29 June 2018

European Council conclusions

JOBS, GROWTH AND COMPETITIVENESS

14. The European Council endorses the integrated country-specific recommendations as discussed by the Council, thus allowing the conclusion of the 2018 European Semester. The current good economic situation should be used for strengthening the reform momentum.

15. Ensuring fair and effective taxation remains a key priority. In that context, the fight against tax avoidance, evasion and fraud must be vigorously pursued both at global level (notably in the OECD) and within the EU. At the same time, there is a real need to adapt our taxation systems to the digital era. The Council should therefore take work forward on the Commission proposals on digital taxation. Work should also continue on how to ensure effective VAT collection, including swift progress on the Commission proposals on shortterm measures.

16. In a context of growing trade tensions, the European Council underlines the importance of preserving and deepening the rules-based multilateral system. The EU is committed to working towards its modernisation and calls on all partners to contribute positively to this goal. It invites the Commission to propose a comprehensive approach to improving, together with like-minded partners, the functioning of the WTO in crucial areas such as (i) more flexible negotiations, (ii) new rules that address current challenges, including in the field of industrial subsidies, intellectual property and forced technology transfers, (iii) reduction of trade costs, (iv) a new approach to development, (v) more effective and transparent dispute settlement, including the Appellate Body, with a view to ensuring a level playing field, and (vi) strengthening the WTO as an institution, including in its transparency and surveillance function. 

17. As part of its positive trade agenda, the EU will continue to negotiate ambitious, balanced and mutually beneficial trade agreements with key partners across the world, promoting its values and standards. The recent adoption of the regulation on the modernisation of trade defence instruments will contribute to ensuring a level playing field. The European Council calls for the legislative proposal on the screening of foreign direct investments to be adopted as soon as possible.

18. In reaction to the United States' decision to impose tariffs on the EU for steel and aluminium products, which cannot be justified on the grounds of national security, the European Council fully supports the rebalancing measures, potential safeguard measures to protect our own markets, and the legal proceedings at the WTO, as decided on the initiative of the Commission. The EU must respond to all actions of a clear protectionist nature, including those calling into question the Common Agricultural Policy.

Full conclusions of 28th June

In line with the Leaders' Agenda and the outcome of its December 2017 meeting, welcoming national contributions, including the one presented by France and Germany, the Euro Summit today agreed on the following:

1. The agreement in the Council on the Banking package should allow the co-legislators to adopt it before the end of the year while preserving the overall balance. Adhering to all elements of the 2016 roadmap in the appropriate sequence, work should start on a roadmap for beginning political negotiations on the European Deposit Insurance Scheme.

2. The ESM will provide the common backstop to the Single Resolution Fund (SRF) and be strengthened working on the basis of all elements of an ESM reform as set out in the letter of the Eurogroup President. The Eurogroup will prepare the terms of reference of the common backstop and agree on a term sheet for the further development of the ESM by December 2018.

3. The Eurogroup will further discuss all the items mentioned in the letter by the Eurogroup President.

4. The Euro Summit will come back to these issues in December 2018. The Euro Summit welcomes the Eurogroup Statement of 21 June 2018 on the final disbursement of ESM financing to Greece and on the medium-term debt relief measures, which successfully complete the financial assistance to Greece.

Full conclusions of 29th June

1. In light of the state of play presented by the Union negotiator, the European Council welcomes the further progress made on parts of the legal text of the Withdrawal Agreement. The European Council takes note, however, that other important aspects still need to be agreed, including the territorial application of the Withdrawal Agreement, notably as regards Gibraltar.

2. The European Council expresses its concern that no substantial progress has yet been achieved on agreeing a backstop solution for Ireland/Northern Ireland. It recalls the commitments undertaken by the UK in this respect in December 2017 and March 2018, and insists on the need for intensified efforts so that the Withdrawal Agreement, including its provisions on transition, can be concluded as soon as possible in order to come into effect on the date of withdrawal. It recalls that negotiations can only progress as long as all commitments undertaken so far are respected in full.

3. Work must also be accelerated with a view to preparing a political declaration on the framework for the future relationship. This requires further clarity as well as realistic and workable proposals from the UK as regards its position on the future relationship. The European Council reconfirms the principles set out in its guidelines and the position defined in March 2018. The European Council recalls that if the UK positions were to evolve, the Union will be prepared to reconsider its offer in accordance with the principles stated in the guidelines of 29 April and 15 December 2017 as well as of 23 March 2018.

4. The European Council renews its call upon Member States, Union institutions and all stakeholders to step up their work on preparedness at all levels and for all outcomes

European Council (Art. 50) meeting (29 June 2018) – Conclusions

Remarks by President Donald Tusk on the European Council meetings of 28-29 June 2018

[...]The Euro Summit agreed, as promised in December, to progress on the completion of the Banking Union and to strengthen the European Stability Mechanism, including by providing the backstop to the single resolution fund. This reform of the EMU will strengthen the euro, and as a result, also our Union. In turbulent times, this is welcome news for all Europeans.

On Brexit. The EU27 has taken note of what has been achieved so far. However, there is a great deal of work ahead, and the most difficult tasks are still unresolved. If we want to reach a deal in October we need quick progress. This is the last call to lay the cards on the table. [...]

Full remarks

Report by President Donald Tusk to the European Parliament on June European Council meetings

[...]Today I can say that the leaders did indeed take the first decisions. This means agreement on further steps to complete the Banking Union and to strengthen the ESM.

In particular, we agreed that the ESM will be providing the common backstop to the single resolution fund. As a consequence, our Banking Union will become much stronger. Some of you may say that this is too little, too late. And you would be right, in a sense. But the fact is that after some years of standstill, we are effectively re-launching the process of deepening of the EMU. To make sure that the progress continues, I will organise another Euro Summit in December.

The leaders also adopted conclusions advancing EU cooperation on digital matters and innovation, as well as trade.

In the context of growing trade tensions, the European Council underlined the importance of preserving and deepening the rules- based multilateral system. The Commission was invited to propose a comprehensive approach to improve, together with like-minded partners, the functioning of the WTO in crucial areas. The leaders also called for the adoption of the proposal on the screening of foreign direct investments, which is crucially important for the security of our economies, and citizens. It goes without saying that the Commission has the full support of the European Council when it comes to the trade dispute with the US. I am sure Jean-Claude will elaborate on that.

A final point on Brexit. The 27 leaders shared one concern. Whilst progress was made in a number of areas, some key aspects still need to be agreed. Since there is much work ahead with less and less time, I was very honest in my assessment, including when I spoke to Prime Minister May last week. The sooner we get a precise UK proposal on the Irish border, the better the chance to finalise the Brexit negotiations this year. Put simply, we cannot make progress unless a solid backstop is presented by the UK and accepted by our Irish friends. We are now looking forward to the White Paper from the UK, and we very much hope that it will bring the necessary clarity, realism, and impetus to these negotiations. Thank you. [...]

Full report

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