Committing steps

EU leadership’s optimism at the end of last week’s European Council can be understood only if a link is established between the major challenges put on the agenda, the will to reach pragmatic agreements displayed by almost all EU States, and the achieved results. One of the “achieved objectives” are the Irish guarantees, which will enable Ireland to set a date for the referendum on the Lisbon Treaty. The Council’s determination regarding other points on the agenda – crisis, environment and migrations – is less obvious, as several heads of Government and State have remarked.Affirmations of principle. The “Presidency Conclusions”, states, “The economic crisis remains of paramount importance to citizens. The significant measures taken so far in support of the banking sector and the wider real economy have been successful in preventing financial meltdown and in beginning to restore the prospects for real growth”. Thus, the Council “took a number of decisions intended to lead to the creation of a new financial supervisory architecture with the aim of protecting the European financial system from future risks and ensuring that the mistakes of the past can never be repeated”. Furthermore, “top priority must be given to tackling the effects of the crisis on employment by helping people stay in work and find new jobs”. The following foreword was made as relates to the environment: “Successfully combating climate change will also contribute to moving to a sustainable economy and create new jobs”. For this reason the European Council “took further steps towards forging the EU’s position for the Copenhagen Climate Change Conference” due to be held in December. Migration and foreign politics. Milder tones were adopted as relates to migration: “European leaders expressed great concern at the dramatic situation in the Mediterranean area and agreed on a number of measures in order to help the Member States in the frontline to respond to the influx of illegal immigrants and to prevent further human tragedies”. In short, it is acknowledged that migration flows towards Europe are a humanitarian emergency, mostly involving the Countries at the EU’s maritime and Eastern borders, and that “a European response based on firmness, solidarity and shared responsibility is essential. As regards foreign politics it is stated in the document “The EU’s role in the world remains of particular interest to European leaders. The European leaders underlined the strategic importance of transatlantic relations and welcomed the launch of the Eastern Partnership”. The Middle East Peace Process is described as a “top priority”. The Council rather obviously reaffirms, “the great importance of stability and security in Afghanistan, Pakistan and the wider region”. Vigilance over financial markets. Notwithstanding the verbosity of the final document, the European Council set the way forward to the establishment of a new framework of macro-and micro-prudential supervision, respectively denominated European Systemic Risk Board and European System of Financial Surveillance. The Commission will submit a proposal in the fall that is expected to become operative in 2010 that will monitor and assess potential threats to financial stability and issue risk warning and recommendations for action in the EU. The European Council will further monitor depositaries, financial companies and rating agencies. For this reason it is envisaged to expand the responsibilities of the European Central Bank. The Council calls on its “international partners to implement fully the commitments given in Washington and London” in the framework of the G20, notably by providing “additional resources to international financial institutions” and accelerating “the reform of the financial and regulatory framework”. A coordinated EU position will be thoroughly prepared in advance of the 24/25 September 2009 G20 Summit”. Towards Copenhagen. As relates to other issues, the European Council reaffirmed the need to bring about a successful and ambitious outcome in Copenhagen calling on the rest of the international community to play its full part in the fight against climate change by means of a sustainable economy and the progressive reduction of polluting emissions. The question of energy supply is part of this “chapter”. Having said this, the thorny issue of the “financial costs” linked to these principles was not addressed and was adjourned to the fall, under the Swedish Presidency.