COUNCIL OF

THE EN C/04/250 , 13 September 2004

12067/04 (Presse 250)

Press release

2603rd Council meeting General Affairs and External Relations General Affairs Brussels, 13 September 2004

President Mr Bernard BOT Minister for Foreign Affairs of the Netherlands

* The 2604th meeting on External Relations is the subject of a separate press release (12068/04).

PRESS

Rue de la Loi 175 B – 1048 BRUSSELS Tel.: +32 (0)2 285 6083 / 6319 Fax: +32 (0)2 285 8026 [email protected] http://ue.eu.int/Newsroom 12067/04 (Presse 250) 1 EN

Main results of the Council

The Council held a policy debate on the proposed EU financial framework for the 2007-13 period, endorsing the methodology proposed by the Presidency for work on the dossier until the end of the year with the aim of enabling agreement to be reached during 2005.

The Council also took a number of decisions without debate, including:

- the EU 2004 Annual Report on Human Rights;

- conclusions on progress in planning operation "ALTHEA" in Bosnia and Herzegovina;

- a list of the 24 persons it intends to appoint as Members of the Commission for the 2004- 2009 period.

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CONTENTS1

PARTICIPANTS 5

ITEMS DEBATED

EU FINANCIAL FRAMEWORK FOR 2007-13 7

OTHER ITEMS APPROVED

EXTERNAL RELATIONS

Partnership with Croatia - principles, priorities and conditions 8

Association Agreement with Bulgaria - Public aid in the steel sector 8

EU Annual Report on Human Rights - 2004 8

TRADE POLICY

Textiles - - EU Enlargement 8

India, Taiwan, Serbia and Montenegro, Bulgaria and -Iron flat rolled products * 8

India - Anti-dumping - Graphite electrode systems 9

DEVELOPMENT

South Africa - Development cooperation 9

EUROPEAN SECURITY AND DEFENCE POLICY

Military operation in Bosnia and Herzegovina - Council conclusions 9

EU ESDP training concept 9

Participation of third states in ESDP operations 10

Rule of Law mission in - Financial reference amount * 10

European Defence Agency - Staff provisions and budget 10

INSTITUTIONAL AFFAIRS / APPOINTMENTS

Commission 10

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Committee of the Regions 12

GENERAL AFFAIRS

Work in the various Council configurations 12

ECONOMIC AND FINANCIAL AFFAIRS

External auditors - Banca d'Italia 12

AGRICULTURE

Malta - Pet control and rabies - EU Enlargement 12

ENVIRONMENT

Reduction of greenhouse gas emissions–Linking Kyoto mechanisms with Community scheme* 12

DECISIONS TAKEN BY WRITTEN PROCEDURE

Iraq - Restrictions on economic and financial relations 13

Australia, and Pakistan - Anti-dumping - polyethylene terephthalate 13

Thailand - Anti-dumping - pipe fittings 13

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PARTICIPANTS

The Governments of the Member States and the were represented as follows:

Belgium: Mr Minister for Foreign Affairs Czech Republic: Mr Vladimír MÜLLER Deputy Minister of Foreign Affairs for EU Affairs Denmark: Mr Carsten SØNDERGAARD State Secretary Germany: Mr Hans Martin BURY Minister of State, Ministry of Foreign Affairs Estonia: Ms Kristiina OJULAND Minister for Foreign Affairs Greece: Mr Petros MOLYVIATIS Minister for Foreign Affairs Spain: Mr Miguel Angel MORATINOS Minister for Foreign Affairs and Cooperation France: Mr Minister for Foreign Affairs Ireland: Mr Brian COWEN Minister for Foreign Affairs Italy: Mr Roberto ANTONIONE State Secretary for Foreign Affairs Cyprus: Mr George IACOVOU Minister for Foreign Affairs Latvia: Mr Rihards PĪKS Minister for Foreign Affairs Lithuania: Mr Antanas VALIONIS Minister for Foreign Affairs Luxembourg: Mr Nicolas SCHMIT Minister with responsibility for Foreign Affairs and Immigration Hungary: Mr László KOVÁCS Minister for Foreign Affairs Malta: Mr Michael FRENDO Minister of Foreign Affairs Netherlands: Mr Bernard BOT Minister for Foreign Affairs Mr Atzo NICOLAÏ Minister for European Affairs Austria: Ms Benita FERRERO-WALDNER Federal Minister for Foreign Affairs : Mr Włodzimierz CIMOSZEWICZ Minister for Foreign Affairs Portugal: Mr António MONTEIRO Minister for Foreign Affairs and Portuguese Communities Abroad

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Slovenia: Mr Ivo VAJGL Minister for Foreign Affairs Slovakia: Mr Eduard KUKAN Minister for Foreign Affairs Finland: Mr Erkki TUOMIOJA Minister for Foreign Affairs Sweden: Ms Laila FREIVALDS Minister for Foreign Affairs United Kingdom: Mr Jack STRAW Secretary of State for Foreign and Commonwealth Affairs

Commission: Mr Chris PATTEN Member Ms Michele SCHREYER Member

General Secretariat of the Council Mr Pierre DE BOISSIEU Deputy Secretary-General

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ITEMS DEBATED

EU FINANCIAL FRAMEWORK FOR 2007-13 The Council held a policy debate on the proposed EU financial framework for the 2007-13 period, focusing on a number of general themes such as the added value of EU spending, budgetary flexibility and the structure of the Commission's proposals. It endorsed the methodology proposed by the Presidency for work on the Commission's proposals - the so-called building block approach - focusing on the various expenditure headings and sub- headings and the amount of resources they entail, whilst noting that the Commission proposals remain the basis for the Council's work. The Commission proposed in July a first set of detailed proposals for some of the EU's key policy areas and is due to approve further proposals on 29 September. The Presidency's aim, in accordance with the timeframe envisaged in the Council's Multi-annual Strategic Programme, is to make it possible for the European Council to reach decisions at its meeting on 17 December on principles and guidelines in respect of the new financial perspective. The agreed principles and guidelines will serve as a framework for further work aimed at achieving political agreement next year. The Council in its General Affairs configuration, as the preparatory body for the European Council, will have responsibility for the conduct of work on the financial framework. Discussion in other Council configurations will not prejudge the outcome of that debate, though the particular interest of the Economic and Financial Affairs Council is recognised. The Permanent Representatives Committee (Coreper) will have responsibility for preparing the Council's deliberations, including preparation of a draft report to enable the Council to prepare the European Council's work in December. An ad hoc group will be set up with a precise remit to carry out preparatory work for Coreper, on the basis of an indicative work programme.

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OTHER ITEMS APPROVED

EXTERNAL RELATIONS Partnership with Croatia - principles, priorities and conditions The Council adopted a Decision on the principles, priorities and conditions to be followed in the EU's "European Partnership" with Croatia, with a view to supporting Croatia's efforts to move closer to the European Union (9376/04). The priorities are adapted to Croatia's specific needs and state of preparation covering, inter alia, the judicial system, the fight against corruption, respect for minorities and full cooperation with the International Criminal Tribunal for the Former Yugoslavia. The European Partnership also provides guidance for financial assistance to Croatia. The European Partnerships are aimed at strengthening the EU's relations with the countries of the Western Balkans under the Stabilisation and Association Process (SAP), as requested by the European Council and the EU-Western Balkans Summit at Thessaloniki in June 2003. Partnerships are being drawn up for each SAP country, along the lines of the Accession Partnerships that were established for the candidate countries of Central and Eastern Europe prior to their negotiations on accession to the EU. Association Agreement with Bulgaria - Public aid in the steel sector The Council adopted a draft Decision, to be forwarded to the EU-Bulgaria Association Council for adoption, aimed at extending the grace period for public aid in the steel sector provided for by the EU-Bulgaria Association Agreement (1901/04). EU Annual Report on Human Rights - 2004 The Council approved the EU's 2004 Annual Report on Human Rights (11922/1/04 REV 1). The report, which will be used in dialogue with parliaments and civil society, gives an overview of EU policies in the field of human rights, the policies that the EU has adopted to ensure the protection of human rights within the European Union itself and EU actions regarding third countries through multilateral fora as well as on a bilateral basis.

TRADE POLICY Textiles - Vietnam - EU Enlargement The Council adopted a Regulation amending Regulation 3030/93 adjusting the quantitative limits for imports of certain textile products from the Socialist Republic of Vietnam in order to take into account the accession of the new Member States to the Community (11377/04). India, Taiwan, Serbia and Montenegro, Bulgaria and South Africa-Iron flat rolled products * The Council adopted a Regulation terminating anti-dumping proceedings concerning imports of certain flat rolled products of iron or non-alloy steel originating in India, Taiwan as well as Serbia and Montenegro (11871/04). It also adopted a Regulation terminating anti-dumping proceedings concerning imports of certain flat rolled products of iron or non-alloy steel originating in Bulgaria and South Africa (11872/04).

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India - Anti-dumping - Graphite electrode systems The Council adopted two Regulations imposing anti-dumping duties on imports of certain graphite electrode systems originating in India (11954/04 and 11957/04).

DEVELOPMENT South Africa - Development cooperation The Council adopted a Regulation on development cooperation with South-Africa amending Regulation No 1726/2000 as a result of a mid-term review (3673/04). The mid-term review gave rise to amendments aimed at improving implementation of development cooperation with South Africa. They concern, inter alia, mainstreaming of gender issues at all levels of the project cycle from planning to implementation; streamlining of administrative procedures; improved criteria for assessing project and programme design and clarification of the conditions for granting contributions from the European Programme for Reconstruction and Development (EPRD).

EUROPEAN SECURITY AND DEFENCE POLICY Military operation in Bosnia and Herzegovina - Council conclusions The Council adopted the following conclusions: "The Council approved the Concept of Operations for the European Union military operation in Bosnia and Herzegovina named “ALTHEA”. The Council noted with satisfaction the progress made in the planning and preparations for this operation, which will contribute to a smooth transition from the NATO-led operation SFOR in Bosnia and Herzegovina to the EU-led operation “ALTHEA”.

This operation will take place within the comprehensive EU approach for addressing the overall situation in Bosnia and Herzegovina. It will sustain our long term objective of a stable, viable, peaceful and multiethnic Bosnia and Herzegovina, co-operating peacefully with its neighbours and irreversibly on track towards EU membership." EU ESDP training concept The Council approved a revised EU training concept under the European Security and Defence Policy (11970/04). The training concept develops EU training objectives, requirements including civilian, police and military, target audience, guiding principles and responsibilities, and sets out the necessary measures and procedures for implementing the agreed policy, including the improvement of networking among Member States and the relevant EU institutions and bodies and the regular conduct of an ESDP orientation course. The original EU training policy in the field of ESDP was approved by the Council on 17 November 2003. It encompasses both the civilian and military dimensions of ESDP.

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Participation of third states in ESDP operations The Council agreed on two model agreements, one for military crisis management operations and one for civilian crisis management operations, for the participation of third states in future EU crisis management operations. Rule of Law mission in Georgia - Financial reference amount * The Council adopted a Joint Action on the European Union's Rule of Law mission in Georgia, "EUJUST-THEMIS", amending the financial reference amount intended to cover expenditure to EUR 2,3 million (11490/04 and 11610/04). European Defence Agency - Staff provisions and budget The Representatives of the Governments of the Member States of the European Union, meeting within the Council, adopted a Decision on the privileges and immunities granted to the European Defence Agency and to its staff members (11502/04 +COR 1). The Council further approved a Decision on the financial provisions applicable to the general budget of the European Defence Agency (10986/04). The Decision sets out the principles and rules to be applied to the Agency's general budget, including annuality, financial actors, management procedures, revenue and expenditure, procurement procedures, control, audit and presentation of accounts. The Joint Action on the establishment of a European Defence Agency was adopted on 12 July 2004.

INSTITUTIONAL AFFAIRS / APPOINTMENTS Commission The Council adopted a Decision establishing a list of 24 persons that it intends to appoint as Members of the Commission for the period from 1 November 2004 to 31 October 2009, drawn up in accordance with proposals made by each Member State and by common accord with the nominee for President of the Commission, Mr José BARROSO (11538/1/04 REV 1). The Decision will be forwarded to the , where Mr BARROSO and the other Commission nominees will be subjected to a collective vote of approval. They will subsequently be appointed by the Council, in accordance with Article 214 of the EC Treaty and Article 127 of the Euratom Treaty.

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The list of Commission nominees is as follows:

Belgium: Mr (11657/04) Czech Republic: Mr Vladimír ŠPIDLA (11778/04) Denmark: Ms (11782/04) Germany: Mr Günter VERHEUGEN (11783/04) Estonia: Mr (11767/04) Greece: Mr (11784/04) Spain: Mr Joaquín ALMUNIA AMANN (11785/04) France: Mr (11775/04) Ireland: Mr Charlie McCREEVY (11786/04) Italy: Mr Rocco BUTTIGLIONE (11754/04) Cyprus: Mr (11723/04) Latvia: Ms Ingrida UDRE (11787/04) Lithuania: Ms Dalia GRYBAUSKAITĖ (11788/04) Luxembourg: Ms (11789/04) Hungary: Mr László KOVÁCS (11790/04) Malta: Mr (11791/04) Netherlands: Ms (11792/04) Austria: Ms Benita FERRERO-WALDNER (11793/04) Poland: Ms Danuta HÜBNER (11794/04) Slovenia: Mr Janez POTOČNIK (11795/04) Slovakia: Mr Ján FIGEĽ (11796/04) Finland: Mr (11665/04) Sweden: Ms Margot WALLSTRÖM (11797/04) United Kingdom: Mr (11798/04)

Mr BARROSO was nominated by the Council on 29 June; his nomination was approved by the European Parliament on 22 July. The Council also adopted a Decision appointing Mr Louis MICHEL as member of the Commission until 31 October 2004, as designated by the Belgian government following the resignation of Mr (12143/04).

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Committee of the Regions The Council adopted a Decision appointing: – Mr Peter WINTER, Landrat Kreis Saarlouis, as a member of the Committee of the Regions in place of Mr Axel ENDLEIN for the remainder of the latter's term of office, which runs until 25 January 2006 (11488/04); – Mr Helmut JAHN, Landrat, as an alternate member of the Committee of the Regions in place of Mr Peter WINTER for the remainder of the latter's term of office, which runs until 25 January 2006 (11488/04); – Mr Roger KUSCH, Justizsenator, as an alternate member of the Committee of the Regions in place of Mr Ole VON BEUST for the remainder of the latter's term of office, which runs until 25 January 2006 (11487/04).

GENERAL AFFAIRS Work in the various Council configurations The Council adopted a report on work in its various configurations (12098/04).

ECONOMIC AND FINANCIAL AFFAIRS External auditors - Banca d'Italia The Council adopted a Decision appointing Pricewaterhouse Coopers SpA. as the external auditors of the Banca D'Italia, starting from the 2004 financial year for a renewable period of three years (11885/04).

AGRICULTURE Malta - Pet control and rabies - EU Enlargement The Council adopted a Decision amending Regulation 998/2003 on the animal health requirements applicable to the non-commercial movement of pet animals so as to take account of the accession of Malta to the EU, in particular as regards rabies (11313/04). Regulation 998/2003 divides Member States into two categories according to the history of their controls against rabies, granting Ireland, Sweden and the United Kingdom a transitional period of five years for controls on dogs, cats and ferrets entering their territory. In the course of the enlargement negotiations it was accepted that Malta, as an island with a similar status as regards freedom from rabies, should be treated in the same way as the three existing Member States.

ENVIRONMENT Reduction of greenhouse gas emissions–Linking Kyoto mechanisms with Community scheme* The Council adopted a European Parliament and Council Directive complementing Directive 2003/87/EC, which establishes a scheme for greenhouse gas emission allowance trading within the Community, with a view to linking Kyoto Protocol flexible mechanisms (i.e. Joint Implementation and Clean Development Mechanism) to the Community scheme (12359/04).

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The Directive was adopted by qualified majority, with France and Austria voting against. As a result of the Directive, EU operators will be able to partly reduce their greenhouse gas emissions in other countries at lower cost than at home, subject to the conditions of the Kyoto Protocol (for instance, transfer of environmental sound technologies to developing countries). From the global environmental point of view, the place where the emission reduction takes place is of secondary importance. The amending Directive will recognise credits generated through Kyoto project-based mechanisms as equivalent to EU emissions allowances that EU operators are allowed to acquire in order to achieve their emission reduction targets.

DECISIONS TAKEN BY WRITTEN PROCEDURE Iraq - Restrictions on economic and financial relations The Council adopted on 3 August a Regulation amending restrictions on economic and financial relations with Iraq so that legal proceedings concerning contractual obligations entered into by Iraq after 30 June, in particular by its Interim Government, the Central Bank of Iraq and the Development Fund for Iraq, are not subject to certain restrictions laid down in Regulation (EC) No 1210/2003 (11362/04). The Regulation is aimed at implementing Resolution 1546 (2004) of the UN Security Council, adopted on 8 June, which provides that the immunities applicable to Iraq's oil exports and to the Development Fund for Iraq do not apply to final judgements arising out of contractual obligations entered into by Iraq after 30 June. Australia, China and Pakistan - Anti-dumping - polyethylene terephthalate The Council adopted on 13 August a Regulation imposing an anti-dumping duty on imports of polyethylene terephthalate originating in Australia and the People's Republic of China and terminating an anti-dumping proceeding concerning imports of polyethylene terephthalate originating in Pakistan (11747/04). The decision was taken by qualified majority with the Finnish delegation voting against and the Austrian and Hungarian delegations abstaining. Thailand - Anti-dumping - pipe fittings The Council adopted on 18 August a Regulation amending Regulation 964/2003 imposing a definitive anti-dumping duty on imports of certain tube or pipe fittings originating, inter alia, in Thailand (11698/04).

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