European Council

A compromise text for a new directive to increase protection of seafarers' labour rights was confirmed by the Council's Committee of Permanent Representatives (Coreper). The Coreper approved the agreement reached by the Presidency with the European Parliament in a trilogue on 6 May 2015.

The new piece of legislation gives seafarers the same rights with regard to information and consultation as those enjoyed by workers on shore while taking into account the particular nature of the shipping sector. It is based on a joint position reached by the social partners in the maritime sector.  

Apart from ensuring a level playing field in the maritime sector, the directive aims at increasing the quality of maritime jobs. The goal is to reverse the current decline in the number of young Europeans entering certain maritime professions and to retain skilled workers in the profession.  

It also intends to remedy the current legal situation which gives rise to unequal treatment of the same category of workers by different member states. Currently this differs depending on whether or not they apply the exemptions and derogations allowed by the current legislation. Most member states have made little or no use of the exclusions.  

The European Parliament's Employment Committee is expected to confirm the text during its meeting on 28 May 2015. Following lawyer-linguist revision, the text could be voted by the European Parliament's Plenary in July 2015 and signed by the two institutions in September. 

The Council has agreed to reinforce the civilian mission EUCAP Sahel Niger as part of the actions of the European Union to prevent irregular migration.

The EU will offer the Nigerien authorities support in preventing irregular immigration and combatting associated crimes. This would include advice on a related strategy and training to the Nigerien security services. EUCAP Sahel Niger would also have an outpost in Agadez, a major trafficking hub on the road to Libya.

The High Representative for Foreign Affairs and Security Policy and Commission Vice-President Federica Mogherini said: "Today the EU confirms that it is taking up its responsibilities, in partnership with key countries and in a comprehensive way. Two weeks after the European Council's request to increase our support to partner countries to prevent irregular migration flows, we have agreed on reinforcing our presence in Niger: 90% of migrants from Western Africa travel through Niger. Only by working jointly with countries of origin and transit, with the African Union and the UN, we will succeed to tackle the root causes of the emergency while disrupting criminal organisations and helping migrants to escape from them".  

Niger is in a critical geographical location for migration flows to Europe: 90% of migrants from Western Africa travel through Niger on their way to Libya. Half of the migrants arriving irregularly in Italy in 2014 came through Libya, according to the EU's border management agency Frontex.  

EUCAP Sahel Niger already provides advice and training to support the Nigerien authorities in strengthening their capacities to combat terrorism and organised crime. The mission works to promote the interoperability of Nigerien security forces, to develop criminal investigation capacities, to facilitate coordination in the fight against terrorism and organised crime as well as to improve the sustainability of the security forces. EUCAP is embedded in the EU regional strategy for security and development in the Sahel.  

Around 50 international experts from 12 EU member states currently work in the mission, which is based in Niamey. Since May 2014, Filip de Ceuninck from Belgium has been Head of Mission.  

The decision was taken in the Council's Political and Security Committee.

Another round of constructive discussions on new EU rules for novel foods took place between the Latvian presidency and representatives of the European Parliament and the Commission on 12 May 2015. Despite certain convergence on some elements further work is required to reach an agreement. The presidency will brief the Council's Committee of Permanent Representatives on 13 May to reflect on the next steps. Novel foods are foods not consumed in the EU to a significant degree before May 1997. They include for instance foods to which a new production process is applied.  

The rules under discussion are aimed at making the authorisation process of novel foods faster and cheaper while preserving the high level of protection of human health. The draft new rules are also expected to facilitate the access to the EU market for traditional foods from third countries having a history of safe food use.  

Two of the most challenging elements of the discussions that remain to be addressed are the reference to cloning and the choice of the type of secondary decisions to authorise novel foods.  

The novel foods authorised under the current rules in the EU include for instance "rapeseed oil high in unsaponifiable matter", "rye bread with added phytosterols/phytostanols", "milk type products and yoghurt type products with added phytosterol esters", "coagulated potato proteins and hydrolysates thereof" and "phospholipids from egg yolk".

Today I was pleased to welcome the President of Georgia Giorgi Margvelashvili on his first official visit to Brussels.

Georgia is a close partner of the European Union. With the Eastern Partnership Summit in Riga just around the corner our meeting was well-timed. I assured President Margvelashvili that the Riga Summit will reaffirm the European Union's strong commitment to the Eastern Partnership and the objective of developing strengthened, closer, and differentiated relations between the EU and its sovereign, independent Eastern partner states.

I also praised the President for the significant progress his country has made so far with regard to meeting the requirements for visa free travel to the EU. The remaining steps are clearly identified and we agreed to redouble our efforts to successfully finalise the process as soon as feasible. We will continue working towards our common goal: visa free travel to the EU for all of Georgia's citizens.

The smooth implementation of the Association Agreement with its Deep and Comprehensive Free Trade Area is another priority. Since the provisional application started on 1 September 2014 Georgia's exports to the EU have grown by around 18% compared to the same period in the previous year. We will continue building on this progress. The Association Agreement is boosting our relationship and will help to unlock its full potential.

For the Georgian government the time is now ripe to drive forward necessary reforms while maintaining a close dialogue with the citizens to ensure long-term public support for the process. We share the objective to fully transform Georgia into a modern state and an effective economy with opportunities for all of its citizens.

Last and by no means least, I stressed again the European Union's unwavering support to Georgia's territorial integrity within its internationally recognised borders as well as our strong commitment to conflict resolution in the context of the Geneva International Discussions and through the presence of the EU Monitoring Mission. Thank you. And now Mr. President, Giorgi, the floor is yours.

Representatives of the EU Member States, the Western Balkans and Turkey, the Commission and the European Central Bank, as well as representatives of the central banks of the Western Balkans and Turkey met for the annual economic policy dialogue[1][2]. Participants welcomed the submission of the 2015 Economic Reform Programmes (ERPs) of the Western Balkans and Turkey. For the Western Balkans, these programmes consist of two distinct parts: Part I outlines the medium-term macroeconomic and fiscal framework as well as concrete macro-structural reforms to support the policy framework and are thus an enhanced version of the previous Pre-Accession Economic Programmes submitted by candidate countries. Part II, as a new element, covers structural reforms of a sectoral nature (such as transport, energy, education, etc.) to enhance competitiveness and long-term growth. Turkey was only asked to submit Part I. The programmes cover the period from 2015-2017.

Participants took note of the Conclusions of the General Affairs Council on 16 December 2014 in which the Council welcomed the Commission's proposal to strengthen the dialogue on economic governance with the Western Balkans and Turkey, including through the preparation of ERPs, to better reflect the European Semester process at EU level. Participants recalled the commitment to set out targeted policy guidance to support efforts towards meeting the Copenhagen economic criteria.

As regards statistics, Participants underline the importance of reliable and up-to-date data and therefore welcome the 2015 Progress Report on the Action Plan on Economic, Monetary and Financial Statistics in the Western Balkans and Turkey. They were comforted that all the Western Balkans and Turkey made progress in fulfilling the Action Plan requirements, but noted that additional efforts in some statistical areas are still needed to achieve a full compliance with the Action Plan requirements.

[1]           The conclusions of this dialogue are without prejudice to EU Member States' positions on the status of Kosovo.
[2]           Montenegro, Serbia, the former Yugoslav Republic of Macedonia, Albania and Turkey are candidate countries for EU accession.

Place:         Justus Lipsius building, Brussels
Chair(s):    Federica Mogherini, High Representative for Foreign Affairs and Security Policy

All times are approximate and subject to change

+/- ttbc        Doorstep by High Representative Mogherini
+/- 09.30     European Defence Agency Steering Board
+/- 11.00     Beginning of the Foreign Affairs Council meeting
                     Meeting of EU Defence ministers
                     Adoption of the agenda
                     Adoption of A Items
                     Military operations under the Common Security and Defence Policy
+/- 12.15     Working lunch of Foreign and Defence ministers-  Security challenges in the EU's neighbourhood
+/- 13.15     Joint meeting of Foreign and Defence ministers
                     Preparations for the June European Council
                     Migration - follow-up to the Special European Council of 23 April
                     Strategic review
+/- 17.00     Press conference
                     Meeting of EU Foreign ministers
                     Middle East peace process
                     Other items  

In the margins of the Council:

+/- 08.00                      EU-Turkey Association Council (TV/photo opportunity)
+/- 09.05                      Press conference

after the Council        EU-Uzbekistan Cooperation Council (TV/photo opportunity)

The Council adopted the following conclusions:  

1. The economic and financial crisis has put a significant burden on public finances and has led to rising deficits and debt levels. Ensuring the long-term sustainability of public finances is therefore particularly important at the current juncture. The Council STRESSES the need for appropriate growth friendly fiscal consolidation and for further implementation of structural reforms in order to enhance the sustainability of public finances.
2. Against this background, the Council ENDORSES the 2015 Ageing Report: economic and budgetary projections for the 28 EU Member States and Norway (2013-2060) prepared by the Economic Policy Committee (Ageing Working Group) and the Commission (DG ECFIN) on the basis of commonly agreed methodologies and assumptions. In line with previous editions, the projections in the 2015 Ageing Report cover public expenditures on pensions, health care, long-term care, education and unemployment benefits.
3. The Council HIGHLIGHTS the main findings of the 2015 Ageing Report:  
   - Over the whole period 2013-2060, average annual GDP growth in the EU is projected to be 1.4%, unchanged compared to the 2012 Ageing Report. However, there are significant differences in the growth potential across Member States.
   - Total age-related public expenditures are projected to increase by 1.4 p.p. of GDP between 2013 and 2060 in the EU, to reach 27% in 2060, with large differences across countries. Excluding unemployment benefits (strictly-age-related expenditure), an increase of 1.8 p.p. of GDP between 2013 and 2060 is projected in the EU, to reach 26.3% in 2060.
   - Taking into account possible more adverse macroeconomic assumptions, such as the TFP risk scenario, strictly ageing-related public expenditures could increase by 2.1 p.p. of GDP between 2013 and 2060. As a result of recent reforms and more benign demographic developments projected for the EU as a whole in EUROPOP2013, the projected increase in the total age-related expenditure over 2013-60 is now significantly lower than projected in 2012 (3.3 pp. of GDP).
   - After a projected increase up to 2040, also related to the baby boom generation reaching the retirement age, public pension expenditure is projected to return close to its 2013 level by 2060 (11.3 % of GDP for the EU). The diversity across Member States is very large, depending on the degree and timing of population ageing, the specific features of national pension systems and, notably, countries' progress with structural reforms. In most countries, recent pension reforms have had a visible positive impact by containing public expenditure dynamics. Pension reforms have also contributed to an increase in the effective retirement age and thus labour input. The scale of reforms in some Member States is however still insufficient to curb the increase in public pension expenditure.
   - Public expenditure on health care and long-term care is projected to increase by 2 p.p. of GDP between 2013 and 2060 in the EU in the AWG reference scenario with considerable differences across countries, reaching 10.6 % of GDP in 2060, which is mainly due to demographic developments. Taking into account possible future developments in non-demographic cost drivers in health care and long-term care spending, as foreseen in the AWG risk scenario, the projected increase in care-related spending could even reach 4 p.p. of GDP between 2013 and 2060.
4. In light of the updated age-related expenditure projections and the current economic situation, the Council, while welcoming recent reforms in many Member States, REAFFIRMS that there is a need to continue appropriate policy action in the EU in all age-related areas, notably pension, health and long-term care reforms while taking into account country specificities, and to avoid measures resulting in the reversal of sustainability enhancing reforms already undertaken. This entails a prompt implementation of the Country Specific Recommendations issued under the European Semester and of the three-pronged strategy for addressing the economic and budgetary consequences of ageing, i.e. by reducing government debt, raising employment rates and productivity, and reforming pension, health care and long-term care systems.
5. The Council HIGHLIGHTS specifically that further steps still need to be taken by Member States, though to varying degrees, to raise the effective retirement age, including by avoiding early exit from the labour market and by linking the retirement age or pension benefits to life expectancy. Moreover, the Council, recalling its Conclusions of 7 December 2010, INVITES Member States to balance the need to provide universal health care and long-term care, meet an increasing demand related to an ageing population, as well as growing patient expectations due to technological development in the coming decades with the need to reduce high public debt levels. This highlights the need to assess the performance of health and long term care systems and implement sound and necessary reforms in order to achieve a more efficient use of public resources as well as the provision of high quality health and long term care.
6. The Council INVITES the Commission to factor these findings related to ageing challenges and other relevant information including updated estimates of nearer-term potential GDP growth[1] into its analysis and surveillance under the European Semester, and to take account of its implications in all relevant fields of economic policy coordination in the EU.
7. The Council INVITES the Commission to undertake its regular in-depth overall assessment of the sustainability of public finances by the end of 2015 using this set of comprehensive and comparable updated projections. The Economic Policy Committee should on the basis of the assessment report back to the Council.
8. The Council INVITES the Economic Policy Committee to update, on the basis of new population projections to be provided by Eurostat, in close cooperation with the National Statistical Institutes (NSIs), its analysis of the economic and budgetary implications of population ageing by the autumn of 2018. Moreover, the Council INVITES Eurostat to systematically provide annual updates of their population projections, in particular as regards migration flows, to be used over the short to medium term forecast horizon.

[1]           On April 1st 2015 the EPC endorsed a revised approach to projecting population growth for the purposes of potential GDP estimation for Ireland, Latvia and Lithuania. 

The Council (ECOFIN):  

1. WELCOMES the publication of the Commission's single integrated country reports analysing the economic policies for each of the Member States and the euro area, including the in-depth reviews (IDRs) in the context of the Macroeconomic Imbalances Procedure (MIP), as well as the accompanying Communication summarising the main results of the IDRs.
2. CONSIDERS that this way of streamlining of the European Semester has proven to be a useful first step to better examine and discuss the economic policies of Member States, thus allowing for improved transparency and feedback on the Commission's analysis. For the future, further enhancing ownership, as well as multilateral surveillance, aimed at strengthening the process will be needed.
3. CONSIDERS that the IDRs are structured in an appropriate way and present a thorough analysis of the imbalances in each of the Member States under review, taking country-specific circumstances and qualitative information into account. Relevant analytical tools are also applied in view of the specific challenges of each economy. I - IN-DEPTH REVIEWS
4. AGREES that 16 of the examined Member States which are identified in Alert Mechanism Report 2015 (Belgium, Bulgaria, Germany, Ireland, Spain, France, Croatia, Italy, Hungary, the Netherlands, Portugal, Romania, Slovenia, Finland, Sweden and the UK) are experiencing macroeconomic imbalances of various natures and magnitudes. CONSIDERS that enhanced transparency on the criteria for the categorisation of macroeconomic imbalances as well as greater stability and predictability of the procedure itself would be welcome. AGREES that, since last year, the imbalances in Slovenia should no longer be considered as excessive, although high corporate leverage and persistent financial sector fragilities continue to warrant specific monitoring. This is based on the fact that decisive policy actions have been taken on the restructuring of the banking system. Furthermore, improved export performance and growth conditions have reduced risks compared to last year, in particular those linked to the external sustainability.
5. AGREES with the view of the Commission that excessive imbalances exist in 5 Member States (Bulgaria, France, Croatia, Italy, and Portugal), and the Commission's intention to consider in May the policy measures of France and Croatia, taking into account the level of ambition of the National Reform Programme and other commitments presented by that date, and to decide whether further steps are needed under the corrective arm of the MIP.
6. UNDERLINES the need for policy action and strong commitment to structural reforms in all Member States, in particular when they face macroeconomic imbalances, especially if affecting the smooth functioning of EMU. Imbalances should be addressed in a durable manner, reducing risks, facilitating the rebalancing of the EU economies and creating conditions for sustainable growth and jobs; and INVITES the Commission to come forward with well-focused and consistent recommendations to the Member States addressing macroeconomic imbalances in the context of the European Semester.
7. WELCOMES the Commission's plans with regard to specific monitoring of the recommendations by the Council to the Member States with excessive imbalances (Bulgaria France, Croatia, Italy and Portugal). Specific monitoring will also apply to a number of euro area Member States with imbalances requiring decisive policy action (Ireland, Spain and Slovenia), and INVITES the Commission to outline the concrete timing and content of such monitoring. In line with established practice, the monitoring for Ireland, Spain and Portugal will rely on post programme surveillance to avoid duplication.
8. RECOGNISES that a number of macro-economic imbalances are being corrected, but UNDERLINES that there are still sizeable risks in certain Member States. In particular, large external liabilities make debtor countries vulnerable, and improvements in current account are not always sufficient to diminish the stock of external debt. Although losses in price competitiveness compared to pre-crisis levels have been partly corrected in a number of debtor countries, strengthening export growth through further structural efforts remains a priority in order to achieve a sustainable and growth-friendly rebalancing. At the same time, current account surpluses remain high in some Member States: these reflect to some extent weak domestic demand, which can be  partially linked to low levels of private and public sector investment. In addition, UNDERLINES that high levels of private and government debt remain an important challenge in some countries, also in the context of low inflation and moderate growth rates. Structural reforms are needed to enhance the growth potential and to tackle high unenemployment, in particular among the youth and long-term unemployed. II - IMPLEMENTATION OF COUNTRY SPECIFIC RECOMMENDATIONS
9. WELCOMES the overall progress made in addressing the 2014-15 Country Specific and the euro area Recommendations. TAKES note that reform implementation has been uneven over policy areas and across countries and AGREES that reform implementation needs to be stepped up to  address the individual policy challenges confronting each Member States and to ensure swift and sustainable economic recovery.
10. RECOGNISES that further structural reforms in the services, product and labour markets and responsible fiscal policies are needed in all Member States to strengthen and sustain the economic recovery, correct harmful imbalances, achieve fiscal sustainability, improve the conditions for investment and reinforce the single market, unleashing the growth potential of Member States' economies.
11. LOOKS FORWARD to the Commission's publication of the 2015-16 Country Specific Recommendations in mid-May to ensure the necessary in-depth multilateral discussions before their adoption by the Ecofin council. INVITES the Commission to take into account the discussion on Country Reports as well as the National Reform Programmes when drafting the country-specific recommendations 2015.
12. STRESSES that country-specific recommendations should focus on areas of macroeconomic significance where there is an urgent need for action, in order to give these issues more visibility in the Member State's national political debate. At the same time, common challenges for the euro area and the EU as a whole will continue to be identified and monitored. CONSIDERS it important to continue to ensure a sound and transparent analytical basis for the CSRs, safeguarding equal treatment through consistency over time and across countries.