18 April 2018

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

The European Council President briefed MEPs on the outcome of the March European Council, where leaders tackled a number of issues, ranging from Russia and Turkey to trade, taxation and Brexit.

The European Council discussed trade and called for a permanent EU exemption from the US tariffs on steel and aluminium. We strongly supported the steps taken by the European Commission to ensure that the interests of the Union are fully protected. In case there is no permanent exemption for the EU, we will have no choice but to react. We wish to avoid this route, which is why I called for a dialogue that will bring more trade between the US and the EU, not less. Free and fair trade is one of the most powerful engines for growth and jobs, and we should make full use of it. It is simply in everyone's interest.

Leaders also discussed the digital economy, which is a great opportunity, but also a challenge for tax systems. There was a clear understanding that we need to make our tax systems fit for the digital era. A global tax regime would certainly be most welcome, but many felt that it would take too much time to prepare. The discussion confirmed the leaders' desire to work towards an effective and fair solution among EU Member States. [...]

During the Euro Summit, leaders exchanged views on long term challenges ahead of the EMU. The EU economy is back to pre-crisis growth rates, which makes this a very good time to reflect strategically on our ambitions. Many of the themes we discussed – like a fiscal capacity for the euro area – are difficult, but I see avenues to be explored. As we agreed in December, the most urgent political priority remains strengthening the Banking Union and further developing the ESM. This remains my goal, even though I am not a blind optimist. In June we will aim to take a first set of decisions and provide additional guidance on the way forward.

On Brexit. The EU27 adopted guidelines for the future EU-UK relationship and welcomed the progress made on the Withdrawal Agreement. We want to use the positive momentum in these negotiations to finally settle outstanding issues such as the solution to avoid a hard border between Ireland and Northern Ireland. The UK's decision on Brexit has caused the problem, and the UK will have to help solve it. Without a solution, there will be no withdrawal agreement and no transition. Leaders will assess the negotiations in June. In parallel, we will start our first talks about the future EU-UK relationship. [...]

I feel shocked but, for the first time, I must agree with Mr. Farage. You are right, Mr. Farage, Brexit will not bring any good to anyone.

Mr. Kamall has said that free trade with Japan and Singapore is one of the priorities and that we should treat in the same way free trade with the UK, I mean our future free trade agreement with the UK. The only problem is that we are strengthening and easing trade and other relations with Japan and Singapore, while Brexit is by nature, by definition, about weakening and worsening trade and everything else. This is why I think it's difficult to compare these two different issues.

Full remarks

© European Council