COUNCIL OF THE EUROPEAN UNION latest

 

Press material Monday 12 December 2022

● Council of the EU   12/12/2022 23:26 | Press release | Rule of law conditionality mechanism: Council decides to suspend €6.3 billion given only partial remedial action by Hungary   Today, the ambassadors of the EU member states recommended to the Council to adopt via written procedure an implementing decision under the conditionality regulation as regards Hungary. The recommendation means that the Committee of Permanent Representatives has found the required qualified majority to impose measures for the protection of the Union budget against the consequences of breaches of the principles of the rule of law in Hungary, concerning public procurement, the effectiveness of prosecutorial action and the fight against corruption in Hungary. The budgetary impact of this suspension amounts to approximately €6.3 billion in budgetary commitments. In the course of the procedure, Hungary has committed to adopt a number of remedial measures considered by the Commission as capable to address the concerns raised, if taken together and correctly and effectively implemented. Given the remedial measures so far adopted by Hungary are affected by significant weaknesses which seriously compromise their adequacy to address the breaches of the principles of the rule of law identified by the Commission in its proposal, the Council considers that the ensuing risk for the budget of the Union remains high. However, in light of the number and significance of remedial measures that have been satisfactorily implemented by Hungary and given the degree of cooperation it would be a “reasonable approximation” to establish the remaining risk for the budget at 55% of the commitments of the programmes concerned. The conditionality regulation is an instrument aimed at the protection of the Union budget and of the financial interests of the Union. For their decision, member states based themselves on an assessment made by the Commission, which evaluated the facts and circumstances that have given rise to the activation of the mechanism. The decision of the Council mainly relies on the facts and circumstances as assessed and substantiated by the Commission. Recently, Hungary adopted a number of remedial measures. However, on 30 November, on the basis of its analysis, which it confirmed in its updated assessment on 9 December, the Commission concluded that those remedial measures were not fully satisfactory to meet the conditionality regulation’s objective to protect the Union budget. EU member states acknowledge the work done by the Hungarian authorities but decided that these remedial measures do not sufficiently address the identified breaches of the rule of law and the risks these entail for the Union budget. Next steps The measures defined in the implementing decision are of a temporary nature and can be lifted by the Council, acting on a proposal from the Commission, without loss of Union funding, if the situation is fully remedied within two years. According to the Conditionality Regulation, any member state which faces measures under the rule of law conditionality mechanism remains obliged to implement the program or the fund affected by the measure and in particular to fulfil its obligations towards final recipients or beneficiaries of the funds. Background On 18 September 2022 the Commission adopted a proposal on measures for the protection of the Union budget against breaches of the principles of the rule of law in Hungary. The proposal is based on regulation 2020/2092 on a general regime of conditionality for the protection of the Union budget (the conditionality regulation). The conditionality regulation is aimed against breaches of the principles of the rule of law that affect or seriously risk affecting the sound financial management of the budget or the protection of the financial interests of the Union. The regulation entered into force on 1 January 2021 as an additional layer of protection of the budget, complementing the already existing instruments defending the financial interests of the Union. This regulation is an instrument intended for the protection of the Union budget, and not an instrument to oblige a member state to abide to the principles of the rule of law. The EU Court of Justice has confirmed that the budget conditionality is an independent and different procedure from that of Article 7 TEU. The first notification from the Commission under the conditionality regulation was sent to Hungary on 27 April 2022. This represented the beginning of a process of assessment and exchange of information with the member state concerned, which lasted until mid-September and led to the submission of a proposal for a Council decision on 18 September 2022. The Commission considered that the issues identified by Commission services and notified repeatedly to Hungary still persist and they constitute systemic breaches of the principles of the rule of law, in particular of the principles of legal certainty and prohibition of arbitrariness of the executive powers. This mainly relates to: systemic irregularities, deficiencies and weaknesses in public procurement, with the improper functioning of the national authorities implementing the Union budget in the context of public procurement procedures, an issue already identified since the 2007-2013 period (e.g. one single bidder participation, attribution of contracts to specific companies with large market share, serious deficiencies in the attribution of framework agreements, etc.) public interest trusts: as they are not being subject to rules under the EU public procurement directives, with their recurrent issues related to conflict of interests and transparency (e.g. trust members not being subject to conflict of interest requirements or conflict of interest rules not being applicable to members of Parliament, state secretaries and other public officials of the government who may serve at the same time as board members of such trusts) limitations to effective investigation and prosecution of alleged criminal activity, the organisation of the prosecution services, and the absence of a functioning and effective anti-corruption framework. In particular, there is a lack of effective judicial remedies by an independent court against decisions of the prosecution service not to investigate or prosecute alleged corruption, fraud and other criminal offences affecting the Union’s financial interests, a lack of a requirement to give reasons when such cases are attributed or reassigned, and an absence of rules to prevent arbitrary decisions in their regard the lack of a comprehensive anti-corruption strategy covering also the most relevant corruption prevention areas; an under-utilisation of the full range of preventive tools to assist corruption investigation, in particular high-level corruption cases; as well as an overall lack of effective prevention and repression of criminal fraud and corruption offences The Commission identified deficiencies, weaknesses, limits and risks that are widespread and intertwined in the Hungarian public administration system and beyond, and remedies in sectoral legislation (such as the common provisions regulation) were not sufficient to address them. Therefore, the Commission considered that no other procedure under Union law would allow it to protect the Union budget more effectively than the procedure set out by the conditionality regulation. The concerns expressed by the Commission in the case of Hungary affect a number of key areas for the implementation of the Union budget and the compliance with sound financial management principles and, cumulatively, they pose serious risks to the Union’s financial interests. In its assessments of remedial measures taken by Hungary, the Commission confirmed that serious risks to the Union’s financial interests remain. EU member states examined the Commission’s assessments on the following main elements: the existence of breaches of the principles of the rule of law whether these breaches affect or seriously risk affecting the sound financial management of the Union budget or the protection of the financial interest of the Union in a sufficiently direct way whether possible remedial measures taken by Hungary address the situation the absence of alternative procedures that would allow to protect the budget more effectively assessment of the choice and proportionality of the measures proposed by the Commission The written procedure for the adoption of the implementing decision is expected to conclude on 14 December. The adoption of the implementing decision by the Council is the final step in the process as regards the proposal presented on 18 September. Proposal for a Council implementing decision on measures for the protection of the Union budget against breaches of the principles of the rule of law in Hungary Annexes to the Explanatory Memorandum of the Commission proposal for a Council implementing decision on measures for the protection of the Union budget against breaches of the principles of the rule of law in Hungary Long-term EU budget 2021-2027 and recovery package (background information) EU budget (background information)

Press material Monday 12 December 2022

● Council of the EU   12/12/2022 23:06 | Press release | NextGenerationEU: Member states approve national plan of Hungary   EU member states welcomed the positive assessment of the Hungarian national recovery and resilience plan by the European Commission. Meeting at the Committee of Permanent Representatives today, ambassadors of EU member states decided to advise the Council to adopt its implementing decision approving Hungary’s national plan, and a written procedure for the formal adoption will be launched. This comes after a positive assessment by the European Commission of Hungary’s recovery and resilience plan. National plans have to comply with the 2019 and 2020 country-specific recommendations and reflect the EU’s general objectives of creating a greener, more digital and more competitive economy. Following the formal adoption of the decision and the fulfilment of 27 "super milestones" regarding institutional reforms to strengthen the rule of law, Hungary will be able to use the facility’s funds up to a total allocation of €5.8 billion in grants. This financing will enable Hungary to foster its economic recovery from the COVID-19 pandemic and finance the green and digital transitions. Reforms and investments Hungary's plan includes a set of reforms and investments that contribute to effectively addressing all or a significant subset of the challenges outlined in 2019, 2020 and 2022 country-specific recommendations addressed to Hungary under the European Semester. The plan represents a comprehensive and adequately balanced response to Hungary's economic and social situation. The Hungarian plan devotes 48.1% of its total allocation to measures that support the climate objective. The measures included in the plan are expected to contribute to the decarbonisation and energy objectives as identified in the National Energy and Climate Plan 2021-2030. Investments in residential solar power systems and the strengthening of the electricity grid, combined with comprehensive reforms, aim at facilitating the development and connection of renewable energy sources. The renovation of buildings will decrease their impact on overall greenhouse gas emissions and improve air quality. Measures to make transport more sustainable, such as investments in railways, the deployment of electric buses and a reform of the tariff system, are expected to result in a cleaner, smarter, safer and more efficient transport sector. Hungary's plan devotes 29.8% of the total allocation to support the digital transition. This includes measures to digitalise and improve education and public administration. The digitalisation of transport, energy and healthcare is expected to foster long-term economic development. The plan fulfils all relevant criteria and that none of the measures therein included is expected to significantly harm the environment, in line with the requirements laid out in the Recovery and Resilience Facility (RRF) regulation. The plan also includes a comprehensive set of key institutional reforms to strengthen the rule of law. These reforms address the country-specific recommendations addressed to Hungary in relation to the rule of law and also serve to protect the financial interests of the Union. They are also expected to improve the efficiency and resilience of the economy by reinforcing the fight against corruption, promoting competitive public procurement and strengthening the independence of the judiciary. These reforms have been translated into a total of 27 “super milestones”, which must be fully and correctly implemented before any payment under the RRF can be made to Hungary. Next steps Disbursements from the facility take place once the member state reaches milestones and targets set for investments and reforms. Council implementing decision on the Hungarian plan Annex to the Council implementing decision Adoption note A recovery plan for Europe (background information)

Press material Monday 12 December 2022

● Council of the EU   12/12/2022 23:02 | Press release | International taxation: Council reaches agreement on a minimum level of taxation for largest corporations   EU member states reached agreement to implement at EU level the minimum taxation component, known as Pillar 2, of the OECD’s reform of international taxation. The ambassadors of EU member states decided to advise the Council to adopt the Pillar 2 directive, and a written procedure for the formal adoption will be launched. The Committee of Permanent Representatives reached the required unanimous support today. Effective implementation of the directive will limit the race to the bottom in corporate tax rates. The profit of the large multinational and domestic groups or companies with a combined annual turnover of at least €750 million will be taxed at a minimum rate of 15%. The new rules will reduce the risk of tax base erosion and profit shifting and ensure that the largest multinational groups pay the agreed global minimum rate of corporate tax. "I am very pleased to announce that we agreed to adopt the directive on the Pillar 2 proposal today. Our message is clear: The largest groups of corporations, multinational or domestic, will need to pay a corporate tax that cannot be lower than 15%, globally." Zbyněk Stanjura, Minister for Finance of Czechia The directive has to be transposed into member states’ national law by the end of 2023. This will still result in the EU being a front-runner in applying the G20/OECD global agreement on Pillar 2. Background On 8 October 2021, almost 140 countries in the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) reached a landmark agreement on international tax reform, as well as on a detailed implementation plan. The reform of international corporate tax rules consists of two pillars: Pillar 1 covers the new system of allocating taxing rights over the largest multinationals to jurisdictions where profits are earned. The key element of this pillar will be a multilateral convention. Technical work on the details thereof is ongoing in the Inclusive Framework Pillar 2 contains rules aimed at reducing the opportunities for base erosion and profit shifting, to ensure that the largest multinational groups of companies pay a minimum rate of corporate tax. This pillar is now enshrined legislatively in an EU directive which was adopted unanimously by all member states voting in favour On 22 December 2021, the Commission therefore presented a proposal for a directive which aims to implement Pillar 2 in a way which is consistent and compatible with EU law. Directive Adoption note and statement Proposal for a Council directive on ensuring a global minimum level of taxation for multinational groups in the Union Statement on a two-pillar solution to address the tax challenges arising from the digitalisation of the economy – 8 October 2021 (OECD) Fair and effective taxation: Council adopts conclusions (press release, 27 November 2020) Taxation (background information)

Meetings Monday 12 December 2022

● Council of the EU   12/12/2022 22:05 | MEETING | Main results - Foreign Affairs Council, 12 December 2022   The Foreign Affairs Council exchanged views on the Russian aggression against Ukraine and Iran, and was informed about current affairs.

Council of the EU
Foreign Affairs Council, 12 December 2022

Main results
Russian aggression against Ukraine

The Foreign Affairs Council exchanged views on the Russian aggression against Ukraine.

Before the Council discussion, the Foreign Minister of Ukraine, Dmytro Kuleba, shortly addressed EU ministers via video conference, and briefed them about the latest developments on the ground and Ukraine's current priorities.

Ministers discussed the latest developments, notably the systematic attacks on civilians and the ongoing weaponisation of winter by Russia.



"1.5 million people are without electricity just in Odesa right after drone strikes from Russia. In Odesa it is around 0 degrees Celsius cold. It is clear that Putin is trying to freeze Ukraine into submission deliberately depriving millions of Ukrainians of water, electricity and heating. This can be called crimes against humanity, these are war crimes. […] The courage of the Ukrainian people deserves respect certainly, but more than respect and applause what they need is support.Josep Borrell, High Representative for Foreign Affairs and Security Policy

The Council discussed how to assist Ukraine in repairing its energy system and to increase EU's electricity exports to Ukraine, and EU's work on ensuring accountability for Russian crimes committed during the war in Ukraine.

The Council discussed ongoing work on the 9th package of sanctions against the Kremlin for escalating its aggression against Ukraine.
Iran

The Foreign Affairs Council had an exchange of views on Iran, in light of the latest developments in and outside the country.

The Council condemned the unacceptable repression of the ongoing protests and the worsening human rights situation, Iran’s military cooperation with Russia, including delivery of drones deployed by Russia in its war of aggression against Ukraine, the prospects of renewal of the JCPOA (Joint Comprehensive Plan of Action), as well as regional security. It approved conclusions on these matters.

The Council adopted further sanctions against Iran for ongoing violations of human rights in the country, and for the help that Iran has provided to Russia in its aggression against the Ukrainian people.Iran: EU adopts Council conclusions and additional restrictive measures (press release, 12 December 2022)

Lastly the High Representative updated ministers on the state of play of the JCPOA.


You will understand that the JCPOA is in a very difficult situation. But I think that we do not have a better option than the JCPOA to ensure that Iran does not develop a nuclear weapon. This remains in our own interest, and that is why I still believe that we have to separate the sanctions on human rights and arms provision to Russia from the nuclear programme. In spite of the fact that the nuclear deal remains in a stalemate and the escalation of Iran nuclear programme is of great concern, we have to continue engaging as much as possible in trying to revive this deal.Josep Borrell, EU High Representative for Foreign Affairs and Security Policy
Current affairs

The Council reviewed the EU Monitoring Capacity to Armenia which will complete its activities on 19 December. In order to maintain the EU’s credibility as a facilitator of dialogue between Armenia and Azerbaijan, a team will be deployed to Armenia as of 20 December to contribute to the planning of a possible Civilian mission to be launched, in case of agreement, in 2023.

The Council then discussed the deteriorating situation between Kosovo* and Serbia, where the latest incidents confirm the worrisome downwards spiral in the bilateral relations, and agreed on possible steps to try and defuse tensions in North Kosovo.


Since August we are experiencing a vicious cycle of confrontations, provocations and reactions that has escalated in the past few days leading to serious security incidents, including an attack against our EULEX mission and on Kosovo police. Barricades blocking roads, armed people roaming the streets is not something that we are ready to accept from partners who aspire to a European future. This situation has to end. Barricades have to be removed, calm must be restored. The Council clearly called on both sides to refrain from violence and provocative actions.Josep Borrell, EU High Representative for Foreign Affairs and Security Policy

The High Representative suggested to ministers to send additional reinforcements to the EULEX mission, and asked the EU Special Representative for the Belgrade-Pristina dialogue and other Western Balkan regional issues, Miroslav Lajčák, to travel to the region before the European Council in order to assess the situation and debrief the EU Leaders.

*This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.

The Council also exchanged views on the Republic of Moldova, the Southern neighbourhood, human rights, Tunisia, and the Global Gateway.
Council conclusions and decisions

The Council approved conclusions on Iran, Yemen, and the Civilian CSDP Compact.Iran: Council approves conclusions (press release, 12 December 2022)
Yemen: Council approves conclusions (press release, 12 December 2022)
Council approves conclusions calling for a renewed impetus towards the civilian Common Security and Defence Policy (press release, 12 December 2022)

The Council agreed on increasing the financial ceiling of the European Peace Facility by € 2 billion in 2023. It also agreed that, in case of need, the ceiling can be increased by an additional €3.5 billion until 2027.European Peace Facility: Council agrees €2 billion increase of the financial ceiling in 2023 (press release, 12 December 2022)

The Council established a military partnership mission for Niger, in response to the request from the Niger government, to underline the EU's commitment to the stability of the Sahel region.Niger: EU establishes a military partnership mission to support the country in its fight against terrorism (press release, 12 December 2022)

The Council imposed restrictive measures on the Democratic People’s Republic of Korea in light of the continued development of ballistic missiles in violation of the relevant UN Security Council resolutions.DPRK/North Korea: EU imposes additional restrictive measures on eight persons and four entities responsible for or involved in the development of ballistic missiles (press release, 12 December 2022)

The Council prolonged the mandates of EUCAP Somalia, the EU's civilian capacity-building mission, EUTM Somalia, the EU's military training mission, and EU Naval Force Operation ATALANTA, one of the EU’s executive military maritime operations, until 31 December 2024.Operation ATALANTA, EUTM Somalia and EUCAP Somalia: mandates extended for two years (press release, 12 December 2022)
A-items

- Restrictive measures in view of the situation in Mali

The EU restrictive measures against individuals and entities responsible for threatening the peace, security, or stability of Mali, or for obstructing or undermining the successful completion of Mali’s political transition were renewed until 14 December 2023.

Other A items

The Council also adopted without discussion the items on the lists of non-legislative A items.


Meeting information

Meeting n°3922
Brussels
12 December 2022
13:00
Preparatory documentsBackground brief
List of A items, non-legislative activities
Provisional agenda
Outcome documentsList of participants


Press releasesIran: EU adopts Council conclusions and additional restrictive measures
12 December 2022, 17:45
DPRK/North Korea: EU imposes additional restrictive measures on eight persons and four entities responsible for or involved in the development of ballistic missiles
12 December 2022, 17:30
Council approves conclusions calling for a renewed impetus towards the civilian Common Security and Defence Policy
12 December 2022, 15:55
Yemen: Council approves conclusions
12 December 2022, 15:18
Iran: Council approves conclusions
12 December 2022, 14:53
Niger: EU establishes a military partnership mission to support the country in its fight against terrorism
12 December 2022, 14:13
Operation ATALANTA, EUTM Somalia and EUCAP Somalia: mandates extended for two years
12 December 2022, 13:51
European Peace Facility: Council agrees €2 billion increase of the financial ceiling in 2023
12 December 2022, 13:38

Press material Tuesday 13 December 2022

● Council of the EU   13/12/2022 09:18 | Press release | Council approves fishing opportunities for 2023 in EU and non-EU waters   Following two days of negotiations, ministers agreed on fishing opportunities in the Atlantic, the North Sea, the Mediterranean and the Black Sea for 2023, as well as for certain deep-sea stocks for 2023 and 2024. Overall, the agreement includes catch limits, also known as ‘total allowable catches’ (TACs), for over 200 commercial fish stocks. More than 100 of these stocks in the Atlantic and North Sea are co-managed with the United Kingdom. As discussions on bilateral EU-UK and EU-NO consultations on shared fish stocks are still on-going, ministers agreed on provisional catch limits for the first three months of 2023, pending final agreement. These provisional catch limits include a temporary roll-over of the existing fishing opportunities for the first three months with a 25% ratio to the TAC levels of this year, to cover the first quarter of 2023. For some fisheries where fishing takes place mainly in the first part of the year, this seasonality has been taken into account. Ministers agreed on a similar approach for stocks co-managed with Norway "The agreement is the result of two long days of intense negotiations and good will from the part of all member states. This is the best outcome we could secure to ensure continuity for our fishing fleets without undermining our sustainability commitments. We have proved that the Council is determined to preserve and restore fish stocks at sustainable levels, and at the same time to protect the future of communities which depends on fishing." Zdeněk Nekula, Czech Minister of Agriculture Atlantic and North Sea To safeguard stocks and follow scientific advice, ministers agreed to: Reduce catch limits for Norway lobster in the South Bay of Biscay (FU 31) by -14% and in 9 and 10 by -16% Reduce catch limits for sole by -30% in Skagerrak and Kattegat Ministers further agreed to maintain the ban on targeted cod fishing in Kattegat, and to roll-over the three TACs for pollack in the Bay of Biscay and in Portuguese waters. Following the positive scientific advice and the improved state of the stocks, ministers agreed to increase the catch limits for the following stocks: Megrims (+33%) and anglerfishes (+12%) in the south Bay of Biscay and Portuguese waters Whiting (+5%) in the Bay of Biscay, and sole (+20%) in the northern and central Bay of Biscay Southern hake (+10%) in the southern Bay of Biscay and Portuguese water Norway lobster (+19%) in the North, Central, Offshore Bay and West of the Bay of Biscay Plaice (+91%) in the Kattegat Horse mackerel (+15%) in Portuguese waters Ministers further agreed on a roll-over for Norway lobster in Skagerrak and Kattegat, plaice in the West of Ireland and in the Bay of Biscay and Atlantic Iberian waters, as well as for sole in the West of Ireland and the Cantabrian Sea and Atlantic Iberian waters. For deep-sea stocks, targeted fisheries remain prohibited for roundnose grenadier in Skagerrak and Kattegat with a reduction of the by-catch quota of -60% to 2 tonnes. In addition, ministers agreed a -4% reduction for red seabream in Atlantic Iberian waters and a roll-over for red seabream in Azores waters. Additionally, for shared stocks where the stock only occurs in EU waters and the EU sets the TAC independently, ministers agreed on a -10% reduction for undulate ray in the Bay of Biscay and in Atlantic Iberian waters. Protecting eel stocks Finally, to protect eels, ministers agreed to a comprehensive package to protect the eel and help restore this unique stock in European waters. They agreed to prohibit recreational fisheries and to extend the closure for any commercial eel fishing activity to six months in marine and adjacent brackish waters in the north-east Atlantic (including the Baltic Sea) and in the Mediterranean (excluding the Black Sea) in a differentiated way to take into account different migration periods in different sea basins. Hence, member states will be able to adapt the closure period for different fishing areas, to take into account their specificities as well as the temporal and geographical migration patterns of eel at respectively the glass eel and silver eel life stage. Mediterranean and Black Sea Ministers agreed to reduce fishing effort for trawlers in the western Mediterranean by -7% to protect demersal stocks, in line with the EU’s legal obligation to attain the maximum sustainable yield for these stocks by 2025. In addition, ministers agreed to continue the use of the compensation mechanism that was established for the first time for 2022, allocating +3,5% of additional days to trawlers eligible under specific conditions as an incentive to increase the protection of the stock through e.g. selectivity or closures. Ministers further agreed to freeze long liners’ efforts at 2022 levels to protect the hake spawners, essential for the speedy recovery of the stock. They additionally agreed to reduce the maximum catch limits for stocks of blue and red shrimp in the Alboran Sea, Balearic Islands, Northern Spain and Gulf of Lion by –5% and stocks of blue and red shrimp and giant red shrimp in Corsica Island, Ligurian Sea, Tyrrhenian Sea and Sardinia Island by -3%. In the Black Sea, the existing transitional TAC and quotas for turbot will be rolled-over for 2023. In addition, it was agreed that the EU will carry-over the unused EU turbot quota of 22,5 tonnes from 2021 to 2023 as established under the revised multiannual management plan for this species. Background The setting of TACs and quotas is an annual, and in the case of deep-sea species, biennial management exercise undertaken by the Agriculture and Fisheries Council in December. Ministers set catch limits for commercial fish stocks for the following year, along with national quotas for each species. The stocks concerned are those the EU manages on its own, jointly with neighbouring non-EU countries, or via agreements reached under the regional fisheries management organisations (RFMOs). Since 2020, after the entry into force of the multiannual plan for demersal species in the Western Mediterranean, the fishing opportunities in the Mediterranean and the Black Seas are equally discussed at Council level. The final political agreement is based on an initial Commission’s proposal, taking into account the best available scientific advice, the main objectives of the common fisheries policy (CFP) basic regulation, and various multiannual management plans in place. Next steps The regulations will be finalised by the Council’s legal and linguistic experts, following which they will be formally adopted by the Council at an upcoming meeting and published in the Official Journal. The provisions will apply retroactively as of 1 January 2023. Total allowable catches for 2023 Proposal for a Council Regulation fixing for 2023 the fishing opportunities for certain fish stocks, applicable in Union waters and, for Union fishing vessels, in certain non-Union waters, as well as fixing for 2023 and 2024 such fishing opportunities for certain deep-sea fish stocks Proposal for a Council Regulation on fixing for 2023 the fishing opportunities for certain stocks and groups of fish stocks applicable in the Mediterranean and Black Seas and amending Council Regulation (EU) 2022/110 as regards the fixing of fishing opportunities for 2022 applicable in the Mediterranean and the Black Seas Management of the EU's fish stocks (background information)

Press material Tuesday 13 December 2022

● Council of the EU   13/12/2022 05:55 | Press release | EU climate action: provisional agreement reached on Carbon Border Adjustment Mechanism (CBAM)   Negotiators of the Council and the European Parliament reached an agreement of a provisional and conditional nature on the Carbon Border Adjustment Mechanism (CBAM). The agreement needs to be confirmed by ambassadors of the EU member states, and by the European Parliament, and adopted by both institutions before it is final. "I am very pleased that we reached this agreement today. The Carbon Border Adjustment Mechanism is a key part of our climate action. This mechanism promotes the import of goods by non-EU businesses into the EU which fulfil the high climate standards applicable in the 27 EU member states. This will ensure a balanced treatment of such imports and is designed to encourage our partners in the world to join the EU’s climate efforts." Jozef Síkela, Minister of Industry and Trade of Czechia This provisional agreement is dependent on some aspects which are relevant for CBAM but need to be spelled out in other pieces of legislation on which negotiations are still ongoing. The Council presidency considers that the CBAM regulation can be formally adopted only once the elements relevant for CBAM are resolved in other related dossiers. Concerning the products and sectors which fall within the scope of the new rules, CBAM will initially cover a number of specific products in some of the most carbon-intensive sectors: iron and steel, cement, fertilisers, aluminium, electricity and hydrogen, as well as some precursors and a limited number of downstream products. Indirect emissions would also be included in the regulation in a well-circumscribed manner. Under the provisional agreement, CBAM will begin to operate from October 2023 onwards. Initially, a simplified CBAM would apply essentially with reporting obligations only. The aim is to collect data. From then onwards, the full CBAM will kick in. It would be phased in gradually, in parallel to a phasing out of the free allowances, once it begins under the revised EU emissions trading system (ETS) for the sectors concerned. This will ensure compatibility of CBAM with international rules on trade. The phasing out of free allowances for CBAM sectors still needs to be agreed in the context of the ongoing EU ETS negotiations. Further work is also required on measures to prevent carbon leakage on exports. Ensuring full compatibility of CBAM with international obligations of the EU, including in the area of international trade, remains of fundamental importance. The financing of administrative expenses of the European Commission, which will take on many centralised CBAM-related administrative tasks, will need to be decided in accordance with the annual EU budget procedure. Background The Commission presented its proposal for a regulation establishing a carbon border adjustment mechanism on 14 July 2021. It addresses greenhouse gas emissions embedded in certain goods listed in Annex I of the proposal, upon their importation into the customs territory of the Union, in order to prevent the risk of carbon leakage. CBAM targets imports of products in carbon-intensive industries. The objective of CBAM is to prevent - in full compliance with international trade rules - that the greenhouse gas emissions reduction efforts of the EU are offset by increasing emissions outside its borders through relocation of production to non-EU countries (where policies applied to fight climate change are less ambitious than those of the EU) or increased imports of carbon-intensive products. CBAM is designed to function in parallel with the EU’s Emissions Trading System (EU ETS), to mirror and complement its functioning on imported goods. It will gradually replace the existing EU mechanisms to address the risk of carbon leakage, in particular the free allocation of EU ETS allowances. Technical work on the proposal took place in an Ad Hoc Working Party on CBAM, which the Council specifically established for negotiations on this proposal. The Council reached its position (general approach) on the proposed regulation on 15 March 2022. The European Parliament voted its position on 22 June 2022. Trilogue negotiations between the co-legislators started on 11 July and ended in the provisional agreement reached today. Initial version of the three column table at 27 June 2022 Council agrees on the Carbon Border Adjustment Mechanism (CBAM) (press release, 15 March 2022) Fit for 55 (background information)

Press material Monday 12 December 2022

● European Council   12/12/2022 22:01 | Press release | Invitation letter by President Charles Michel to the members of the European Council   Dear colleagues, We are gathering in Brussels this week for two meetings: the EU-ASEAN Commemorative summit on Wednesday 14 December and our European Council the following day. The EU-ASEAN meeting will give us an opportunity to exchange on our strategic partnership and discuss important issues of common interest, including security challenges, connectivity, trade, the green and digital transitions and food security. I am convinced that this will be the first of many regular engagements of our two like-minded regions. Our European Council on Thursday 15 December will be a one-day meeting. We will focus on strategic issues on which our unity will be key. Ukraine is, as always, at the heart of our concerns. Russia's massive military escalation since 10 October, with its repeated targeting of Ukraine's critical facilities and energy infrastructure, has caused huge damage to Ukraine's power grid. Millions of civilians are left without electricity, heating and running water. The situation, exacerbated as snow and sub-zero temperatures set in, requires an appropriate response from us, including in terms of humanitarian preparedness and assistance. Beyond the country's immediate needs, a substantive debate is also needed on how to guarantee the sustainability of our military and financial support to Ukraine. This year has radically transformed our energy landscape and has made it clearer than ever that we need to act together. Ensuring security of supply and reducing prices for citizens and businesses remain our priority. Against this backdrop, we will review progress since October and give further guidance. We will also look ahead to next year's challenges in order to be fully prepared. One of the most important milestones of 2023 will be the electricity market reform to be proposed by the Commission as soon as possible. Our coordination efforts, however, need to be coupled with concrete projects and a committed investment in innovation, infrastructure and energy efficiency to phase out our dependency on Russian fossil fuels. Our new energy horizon has had spill-over effects on our economy, which has been more heavily impacted than that of our trading partners. Our future growth perspectives depend not only on how well we manage the energy shock in the short term, but also on our industries' ability to remain competitive, and our capacity to innovate and invest in the technologies of tomorrow. We will therefore focus on how we can better manage our coordinated policy response, including with the support of common European solutions. Exactly two years after our last exchange on EU-US relations, we will hold a strategic discussion on our transatlantic relations, particularly in the light of the evolving global context. The discussion will cover a broad range of issues, in particular our security and economic cooperation. On security and defence, we will take stock of progress since Versailles and provide further guidance as necessary. Lastly, we will have a strategic discussion on the Southern Neighbourhood and follow up on the recent Summit with the Western Balkans in Tirana. This will provide us with an opportunity to discuss the multifaceted aspects of our cooperation with these countries, including migration. I look forward to seeing you in Brussels. Invitation letter

Meetings Monday 12 December 2022

● Council of the EU   Council of the EU Agriculture and Fisheries Council, 11-12 December 2022 Main results Fisheries 2023 fishing opportunities After two days of negotiations, agriculture and fisheries ministers reached a political agreement on fishing opportunities for 2023, taking into account the best available scientific advice, while respecting the aims of the common fisheries policy (CFP), and the EU’s multiannual plans for various sea basins. We have proved that Council is determined to preserve and restore fish stocks at sustainable levels, and at the same time to protect the future of communities which depend on fishing.Zdeněk Nekula, Czech Minister of Agriculture Infographic - Setting catch limits and quotasSee full infographic This agreement sets catch limits for over 200 commercial fish stocks in the Atlantic, North Sea, Mediterranean and Black Sea, as well as for some deep-sea stocks for 2023 and 2024. On shared fish stocks with the UK, ministers agreed to set provisional quotas for the first three months of 2023, seeing as bilateral EU-UK and EU-NO consultations on shared fish stocks are still on-going. These provisional catch limits include a temporary roll-over of the existing fishing opportunities for the first three months with a 25% ratio to the TAC levels of this year, to cover the first quarter of 2023. For some fisheries where fishing takes place mainly in the first part of the year, this seasonality has been taken into account. This will ensure continuity for fishermen and sustainable fishing in the relevant areas, pending an agreement between the EU and the UK. Ministers agreed on a similar approach for stocks co-managed with Norway.Council approves fishing opportunities for 2023 in EU and non-EU waters (press release, 13 December 2022) Management of the EU's fish stocks (background information) How fishing rights are agreed following Brexit (feature story) Agriculture Market situation, particularly in light of the Russian war against Ukraine Ministers took stock of the market situation in member states, more particularly in light of Russia’s war against Ukraine, which is putting unprecedented pressure and uncertainty on farmers and world markets. They reiterated the impact of the war on all sectors, with producers facing significant increases in energy and fuel prices, as well as many logistical challenges. Ministers further emphasized the critical situation concerning the affordability of fertilisers, and the impact this might have on overall prospects for harvest next year, with many farmers likely to reduce their use of fertilizer. Ministers additionally exchanged views on the possibility of using the agricultural reserve for 2023, and stressed the impact of high food prices on consumers.Market situation in particular following the invasion of Ukraine - Information from the Commission - Exchange of views Food for the world: what EU countries are doing to mitigate the impact of Russia’s war (feature story) Food security and affordability (background information) Impact of Russia's invasion of Ukraine on the markets: EU response (background information) Infographic - A fairer, greener and more performance based EU agricultural policySee full infographic CAP strategic plans Ministers exchanged views on the strategic plans included in the common agricultural policy (CAP), particularly in the context of Russia’s war in Ukraine and the challenges this is posing for the farming sector. Ministers stated their respective readiness to implement national plans comes January 2023, with the first year likely to be particularly challenging, especially in terms of setting up control systems and ensuring proper implementation. In January we will start implementing the new common agriculture policy. Russian invasion to Ukraine had a disruptive effect on our farmers in the EU. I am glad we had a sincere discussion on the state of play and the possible need to adjust the strategic plans to reflect a new reality.Zdeněk Nekula , Czech Minister of AgricultureStrategic Plans: current situation and new challenges Common agricultural policy (background information) Animal welfare Ministers publicly discussed the evaluation of the current animal welfare legislation and stressed the need to revise the current legislation as soon as possible, to protect animal welfare and adopt a harmonized approach at EU level. Ministers moreover voiced their main priorities regarding the revision of the legislation and emphasized that this revised proposal would also ensure fairer competition for farmers and other food business operators in the member states.Evaluation of the EU animal welfare legislation (Fitness check) - Information from the Presidency and Commission - Exchange of views Council conclusions on animal welfare - an integral part of sustainable animal production (16 December 2019) Council conclusions on animal welfare during maritime long distances transport to third countries (28 June 2021) Other business Ministers discussed multiannual fishing quotas and their importance in ensuring predictability for fishermen, as well as for the sustainability of stocks. They were moreover informed by the presidency on the state of play of the regulation on geographical indications and quality schemes across the EU and exchanged views on the regulation for the sustainable use of pesticide directive. They further discussed front of pack and sustainable food labelling.Establishment of multiannual quotas - Note by the French, Portuguese and Spanish Delegations Regulation on geographical indications and quality schemes – state of play - Information from the Presidency Conference on harmonized front of pack labelling and its impact on sustainable food labelling (Brussels, 10 November 2022) - Information from the Presidency The Council also adopted, without discussion, the items on the list of non-legislative A items. Meeting information Meeting n°3921 Brussels 11 December 2022 10:00 Preparatory documentsList of A items, non-legislative activities Provisional agenda Background brief Outcome documentsList of participants 11 December List of participants 12 December