Showing posts with label Juncker. Show all posts
Showing posts with label Juncker. Show all posts

Monday, 11 December 2017

Commission welcomes first operational steps towards a European Defence Union


The Commission welcomes the plans presented by 25 EU Member States today to work together on a first set of 17 collaborative defence projects in the framework of Permanent Structured Cooperation (PESCO). President Juncker said: "In June I said it was time to wake up the Sleeping Beauty of the Lisbon Treaty: permanent structured cooperation. Six months later, it is happening. I welcome the steps taken today by Member States to lay the foundations of a European Defence Union. Europe cannot and should not outsource our security and defence. The European Defence Fund that the European Commission proposed will complement these efforts and act as a further incentive for defence cooperation – including potential funding for some of the projects presented today." PESCO is an instrument in the EU Treaty to enable willing Member States to pursue greater cooperation in defence and security. Since November, 25 Member States have notified their intention to launch Permanent Structured Cooperation on defence to High Representative Federica Mogherini.

Today, these Member States signed a Declaration announcing the preparation of first collaborative projects in areas including the setting up of an EU medical headquarters, maritime surveillance, underwater drones and cyber-defence. While PESCO is purely intergovernmental, the European Defence Fund proposed by the European Commission in June will create incentives for Member States to cooperate on joint development and the acquisition of defence equipment and technology through co-financing from the EU budget and practical support from the Commission. This could include some of the projects presented by Member States today in the framework of PESCO. Additionally, the Fund fully finances grants for collaborative research projects, with first grant agreements expected to be signed before the end of 2017. Member States are expected to reach agreement on the European Defence Fund at a Council meeting tomorrow.

Monday, 30 October 2017

President Juncker visits Portugal, 30-31 October


At the invitation of the Portuguese President, President Juncker is travelling to Portugal today and tomorrow on what is his second official visit to the country as President of the Commission. Later today, in Lisbon, he will meet Prime Minister António Costa in a bilateral meeting, before being received by President of the Republic Marcelo Rebelo de Sousa, and will then participate, on invitation of the President, in a meeting of the Council of State. Tomorrow, 31 October, President Juncker will be awarded the Honoris Causa diploma by the University of Coimbra, in the presence of President Rebelo de Sousa, President of the Assembly of the Republic Eduardo Ferro Rodrigues, Prime Minister Costa, and representatives of the diplomatic corps of the EU countries. After a working lunch with Prime Minister Costa, President Juncker and the Prime Minister will meet the leaders of the 130-year-old Academic Association of Coimbra and participate in a debate with students and entrepreneurs on "Future of Europe - what Europe do we want?" at the Gil Vicente Academic Theatre.

Tuesday, 7 March 2017

Can the European project be revamped?


European Parliament, Strasbourg, February 15 2017. EP Audiovisual Service for Media

Europeans are living times of disturbing uncertainty and the feeling is palpable. On the 31st of January, the European Council’s President Donald Tusk assessed the future of Europe in a letter sent to the 27 heads of State or government, where the Polish head of the Council identified three main threats currently undermining the stability of the Union: the transformation of the geopolitical scene, the rise of nationalist and xenophobic sentiments and the doubt in the fundamental values of liberal democracy. 

As for the European Commission’s president, Jean-Claude Juncker, he has proposed different plans to bring back the popularity of the EU, or, at least, to save it from crumbling apart. Focusing more on a political way of conducting the EU institutions, which is highly linked to the current lack of attractiveness of the Union, Juncker unveiled a “White Paper on the future of the EU” to be implemented by 2025.

 Donald Tusk and Jean-Claude Juncker. Google

White Paper 


“Stop bashing the EU” said Juncker during his speech to MEPs in the European Parliament. The Commission’s leader appeared rather irritated with the recurrent assaults to the EU’s core after Brexit and the rise of an anti-European rhetoric across the bloc. Presented on March 1, in Brussels, the White Paper put on the table five proposals offering different solutions for the feeble European Union (EU). Hence, the five scenarios are as follow:

  1. Carrying On - The EU27 focuses on delivering its positive reform agenda
  2. Nothing but the Single Market - The EU27 cannot agree to do more in many policy areas beyond key aspects of the single market
  3. Those Who Want More Do More - The EU27 proceeds as today but allows willing Member States to do more together in specific areas
  4. Doing Less More Efficiently - The EU27 focuses on delivering more and faster in selected policy areas not acting in where it is perceived not to have an added value
  5. Doing Much More Together - Member States decide to do much more together across all policy areas
Overall, Juncker said he would not favour any of the five proposals, but he said he rejects the idea "that Europe should be reduced to a free trade area" which the Commission would be administrating.

Nevertheless, some, including Gianni Pittella, the leader of the Socialist group in the Parliament, received these proposals with considerable criticism. “We would consider it a clear political mistake to simply present five options concerning the EU’s future without pointing out a clear political preference,” said Pittella. 

After Juncker’s announcement, the Visegrad Group – Czech Republic, Poland, Hungary and Slovakia – warned for a possible “disintegration” of the EU. "Any form of enhanced cooperation should be open to every member state and should strictly avoid any kind of disintegration of the single market, the [passport-free] Schengen area and the European Union itself," the EU leaders expressed in a joint statement. 

The Finnish Prime Minister Juha Sipilä revealed disagreement as to a multispeed Europe, where Members follow different goals. “The European Union should not be split into groups of states that increase their cooperation at different speeds,” said Sipilä. 

“Many of the proposed changes would require the re-opening of the EU Treaties. This would mean a multi-year negotiation process with no certainty about its results. The Union cannot afford this,” Finland’s PM went on.

Contrary to Finland’s position, Germany and France seem to endorse a “multi-speed” Europe, where different actions are taken from different Member States in different subject matters, hence ensuring a distribution of efforts in an uneven way. However, French President François Hollande said in an interview in Le Monde that the multi-speed option is the only choice to avoid the “explosion” of the bloc.

Isabella Lövin, Sweden’s deputy prime minister, backed Juncker’s analysis that EU members are too quick to blame Brussels for their problems. “Many EU member states have used the EU as a scapegoat for everything that goes wrong in their country and taking credit for everything that goes right,” she told the Guardian shortly before Juncker’s speech.

Leaders of the 27 states will discuss the scenarios outlined by Juncker when they meet to celebrate the bloc's 60th anniversary in Rome on March 25.

However, the EU summit in December will be the peak of the process to forge the “new vision” for Europe for the next decade. The Commission foresees that other scenarios will arise between March and December, such as a scenario focusing on defence, another one supporting the liberal approach, and one from countries opposing a common EU response to the refugee crisis.

Comitology 


The other aspect that has created a surge of populism throughout the Union is the lack of understanding of the functioning of the European institutions. Indeed, some Member States have accused the Commission of being extremely bureaucratic (which in fact, it is) and pointed out the democratic deficit tainted in the decision-making process. 

As a reaction, in February, Juncker vowed to change the comitology process of the EU, meaning the decision-making process of the Union. Juncker’s idea is to give Member States more responsibility over important and often controversial decisions (such as pesticides and genetically modified food) taken at EU level. 

Indeed, over his first two years as president, Juncker blames the comitology process of the EU as a toll that has been undermining the credibility of the Union as a whole. As a reaction, Juncker has come forward with four options to reform the comitology process:

  1. Changing the voting rules so that abstentions are not counted when calculating the qualified majority needed in a committee;
  2. Refer decisions back to the Council of Ministers if national experts fail to reach a conclusion;
  3. A proposal that would require a positive majority only in sensitive areas surrounding health and food safety;
  4. A scheme in which countries would vote multiple times until a conclusion was reached.

The latest controversial example is the famous glyphosate case. Glyphosate is an active substance used as a plant protection product, commonly known as a pesticide. Back in June 2016, in the Standing Committee on Plants, Animals and Feed (an official meeting where Member states cast their votes on important issues mainly related with health and food safety), Member States did not reach a qualified majority on a voting decision to ban the use of the pesticide. Hence, the final decision was shifted to the Commission, which decided to prolong the authorisation of the pesticide in the EU until the end of this year amidst growing concerns from NGOs and public manifestations against the use of glyphosate.

Yet, several trade associations operating in the food and pesticide industry believe that this move may undermine a science-based decision-making process and are contesting Juncker’s move.

The comitology proposals were transmitted to the European Parliament and the Council for discussions under the co-decision procedure. Until the plans are adopted, the current rules remain in force.


60th Anniversary Treaty of Rome


 Celebration of the Treaty of Rome, March 25, 1957. Google

Immersed in a political drama which outcomes may define the future of the Union, EU leaders will convene and debate the challenges facing the bloc on the occasion of the celebration of the 6Oth anniversary of the Treaty of Rome.

According to Daniel Guéguen, Professor at the College of Europe with 40 years of experience in EU public affairs, “celebrating the 60th anniversary of the Treaty of Rome can only go hand in hand with a feeling of revolt against all those at EU and national level who have replaced the old Community method with intergovernmentalism and abandoned their political power to the bureaucracy.” Even though the Commission’s chief has announced his intention of not running for a second term, Guéguen claims “the first thing that needs to be done right away is the replacement of Commission President Mr Juncker”. 

The expert in EU affairs further states that the EU must not be “a head control by civil servants” and highlights the importance of making EU agencies like the European Food Safety Agency, the European Medicines Agency and the European Chemicals Agency independent of the Commission, in order “to confer an objective role to science in food and plant health regulation” and also to “challenge the subjective exploitation of science for particular interests” which often raises ethical suspicions between legislators and stakeholders.

Saturday, 20 December 2014

Crisis in Ukraine on the focus of the EU Summit

Article published in Cafebabel

Meeting at the European Council. European Council © Flickr

For the first time chaired by Donald Tusk, President of the European Council, the European Summit took place in Brussels, on the 18th of December. Ukraine and the investment plan were some of the topics approached by the European leaders. 

A few days before Christmas, European leaders discussed the problems of the Union and ways of tackling it. Rather than decisions made, the meeting started a new cycle in European politics. As expected, EU leaders discussed topics such as the €315 billion package proposed by Juncker and the situation in Ukraine. European leaders have different opinions and views in how the EU should deal with Russia, however, all the Union is cohesive against Putin’s intervention in neighbor’s territory. No more sanctions against Russia were decided under the EU Summit. 

“This is a good chance to brief the council. We need to support the reform agenda. It is time for the EU to make Ukraine a success. This requires work in Europe and Ukraine. We need to develop a sound strategy with Russia, like Donald Tusk said. We start tonight and I am ready to follow this up with the foreign ministers in January,” said the EU’s foreign policy chief Federica Mogherini during the Summit. 

The situation in Ukraine is clearly a sensitive topic on the European agenda. However, more than outlining possible ways on how the EU should toughen up the sanctions against Russia, EU leaders and diplomats appeared to be willingness to follow the diplomatic way of solving this difficult situation, urging Russia to the benefits of ending the occupation in Crimea. “We should keep those sanctions in place until Russia changes its behavior and stops the aggression in Ukraine,” said British Prime Minister David Cameron. UK’s leader went further saying “the door is always open to Russia if it changes its behavior,” he added. 

The new President of the Council, Donald Tusk, said that Russia is now a “strategic problem” for Europe and not Ukraine. Tusk stated that the biggest challenge for Europe now is Russia’s approximation not only to Ukraine but also to the EU. 

On the German side, Chancellor Angela Merkel made it clear that the EU will not step back regarding Russia sanctions unless Putin reconsiders. Likewise Cameron’s statement, Merkel also reminded that the sanctions were imposed for specific reasons and, therefore, they can be lifted as soon as the reasons are no longer there. 

Following the Minsk Protocol, an agreement to halt the war in the Donbass region of Ukraine and signed in September 2014 between the actors in this war, French President François Hollande and Chancellor Merkel want to see developments in the protocol, with the support from Russia. Moreover, Hollande has recognized that the sanctions against Putin are one of the reasons for the sudden economic and monetary crisis which has shaken Russia recently. The French leader believes this is the best way to regulate the problem as Putin is isolated in the international scene. 

The EU has already barred imports from Crimea (unless they show a Ukrainian credential) as well as enacted limitations on individuals and some major companies in the region. One of the steps taken in account by the leaders is precisely whether to impose a total ban on European investment in Crimea. Russia was already banned from importing goods from the EU. As a reaction, Putin’s country is also not importing any goods from the EU. This represents a major threat for many farmers and for the EU in general. 

Monday, 8 December 2014

The Pipeline Dilemma: Russia turns to Turkey and Juncker calls Putin's bluff

Article published in Cafebabel

Putin's Turkish bluff was called out by the EU. World Economic Forum © Flickr

The construction of the South Stream pipeline supposed to deliver gas from Russia to the South of Europe is facing some hurdles due to the tensions between West and East. 


What is the South Stream Project? 


Back in 2012, Russian energy giant Gazprom began the construction of the South Stream pipeline, which was supposed to deliver gas to Bulgaria, Italy, Hungary, Serbia, Bosnia and Herzegovina, Croatia and Austria via the Black Sea. The pipeline, a €29 billion project, would have supplied the energy needs of southern Europe. According to estimates, the South Stream had the potential to provide 20% of the gas demand in the European Union. 

However, some hurdles sprung up on the development of the pipeline as relations between West and East got colder. With the Russian invasion of Ukraine in March 2014, a wave of Western condemnations arose towards the Kremlin, influencing the EU’s desire to find a sustainable solution to the South Stream project. Bulgaria, the country supposed to be the main doorway to Europe for Russian gas, blocked the development of the Russian project under pressure from the US and the EU. 

Gazprom, an ominous figure in the European pipeline dilemma. Martin Griffiths © Flickr 

Back in 2008, Gazprom and the EU countries signed an agreement – known as Third Energy Package – which determines that a single enterprise can’t both produce and deliver oil and gas. Suddenly, Putin was confronted with Bulgaria’s deadlock as well as an EU law which made the project’s continuance difficult. 

The point of South Stream was to deliver gas directly to the EU, avoiding Ukrainian territory due to the rows between Russia and Ukraine. Germany, France and Italy are connected to this project as they were strategic partners in South Stream. South Stream AG was the name of the company created to build and manage this ambitious project, where 50% is owned by Gazprom, 20% by Italian ENI, 15% by French EDF and the last 15% belongs to the German Wintershall. 

Western and Eastern Reactions 


During an official visit to Ankara on December 1st, Putin said he was forced to withdraw the South Stream project in partnership with the EU. However, he announced a new strategic cooperation with Turkey. Moscow will also reduce gas prices for Turkish consumers by 6% from January 1st 2015. “We are ready to further reduce gas process along with the implementation of our joint large-scale projects,” added Putin. He also advanced that Russia is prepared to construct a new pipeline to meet Turkey’s gas demand. Certainly a strategic partnership, as the border between Turkey and Greece is crucial for gas distribution in southern Europe. 

Moreover, the Russian President has instigated possible rows between Bulgaria and the EU, underlining the EU's control over Bulgaria’s sovereignty and urging the Bulgarian government to react. “If Bulgaria is prevented from behaving as a sovereign state, then at least let them ask for money from the European Commission for lost income – the direct budget revenues that Bulgaria would have had from [gas] transit were at least €400 million a year,” incited Putin. 

Juncker refuses to let Russia blackmail Bulgaria about the South Stream pipeline. Jean-Claude Juncker © Flickr 

European Commission President Juncker reacted by saying he wouldn’t accept Russia's blackmail or the Bulgarians and he added that “the South Stream can be built,” yet EU Energy Minister, Gunther Oettinger, said the South Stream project would not move forward if Russia didn’t recognise the new government in Kiev. European countries have been trying to reduce their dependence on Russian energy. Jerome Ferrier, head of the International Gas Union, said, however, that “Europe can’t totally do without Russian gas.” 

From the Bulgarian side, Prime Minister Bojiko Borisov said Russia has not yet given any official announcement about the project’s cancellation. Furthermore, Borisov also manifested Bulgaria’s willingness as well as the Commission’s to keep on going with the project. One thing is certain: Russia's tactic to undermine relations within the EU is working; not only because of the sudden direction's shift in regards to commercial partnership with Turkey, but also because of Putin's alleged financing to extreme far-right European parties.

Thursday, 20 November 2014

A nightmare called EU budget

Article published in Cafebabel

How complex is the EU budget? Dagny Gromer © Flickr

The “budget season” has begun across Europe and all Member States are now in uproar estimating their future spendings for the upcoming year. At a European level, journalists complain about the EU lawmakers, who have created a range of complexities, blaming them of being political forces trying to make the European Budget a complex process of difficult interpretation. 

As a matter of fact, even inside of the Union, the 2015 budget has been reason for some confusion as Budgets Committee MEPs have said that “giving the European Union a budget must take priority over redistributing resources to EU member states”. This statement follows the discussion over the gross national income (GNI), which has been constantly growing after the £1.7 billion bill that the UK was theoretically obliged to pay by the 1st of December. Despite the situation being reasonable under control (after a stubborn Cameron sending out his clear message towards the EU), this topic has brought the discussion to the top of the agenda. Nevertheless, the Commission has already proposed an amendment to the rules on the adjustment of the EU budget contributions from Member States. This amendment offers an extended deadline for payments until the 1st of September 2015, free of interest. 

The Administrative Budget Process 



Stairs to heaven...budget? Jose Antonio Cotallo López © Flickr 


In fact, according to the Commission's website, the bureaucratic budget process goes from “Budget adoption” to “Budget implementation” to “Accounting for the budget”. The first step includes “draft budget”, “amending letters”, “adopted budget”, “mobilisation of contingency margin” and mobilisation of the flexibility instrument”. 

As for the “Budget implementation”, the second step, Commissioners in charge of the Budget have to deal with “amending budgets”, “use of budgetary allocations” and “mobilisation of the European globalisation adjustment fund”. At this point, Europe is facing the “second step”, as there is already a draft budget and Commissioners are now working on the amending budgets. 

The last step, “accounting for the budget” groups topics like “analysis of the budgetary implementation of the structural funds”, “annual activity report”, “financial report”, “annual accounts of the European Union”, “report on budgetary and financial management” and finally, “discharge”. This procedure resembles pretty well a Kafkaesque image of how knotty this process can be, just like his work, “The Trial”, from 1914. 

Outcomes from the Finance Ministers Meeting 


The European Union budget is estimated to be 146.4 billion euros for the 2014-2020 period, which represents a decrease of 3% compared to the last budget. The money is supposed to go to several areas from farming, health, foreign policy, among several others. However, not only the situation regarding the GNI and the Member States is making the process more thorny, but also the dispute between the institutions, with the Parliament wanting to know which unpaid bills from 2014 remain unpaid before renegotiating projects for 2015. Just to give a clear idea, in 2010 there were €5 billion of unpaid bills registered, rising to €23.4 billion in 2014. The forecast for 2015 is of €28 billion. 

Following a ECOFIN press conference chaired by the Italian Economic and Finance Minister Pier Carlo Padoan, on the 7th of November, Commission Vice-President Kristalina Georgieva, who is in charge of the EU Budget, said that "The Commission has acted very quickly to make a proposal that would avoid imposing this kind of burden on national treasuries this year and in the future. We have included flexibility in extraordinary circumstances. However, the rules must remain precise in order to safeguard the EU’s financial soundness, which is important for our citizens, business, universities, farmers and others right across Europe”. 

At stake is the annual automatic adjustment, which normally goes unnoticed, but this year, due to the big disparity in some countries, like UK and Netherlands, the issue has been a priority, overshadowing the EU budget. “We had a very constructive discussion on the broader issue of the European budget and on the specific issue of the GNI [resources based on gross national income at market prices] corrections. On the broader topic there is clearly support from the Council and it was reflected in conclusions for a timely advancement and conclusions of the negotiations on the 2014 Amending Budgets and the 2015 Draft Budget,” said Kristalina Georgieva at the ECOFIN meeting, trying to clarify the EU and Member States financial situation. 

Naturally, people want to know where does the money come from and, most important, where does it go to, and despite the lack of explicitness, the Commission is being urged to clarify this intricate process to all EU citizens. 

Before such a complex and sensitive situation, the European agenda is giving priority to the EU budget. On the 14th of November a meeting was held, in Brussels, where the ministers responsible for the budget reconvened in order to quicken and define the political and economical guidelines to adopt. 

Later, on Monday 17th, the deadline for an agreement to be struck on the EU’s 2015 budget was supposed to be settled but the Parliament and the member states failed to reach a deal on the EU budget for the coming year. According to the Swedish permanent representative, the parliament and governments were "too far apart and a new proposal by the Commission will be the next step.”

 Step-by-step... 


EU budget voted in the Parliament, in 2012. © European Union 2011 PE-EP/Pietro Naj-Oleari 

The EU budget is proposed by the European Commission and afterwards is decided by the Parliament and the Council in negotiations that normally last 21 days. After the results, it must be approved by both institutions before the President of the Parliament can officially sign the budget. Juncker, as the President of the Commission, should simplify all the Budget process along with Frans Timmermans, Dutch Commissioner and first vice-president, who has a mandate for better regulation, and Kristalina Georgieva, the vice-president with responsibility for budget and administration. 

Moreover, the current complex situation commingling the EU budget and the obligations that Member States have towards the EU, is not helping to make the financial picture clear. At least the Commission has already recognised an internal need to make information more accessible and foster more transparency regarding the GNI.

Sunday, 16 November 2014

LuxLeaks: How The Biggest Global Corporations Have Cheated Us

Article published in Cafebabel

People manifesting against corporate greed. Charles Edward Miller © Flickr

One week, a scandal. After a week under the Commission's presidency, Jean-Claude Junker has already been accused of having colluded with facilitating corporate tax dodging. 

After an investigation by the International Consortium of Investigative Journalists and media across 32 countries, 548 Luxembourg tax rulings were leaked, exposing a scheme approved by the tax office of Luxembourg, during the time when Juncker was Prime Minister of the duchy. At stake, is a law which allows corporations of magnanimous tax immunity from royalties, through complex webs of internal loans, interest payments and filtered profits, through Luxembourg subsidiaries. In other words, a bulky tax con-trick. 

A lot of renowned big world corporations, from Apple to Deutsche Bank and from Burberry to Amazon, have all protected secret tax deals from Luxembourg, allowing many to reduce their tax bills. Meanwhile, during a Eurogroup meeting in Brussels, Luxembourg finance minister Pierre Gramegna, said that "this is an untenable situation for us and our citizens in Europe, who have to pay taxes while some companies pay so little." 

This scandal unleashed an outrage within the MEPs, who have immediately reacted, demanding explanations and clarifications over the case. Socialists, Greens and Liberals, in the European Parliament, have been increasing pressure towards the Commission's President, in order to have factual answers. 

The president of the European Parliament, Martin Schulz, did not spare criticism towards Juncker, pointing out the lack of credibility attached to the Commission's chief. "What worries me most is the fact that the reported practices were manifestly legally possible in some countries. This reality means that we need to urge the member states to work with us to end systematic tax evasion practices in Europe, be it in Luxemburg or any other country,” said Schulz. 

The defendant, Juncker, faced the journalists in the Commission and later he appeared in the Parliament, where he stated once again that the law was legal and approved by the Commission at the time. But he forgot to mention that his government wrote and devised the law. However, the Commission’s President recognised that “even if the corporate tax relief is legal, it might not be ethical.” As a last measure, Juncker announced a proposal for a common tax base in the European Union. 

Luxembourg is not the first tax haven we hear about. The extent of this tax scheme is worldwide, and this is a major issue that deeply affects our lives, yet there is not much we can do as citizens besides spread social awareness. Tacitus, a Roman politician, once said, "the more laws a government enacts, the more corrupt the government". Through an ancient Roman illustration, we have the picture of one of the most shameful contemporary spectacles happening in the European Union. 

Tax evasion infographic. © European Union 2013 - European Parliament