European Council

On 8 June, the member states which are part of the enhanced cooperation on the creation of the European Public Prosecutor's Office (EPPO) agreed on legislation setting out the details of its functioning and role.

The EPPO will have the authority, under certain conditions, to investigate and prosecute EU-fraud and other crimes affecting the Union's financial interests. It will bring together European and national law-enforcement efforts to counter EU fraud.

The EPPO central office will be based in Luxembourg. The date on which the EPPO will assume its investigative and prosecutorial tasks will be set by the Commission on the basis of a proposal from the European Chief Prosecutor once the EPPO has been set up. This date will not be earlier than three years after the entry into force of this Regulation.

The EPPO will work as a collegial structure composed of two levels. The central level will consist of a European chief prosecutor, who will have overall responsibility for the office. The decentralised level will be made up of European delegated prosecutors located in the member states, who will be in charge of the day-to-day conduct of criminal investigations and prosecutions in line with the regulation and legislation of that member state.

The central level will monitor, direct and supervise all investigations and prosecutions  undertaken by European Delegated Prosecutors, thereby ensuring a consistent investigation and prosecution policy across Europe.

Although its competence is limited to the participating member states, the EPPO will cooperate with the other EU non-participating member states. In this respect, the Council invited the Commission to reflect on submitting appropriate proposals to ensure the effectiveness of this judicial cooperation.

The enhanced cooperation procedure was launched on 3 April 2017 following the registration of the lack of unanimous agreement on the proposal.

Up until now, 18 member states have joined the enhanced cooperation: Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Germany, Greece, Spain, Finland, France, Latvia, Lithuania, Luxembourg, Portugal, Romania, Slovenia and Slovakia.

Moreover, another 2 member states, namely Italy and Austria have expressed their intention to join the enhanced cooperation.

Other member states may join the cooperation at any time.

The Union and its member states sometimes face complex cases of, for example, fraud against EU structural funds or large-scale cross-border VAT fraud. In those cases, national criminal investigators and prosecutors often lack the tools required to act quickly and efficiently across borders.

The EPPO will address these shortcomings and enhance the fight against offences affecting the Union's financial interests, thereby  contributing to a stronger and better protected Union budget.

The EPPO will complement the work of OLAF and Eurojust, which are not equipped to investigate or prosecute individual criminal cases.

Prior to the final adoption of the EPPO regulation, the European Parliament's consent is required to be sought. It is expected that this could happen before the summer break, allowing for the final adoption of the text in October.

Under the "consent procedure", the European Parliament has the power to accept or reject a legislative proposal by an absolute majority vote, but cannot amend it.

The Council today adopted new rules to allow consumers who paid for online content services in their home country to access them when visiting another country within the EU.

"Europeans travelling within the EU will no longer be cut off from online services such as films, sporting broadcasts, music, e-books or games they have paid for back home. Together with the ending of roaming charges, this is important progress in creating a digital single market which benefits everyone."

The new regulation will improve competitiveness by encouraging innovation in online services and attracting more consumers. It is one of the objectives of the digital single market strategy to create a truly internal market for digital content and services.

It will apply to all online content services which are provided against payment of money. Free to air services, such as those provided by certain public broadcasters, will have the option of benefiting from the regulation provided that they verify the country of residence of their subscribers.

Current obstacles to cross-border portability of online services arise from the fact that the rights for the transmission of content protected by copyright such as audio-visual works as well as rights for premium sporting events are often licensed on a territorial basis. Online service providers may choose to serve specific markets only.

The provision of cross-border portability will not be subject to any additional charges.

The new measures will ensure equal access from abroad to content legally acquired or subscribed to in the member state of residence when on holidays, business trips or limited student stays.

To avoid abuses, service providers will verify the subscribers' member state of residence. The verifications will be carried out in compliance with EU data protection rules.

The provider will be authorised to cease the access to the online service when the subscriber cannot prove his/her member state of residence.

The means of verification will be reasonable, proportionate and effective. It will consist of using no more than two criteria from a list of verification means. These may include an identity card, a bank account or credit card; the address of installation of the device for the supply of services; the payment by the subscriber of a licence fee for other services; an official billing or postal address; etc.

But copyright holders will have the possibility of authorising the use of their content without the obligation to verify the subscriber's residence.

The new rules will start to apply in the first quarter of 2018 (nine months after its publication in the EU's Official Journal).

Today's decision follows an agreement reached on 7 February 2017 between the Maltese Presidency and the European Parliament. The Parliament voted its first reading position on 18 May 2017.

The regulation was adopted at a meeting of the Justice and Home Affairs Council, without discussion.

The increased use of portable devices such as tablets and smartphones facilitates access to the use of online content services regardless of the consumers' location.

There is rapidly growing demand on the part of consumers for access to content and innovative online services not only in their own country but also when they are away from home. As a result,  barriers that hamper access and use of online content services within the single market need to be eliminated.

Competitiveness, decarbonisation and digitalisation are the guiding principles that will serve as a basis for the EU's maritime transport policy up to 2020 and beyond. These principles aim to ensure that maritime transport remains an attractive way for transporting goods and people and becomes even more environmentally-friendly. It should also serve as a catalyst for investment and innovation.

Today's Council conclusions endorse the content of the Valletta declaration on the EU's maritime policy, which was adopted at an informal ministerial conference organised by the presidency on 29 March 2017.

The Council is setting a target of halving the number of serious injuries on roads in the EU by 2030 from the 2020 baseline, using a recently agreed common definition. Of particular concern is the number of pedestrians and cyclists killed or seriously injured each year.

Today's Council conclusions on road safety endorse the Valletta declaration on improving road safety adopted at an informal ministerial meeting organised by the presidency on 29 March 2017. They will feed into the next EU strategy on road safety, which is expected to be developed for the decade 2020-2030.

Wednesday 7 June 2017
14.30 Meeting with President of Bolivia Evo Morales
16.00 Meeting with President of Senegal Macky Sall
17.30 Meeting with President of Guinea Alpha Condé

Good afternoon, let me first of all welcome Premier Li in Brussels. It is very good to have you here.

Yesterday evening we had a good informal meeting with Premier Li and this morning we have just concluded our plenary session of this year's EU-China summit. We had fruitful and constructive talks that underline the importance we both attach to EU-China relations.

China and the European Union are strategic partners. We have a stake in each other's success. Our cooperation is broad and continues to broaden and strengthen on issues like trade and investment, climate change, the migration crisis, North Korea, and a security partnership in Africa. We share many interests. Most importantly, we share a fundamental interest in upholding and strengthening the rules-based international system. For example, respect for the territorial integrity and sovereignty of Ukraine has been our common position since 2015. And in these difficult times we have a joint responsibility to protect this system and demonstrate its added value in all aspects of our relations.

Today, we are stepping up our cooperation on climate change with China. Which means that today, China and Europe have demonstrated solidarity with future generations and responsibility for the whole planet. We are convinced that yesterday's decision by the United States to leave the Paris Agreement is a big mistake, bigger than not ratifying the Kyoto Protocol, because Paris is fairer. But the fight against climate change, and all the research, innovation and technological progress it will bring, will continue, with or without the US.

However, strong transatlantic ties are far more important and far more durable than the latest, unfortunate decisions of the new Administration. Strong transatlantic ties are still the best guarantee that the people and nations who advocate freedom and peaceful order will not be left helpless or alone.

We also discussed the issue of human rights today. How we can further improve cooperation on this at the bilateral and international level. I expressed our concern about freedom of expression and association in China, including the detention of human rights lawyers and defenders, as well as the situation of minorities such as Tibetans and Uighurs. I am glad we could agree that the next round of our human rights dialogue will take place later this month. Finally, on North Korea, we welcome China's efforts. We share a common interest in peace and stability on the Korean Peninsula, de-escalation of tensions, and for North Korea to comply with its international obligations and abandon all nuclear and ballistic missile programmes. We count on China's continued support to achieve these objectives. Thank you. 

On 31 May 2017 the Council agreed with the European Parliament on how to incorporate into EU legislation measures adopted by the International Commission for the Conservation of Atlantic Tunas (ICCAT). 

The agreed regulation laying down management, conservation and control measures applicable in the Convention Area of ICCAT not only covers all ICCAT recommendations since 2008, with the exception of the multiannual recovery plan for bluefin tuna in the eastern Atlantic and Mediterranean which is subject to a separate transposition process, but also takes account of developments in EU legislation, for instance in the fields of controls and illegal, unreported and unregulated fishing.

Fisheries continues to be a high priority for the Maltese presidency. With this agreement we make sure that important decisions on highly migratory species in international fora are fully part of EU law.

The International Commission for the Conservation of Atlantic Tunas is an inter-governmental fishery organisation responsible for the conservation of tunas and tuna-like species in the Atlantic Ocean and adjoining seas. The European Union has been a contracting party since 1997. 

The agreement still needs to be approved by the Council's Permanent Representatives Committee (Coreper). After formal endorsement by the Council, the new  legislation will be submitted to the European Parliament for a vote at first reading and to the Council for final adoption.

This should enable the new regulation to enter into force by the end of 2017.

On 28 May 2017, European Council President Donald Tusk participated in a panel debate called "European (Dis)Union?"  during the Globsec forum in Bratislava with Robert Fico, the Prime Minister of Slovakia, and Bohuslav Sobotka, the Prime Minister of the Czech Republic.

Below you can find some of President Tusk's main quotes from the debate. At the bottom is also a link to the full recording of the debate.

"I think that our meeting in Taormina as G7 is the best evidence that rumours about the decline of the west is a clear exaggeration. "

"I feel more optimistic now after the G7 meeting than I had personally  expected, and this optimism includes relations with our new partners around the table and I mean especially with President Trump."

"My impression after this meeting is that cooperation among G7 members, including the transatlantic cooperation between Europe and the United States, can be easier than what we expected immediately after the elections in the United States."

"There is nothing new and nothing extravagant in talking about specific and different political or legal formats in the EU. First of all, the possibility of enhanced cooperation among a group of member states is foreseen by the treaties and the most spectacular examples of this enhanced cooperation could be the Eurozone or Schengen. It is quite natural for such a very complex political system like the EU to have differences and different levels of integration.  We also have different political clubs like the Visegrad group, the Weimar triangle, the Benelux or the Nordic countries.  My previous experience as PM is that they were and are very useful in the process when we are looking for a compromise."

"In fact, the real threat to the European Union today is not the different speeds, being two or multi-speeds, or the different levels of integration - this is already our political reality,  it was always our reality and it will remains our reality in the EU. The real threat is the different destinations or different directions. For me the biggest problem in Europe is that we today have some political parties, some governments, politicians, media etc. who are questioning the essence of the EU, the essence of Europe. By essence, I mean the values of liberal democracy, freedom, tolerance, freedom of speech."

"Europe is still the most open continent or the most open place in the world for refugees and migrants. We have thousands and thousands of people, organisations, and institutions deeply engaged in humanitarian assistance. Europe, of course, is not perfect but is still the best example in the world when it comes to the readiness to sacrifice something, not only money but also our time and emotions."

"When it comes to the Muslim minority, I see a very visible risk that some political elites and political groups are ready to claim that in fact Islam is the synonym of terrorism. We can't agree with this kind of simplification."

"On the other hand, we should understand also the emotions especially after such an event like Manchester or other attacks in Europe. My advice or rather suggestion is that we have to start a genuine discussion with the Muslim minorities representatives on how we can cooperate together to exclude Islamic radicals from our societies. I think it is not enough today to show Muslim solidarity after the attacks. Without a deep engagement from the Muslim communities in our countries, we have no chance to eliminate this radical part of the Islam world."

"As you know, I am not here to be part of this new culture of permanent leaks. From time to time we also need some discretion and personal encounters."

Link to full video of the debate

On 30 May 2017, the presidency reached agreement with European Parliament representatives on proposals aimed at facilitating the development of a securitisation market in Europe. 

A framework for securitisation is one of the main elements of the EU's 2015 plan to develop a fully functioning capital markets union by the end of 2019. Developing a securitisation market will help create new investment possibilities and provide an additional source of finance, particularly for SMEs and start-ups. 

“This initiative will encourage financial market integration in Europe and make it easier to lend to households and businesses", said Edward Scicluna, minister for finance of Malta, which currently holds the Council presidency. "Tonight's agreement with MEPs will allow us to relaunch the securitisation market, defining a model for simple, transparent and standardised securitisations."

The agreement will be submitted to EU ambassadors for endorsement on behalf of the Council, following technical finalisation of the text. Parliament and Council will then be called on to adopt the proposed regulation at first reading.

Securitisation is the process by which a lender - typically a bank - refinances a set of loans or assets, such as mortgages, automobile leases, consumer loans or credit card accounts, by converting them into securities. The repackaged loans are divided into different risk categories, tailored to the risk/reward appetite of investors. 

Following the US subprime cirisis of 2007-08, public authorities took steps to make securitisation transactions safer and simpler, and to ensure that incentives are in place to manage risk. As a result of these reforms, all securitisations in the EU are now strictly regulated. However, in contrast to the United States where markets have recovered, European securitisation markets have remained subdued. This despite the fact that EU securitisation markets withstood the crisis relatively well. 

Building on what has been put into place to address risk, the proposals differentiate simple, transparent and standardised (STS) products. The concept of 'simple, transparent and standardised' refers not to the underlying quality of the assets involved, but to the process by which the securitisation is structured. 

One of the main political issues resolved relates to a so-called risk retention requirement. This refers to the interest in the securitisation that originators, sponsors or original lenders of securitisations need to retain themselves. The requirement will ensure that securitised products are not created solely for the purpose of distribution to investors. 

The negotiators agreed to set the risk retention requirement at 5%, in accordance with existing international standards and in line with the Council's negotiating position. 

Other elements agreed with the Parliament include: 

• the creation of a data repository system for securitisation transactions, which will increase market transparency;
• a light-touch authorisation process for third parties that assist in verifying compliance with STS securitisation requirements. The aim is to prevent conflicts of interest. The text makes clear that, even when a third party is involved in the STS certification process, liability for compliance with the rules remains completely with originators, sponsors, original lenders and securitisation special purpose entities.

The agreement with the Parliament covers two draft regulations: 

• one setting rules on securitisations and establishing criteria to define STS securitisation;
• the other amending regulation 575/2013 on bank capital requirements. 

The first brings together rules that apply to all securitisations, including STS securitisation, that are currently scatttered amongst different legal acts. It thus ensures consistency and convergence across sectors (such as banking, asset management and insurance), and streamlines and simplifies existing rules. It also establishes a general and cross-sector regime to define STS securitisation. 

The text amending regulation 575/2013 sets out capital requirements for positions in securitisation. It provides for a more risk-sensitive regulatory treatment for STS securitisations.

The regulations require a qualified majority for adoption by the Council, in agreement with the European Parliament. (Legal basis: article 114 of the Treaty on the Functioning of the European Union.)

EU rules on venture capital and social enterprises are to be adjusted with the aim of boosting investment in start-ups and innovation.

On 30 May 2017, representatives of the Council and the European Parliament agreed on amendments to rules governing investment funds in this sector.

The proposed regulation is part of the EU's plan to develop a fully functioning capital markets union, diversifying funding sources for Europe's businesses and long-term projects. It is also linked to the EU's investment plan for Europe.

"If European SMEs are to grow and develop, it is indispensable that financing - both bank and capital market financing - is readily available",said Edward Scicluna, minister for finance of Malta, which currently holds the Council presidency. "This regulation will help stimulate market financing and thereby boost economic growth."

The EU has been falling behind the United States in this sector. According to the Commission, an extra €90 billion would have been available between 2009 and 2014 for financing European companies if venture capital markets had been as developed as in the US.

The proposal adjusts rules adopted in 2013 to encourage investment in European venture capital funds (Euveca) and European social entrepreneurship funds (Eusef).

Amending regulations 345/2013 and 346/2013, it makes those funds available to fund managers of all sizes and expands the range of companies that the funds can invest in. It also makes the cross-border marketing of such funds cheaper and easier.

Regulations 345/2013 and 346/2013 lay down requirements for investment in Euveca and Eusef funds, which relate respectively to:

• young and innovative companies;
• enterprises whose aim is to achieve a positive social impact.

Presidency and Parliament representatives agreed on the following amendments:

• larger fund managers, i.e. those with assets under management of more than €500 million, will henceforth be able to market and manage Euveca and Eusef funds;
• the range of companies in which Euveca funds can invest is expanded to include unlisted companies with up to 499 employees (small mid-caps) and SMEs listed on SME growth markets.

The agreement will be submitted to EU ambassadors in the coming days for endorsement on behalf of the Council. The Parliament and the Council will then be called on to adopt the regulation without further discussion.

The regulation will start to apply three months after its entry into force.

The Council held a debate on space policy and adopted conclusions on a space strategy for Europe.

The Maltese presidency today reached an informal agreement with the European Parliament on an EU-sponsored scheme, 'WiFi4EU', to promote free internet in town halls, hospitals, parks and other public places. An easily recognisable, multilingual WiFi4EU portal will provide users with a free, secure high-speed internet connection. The local municipality or other public body offering the connection can use the portal to provide easy access to their digital services. 

"WiFi4EU will make fast internet available to many citizens who otherwise might not have the chance to experience high-quality connectivity," said Emmanuel Mallia, the Maltese Minister for Competitiveness and Digital, Maritime and Services Economy. "It will encourage the use of digital services and reduce the digital divide, including in places with limited internet access." 

Today's agreement defines what the scheme will look like, but its budget will be finalised following the ongoing mid-term review of the EU's multiannual financial framework. 

Under the scheme, municipalities, libraries, hospitals and other public bodies will be able to apply for funding for the installation of local wireless access points using simple administrative procedures. The public body itself will be responsible for maintaining the connection for at least three years. Simple funding tools such as vouchers will be provided to cover up to 100% of the eligible costs. 

The funding will be allocated in a geographically balanced manner across the EU countries and, in principle, on a first-come, first-served basis. Some prioritisation for applicants from countries with low participation rates will be possible. 

To ensure that the financial assistance does not distort competition or deter private investment, only projects which do not duplicate existing private or public internet connections are eligible. 

The objective is to have the scheme's budget agreed and the technical work finalised in time to have the scheme in place by the end of 2017.

The presidency will submit the outcome of today's talks for approval by member states in the coming weeks, so that the project could kick off as planned.

The Council agreed on general approaches on two proposals of the "Services Package" to make the internal market more effective:

- a draft directive laying down rules on notification for authorisation requirements in the services sector, and

- a draft directive aimed at carrying out a proportionality test before adoption of new regulation of professions.

A Council general approach allows starting negotiations with the European Parliament.

“Businesses and professionals are still confronted with disproportionate regulation to provide services across borders. The Services Package is an essential tool to facilitate the movement of people and services. Companies, professionals and consumers will benefit greatly from better access to different professional activities and services”, said Chris Cardona, Minister for the Economy, Investment and Small Business of Malta.

The draft directive seeks to ensure that new national measures approved in member states fulfil the necessary conditions to facilitate the competitiveness and integration of the single market in the services sector.

More specifically, it aims at improving the current notification procedure of the Services Directive (2006/123/EC). This procedure provides that member states must notify to the Commission new or changed authorisation schemes or requirements falling under the scope of the Services Directive in order to guarantee its correct implementation.

The Council's text takes into account the need to enhance the existing notification procedure and the need to respect the principles of proportionality and of subsidiarity, in particular the prerogatives of national parliaments and administrative authorities.

The objective of the Services Directive is to remove barriers to the establishment of service providers and the temporary provision of cross-border services.

The draft directive seeks to improve transparency on the way certain professions are regulated in the member states.

More specifically, it aims at ensuring that national measures are proportionate and do not unduly restrict access to professions or create unjustified burdens in the internal market.

When regulating professions, member states will have to make an assessment as to whether the new or amended rules are justified so as to appreciate their effect on stakeholders and businesses. The future directive will therefore harmonise the way in which these proportionality tests are carried out and the criteria that have to be applied, in accordance with the European Court of Justice rulings.

The obligation to carry out a proportionality test before introducing new regulation of professions will supplement provisions of the Professional Qualifications Directive (2013/55/EU).

The "Services Package", released on 10 January 2017, contains the following legislative proposals:

• Proposal for a services e-card
• Proposal for a services notification procedure
• Proposal for a proportionality test before adoption of new regulation of professions

It also includes guidance on reform recommendations for regulation in professional services.

Promoting the competitiveness of services markets is essential for the creation of jobs and growth in the EU, with the services sector accounting for around 70% of the EU's GDP.

On 29 May 2017, the Council adopted a decision authorising the signing of an agreement with the United States on insurance and reinsurance. 

The agreement will provide legal certainty for EU and US insurers and reinsurers in the application of regulatory frameworks. It will enable improved protection for policyholders and other consumers through cooperation between supervisors and the exchange of information. 

The text was negotiated by the Commission on the basis of a mandate approved by the Council in April 2015. It includes provisions on reinsurance, group supervision and the exchange of information. A joint committee will oversee its implementation. 

The Council's decision provides for provisional application of some of the agreement's provisions, pending the completion of the procedures necessary for its conclusion. The Council also requested the consent of the European Parliament for conclusion of the agreement.

The decision was adopted at a meeting of the Competitiveness Council, without discussion.

The Council agreed on a general approach to reform the system of type-approval and market surveillance for motor vehicles.

This major reform will modernise the current system, adapt it to new technologies available on the market and improve control tests on car emissions data.

"Public health, air quality and innovation are at the core of this agreement. The only way to restore and increase trust in the European automobile industry is to help to develop clean and safety technologies. Reliable control tests for cars will be established so that emission irregularities that happened in the past cannot reappear in the future”, said Chris Cardona, Chair of the Council and Minister for the Economy, Investment and Small Business of Malta.

The aim of the reform is to achieve a high level of safety and environmental performance of motor vehicles and to address the main shortcomings identified in the existing type-approval system.

The Council general approach will have to be negotiated with the European Parliament before becoming law. The Parliament voted its position on 4 April.

Important changes will be introduced in three areas by strengthening:

• the quality of testing that allows a car to be placed on the market through improved technical services
• market surveillance to control the conformity of cars already available on the market, with the possibility for member states and the Commission to carry out spot-checks on vehicles in order to detect failures at an early stage
• the oversight of the type-approval process, in particular through the establishment of a Forum for the exchange of information on enforcement, made up of representatives of national approval and market surveillance authorities

All member states agreed to improve the harmonised implementation of the rules across the EU so as to reduce the possible differences in interpretation and application by national type-approval authorities and technical services. They also agreed that more effective market surveillance rules should apply to better detect non-compliance at an early stage.

The new market surveillance obligations agreed by the Council would require every country to conduct a minimum number of checks on cars each year. This minimum number of checks will be 1 in every 50,000 new vehicles registered in that country the previous year.

The checks will include verification of emissions under real driving conditions.

The general approach foresees an obligation for member states to finance market surveillance activities. The fees for type-approval activities would be levied on manufacturers who have applied for type-approval.

Those countries with fewer resources to carry out the required tests will be able to ask other countries to carry out the tests on their behalf.

The Commission will be empowered to carry out tests and inspections of vehicles to verify compliance and react to irregularities immediately. This will increase the independence and quality of the EU type-approval system.

The Commission could also impose fines for infringements on manufacturers and importers of up to €30 000 per non-compliant vehicle.

An audit system based on peer reviews will be established. The type-approval authorities would be peer-reviewed by two type-approval authorities of other member states at least once every five years. The Commission will be able to participate in peer evaluation teams and should draw up a summary of the outcomes of peer evaluations and make them public.

Type-approval authorities however would not be subject to peer evaluation when they designate all their technical services on the basis of accreditation of internationally recognised standards.

Furthermore, an advisory Forum for exchange of information on enforcement measures would be established with the purpose to harmonise different interpretations and practises among the member states. This Forum should also examine the outcomes of peer evaluations.

In addition, the national authorities will have to submit each year to the Forum a comprehensive overview of their planned market surveillance checks.

As far as technical services are concerned, the Council text proposes the involvement of the national accreditation bodies in the assessment of the technical services and the establishment of joint assessment teams.

The position of technical services vis-à-vis manufacturers will be strengthened, and will include the right and duty to carry out unannounced factory inspections and to conduct physical or laboratory tests.

The technical services will carry out the tests for type-approval under the responsibility of type-approval authorities. The proper functioning of technical services is crucial for ensuring a high level of safety and environmental protection and so maintain consumer confidence in the system.

The draft regulation to modernise the type-approval system of motor vehicles was presented by the Commission on 27 January 2016. It will replace the EU's current legal framework which is set out in directive 2007/46/EC.

It preserves the general purpose of directive 2007/46/EC to facilitate the free movement of motor vehicles in the internal market and apply the principle of mutual recognition by laying down harmonised type-approval requirements.

A fundamental overhaul of the existing system, which was designed ten years ago, was already foreseen in the EU's work programme.

However, irregularities discovered on the use of illegal defeat devices by certain car manufacturers have made public opinion, authorities and economic operators aware of the need to implement robust provisions on type-approval, as well as to improve testing methods with respect to pollutant emissions from vehicles, to prevent similar cases in the future.

The EU has taken a further step to prevent corporate tax avoidance, adopting rules to close down 'hybrid mismatches' with the tax systems of third countries. 

On 29 May 2017, the Council adopted a directive to prevent corporate groups from exploiting the disparities between two or more tax jurisdictions to reduce their overall tax liability. 

“Our aim here is to tackle one of the main practices that multinational companies have devised to reduce their tax bills”, said Edward Scicluna, minister for finance of Malta, which currently holds the Council presidency. “The directive adds to the rules we adopted last year to tackle the most common forms of tax avoidance. It will also ensure implementation of the OECD's recommendations.” 

The directive was adopted at a meeting of the Competitiveness Council, without discussion. This follows an agreement at a meeting on 21 February 2017. The European Parliament gave its opinion on 27 April 2017.

Member states will have until 1 January 2020 to transpose the directive into national laws and regulations (1 January 2022 for one specific provision).

In Taormina, at the 2017 G7 summit, leaders adopted the final communiqué, the roadmap on gender equity and they agreed an action plan on innovation, skills and labour.

We, the leaders of the G7, stand united in expressing our deepest sympathy and condolences to the families of the victims of the brutal terrorist act in Manchester in the United Kingdom. We condemn in the strongest possible terms terrorism in all its forms and manifestations.

Countering terrorism and violent extremism, acts of which have struck G7 members, as well as all regions of the world, regardless of country, nationality or belief, remains a major priority for the G7. We stand united in our joint endeavour to make sure that our citizens are safe and secure, and their values and way of life fully preserved, and will take the strongest action possible to find, identify, remove, and punish, as appropriate, terrorists and those who abet their activities.

Saturday 27 May 2017
G7 Summit -Taormina (Italy)
09.15 Working session with outreach partners
11.45 Working session
13.00 Working lunch

Sunday 28 May 2017
Bratislava
12.00 Meeting with Prime Minister of the Czech Republic Bohuslav Sobotka
12.30 Intervention at the Globsec 2017 conference

Thursday 1 June 2017
14.15 Phone call with President of Ukraine Petro Poroshenko
18.30 Informal dinner with Premier of China's State Council Li Keqiang

Friday 2 June 2017
EU-China summit
10.40 Arrival and welcome of Premier Li Keqiang
10.45 Meeting
12.30 Signature ceremony
13.20 Working lunch
15.40 Press conference

We are meeting here in Taormina as the G7 to discuss the most pressing global issues. There is no doubt that this will be the most challenging G7 summit in years. It is no secret that leaders who are meeting today, sometimes have very different positions on topics such as climate change and trade. But our role as the EU is to do everything to maintain the unity of the G7 on all fronts.

Most importantly, unity needs to be maintained when it comes to defending the rules-based international order. Each day we are confronted with these strategic global problems that pose a threat to peace and security in Europe, in Asia and in the Middle East. From the war in Syria and Russian aggression in Ukraine, to nuclear and ballistic missile tests in North Korea, and land reclamation and militarization in the South China Sea. If our group is not determined and united enough, the situation in the world can really get out of hand.

I expect that the G7 will demonstrate unity regarding the conflict in Ukraine. We fully support Ukraine's independence, territorial integrity and sovereignty. A solution to this conflict can only be reached with the full implementation of the Minsk agreements. Since our last G7 summit in Japan we haven't seen anything that would justify a change in our sanctions policy toward Russia. Therefore, I will appeal to the other G7 leaders to reconfirm this policy.

The G7 should also remain united when it comes to ending the brutality in Syria. We should be ready to increase our efforts to defeat terrorism in Syria, and to find a political settlement. A special responsibility rests on the shoulders of those who, like Iran and Russia, have become involved in the crisis and cooperate with the Assad regime. Instead of wasting time, they should use their influence to enact a real ceasefire, stop the use of chemical weapons and ensure safe and immediate humanitarian access to all the people in need.

Finally, let me say that we also need G7 unity in managing the migration crisis. This is a global challenge, but here in Sicily it is also a real, local problem. The EU's goal has been to at least keep the current level of international cooperation in addressing this crisis. Whether we will succeed, remains an open question. Thank you.