Europe at Work the Danish EU Presidency Gina Hanrahan and Keith Doyle 17 January 2012

Transcription

1 Europe at Work the Danish EU Presidency Gina Hanrahan and Keith Doyle 17 January 2012 The Danish Presidency of the Council of the European Union, which began on 1 January 2012 and will run until 30 June 2012, is the second of the current eighteenmonth Trio presidencies, which includes Poland (Jul-Dec 2011) and Cyprus (Jul-Dec 2012). It is Denmark s seventh Presidency and occurs at a defining moment for the EU in terms of the future of the Eurozone and the future shape of the Union itself. Whether the Union can survive in its current form or whether it will develop into a two-speed Europe or a Europe with an inner core and a looser outer circle remains an open question. The core challenge for the Danish Presidency is to act as an honest broker in steering complex negotiations on the future intergovernmental treaty to give effect to the fiscal compact agreed at the December European Council. The launch of what may prove to be a difficult ratification process for the new treaty will also take place under Danish watch. In addition to its work towards stabilising the euro, the Danish Presidency will have to broker agreement on negotiations on some of the Union s core common policies and funding instruments, such as the EU s long-term budget for 2014 to 2020, (MFF), reform of the Common Agricultural Policy (CAP) and Common Fisheries Policy reform by the end of In addition, other priorities include the Single 1

2 Market, migration and asylum policy, and the green growth agenda the green economy being the hallmark of the Presidency. Whether Denmark s opt outs of some of the important issues on the EU agenda will allow it to act as an impartial honest broker in the negotiation process, or diminish its influence, remains to be seen. The strategic framework underpinning the Presidency programme is based on four principal objectives: A responsible Europe, a dynamic Europe, a green Europe and a safe Europe. The key areas of note under each of these objectives are detailed below. A Responsible Europe The response to the sovereign debt crisis continues to be the core concern for the rotating Presidency. After a marathon round of Eurozone summits and European Council summits in the final quarter of 2011, the Danish Presidency will concentrate on implementing the decisions taken on economic governance and fiscal discipline at the December summit. Specifically, it will work to reach agreement on the fiscal compact (also known as the Treaty on Stability, Coordination and Economic Governance in the Economic and Monetary Union) at the informal European Council summit scheduled for 29 January The aim is to submit the new treaty for signature by EU leaders on 1-2 March 2012, after which the potentially challenging national ratification processes will commence. The Danes also intend to progress discussions on the Commission s two draft regulations on enhanced economic governance, tabled on 23 November 2011, which introduce ex ante budgetary surveillance for all euro area Member State, closer monitoring for countries in Excessive Deficit Procedure and much deeper surveillance for countries in severe financial difficulty or under an adjustment programme. 2

3 Strengthening financial regulation and supervision is also a strong focus. The Presidency will attempt to reach consensus on the Commission s proposed revision of capital requirements for banks (CRD4). A common European framework for crisis management in the financial sector, encompassing early intervention for struggling banks and the revised regulation on credit rating agencies, are also on the agenda. The controversial proposal for a financial transaction tax (FTT), which has been staunchly rejected by the UK as a threat to the City of London, is also likely to feature on the agenda. Chancellor Merkel is pressing for a draft agreement for an FTT to be prepared by Finance Ministers by March 2012, while President Sarkozy announced that he would present plans for a unilateral FTT in France by the end of January. Completing the negotiations of the EU s next long-term budget the Multiannual Financial Framework (MFF) is a major priority for the Presidency. The debate on the scale of the budget has pitted net contributor countries, which are broadly in favour of an austerity budget, against net recipient countries keen to protect cohesion funding. The Danish programme reflects the Commission s attempts to refocus minds on the purpose rather than the scale of the budget, and to highlight the benefits of a futureoriented budget that generates economies of scale and introduces strong conditionality to funding. The challenge is not only to reach agreement on the European added value of the MFF but to draw together the various negotiating strands on the individual sub-elements of the budget, including CAP, structural funds, energy, justice and research and development. A Dynamic Europe Making progress on the implementation of the 12 priority goals of the Single Market Act (2011) by the end of 2012 is the main objective under the dynamic Europe goal. Concluding negotiations on the common European patent system is a key element of the Act. In March 2011, 25 EU States agreed to move forward with a 3

4 unitary system under the enhanced cooperation provisions of the EU Treaty. It falls to the Danes to resolve differences on the contentious issue of where the patent court would sit. The Danish Presidency also aims to make progress on the digital single market (the roaming III regulation, e-signatures, removal of barriers to e-commerce, consumer rights, and the reuse of public data); the internal energy market; simplifying public procurement rules; modernisation of European accounting rules and access to venture capital for SMEs; more effective implementation of consumer and company rights; and workers rights. The Presidency intends to make headway in negotiations on reform of Cohesion Policy (as a subset of the MFF negotiations), to contribute more clearly to EU competitiveness and to the EU 2020 Strategy. The key hurdles in the negotiations relate to the Commission s proposals to set overarching thematic objectives within which Member States must allocate funding and to ringfence a certain percentage of funding for specific purposes. Many Member States are pushing for greater flexibility in the allocation of funds at national level. In addition, the intention to introduce macroeconomic conditionality to cohesion funding (i.e. to suspend funds as a sanction for macroeconomic imbalances) is a source of controversy for Member States experiencing economic difficulties and for new Member States, who argue that it is discriminatory for cohesion countries to exclude CAP funding from macroeconomic conditionality. Other issues include: negotiations on the next generation of programmes within education, research and innovation; maximising the European labour market; and the advancement of bilateral trade negotiations and investment agreements with third countries. 4

5 A Green Europe The Danish Presidency will be proactive on green and sustainable growth over the course of its Presidency, extending its ambitious domestic approach to the European level. Speaking in Brussels on 19 December 2011, Danish Climate Minister, Martin Lidegaard, highlighted a threefold crisis in the EU: "A financial crisis, a resource crisis, and a climate crisis, for which he believes the solutions are deeply intertwined. A key priority in this respect is the conclusion of negotiations on the energy efficiency directive, which are presently stalled amid calls from a number of Member States for greater flexibility on the proposed national obligation for energy companies to reduce consumers energy use by 1.5%. The twin pillars of the directive include the 1.5% savings obligation for energy companies, and a 3% annual renovation target for public buildings. Denmark will also oversee political follow-up to the EU Climate and Energy 2050 roadmaps released in 2011 and is supportive of more ambitious emissions reduction targets beyond the 20% targets currently agreed. Specifically, the Danes want to make progress on the inclusion of milestones and targets for reducing emissions, the proportion of renewable energy, and energy efficiency. The Presidency will also work towards delivery of the internal energy market and towards securing 12 billion of funding for grid infrastructure under the proposed Connecting Europe facility, contained in the EU s proposal for the MFF. Additionally, the Presidency aims to champion the sustainability components of the Common Agricultural Policy and Common Fisheries Policy proposals within the context of the long-term budget negotiations. It also intends to drive forward initiatives relating to sustainable and public transport, air pollution, and revision of the REACH chemicals legislation. 5

6 Externally, Denmark will contribute to the EU s preparations for the Rio+20 UN Conference on Sustainable Development, which is due to take place in June It is anticipated that the parties will be asked to sign up to a number of initiatives, including a new agreement to protect oceans, an annual State of the planet report, a major global agency for the environment, and a global high commissioner for future generations. It also intends to reach agreement on the 7 th Environmental Action Plan by June A Safe Europe Among the four fundamental priorities on the Danish agenda for its Council Presidency, the Safe Europe Strategy is dedicated to achieving progress on both the Common European Asylum System (CEAS) and the strengthening of Schengen cooperation. The objective of achieving a Common European Asylum System by the end of 2012, would entail: uniformly high standards of protection based on fair and effective procedures, limiting abuses of the asylum process and ensuring actual and practical solidarity with Member states under the greatest resource strain (primarily Greece). Although some headway had been made in negotiations on an amended recasting of the Asylum Procedures Directive, Denmark will need to revisit issues such as subsequent protection applications. With regard to the Reception Conditions Directive, Denmark must seek consensus on the sticking points of (i) the grounds of detention and (ii) access to the labour market. With regard to the Dublin Regulation, an overwhelming majority of Member States rejects the idea of an emergency mechanism for the suspension of transfers in crisis situations, preferring the idea of 6

7 a crisis management and solidarity clause, which would focus on boosting capacity in the Member State under pressure. In the past year, the Schengen system has come under increasing strain, with Denmark itself attracting attention in July 2011, when it deployed extra customs officers on its frontiers in a move which caused concern amongst EU neighbours. According to the Danish Presidency Programme, there is a consensus in the EU that there should be a possibility to reinstate control at internal borders as an exception in extraordinary circumstances where the Schengen system s overall function is threatened. The Presidency will follow-up on the Commission s proposal of September 2011, for a series of changes to the Schengen Borders Code (SBC) and the Schengen evaluation mechanism. Specifically, in 2012 the SBC will be amended to align it with legislation on an Entry/Exit System (EES) and Registered Traveller Programme (RTP), both of which had been suggested in the Stockholm Programme for Justice and Home Affairs ( ). The EES allows automatic registration of the time and place of entry and exit of third country nationals helpful in identifying overstayers (people who entered the EU lawfully but have become illegal by overstaying their right to stay). The RTP allows third country nationals to benefit from simplified, automated border checks if they comply with certain criteria. In related matters, following a Commission communication on the future for the global approach to migration, the Danish Presidency intends to continue work on cooperation agreements designed to take preventative action against mixed migration flows (i.e. asylum seekers and illegal immigrants) from targeted third countries. Specifically earmarked for 2012 is a proposal for draft negotiating Directives for visa facilitation and readmission agreements with the Southern Mediterranean (e.g. Arab Spring) countries. This is intended to support reform efforts in these countries, giving their citizens a possibility of enhanced mobility towards the EU while addressing the root cause of migratory flows. The Danish Presidency will also strive to achieve considerable progress in the negotiations on 7

8 the EU PNR Directive and finalise negotiations on the European Investigation Order. Conclusion The decisions taken in the first half of 2012 will have a significant impact on the future of the euro and of the Union as a whole. Denmark s experience and record in running effective Presidencies suggests that it is well placed to manage the EU s agenda at this challenging time. Although some commentators have pointed out that the new social-democratic Danish government is outside the club of the European People s Party, (EPP), which now includes the majority of the EU leaders; and that it is a Eurozone outsider dealing with an agenda dominated by the euro crisis, the Danish Presidency is committed to the new treaty and could prove to be an important bridge between the UK and the other Member States in this respect. The political issue of whether or not the UK can be brought back into the fold may determine whether the Union will remain as we currently know it, whether it will develop into an integrated core and a loose outer circle, or into a Europe of two speeds. Debates on the future shape of the Union will also focus on the survival of the community method versus the increasingly intergovernmental approach to decision-making and on the preservation of the Commission s right of initiative, which protects the interests of all Member States, thereby preventing the establishment of a de-facto directoire. Denmark, as a small Member State in a position of influence, now has the opportunity to steer a clear and steady course in these turbulent waters. Future Events at the IIEA: On 10 February at 11 am, Nicolai Wammen, Danish Minister for Europe, will present the priorities of the Danish Presidency at the Institute. 8

9 Presidency Timeline January Jan 11 Commission visit to Denmark Jan 24 Meeting of Economic and Financial Affairs Council (ECOFIN) Jan World Economic Forum, Davos Jan 27 Meeting of General Affairs Council Jan 29 Informal European Council on Growth and Jobs and on Treaty Text. February Feb 3-5 Munich Security Conference Feb 21 Meeting of Economic and Financial Affairs Council (ECOFIN) Feb 23 Meeting of Agriculture and Fisheries Council (AGRI) Feb 27 Meeting of Foreign Affairs Council (FAC); European High Level Conference: A Single Digital Market by 2015 (Copenhagen) Feb 28 Meeting of General Affairs Council (GAC) March Mar 1 Meeting of the European Council (Brussels). Formal Signature of Treaty. Mar 4 Russian Presidential Election Mar 12 International Conference to promote dialogue on and efforts to improve human rights while countering terrorism Mar 13 Meeting of Economic and Financial Affairs Council (ECOFIN) Mar 16 Meeting of Foreign Affairs Council (FAC trade); Mar 21 International Conference on Research Infrastructures (Copenhagen) Mar 23 Meeting of Foreign Affairs Council (FAC) Mar 26 Meeting of General Affairs Council (GAC) 9

10 April Apr 22 French Presidential Elections (first round) Apr 23 Meeting of Foreign Affairs Council (FAC) Apr 24 Meeting of General Affairs Council (GAC) May May 6 French Presidential Election (second round run off) May 7 High Level ehealth Conference 2012 (Copenhagen) May 14 Meeting of Foreign Affairs Council (FAC) and Foreign Affairs Council (FAC development) May 15 Meeting of Economic and Financial Affairs Council (ECOFIN) May 29 Meeting of General Affairs Council (GAC) May 31 Meeting of Foreign Affairs Council (FAC trade) June Jun 11 Meeting of General Affairs Council (GAC) and Environment Council (ENVI); International conference on structural frameworks for open, digital research strategy, policy and infrastructure (Copenhagen) Jun RIO+20 UN Conference on Sustainable Development, Brazil Jun 21 Meeting of Employment, Social Policy, Health and Consumer Affairs (EPSCO) Jun 22 - Meeting of Economic and Financial Affairs Council (ECOFIN) Jun 25 Meeting of Foreign Affairs Council (FAC) Jun 26 Meeting of General Affairs Council (GAC) Jun 28 - Meeting of the European Council (Brussels) 10

11 Key Figures in the Presidency Helle Thorning-Schmidt, Prime Minister Margrethe Vestager, Minister for Economic Affairs and the Interior Villy Søvndal, Minister for Foreign Affairs Bjarne Corydon, Minister for Finance 11

12 Morten Bødskov, Minister for Justice Mette Gjerskov, Minister for Agriculture Martin Lidegaard, Minister for Climate, Energy and Building Nicolai Wammen, Minister for European Affairs 12