European Union

Relations between Russia and the European Union are in deep crisis – perhaps the most serious crisis since the end of the Cold War. As the Russian Federation’s former foreign minister, I particularly regret this bleak state of affairs as along with my European counterparts I myself invested much time and effort in building a stronger Russia-EU partnership, with all its political, social, economic and humanitarian dimensions.

Many of our past plans and hopes now look like pipe-dreams that are remote and seemingly irrelevant to today’s grim realities. I am sure that many in Europe share my frustrations and concerns, although there is little sense in just being disappointed and pessimistic. We should instead analyse the mistakes and blunders of the past in order to reveal the opportunities of the future.

“Russia and the West should refrain from hostile and inflammatory rhetoric that fuels public mistrust”

The most graphic manifestation of the deep gap that has emerged between Brussels and Moscow is, of course, the situation in and around Ukraine. We can debate endlessly about who is to blame for this situation and whether it could have been avoided. Both Russia and the European Union have, in my view, contributed to the escalation of Ukrainian problems, and so both should bear their fair share of responsibility for the unfortunate developments in that country since autumn 2013. As I see it, though, Ukraine has not been the main cause of the Russia-EU crisis; rather it has been a catalyst of the more fundamental rifts that had emerged between Moscow and Brussels over the last few years. In short, the Russia-EU partnership has not worked out in the way that had been anticipated some 10-15 years ago.

So the question must be, what went wrong? Unless we look back into our past, we cannot realistically plan our future. Twelve years ago, we agreed at the 2003 Russia-EU summit in Saint Petersburg to proceed with the so called ‘four spaces’ in our co-operation. I was personally involved in drafting these four spaces, and I still believe that it was a very important achievement in the relationship. Later, these four spaces were to be complimented by the EU-Russia Roadmaps supposed to define specific goals, schedules, and benchmarks in each of the spaces.

Since then, we have not made a lot of progress. In many ways we lost ground and not gained it. We failed to sign a new EU-Russia Partnership agreement to replace the old one that had expired long ago. We couldn’t move to a visa-free regime between Russia and the Schengen zone, and were unable to reconcile our differences on the EU’s ‘third energy package’. Even on less controversial matters like research co-operation, environmental protection and transportation, our progress was modest, to put it mildly.

That said, I would not want to downplay the efforts of the committed men and women in both EU and in Russia who did much to bring co-operation to a new level. Yet the overall balance sheet isn’t impressive. It is true that our economic co-operation continued to grow until 2014, as did the scale of EU companies’ investments in Russia and the number of joint ventures. But the relationship’s institutional framework failed to catch up with these new economic realities, so the gap between businessmen and the politicians grew wider and wider and then turned into an abyss during the crisis over Ukraine.

Why didn’t we succeed in using the last 15 years to their full extent? Why could the private sector on both sides not lobby for a new level of political partnership between Russia and EU? One of the most common explanations is that on both sides politicians were distracted by such other priorities and events as the global economic crisis of 2008-2009, the conflict in the Caucasus, complications in the eurozone, the relentless rise of China, the Arab Spring, the U.S.-EU transatlantic trade and investment negotiations (TTIP) and so on. There may be some truth in this explanation, but what does that prove? It only tells us that for both the European Union and Russia their mutual relations seemed of secondary importance, and could therefore easily be shelved or even sacrificed for the sake of more central and more urgent needs.

The Ukrainian crisis has thus become a very explicit manifestation of the fragility of our relations. Both sides pursued their own policies toward Ukraine without any co-ordination, or at least consultations, with one another. The question of the “European choice” for Ukraine was raised only in the old “zero sum game” logic of the Cold War. I am myself convinced that with the necessary efforts on both sides we could have avoided the Ukrainian tragedy – at any rate in the dramatic form it has finally taken.

Rather than emphasising the differences in our approaches and blaming each other, we should have looked for what unites us in this extraordinary situation. Above all, neither the European Union, nor Russia has anything to gain from Ukraine becoming a ‘failed state’ in the centre of the European continent. On the contrary, such a development would create a whole range of fundamental threats and challenges to everybody in Europe, not to mention the countless tragedies and suffering it means for the Ukrainian people. It will now be much more difficult to restore the relationship between Russia and Europe than it was only a year ago, but we have no alternative to limiting the damage and moving ahead.

“Rather than emphasising the differences in our approaches and blaming each other, we should have looked for what unites us in this extraordinary situation”

A lot has been said about the European institutional deficit that was clearly demonstrated by the Ukrainian crisis. And it’s certainly true that the many European and Euro-Atlantic organisations and mechanisms that were specifically designed to prevent or to resolve crises failed to do so – with the qualified exception of OSCE, the Organization for Security and Co-operation in Europe. Instead, the crisis gave birth to new forms of international co-operation like the so-called “Normandy process”. This new format may look extremely fragile and shaky, but it at least demonstrates our common ability to make tangible progress under even the most difficult circumstances.

Where, then, should we go from here? In my opinion, five urgent steps are needed if we are to start repairing the badly damaged EU-Russia relationship.

First, we must prevent any further escalation of the military conflict in the centre of Europe. The Minsk agreements have to be implemented in full by all the sides without any exceptions or procrastinations. All violations of the agreements by rebels in the east or by the Kiev authorities should be brought to light and properly investigated without resort to bias or double standards.

Second, we have to enhance and to broaden the Normandy format. Aside from sporadic meetings at the very top or at foreign ministers’ level we need a permanent high-level Contact Group in Kiev that will work on a day-to-day basis with the parties to the conflict. It is critically important that U.S. should be included in the Contact Group to avoid any misunderstandings or failures of communication across the Atlantic.

Third, Russia and the West should refrain from hostile and inflammatory rhetoric that fuels public mistrust and hatred. The vicious spiral of today’s propaganda war has to be stopped and reversed – at least at official level, if we do not want to turn the current crisis into a long-term confrontation that will divide our common continent for years, if not decades, to come.

Fourth, both sides have to invest political energy and capital in rescuing what can still be saved from the best days of EU-Russia co-operation. So far as is possible, we should maintain our joint projects on education and research and in culture and civil society, environmental protection and climate change. We should try to preserve our successful trans-border co-operation, contacts between Russian and European regions and between ‘twinned’ cities. These are the seeds of the future renaissance of the EU-Russia relationship.

Fifth, the time has clearly come to explore opportunities for closer and more intensive contacts between the European Union and the Eurasian Economic Union (EEU). The EU has little to lose by reaching out to this neighbouring integration project, while in terms of influencing the emerging EEU’s standards, mechanisms, procedures and modes of operation, the rewards could be handsome.

I don’t want to imply that we should be getting back to “business as usual” by ignoring the deep political divisions between Moscow and Brussels. That approach wouldn’t work even if both sides were prepared to stick by it. But one of the positive side-effects of this crisis is that there is today less hypocrisy and political correctness between Moscow and Brussels. Unless we learn the lessons of this crisis, mistrust, instability and losses in both east and west will continue to multiply.

 

IMAGE CREDIT: CC / FLICKR – President of the European Council

The post The tough lessons of the EU-Russia crisis appeared first on Europe’s World.

Demonstrators backing a "yes" vote in Sunday's referendum in front of the Greek parliament

It may have come a few days too late, but Alexis Tsipras, the Greek prime minister, appears to have conceded on a whole raft of outstanding differences between his government and its international bailout creditors.

According to a letter sent late Tuesday night to the heads of the country’s trio of bailout monitors, which we got our hands on and have posted here, Tsipras concedes to most of the economic reform proposals published by the European Commission on Sunday, with a few significant exceptions that could still trip up any deal.

On one of the most contentious issues, overhauling the country’s value-added tax system, Tsipras still wants a special exemption for Greek islands, some of which are in remote areas and have difficulty accessing basic daily needs.

Keeping the islands’ exemption in place has been one of the main demands of Tsipras’ junior coalition partners, the right-wing Independent Greeks party. But creditors, whose main goal is simplifying one of the EU’s most exemption-ridden VAT schemes, have balked, saying it requires an entirely separate administration to keep the islands on a different, reduced rate.

On the toughest of all issues between the two sides, pension reform, Tsipras is demanding even more concessions, which come after the creditors have already moved quite a bit in Athens’ direction.

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New Media Online
SERV
Advocate General Maciej Szpunar considers that the website of a daily newspaper containing audiovisual material is not an audiovisual service within the meaning of EU law

Bund für Umwelt und Naturschutz Deutschland
Environment and consumers
The obligations laid down by the Water Framework Directive concerning enhancement and prevention of deterioration apply to individual projects such as the deepening of a navigable river

On 30 June 2015, the Council presidency reached an agreement with the European Parliament on a draft directive establishing new improved rules on insurance distribution.

On 30 June 2015, the Council presidency reached an agreement with the European Parliament on a draft directive establishing new improved rules on insurance distribution.

Alexis Tsipras, the Greek prime minister, has once again changed the terms of the debate in the ongoing crisis by requesting a new third bailout from the eurozone’s €500bn bailout fund, known as the European Stability Mechanism, just hours before his current bailout expires.

According to a copy of the letter sent to the ESM and Jeroen Dijsselbloem, the Dutch finance minister who chairs the committee of his eurozone counterparts, which we’ve posted here, the loan request is for €29.1bn to cover debts maturing into 2017.

That would seem to be a pretty traditional bailout request. But it also contains some untraditional demands that may be difficult for creditors to accept. Below is an annotated version of Tsipras’ letter:

Dear Chairperson, dear President,

On behalf of the Hellenic Republic (“the Republic” or “Greece”), I hereby present a request for stability support within the meaning of Articles 12 and 16 of the ESM Treaty.

The ESM treaty is the law that now governors all eurozone bailouts. It wasn’t in place for either Greece’s first or second bailouts, but it would set the terms for its third. Articles 12 and 16 simply state the purpose of a bailout programme: to “to safeguard the financial stability of the euro area as a whole and of its Member States.” Unfortunately for Tsipras, Article 16 also happens to mention that a new programme must include a new “MoU” – or memorandum of understanding, a phrase that is politically poisonous in Greece.

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On 29 June, the Latvian Minister for Environmental Protection and Regional Development, Kaspars Gerhards, went to New York (USA) to represent the Latvian Presidency of the Council of the European Union at the high-level event on international climate policy, convened by the President of the United Nations General Assembly.

On 29 June, the Latvian Minister for Environmental Protection and Regional Development, Kaspars Gerhards, went to New York (USA) to represent the Latvian Presidency of the Council of the European Union at the high-level event on international climate policy, convened by the President of the United Nations General Assembly.

On 30 June 2015, the Council confirmed a deal struck with the European Parliament on faster and less burdensome vehicle authorisation and safety certification procedures for European railways. The European Railway Agency (ERA) will play a key role in this. 

On 30 June 2015, the Council confirmed a deal struck with the European Parliament on faster and less burdensome vehicle authorisation and safety certification procedures for European railways. The European Railway Agency (ERA) will play a key role in this. 

Main highlights

As one of the current top priorities for the EU, the European fund for strategic investments (EFSI) was an important dossier for the Latvian Presidency. The agreement reached with the European Parliament on the proposed regulation paved the way for final adoption before the end of the Latvian Presidency. This should enable new investments to begin already this summer, helping to boost economic growth.

Another high priority for the EU is the Energy Union, which deserved particular attention from the Latvian Presidency. Energy ministers adopted conclusions on its implementation, focusing on how to provide consumers with secure, sustainable and affordable energy and to encourage investment. Other aspects, such as the energy security strategy have also been analysed and discussed by ministers.

In line with the objective of completing the digital single market - a further priority for the EU - the Latvian Presidency has placed digital issues at the top of the agenda, and significant progress has been achieved over recent months. The Presidency managed to reach a general approach on the data protection regulation and a provisional agreement with the Parliament on abolishment of roaming and open internet access. The Presidency has also managed to agree with the Parliament on the main principles for the directive on network and information security (NIS).

Developments in the EU's immediate neighbourhood have also been a particular focus in recent months. A particular highlight of the Latvian Presidency was the Eastern Partnership summit in May, where the EU met with its Eastern counterparts. The importance of the EU's relationship with Eastern Partnership countries was further underlined through more than ten various themed high level meetings such as trade, health, agriculture, civil society, media, digital economy, justice, home affairs, border management and others.

The Latvian Presidency also paid particular attention to the renewal of EU's strategy towards Central Asia. This work resulted in Council conclusions that were adopted at the Foreign Affairs Council on 22nd of June and request the EEAS to come forward with proposals for effective implementation of the Strategy in accordance with the needs for a renewed partnership with the region.

Priority work of the Presidency

The Council adopted new rules aimed at increasing the pool of capital available for long-term investment by creating a new form of fund vehicle known as ELTIFs. It also agreed to increase significantly advance payments under the youth employment initiative (YEI), in order to speed up the fight against youth unemployment.

On environmental issues, the agreement with the European Parliament to create a market stability reserve is an important milestone on the way to the reform of the EU greenhouse gas emission trading scheme (ETS). The Presidency also paved the way to start the transition from conventional biofuels to advanced biofuels that deliver substantial greenhouse gas savings.

On transport issues, the Presidency successfully reached a political agreement with the European Parliament on new rules to improve rail interoperability and safety for European railways.

Latvian Presidency reached a political agreement on the new rules for the package holidays aiming to adapt to travel market developments. This was done in order to meet the needs of consumers and businesses in the digital era and to extend the protection for traditional packages to combinations of separate travel services, in particular if sold online.

On health issues, the Council agreed on its negotiating stance on two draft regulations aimed at modernising EU rules on medical devices and in vitro diagnostic medical devices. This will ensure the highest level of protection for European patients, consumers and healthcare professionals. It will also allow for safe, effective and innovative medical devices to be placed on the market and made available to users in a timely manner.

The Council agreed on its position on organic farming, as well as on the establishment of a multiannual plan for the stocks of cod, herring and sprat in the Baltic sea. The aim of this plan is to ensure that Baltic fish stocks are exploited in a sustainable way. There was also political agreement on the implementation of the landing obligation for fisheries as part of the EU's progressive elimination of discards.

An agreement was reached on a programme to help Member States provide interoperable digital services (ISA²). The aim is to make sure that European public administrations can interact electronically with each other and with citizens and businesses in a seamless manner.

In the context of EU efforts to support a peaceful solution to the conflict in Ukraine and to assist this country in the current critical situation, the Council approved €1.8 billion in further macro-financial assistance to Ukraine.

Over these months the Council has also made some steps forward in the fight against corporate tax avoidance, adding a binding anti-abuse clause to the EU's parent-subsidiary directive. It has also strengthened rules to prevent money laundering and terrorist financing with the approval of a new legislative package on these matters.

Following the terrorist attack in Paris and the subsequent attack in Copenhagen, the fight against terrorism has become even more important. As part of a strengthening of the EU's action in combatting terrorist threats and in line with the guidelines laid down by the European Council, the Presidency has organised a number of discussions on how to strengthen measures to combat terrorism in various different Council configurations, including at an important informal meeting of Home Affairs ministers in Riga in January. Further discussions in June have helped prepare for the debate at the forthcoming European Council.

The Latvian Presidency has also devoted significant efforts to preparing a political response to the tragedies in the Mediterranean that resulted in hundreds of deaths of refugees. Together with the High Representative/Vice President the Presidency organised a joint meeting of Foreign Affairs and Home Affairs ministers to discuss the EU's reaction and migration policy. This debate was followed by a Special Meeting of the European Council which set out various points for action. The Latvian Presidency together with institutions prepared and later renewed a road map for further work, which was submitted to the June European Council.

As part of the preparations for the UN climate change conference of Paris in December, the Council adopted a submission on the Intended Nationally Determined Contribution (INDC) of the EU and its member states. This document confirms the EU commitment to a binding target of at least a 40% reduction in greenhouse gas emissions by 2030 compared to 1990, as set out in the conclusions of the European Council of October 2014.

Finally, in the run-up to the international conference on Financing for Development in July 2015, the Latvian Presidency ensured an agreement on a strong and united EU position on financial and non-financial ways to support development, including a collective re-commitment to the ODA (Official Development Assistance) target of 0.7% of GNI, as well as more specific targets for support to Least Developed Countries.

Other decisions

• EU budget: Council preserves funds for promoting growth and jobs
• EU budget: backlog of unpaid bills on the way of phasing out
• Capping fees for card-based payments: Regulation adopted
• Benchmarks for financial instruments: Council agrees stance on tighter controls
• More transparency for securities financing transactions: Council and Parliament agree new rules
• Strengthening the financial sector through the Banking Structural Reform
• Electronic payment services: Council and Parliament agree on updated rules
• Insolvency proceedings: promoting economic recovery
• Small claims procedure: Council and Parliament agree on new rules
• The EU institutions provisionally agree on animal health measures
• Novel foods: Council presents final compromise text
• eCall, emergency call system in road accidents: Council adopts its position on type-approval requirements
• Traffic offenders traceable across the EU
• Safer and greener lorries approved by the Council
• Trade marks reform: Council confirms agreement with Parliament
• Single-member private limited liability companies: Council agrees on general approach
• More protection for seafarers' labour rights: Council confirms agreement with EP
• Inland waterway vessels: Council agrees its position
• Council conclusions on the transfer of the stewardship of the Internet Assigned Numbers Authority (IANA) functions to the multi-stakeholder community
• EU-US agreement on reinsurance: Council agrees to negotiations
• Further steps in the fight against climate change: the Council approves the Doha Amendment
• EU citizens to enjoy improved access to consular protection abroad
• CEPOL: Council and Parliament agree on updated rules

Main highlights

As one of the current top priorities for the EU, the European fund for strategic investments (EFSI) was an important dossier for the Latvian Presidency. The agreement reached with the European Parliament on the proposed regulation paved the way for final adoption before the end of the Latvian Presidency. This should enable new investments to begin already this summer, helping to boost economic growth.

Another high priority for the EU is the Energy Union, which deserved particular attention from the Latvian Presidency. Energy ministers adopted conclusions on its implementation, focusing on how to provide consumers with secure, sustainable and affordable energy and to encourage investment. Other aspects, such as the energy security strategy have also been analysed and discussed by ministers.

In line with the objective of completing the digital single market - a further priority for the EU - the Latvian Presidency has placed digital issues at the top of the agenda, and significant progress has been achieved over recent months. The Presidency managed to reach a general approach on the data protection regulation and a provisional agreement with the Parliament on abolishment of roaming and open internet access. The Presidency has also managed to agree with the Parliament on the main principles for the directive on network and information security (NIS).

Developments in the EU's immediate neighbourhood have also been a particular focus in recent months. A particular highlight of the Latvian Presidency was the Eastern Partnership summit in May, where the EU met with its Eastern counterparts. The importance of the EU's relationship with Eastern Partnership countries was further underlined through more than ten various themed high level meetings such as trade, health, agriculture, civil society, media, digital economy, justice, home affairs, border management and others.

The Latvian Presidency also paid particular attention to the renewal of EU's strategy towards Central Asia. This work resulted in Council conclusions that were adopted at the Foreign Affairs Council on 22nd of June and request the EEAS to come forward with proposals for effective implementation of the Strategy in accordance with the needs for a renewed partnership with the region.

Priority work of the Presidency

The Council adopted new rules aimed at increasing the pool of capital available for long-term investment by creating a new form of fund vehicle known as ELTIFs. It also agreed to increase significantly advance payments under the youth employment initiative (YEI), in order to speed up the fight against youth unemployment.

On environmental issues, the agreement with the European Parliament to create a market stability reserve is an important milestone on the way to the reform of the EU greenhouse gas emission trading scheme (ETS). The Presidency also paved the way to start the transition from conventional biofuels to advanced biofuels that deliver substantial greenhouse gas savings.

On transport issues, the Presidency successfully reached a political agreement with the European Parliament on new rules to improve rail interoperability and safety for European railways.

Latvian Presidency reached a political agreement on the new rules for the package holidays aiming to adapt to travel market developments. This was done in order to meet the needs of consumers and businesses in the digital era and to extend the protection for traditional packages to combinations of separate travel services, in particular if sold online.

On health issues, the Council agreed on its negotiating stance on two draft regulations aimed at modernising EU rules on medical devices and in vitro diagnostic medical devices. This will ensure the highest level of protection for European patients, consumers and healthcare professionals. It will also allow for safe, effective and innovative medical devices to be placed on the market and made available to users in a timely manner.

The Council agreed on its position on organic farming, as well as on the establishment of a multiannual plan for the stocks of cod, herring and sprat in the Baltic sea. The aim of this plan is to ensure that Baltic fish stocks are exploited in a sustainable way. There was also political agreement on the implementation of the landing obligation for fisheries as part of the EU's progressive elimination of discards.

An agreement was reached on a programme to help Member States provide interoperable digital services (ISA²). The aim is to make sure that European public administrations can interact electronically with each other and with citizens and businesses in a seamless manner.

In the context of EU efforts to support a peaceful solution to the conflict in Ukraine and to assist this country in the current critical situation, the Council approved €1.8 billion in further macro-financial assistance to Ukraine.

Over these months the Council has also made some steps forward in the fight against corporate tax avoidance, adding a binding anti-abuse clause to the EU's parent-subsidiary directive. It has also strengthened rules to prevent money laundering and terrorist financing with the approval of a new legislative package on these matters.

Following the terrorist attack in Paris and the subsequent attack in Copenhagen, the fight against terrorism has become even more important. As part of a strengthening of the EU's action in combatting terrorist threats and in line with the guidelines laid down by the European Council, the Presidency has organised a number of discussions on how to strengthen measures to combat terrorism in various different Council configurations, including at an important informal meeting of Home Affairs ministers in Riga in January. Further discussions in June have helped prepare for the debate at the forthcoming European Council.

The Latvian Presidency has also devoted significant efforts to preparing a political response to the tragedies in the Mediterranean that resulted in hundreds of deaths of refugees. Together with the High Representative/Vice President the Presidency organised a joint meeting of Foreign Affairs and Home Affairs ministers to discuss the EU's reaction and migration policy. This debate was followed by a Special Meeting of the European Council which set out various points for action. The Latvian Presidency together with institutions prepared and later renewed a road map for further work, which was submitted to the June European Council.

As part of the preparations for the UN climate change conference of Paris in December, the Council adopted a submission on the Intended Nationally Determined Contribution (INDC) of the EU and its member states. This document confirms the EU commitment to a binding target of at least a 40% reduction in greenhouse gas emissions by 2030 compared to 1990, as set out in the conclusions of the European Council of October 2014.

Finally, in the run-up to the international conference on Financing for Development in July 2015, the Latvian Presidency ensured an agreement on a strong and united EU position on financial and non-financial ways to support development, including a collective re-commitment to the ODA (Official Development Assistance) target of 0.7% of GNI, as well as more specific targets for support to Least Developed Countries.

Other decisions

• EU budget: Council preserves funds for promoting growth and jobs
• EU budget: backlog of unpaid bills on the way of phasing out
• Capping fees for card-based payments: Regulation adopted
• Benchmarks for financial instruments: Council agrees stance on tighter controls
• More transparency for securities financing transactions: Council and Parliament agree new rules
• Strengthening the financial sector through the Banking Structural Reform
• Electronic payment services: Council and Parliament agree on updated rules
• Insolvency proceedings: promoting economic recovery
• Small claims procedure: Council and Parliament agree on new rules
• The EU institutions provisionally agree on animal health measures
• Novel foods: Council presents final compromise text
• eCall, emergency call system in road accidents: Council adopts its position on type-approval requirements
• Traffic offenders traceable across the EU
• Safer and greener lorries approved by the Council
• Trade marks reform: Council confirms agreement with Parliament
• Single-member private limited liability companies: Council agrees on general approach
• More protection for seafarers' labour rights: Council confirms agreement with EP
• Inland waterway vessels: Council agrees its position
• Council conclusions on the transfer of the stewardship of the Internet Assigned Numbers Authority (IANA) functions to the multi-stakeholder community
• EU-US agreement on reinsurance: Council agrees to negotiations
• Further steps in the fight against climate change: the Council approves the Doha Amendment
• EU citizens to enjoy improved access to consular protection abroad
• CEPOL: Council and Parliament agree on updated rules

On 30 June, at the meeting of the European Union Committee of Permanent Representatives (COREPER) the ambassadors of the Member States politically supported the proposal for a Regulation of the European Parliament and of the Council on protective measures against pests of plants. They gave the mandate to the Presidency to start the trialogue negotiations with the European Parliament.

On 30 June, at the meeting of the European Union Committee of Permanent Representatives (COREPER) the ambassadors of the Member States politically supported the proposal for a Regulation of the European Parliament and of the Council on protective measures against pests of plants. They gave the mandate to the Presidency to start the trialogue negotiations with the European Parliament.