the way for theadoption of the Directive on taxation of savings income.

The European Council in December 2013 endorsed the five broad policy priorities for theEuropean Union and its Member States set out in the 2014 Annual Growth Survey (AGS):pursuing differentiated, growth-friendly fiscal consolidation, restoring normal lending to theeconomy, promoting growth and competitiveness, tackling unemployment and the socialconsequences of the crisis, while modernising public administration. To steer the Council'sdiscussions on the 2014 European Semester, the European Council put particular emphasis onpolicies enhancing competitiveness, supporting job creation and fighting unemployment,particularly youth unemployment, and on the follow-up to reforms to improve the functioningof labour markets. The National Reform Programmes and the Stability and ConvergenceProgrammes should address the issues identified in last year's Country-SpecificRecommendations and in the Commission's recent analysis in the context of the integratedsurveillance of macroeconomic and fiscal imbalances, including its in-depth reviews and theStability and Growth Pact, while taking full account of the discussions held in the Council inthe framework of the European Semester.

The European Council assessed the implementation of the Europe 2020 Strategy on the basisof the Commission communication. Achieving the Strategy's goal of smart, sustainable andinclusive growth remains crucial. The crisis has slowed down progress towards the key goalsof the Strategy and the long-term challenges affecting growth in Europe have not gone away.The European Council calls for stepping up efforts to reach the Europe 2020 targets and looksforward to the planned review of the EU 2020 Strategy in 2015.

Conclusions – 20/21 March 20143.The European Council congratulates the negotiators of the European Parliament and theCouncil on the agreement reached on the Single Resolution Mechanism Regulation. As wasunderlined at today's exchange of views between the President of the European Parliamentand the European Council, this is a major achievement that will open the way to thecompletion of the Banking Union. It is important now to formally adopt the Regulation beforethe end of the current legislature. Together with the Intergovernmental Agreement on theTransfer and Mutualisation of Contributions to the Single Resolution Fund, this representsanother crucial step towards a stronger and more resilient Economic and Monetary Union.4.The European Council welcomes the Commission’s report on the state of play of negotiationson savings taxation with European third countries (Switzerland, Liechtenstein, Monaco,Andorra and San Marino) and calls on those countries to commit fully to implementing thenew single global standard for automatic exchange of information, developed by the OECDand endorsed by the G20, and to the early adopters initiative.The European Council calls on the Commission to carry forth the negotiations with thosecountries swiftly with a view to concluding them by the end of the year, and invites theCommission to report on the state of play at its December meeting. If sufficient progress isnot made, the Commission's report should explore possible options to ensure compliance withthe new global standard.In the light of this, the Council will adopt the Directive on taxation of savings income at itsnext March 2014 meeting.The European Council invites the Council to ensure that, with the adoption of the Directive onAdministrative Cooperation by the end of 2014, EU law is fully aligned with the new globalstandard.

Europe needs a strong and competitive industrial base, in terms of both production andinvestment, as a key driver for economic growth and jobs. Competitiveness requires a stable,simple and predictable environment, including better regulation and in particular an ambitiousREFIT programme. The overall framework at European and national levels must be mademore conducive to investment and innovation and the reshoring of manufacturing jobs. TheCommission communication "For a European Industrial Renaissance" provides importantinput in this respect; the Commission is invited to present a roadmap for taking work forwardon this basis.

Efforts must continue to complete and to fully exploit the potential of the internal market ingoods and services, including in the digital economy, and to foster entrepreneurship. Thetimely adoption of the "Connected Continent" package will contribute to this objective.Infrastructure networks, including digital networks, need to be developed and updated withintelligent and innovative technologies. Particular attention should be paid to encouraging thecreation and growth of SMEs, including facilitating access to finance across the EU.

Conclusions – 20/21 March 20148.Through its budget, the European Union contributes to industrial competitiveness. The bestpossible use should be made of EU instruments such as Horizon 2020, the Connecting EuropeFacility, the European Structural and Investment Funds and COSME as well as market-basedand other innovative financial instruments to support competitiveness and access of SMEs tofinance.In this context, smart specialisation should be promoted at all levels, including through theefficient use of public investment in research. This will facilitate contacts between firms andclusters and improve access to innovative technologies.9.The competitiveness of European industry on international markets cannot be taken forgranted. Efforts should continue to improve market access around the world by facilitating theintegration of European companies in global value chains and promoting free, fair and opentrade while asserting its interests, in a spirit of reciprocity and mutual benefit. The EuropeanCouncil calls on the European Investment Bank to further contribute to enhancing Europeancompanies' internationalisation and competitiveness. Taking forward an ambitious trade andinvestment agenda and promoting European and international standards and regulations,including the fight against counterfeiting, are important elements contributing to enhancingthe EU's industrial competitiveness globally. This should help open markets, defend EUinterests and actively promote a level playing field in third markets. Further action must alsobe pursued on ensuring access to core raw materials.The European Council welcomes the Commission's plans to modernise the state aid ruleswhich will enter into force in June 2014. In particular, it welcomes the Commission'sintention to facilitate the implementation of wider EU policies and programmes, including EUStructural and Investment Funds by extending the scope of the General Block ExemptionRegulation, while maintaining a level playing field among the Member States.

Conclusions – 20/21 March 201410.Fostering the Union's industrial growth requires the right skills. The European Council urgesthe Commission and the Member States to address shortages in the area of science,technology, engineering and mathematics (STEM skills) as a matter of priority, withincreased involvement of industry. Further efforts by the public and private sectors should bedirected to promoting mobility, education and vocational training. All available instrumentsshould be used to this end, such as the European Structural and Investment Funds (ESIF), thenew generation of Erasmus +, the Grand Coalition for Digital Jobs, the European Alliance forApprenticeships or the Youth Employment Initiative and the Youth Guarantee. Industryshould be more involved in forecasting future skills needs.11.Intellectual property and patenting are key drivers for growth and innovation. Despite itsleading role in a number of technology industries, the European Union is lagging behind inpatenting. The European Council therefore calls for enhancing support to these high-growthsectors, in order to preserve the European Union's technology lead. The concerned Partiesshould ratify, in accordance with their constitutional provisions, the agreement on the UnifiedPatent Court and make the necessary legal and administrative arrangements so that the EUpatent regime can enter into force by the end of 2014.12.The European Council recalls that key enabling technologies (KETs) are of crucialimportance for industrial competitiveness. KETs of high industrial interest, such as batteriesfor electro-mobility, intelligent materials, high performance production and industrial bio-processes, should be strengthened by swiftly identifying projects of European interest. Specialattention should be paid to the role of cleantech as a cross-cutting element for enhancing thecompetitiveness of the European industry. The Commission is invited to report on how topromote cleantech through concrete actions in all relevant EU policies.13.On the basis of the orientations set out above, the European Council invites the Council, theCommission and the Member States to continue work. The European Council will come backto these issues in the context of the Europe 2020 Strategy review in March 2015.

Taking into account the timeline agreed in Warsaw for the conclusion of a global climateagreement at the 21st session of the Conference of the Parties in Paris in 2015, the EuropeanCouncil confirms that the European Union will submit its contribution at the latest by the firstquarter of 2015, as should all major economies. In the light of the UN Climate Summit inSeptember 2014 the specific EU target for 2030 for greenhouse gas emission reductions willbe fully in line with the agreed ambitious EU objective for 2050. Such an agreed EU policyframework on greenhouse gas emissions, renewables and energy efficiency, to be elaboratedon the basis of the Commission communication, will provide the necessary stability andpredictability for its economic operators and confirm the EU's role globally.

Conclusions – 20/21 March 201417.The new framework should be based on the following principles:further improve coherence between greenhouse gas emissions reduction, energy efficiencyand the use of renewables and deliver the objectives for 2030 in a cost-effective manner,with a reformed Emissions Trading System playing a central role in this regard;develop a supportive EU framework for advancing renewable energies and ensureinternational competitiveness;ensure security of energy supply for households and businesses at affordable andcompetitive prices;provide flexibility for the Member States as to how they deliver their commitments inorder to reflect national circumstances and respect their freedom to determine their energymix.18.With a view to an early agreement on a new policy framework for energy and climate in theperiod 2020 to 2030, the European Council invites the Council and the Commission tocontinue work and rapidly develop the following elements:analyse the implications for individual Member States of the Commission's proposals forEU-wide targets for emission reductions and renewable energy;elaborate mechanisms which will result in an overall fair effort sharing and foster themodernisation of the energy sector;develop measures to prevent potential carbon leakage and call for long-term planningsecurity for industrial investment in order to ensure the competitiveness of Europe'senergy-intensive industries;review the Energy Efficiency Directive in a timely manner and develop an energyefficiency framework.The European Council will take stock of progress made on these issues at its meeting in June,based inter alia on consultations with Member States, with a view to taking a final decision onthe new policy framework as quickly as possible and no later than October 2014. TheEuropean Council asks its President and the European Commission to take the necessary stepsto prepare this decision.

Conclusions – 20/21 March 201419.The objectives of completing the internal energy market by 2014 and developinginterconnections so as to put an end to any isolation of Member States from European gas andelectricity networks by 2015 remain a priority. The European Council calls for speeding upefforts in particular as regards:speedy implementation of all the measures to meet the target of achieving interconnectionof at least 10 % of their installed electricity production capacity for all Member States. TheEuropean Council invites the Commission to propose by June specific interconnectionobjectives to be attained until 2030 with a view to taking a decision at the latest by October2014. Special attention should be paid to improving interconnections with the more remoteand/or less well connected parts of the single market, including through the improvementand creation of reverse flows and integrating Member States into the European continentalnetworks;effective and consistent implementation of the Third Energy Package by all players in theEuropean energy market;effective application and enforcement of EU rules regarding market integration and energyefficiency, and striving for a level playing field for companies operating within the EU.

Conclusions – 20/21 March 2014Efforts to reduce Europe's high gas energy dependency rates should be intensified, especiallyfor the most dependent Member States. Moderating energy demand through enhanced energyefficiency should be the first step which will also contribute to other energy and climateobjectives. The European Council calls on the Commission to conduct an in-depth study ofEU energy security and to present by June 2014 a comprehensive plan for the reduction of EUenergy dependence. The plan should reflect the fact that the EU needs to accelerate furtherdiversification of its energy supply, increase its bargaining power and energy efficiency,continue to develop renewable and other indigenous energy sources and coordinate thedevelopment of the infrastructure to support this diversification in a sustainable manner,including through the development of interconnections. Such interconnections should alsoinclude the Iberian peninsula and the Mediterranean area. Where relevant, interconnectionsshould also be developed with third countries. Member States will show solidarity in case ofsudden disruptions of energy supply in one or several Member States. In addition, furtheraction should be taken to support the development of the Southern Corridor, including furtherspur routes through Eastern Europe, to examine ways to facilitate natural gas exports fromNorth America to the EU and consider how this may best be reflected in TTIP, and increasethe transparency of Intergovernmental Agreements in the field of energy.20.In order to pursue the objectives set out above, implementation of relevant projects ofcommon interest should be speeded up and available EU resources, including the CEF, andthe EIB financing capacity, should be swiftly mobilised.

Conclusions – 20/21 March 201421.In the light of the main cost drivers identified in the Commission communication, theEuropean Council calls for sustained efforts to moderate the energy costs borne by energyend-users, in particular through:a progressive evolution of support mechanisms for renewables to a more cost-effective andmarket-based system and more convergence of national support schemes beyond 2020;sustained investment in energy efficiency and demand-side management all along thevalue chain and at the R&D stage;fuller use of the electricity generation capacity available on the internal market rather thanrelying on national capacities alone, while recognizing the role of Member States inensuring security of supply;promotion of domestic resources and of competition on gas supply markets and addressingthe issue of the contractual linkage of gas and oil prices.All of this should be in compliance with State Aid rules and the rules of the internal market.On the basis of the above measures, Member States will take the appropriate actions leadingto cost reduction in the manner most suited to their specific circumstances. Coordinationbetween Member States as well as across sectoral policies must be ensured in order tofacilitate the achievement of EU level objectives.22.In addition, the European Council calls on the Member States to further examine theirdifferent national practices on energy policy levies, tax components of prices and networkcosts, with the objective of minimising negative consequences for energy prices. Building onrecent experience, Member States will continue to regularly exchange information on majornational energy decisions which have a possible impact on other Member States, while fullyrespecting national choices of energy mix.

Conclusions – 20/21 March 2014CYPRUS23.The European Council welcomes the resumption of fully fledged settlement negotiationsbased on the 11 February Joint Declaration with the aim to reunite Cyprus. The EuropeanCouncil supports a comprehensive and viable settlement of the Cyprus problem within the UNframework, in accordance with relevant UN Security Council resolutions and in line with theprinciples on which the European Union is founded. The European Council underlines thatthe division of Cyprus has endured for too long and emphasises the importance of maintainingthe momentum. The European Council stands ready to play its part in supporting thenegotiations. Reunification of Cyprus would be to the benefit of all the Cypriot people and inthis respect the European Council supports any confidence building measures agreed by thetwo parties which could contribute decisively to creating a climate of mutual trust and giveimpetus to the negotiation process.II.EXTERNAL RELATIONSUkraine24.The European Union supports the Ukrainian people and their right to choose their own future.The European Union stands by the Ukrainian government in its efforts to stabilise Ukraineand undertake reforms. In this context the European Union will pursue further efforts with theinternational community to assist Ukraine.25.The European Union, its Member States and Ukraine will sign the political provisions of theAssociation Agreement. The European Union and its Member States are committed to signthe remainder of the Association Agreement and Deep and Comprehensive Free Trade Area,which together with the political provisions constitute a single instrument. The EuropeanCouncil agrees that the first meeting in the political dialogue as envisaged under theAgreement should take place in April. The European Council urges the Council and theEuropean Parliament to swiftly adopt the proposal for temporarily removing customs duties,so called Autonomous Trade measures, on Ukrainian exports to the European Union.

Conclusions – 20/21 March 201426.Restoring macroeconomic stability in Ukraine is an immediate priority. The Ukrainiangovernment needs to embark swiftly on an ambitious programme of structural reforms,including the fight against corruption and enhancing transparency of all fiscal operations. TheEuropean Council urges the Council to rapidly agree on macro-financial assistance andunderlines that an agreement with the IMF is critical to enable this assistance. EU MemberStates agree to coordinate their positions in the IMF regarding the conditions for assistance toUkraine. The European Council welcomes the establishment of a focal point for coordinationof efforts which should underpin the structural transition in Ukraine with participation of theinternational community and international financial institutions.27.The European Union commends the measured response shown so far by Ukraine. TheEuropean Council welcomes the Ukrainian government's commitment to ensure therepresentative nature and inclusiveness of governmental structures, reflecting regionaldiversity, to ensure the full protection of the rights of persons belonging to nationalminorities, to undertake constitutional reform, to investigate all human rights violations andacts of violence and to fight extremism. In this context the European Union encourages thegovernment of Ukraine to ensure that the Presidential election on 25 May will be free and fair.28.The European Union remains committed to uphold the sovereignty and territorial integrity ofUkraine. The European Council does not recognise the illegal referendum in Crimea, which isin clear violation of the Ukrainian Constitution. It strongly condemns the illegal annexation ofCrimea and Sevastopol to the Russian Federation and will not recognise it. The EuropeanCouncil asks the Commission to evaluate the legal consequences of the annexation of Crimeaand to propose economic, trade and financial restrictions regarding Crimea for rapidimplementation.29.In the light of this and in the absence of any steps towards de-escalation the European Councilagrees to expand the list of individuals to be subject to visa ban and asset freeze. TheEuropean Council decides to cancel the next EU-Russia Summit and notes that MemberStates will not hold bilateral regular summits for the time being. In addition, the EuropeanCouncil and the Member States support the upcoming G7 countries' meeting in The Hague.They also support the suspension of negotiations over Russia's joining the OECD and IEA.

Conclusions – 20/21 March 201430.The European Council firmly believes that there is no place for the use of force and coercionto change borders in Europe in the 21st century. The Russian actions are in clear breach of theHelsinki process, which in the past 40 years has contributed to overcoming divisions inEurope and building a peaceful and united continent. The European Council deplores thatRussia has still not taken steps to de-escalate the crisis and that negotiations between Ukraineand the Russian Federation have still not started. It urges that an agreement be promptlyreached on an OSCE mission to be deployed in Ukraine as soon as possible, in order to helpstabilise the situation. In that context, the European Council asks the High Representative tourgently draw up plans for an EU contribution to facilitate the work of the OSCE mission. Inthe absence of an agreement in the coming days on a credible OSCE mission, the EU willdraw up an EU mission.31.The European Union has a special responsibility for peace and stability in Europe. It willremain at the forefront of efforts to facilitate and engage in a meaningful dialogue involvingUkraine and Russia, including through the establishment of a multilateral mechanism, with aview to finding a political solution.32.The European Council recalls that any further steps by the Russian Federation to destabilisethe situation in Ukraine would lead to additional and far reaching consequences for relationsin a broad range of economic areas between the European Union and its Member States, onthe one hand, and the Russian Federation, on the other hand. In this respect, the EuropeanCouncil asks the Commission and the Member States to prepare possible targeted measures.33.The European Union reconfirms its objective to further strengthen the political associationand economic integration with Georgia and the Republic of Moldova. We confirm our aim tosign the Association Agreements, including the Deep and Comprehensive Free Trade Areas,which we initialled in Vilnius last November, no later than June 2014.

Conclusions – 20/21 March 2014EU-Africa relations34.Ahead of the 4th EU-Africa Summit on 2 and 3 April 2014, the European Union remainscommitted to building a partnership of equals with Africa and strengthening relations in allrelevant areas in response to the growing interdependence between the European Union andAfrica. The European Council expresses the EU's willingness to further cooperate with itsAfrican partners in promoting trade and development, democracy and good governance, therule of law and human rights. It also underlines the importance to address migration andmobility, including irregular migration and the fight against smuggling of migrants andtrafficking of human beings, in a spirit of shared responsibility between countries of transit,origin and destination.35.The European Council emphasises in particular that continued international support forAfrican partners in the area of security remains crucial and encourages other donors toparticipate in burden-sharing. Therefore, the European Union will continue to provideoperational support through its civilian crisis management missions and military operations, atthe request of individual countries and in close cooperation with other regional andinternational actors. In this context, it underlines the urgency of mobilising financial andoperational support for the African-led International Support Mission to the Central AfricanRepublic (MISCA) and reaffirms the Union's commitment to deploy its operation EUFORRCA in the coming weeks.36.The European Union will also consider ways and means to support African initiatives forcapacity-building, which will strengthen the African Peace and Security Architecture andenable African partners to prevent conflicts and address crises effectively and rapidly. TheEuropean Council encourages further work at EU level to enhance support for Africancapacity development in a comprehensive and systematic way encompassing advice,mentoring, training and equipment. The European Council invites the High Representative tomake further proposals in this regard, including on a possible clearing house on the provisionof equipment to support training provided by the EU.