BriefingPost-European Council Briefing

EPRS | European Parliamentary Research ServiceAuthors: Ralf Drachenberg and Suzana AnghelEuropean Council Oversight UnitPE 593.785

November 2016

Outcome of the European Council of 20-21 October 2016

Migration was the main topic at the European Council of 20-21 October 2016, and featured most prominentlyin its conclusions. Other topics discussed were global and economic issues, external relations and trade issues,in particular the Comprehensive Economic and Trade Agreement with Canada.

This was the first formal European Council meeting since the informal meeting of 27 Heads of State orGovernment on 16 September 2016 in Bratislava, and it demonstrated how the meetings in this format areshaping the European Council’s agenda. The European Council President, Donald Tusk, had already madeclear that the Bratislava declaration and roadmap would guide leaders’ actions at their regular EuropeanCouncil meetings.

1. Migration Protecting the external borders

As flagged up in the EPRS Outlook for the European Council on 20-21 October 2016, the European Councilstressed the importance of the European Border and Coast Guard in getting ‘back to Schengen’ (i.e. thegradual abolition of border controls within the Schengen area) and agreed that their objective is to lifttemporary border controls over time.

EU leaders called for the swift adoption of the revised Schengen Borders Code, and asked the Council todetermine, before the end of 2016, its position on an entry/exit system registering the entry and exit data ofthird-country nationals crossing the external borders of the European Union. They also looked forward to theforthcoming Commission proposal for a European Travel Information and Authorisation System (ETIAS), toallow for advance security checks on visa-exempt travellers.

Tackling migration flows

The European Council recognised the significant contribution of the ‘frontline’ Member States in recentyears. As more efforts are needed to stem the flows of migrants, in particular from Africa, and to improvereturn rates, EU leaders underlined the importance of the implementation of the Partnership Framework ofcooperation with individual countries of origin and transit. The High Representative/Vice-President of theCommission (HR/VP), Federica Mogherini, was tasked with presenting an update on the progress with prioritycountries (Ethiopia, Mali, Niger, Nigeria, Senegal) at the December 2016 European Council meeting, and tooutline the results achieved in terms of arrivals and returns.

The Heads of State or Government also recalled the goal of tackling the root causes of migration, andwelcomed the New York Declaration for Refugees and Migrants, calling on all global actors to shoulder theirresponsibilities.

Other key requests included further implementation of the EU-Turkey statement and continued support forthe countries along the Western Balkans route. More specifically, returns from the Greek islands to Turkeyshould be accelerated, Member States should respond to the relevant calls for resources to assist Greece,and the co-legislators were invited to ‘reach agreement within the next few weeks on the revision of thesuspension mechanism applied to visa’.

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Other elements of the comprehensive strategy

Leaders called upon the European Asylum Support Office (EASO) to ensure that the asylum intervention pool(AIP) becomes operational as soon as possible. The European Council also asked Member States to intensifyand accelerate their work on relocation and on existing resettlement schemes. It invited the Council to agreeon its position regarding the External Investment Plan before December 2016, so as to facilitate a swiftagreement with the European Parliament in the first half of 2017.

EU leaders also called for the continuation of the reform of the Common European Asylum System, includingthe application of the principles of responsibility and solidarity. The next European Council meeting on 15-16December 2016 will consider proposals on how to deal with the question of solidarity among Member Statesduring the crisis. The European Council President, Donald Tusk, reported that the European Council ‘agreedthat there would be no solidarity à la carte’. In the same vein, the President of the European Parliament,Martin Schulz, called for ‘effective solidarity ... simultaneously and at all levels of EU action on asylum andmigration’.

Progress on the implementation of the various dimensions of the EU’s migration policy will be assessed againat the European Council meeting of 15-16 December 2016.

2. International trade Trade defence instruments

EU leaders have committed to reaching an agreement on the modernisation of all trade defence instrumentsby the end of 2016, and have tasked trade ministers with breaking the stalemate on the remaining issues.The Commission tabled a legislative proposal in April 2013, but it has not yet been adopted, due to divergentopinions among Member States. The Commission acknowledged that, in its present shape, EU legislation ontrade defence instruments can no longer adequately address current challenges, such as externalovercapacity or dumping. Member States have been divided, primarily over the application of the ‘lesser dutyrule’.1 Derogations from this rule under specific circumstances would allow the EU to impose higher anti-dumping duties on imports from third countries. Trade ministers will be meeting on 11 November 2016 withthe aim of reaching an agreement on the 2013 proposal.

EU-Canada Comprehensive Economic and Trade Agreement (CETA)

EU leaders underlined the importance of a swift decision to sign, and provisionally apply, the EU-CanadaComprehensive Economic and Trade Agreement. Objections to the signature of the agreement had beenraised by Romania and Bulgaria and Belgium’s Walloon and Brussels regions. Romania and Bulgaria madetheir signature of the agreement conditional on the lifting of the visa requirement for their citizens by 1December 2017. An internal Belgian agreement on the signature of CETA was reached on 27 October 2016,and was submitted for the approval of the other 27 EU Member States. On 28 October 2016, the Counciladopted a package of decisions on CETA, including decisions on the signature and the provisional applicationof the agreement. A Joint Interpretative Instrument accompanies the treaty. It provides a bindinginterpretation of CETA´s terms on specific issues. The treaty was signed on 30 October 2016 at the EU-CanadaSummit.

1 The level of anti-dumping duties is imposed at the level of the dumping margin or the level that removes injury,whichever is lower (the 'lesser duty'). The EU's application of the lesser duty rule goes beyond the basic obligations setout in the WTO Anti-Dumping Agreement.

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Negotiations on free trade agreements with Mercosur, the US and Japan

EU leaders also underlined the importance of intensifying trade negotiations with other partners, in particularwith Mercosur members (Argentina, Brazil, Paraguay and Uruguay). Negotiations between the EU andMercosur on a free trade agreement started in 1999, but they were suspended in 2004 due to differencesregarding trade in agriculture, services and the opening of public procurement markets. Negotiations wereofficially re-launched on 17 May 2010 and have now shown progress in a wide range of areas.

The European Council invited the Commission to continue negotiations on the free trade agreement withJapan, with a view to finding agreement by the end of the year. It also called on the Commission to continuenegotiations with the US, in order to present an ambitious, balanced and comprehensive free tradeagreement.

3. Other global and economic issues Paris Agreement on Climate Change

The Heads of State or Government welcomed the EU’s ratification of the Paris Agreement, enabling its entryinto force. Several Member States have already ratified the text. Ongoing implementation of the 2030 climateand energy framework, as well as the Energy Union strategy, are cornerstones of the EU's commitmentsunder the Agreement. EU leaders reaffirmed the strategic orientations laid down in previous conclusions,and promised to give further guidance and keep track of progress achieved.

Single Market strategies

The European Council reiterated its commitment to complete and implement the various single marketstrategies by 2018, as previously included in its June 2016 conclusions. Moreover, they reiterated their callfor the co-legislators to make swift progress on specific initiatives - notably reform of the EU telecoms andcopyright frameworks and use of the 700 MHz band in the EU and completion of the Capital Markets Union- inviting the co-legislators to rapidly advance on the legislative proposals for simplified prospectusrequirements, and for simple, standardised and transparent securitisation.

Preparation of the December 2016 European Council meeting

According to the Bratislava Declaration and Roadmap, at their December 2016 meeting, EU leaders willaddress the extension of the European Fund for Strategic Investment (EFSI) and EU support for programmesdedicated to youth in Member States. With regard to the Commission proposal to upgrade EFSI, theEuropean Council invited the Council to adopt its negotiating position on the legislative proposal byDecember 2016, taking into account the external evaluation report expected in November 2016.

4. External relations Sanctions on Syria/Russia

No further sanctions were placed on Syria or Russia at the European Council meeting. European PresidentDonald Tusk pointed out that ‘today is not about decisions, but I want to underline that the EU should keepall options open, including sanctions, if the crimes continue’, in line with the European Council’s conclusionsthat, ‘the EU is considering all available options, should the current atrocities continue’.2 Analysts pointed tothe ‘blurring ... language on sanctions’ as the European Council conclusions neither lead to nor exclude thepossibility of setting sanctions on Russia linked to the Syrian crisis, in case of a breach of the ceasefire inAleppo. The French President, François Hollande, mentioned that priority would be given to ensuring respectfor the ceasefire. Any breach would lead the European Union to consider all of the instruments at its disposal,including sanctions, which would primarily target the Syrian authorities. The German Chancellor, Angela

2 On 27 October 2016, by written procedure, the Council added 10 more persons linked with the Syrian regime to thelist of those targeted by EU restrictive measures. This brings the total on the list to 217.

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Merkel, said that ‘there was “broad agreement” that, if the bombing continued, the EU would considersanctions’. Several Member States opposed a French, German and British initiative to extend existingsanctions. The Italian Prime Minister, Matteo Renzi, stated that existing sanctions on Russia, linked to theimplementation of the Minsk Agreements, come to an end in January 2017, and that their continuingrelevance will be evaluated closer to that date.

Conflict in Syria

The President of the European Parliament, Martin Schulz, considered that ‘acting to stop the bloodshed inSyria should be the number one priority’. The European Council condemned the attacks on civilians in Aleppo,perpetrated by the Syrian regime with Russian support. Leaders stressed the need for a rapid end to thissituation, and for the facilitation of humanitarian access. The Heads of State or Government called for therespect of international humanitarian law and human rights law, and stressed that those responsible forbreaches ‘must be held accountable’. They set out two priorities, namely addressing the humanitariansituation in Aleppo and working towards a political solution to the conflict. Regarding the former, theEuropean Council invited the HR/VP and the Commission to continue the work initiated in early October 2016on the EU emergency humanitarian initiative. With reference to finding a political solution to the conflict, theEuropean Council stated that everything should be done to ‘create the conditions for opening negotiationson a political transition in Syria’, in cooperation with regional and international actors in preparation for post-conflict reconciliation and reconstruction. The European Council invited the HR/VP to pursue these issues incooperation with key regional actors.

Relations with Russia

EU leaders ‘held a strategic policy debate on relations with Russia’, largely dominated by the Syrian andUkrainian crises. No written reference to forthcoming action was included in the formal conclusions, exceptfor the possibility of expanding sanctions, should the situation in Aleppo deteriorate (see above). FrenchPresident Hollande and German Chancellor Merkel informed their colleagues of the outcome of theNormandy-format summit held on 19 October 2016 in Berlin, which concluded with a roadmap for theimplementation of the Minsk Agreements. Details are to be finalised by the end of November 2016. Analystsassess that ‘EU member states have successfully managed to maintain unity, but there are major differencesamong them’, hence the absence of substantive decisions. President Tusk outlined the main issues raised byEU leaders, including airspace violations, cyber-attacks, and interference in political processes within theEuropean Union. He stressed that ‘Russia’s strategy is to weaken the EU’, but underlined that the Union doesnot aim to increase tension with Russia; the EU remains open to dialogue but will not ‘compromise [its] valuesor principles’.

Association agreement with Ukraine

Regarding the ratification of the Association Agreement with Ukraine, the Prime Minister of the Netherlands,Mark Rutte, told his colleagues that ‘Brussels, Ukraine and the Netherlands need to come to an agreement,which will also take into account the choice of the Dutch voters’. Mr Rutte expressed his pessimism aboutfinding a solution ahead of the 1 November 2016 deadline.

MH 17 flight

President Tusk voiced EU leaders’ full support for the Dutch government in the ongoing investigation into theMH17 flight crash, stressing that all states in a position to assist with the investigation ‘must do so’.

To contact the European Council Oversight Unit, please e-mail: EPRS-EuropeanCouncilOversight@ep.europa.euManuscript completed on 3 November 2016. Brussels © European Union, 2016.The content of this document is the sole responsibility of the authors and any opinions expressed therein do not necessarilyrepresent the official position of the European Parliament. It is addressed to the Members and staff of the EP for theirparliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source isacknowledged and the European Parliament is given prior notice and sent a copy.

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