COUNCIL OF THE EUROPEAN UNION EN

11370/06(Presse209)

PRESS RELEASE

2741stCouncilMeeting

Economic and Financial Affairs

Brussels,11July2006

President Eero HEINÄLUOMA MinisterofFinanceofFinland

P R E S S

RuedelaLoi175B–1048BRUSSELSTel.:+32(0) 22816083/6319Fax:+32(0)22818026 [email protected] http://www.consilium.europa.eu/Newsroom 11370/06(Presse209) 1 EN 11.VII.2006

Main results of the Council

The Council adopted a decision allowing to join the area as from 1 January 2007 , making it the first to adopt the euro out of the ten member states that joined the EU on 1 May 2004, with six months to prepare for the changeover. The Council also decided on the permanent exchange rate of the Slovenian tolar to the euro.

The Council abrogated the excessive deficit procedure it opened in July 2004 with regard to Cyprus . It decided that no further action is required at this stage as regards Portugal , following the recommendation it issued in September 2005, whilst confirming the need to continue to closely monitor Portugal’s excessive deficit situation.

The Council also adopted conclusions on member states’ public finances following last year’s revision of the EU’s stability and growth pact, as well as on funding of the International Accounting Standards Board .

11370/06(Presse209) 2 EN 11.VII.2006

CONTENTS 1

PARTICIPANTS...... 5

ITEMS DEBATED

PRESIDENCYWORKPROGRAMME ...... 7

EUROPEANINVESTMENTBANKEXTERNALLENDING...... 8

BRIEFINGONTHE ...... 9

EXCESSIVEDEFICITPROCEDURE ...... 10

– Cyprus ...... 10

– Portugal ...... 10

– Otherissues ...... 11

PUBLICFINANCESCouncil conclusions ...... 12

ENLARGEMENTOFTHEEUROAREASLOVENIA...... 13

DIALOGUEWITHTHIRDCOUNTRIESONECONOMICISSUES ...... 14

ACCOUNTINGSTANDARDSFUNDINGOFTHEIASBCouncil conclusions ...... 15

OTHERBUSINESS ...... 17

– Financialservices:clearingandsettlementofsecuritiestransactions...... 17

OTHER ITEMS APPROVED

TAXATION

– ElectricityinSweden...... 18

COHESION POLICY

– Structuralfundsandcohesionfund(20072013)*...... 18

1  Wheredeclarations,conclusionsorresolutionshavebeenformallyadoptedbytheCouncil,thisisindicated intheheadingfortheitemconcernedandthetextisplacedbetweenquotationmarks.  ThedocumentswhosereferencesaregiveninthetextareavailableontheCouncil'sInternetsite http://www.consilium.europa.eu.  ActsadoptedwithstatementsfortheCouncilminuteswhichmaybereleasedtothepublicareindicatedby anasterisk;thesestatementsareavailableontheabovementionedCouncilInternetsiteormaybeobtained fromthePressOffice. 11370/06(Presse209) 3 EN 11.VII.2006

EXTERNAL RELATIONS

– IvoryCoastRestrictivemeasures...... 18

– InternationalCriminalTribunalfortheformerYugoslavia–Freezingofassets ...... 19

– Cooperationwithindrugsmonitoring...... 19

ENLARGEMENT

– BulgariaandRomaniaEUcodeofconductforbusinesstaxation...... 19

EUROPEAN SECURITY AND DEFENCE POLICY

– Sudan/DarfurEUsupportingactionEUspecialrepresentative ...... 20

TRADE POLICY

– AntidumpingBelarusandRussiaPotassiumchloride...... 20

FISHERIES

– FaroeIslandsImportsofhaddockandquotasforshrimps,prawnsandlobsters...... 20

– EU/GuineaBissauagreement ...... 21

– EU/SãoToméandPríncipeagreement...... 21

DECISIONS TAKEN BY WRITTEN PROCEDURE

– SouthernOceanfisheriesagreement...... 21

TRANSPARENCY / PUBLIC ACCESS TO DOCUMENTS

APPOINTMENTS

– CommitteeoftheRegions ...... 22

– EconomicandSocialCommittee ...... 23

11370/06(Presse209) 4 EN 11.VII.2006

PARTICIPANTS

TheGovernmentsoftheMemberStatesandtheEuropeanCommissionwererepresentedas follows:

Belgium: MrDidierREYNDERS DeputyPrimeMinisterandMinisterforFinance Czech Republic: MrTomášPROUZA DeputyMinisterforFinance Denmark: MrClausGRUBE PermanentRepresentative Germany: MrThomasMIROW StateSecretary,FederalMinistryofFinance Estonia: MrAivarSÕERD MinisterforFinance Greece: MrGeorgiosALOGOSKOUFIS MinisterforEconomicAffairsandFinance Spain: MrPedroSOLBESMIRA SecondDeputyPrimeMinisterandMinisterforEconomic AffairsandFinance France: MrThierryBRETON MinisterforEconomicAffairs,FinanceandIndustry Ireland: MrBrianCOWEN MinisterforFinance Italy: MrTommasoPADOASCHIOPPA MinisterforEconomicAffairsandFinance Cyprus: MrMichalisSARRIS MinisterforFinance Latvia: MrOskarsSPURDZIĥŠ MinisterforFinance Lithuania: MrJauniusSIMONAVIČIUS DeputyMinisterforFinance Luxembourg: MrJeanClaudeJUNCKER PrimeMinister,"Ministred'Etat",MinisterforFinance Hungary: MrJánosVERES MinisterforFinance Malta: MrTonioFENECH ParliamentarySecretary,MinistryofFinance Netherlands: MrGerritZALM DeputyPrimeMinister,MinisterforFinance Austria: MrAlfredFINZ StateSecretary,FederalChancellery Poland: MrPawelWOJCIECHOWSKI MinisterforFinance Portugal: MrFernandoTEIXEIRADOSSANTOS "MinistrodeEstado",MinisterforFinance Slovenia: MrAndrejBAJUK MinisterforFinance Slovakia: MrJánPOČIATEK MinisterforFinance

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Finland: MrEeroHEINÄLUOMA DeputyPrimeMinister,MinisterforFinance MrPerttiRAUHIO StateSecretary,MinistryofFinance Sweden: MrPärNUDER MinisterforFinance United Kingdom: MrJohnHEALEY FinancialSecretarytotheTreasury

Commission: MrJoaquinALMUNIA Member MrCharlieMcCREEVY Member

Other participants: MrJürgenSTARK MemberoftheExecutiveBoardoftheEuropeanCentral Bank MrPhilippeMAYSTADT PresidentoftheEuropeanInvestmentBank MrXavierMUSCA PresidentoftheEconomicandFinancialCommittee MrJoeGRICE ChairmanoftheEconomicPolicyCommittee

TheGovernmentsoftheAccedingStateswererepresentedasfollows:

Bulgaria: MrPlamenVassilerORESHARSKI MinisterforFinance Romania: MrSebastianVLĂDESCU MinisterforPublicFinance

11370/06(Presse209) 6 EN 11.VII.2006

ITEMS DEBATED

PRESIDENCY WORK PROGRAMME

FinlandpresenteditsworkprogrammefortheEconomicandFinancialAffairsCouncil,updating, forthedurationofitspresidencyduringthesecondhalfof2006,thejointAustrianandFinnish programmepresentedinJanuary( 10789/06 ).

Theworkprogrammefocusesonthefollowingissues:

– Strengtheningthecoordinationframeworkforeconomicpolicy,onthebasisofthe2005 revisionsoftheEU'sstabilityandgrowthpactandLisbonstrategyforgrowthandjobs.

– Stabilityoffinancialmarkets,inparticularfinancialmarketscrisismanagement.

– Integrationoffinancialmarkets.

– Alcoholtaxation.

– Valueaddedtax:reformofprovisionsontheplaceoftaxationforservicesandsimplifying VATobligationsforbusinesses.

– Enlargementoftheeuroarea.

– RenewaloftheEuropeanInvestmentBank'smandateforexternallending.

– ImplementationoftheEU'sbudgetaryframeworkfor200713.

– Regulatoryreform.

– Globalcompetition,innovationandproductivity.

– Energy:energyefficiencyandsecurityofsupply.

11370/06(Presse209) 7 EN 11.VII.2006

EUROPEAN INVESTMENT BANK - EXTERNAL LENDING

TheCounciltooknoteofthepresentationbytheCommissionofaproposalforadecisionaimedat renewing,forthe200713period,themandatesgiven,underguaranteefromtheEUbudget,tothe EuropeanInvestmentBankforlendingforprojectsoutsidetheEU.TheCommissionalsopresented areportontheEIB'sactivitiesunderitscurrentmandates.

TheCouncilheldapolicydebateonsomeofthemainpoliticalissues.Itrequestedtheeconomic andfinancialcommitteetofurtherexaminetheproposalandreportbacktotheCouncilduringthe autumn.

TheEIB'sexistingexternallendingmandateswillnormallyexpireinJanuary2007.Activities outsidetheEUcurrentlymakeup10%ofitstotalactivities,amountingtoEUR5,1billionin2005, ofwhich72,5%wereunderEUguarantee.

TheCommission'sproposalwouldallowlendinguptoatotalamountofEUR33billionoverseven yearswitha65%guaranteecoverage.Itprovidesforanewgeographicalbreakdowninorderto ensurebetterlinkagewiththeEU'sexternalrelationspoliciesandobjectives,aswellasareserve mandatetobeactivatedincasesofnaturaldisasters,postconflictreconstructionandstrategic developments.

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BRIEFING ON THE EUROGROUP

TheCouncilwasbriefedbythepresidentoftheeurogroupontheeurogroupmeetingheldon10 July.

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EXCESSIVE DEFICIT PROCEDURE

– Cyprus

TheCounciladoptedadecision,underarticle104(12)oftheEUtreaty,abrogatingitsJuly2004 decisionontheexistenceofanexcessivegovernmentdeficitinCyprus.ItnotedthatCyprushad compliedwiththetermsoftherecommendationitissuedinJuly2004,underarticle104(7),on actiontobetakeninordertobringitsdeficitbelow3%ofgrossdomesticproduct(GDP).

Initsdecision,theCouncilhighlightstheeffortsmadebyCyprustomeetthetermsitset–the generalgovernmentdeficitstoodat2,4%ofGDPin2005,comparedwith4,1%in2004(theyearit joinedtheEU)and6,25%in2003–whilstconfirmingtheneedforfurthervigilance.

TheCouncilhadadoptedthedecisionandrecommendationinJuly2004inthelightofCyprus's breachingofthe3%referencevaluesetbytheEUtreaty.Itsetadeadlineforthecorrectionofthe excessivedeficitby2005atthelatest.

Cyprus’sgovernmentdebtstoodat70,25%ofGDPin2005,comparedwith72,25%andrisingin 2003.Initsrecommendation,theCouncilhadcalledonCyprustoensurethattheriseinthedebt ratioisbroughttoahaltin2004andreversedthereafter,soastobesufficientlydiminishing towardsthe60%referencevaluesetbythetreaty.

– Portugal

TheCouncilexaminedacommunicationfromtheCommissionassessingactiontakenbyPortugal inordertocorrectitsexcessivegovernmentdeficitfollowingarecommendationissuedbythe CouncilinSeptember2005underarticle104(7)oftheEUtreaty.

TheCouncilwelcomedthecommitmentbyPortugaltoaddressitsbudgetdeficitsonastructural basis,withoutrecoursetooneoffmeasures,andemphasisedtheimportanceofbudgetary consolidationwithinabroadstrategyaimedatenhancingcompetitivenessandpotentialgrowth.It sharedtheCommission’sviewthatthemeasurestakenfollowingitsrecommendationallowed Portugaltomeetthe2005deficittargetandwould,iffullyimplemented,ensureadequateprogress in2006towardsthecorrectionoftheexcessivedeficitwithinthetimelimitsetinthe recommendation.

11370/06(Presse209) 10 EN 11.VII.2006

However,theCouncilnotedthatanadjustmentof1,5%ofgrossdomesticproductinthecyclically adjusteddeficitfrom2005to2006,netofoneoffmeasures,asrequestedinitsrecommendation, andtheachievementofthedeficittargetsfor2007,cruciallydependonaquicktranslationinto legislationandaneffectiveimplementationofalltheannouncedcorrectivemeasures.Astrict implementationofthe2006budgetandarigorous2007budgetfullyincompliancewiththe Councilrecommendationwillthereforebekeyforkeepingthecorrectionoftheexcessivedeficiton track.

Againstthisbackground,thecorrectionoftheexcessivedeficitbythe2008deadlineandthe reductioninthedebtratioaresubjecttosignificantrisksanduncertainties.Ifmeasures,inparticular onexpenditurecontrol,arenotfullyimplementedorproveineffective,orthedownwardriskstothe projectedeconomicscenariomaterialise,furthercorrectiveeffortswouldbeneededinorderto attainthefiscaltargetsinlinewiththeCouncil’srecommendation.

TheCouncilwillcontinuetogetherwiththeCommissiontocloselymonitorbudgetary developmentsinPortugal,inaccordancewiththeEUtreatyandstabilityandgrowthpact,witha viewtoensuringthatadequateactioncontinuestobetaken.

– Other issues

TheCouncilwasinformedbytheHungarianandItalianministersofmeasurestakenandfiscal plansagreedbytheirrespectivegovernmentswithregardtotheirexcessivedeficits.

11370/06(Presse209) 11 EN 11.VII.2006

PUBLIC FINANCES - Council conclusions

TheCounciladoptedthefollowingconclusions:

"OneyearafterthereformoftheStabilityandGrowthPact(SGP),andonthebasisofthe Commission'sCommunicationonPublicFinancesinEMU,theCouncildiscussedthe implementationoftherevisedSGP.Ministersalsoexchangedviewsontheexecutionofthe2006 budgetsandpreparationsofbudgetaryplansfor2007.Theyagreedtocomebacklaterthisyearto therolenationalfiscalrulesandinstitutionscanplaytofacilitatebudgetaryconsolidationstrategies aswellastohelpavoidprocyclicalpolicies.

Overall,thefirstyear'sexperiencewiththerevisedSGPcanbejudgedaspositive.Whileremaining arulesbasedsystem,thereformedSGPhasstimulatedaconstructiveandtransparenteconomic policydialogueatEUlevelontheindividualcountrycases,allowingtheCounciltoreach unanimousagreementonallrecommendationsputforwardbytheCommissionundertherevised rulesofthePact.

BudgetaryadjustmentintheEUhasresumedandbudgetarypositionsin2005haveimprovedin structuraltermsby0,8%ofGDP,bothintheEUandintheeuroarea.Mediumtermbudgetary objectives(MTO)havebeendifferentiatedforindividualMemberStatesinlinewiththeagreed principles;insomecases,MTOsaremoreambitiousthanrequiredbytheSGP.However,some MemberStatesmustpursueandstepupeffortstoreachtheirmediumtermbudgetaryobjectives.In manycases,theadjustmentneedstobemorefrontloadedandunderpinnedbyconcretemeasures.

In2006,theeconomicsituationisimproving.Itisessentialtotakeadvantageofthisbenign economicenvironmenttopursueandstepupfiscalconsolidationefforts.Thelongtermfiscal sustainabilitychallengesstemmingfromageingpopulationsshouldbeattheheartofpolicymaking. Againstthisbackground,MemberStatesshouldimplement2006budgetswithrigourand,when preparingtheir2007budgets,maintainorspeedupthepaceofdeficitanddebtreductionandavoid procyclicalfiscalpolicies.MemberStatesinexcessivedeficitprocedurearecommittedtoputan endtotheexcessivedeficit,fullycomplyingwiththeCouncilrecommendations.MemberStatesof theeuroareaandoftheERMIIthathavenotyetreachedtheirMTOreaffirmtheircommitmentto achieve,asabenchmark,anannualstructuraladjustmentof0,5%ofGDPnetofoneoffmeasures."

11370/06(Presse209) 12 EN 11.VII.2006

ENLARGEMENT OF THE EURO AREA - SLOVENIA

TheCounciladopted:

– adecisionallowingSloveniatoadopttheeuroasitsasfrom1January2007;

– aregulationfixingtheirrevocableconversionratebetweentheSloveniantolarandthe euro,amendingregulation2866/98accordingly.

AdmissionofSloveniawillmakeitthefirsttojointheeuroareaoutofthetenmemberstatesthat joinedtheEUon1May2004,withsixmonthstoprepareforthechangeover.Adoptionoftheeuro asSlovenia'scurrencywilloccuratthesametimeastheissuingofeuronotesandcoins.

Theconversionrateissetat239.64Sloveniantolarstotheeuro,whichcorrespondstothecurrent centralrateofthetolarwithintheEU'sERMIIexchangeratemechanism.

TheCouncilencouragedSloveniatocontinuewithappropriatepoliciestoensurethatitcanmake themostofthebenefitsofjoiningtheeuro,inparticularasregardsbudgetaryrigour,structural reformandmaintainingthecompetitivenessofitseconomy.

TwelveoftheEU’s25memberstatescurrentlyusetheeuroastheircurrency:Belgium,Germany, Greece,Spain,France,Ireland,Italy,Luxembourg,theNetherlands,Portugal,AustriaandFinland. Euronotesandcoinswereintroducedinalltwelvecountrieson1January2002.

11370/06(Presse209) 13 EN 11.VII.2006

DIALOGUE WITH THIRD COUNTRIES ON ECONOMIC ISSUES

TheCouncilwasbriefedbytheCommissionondialogueengagedwithanumberofthirdcountries, includingthefinancialmarketsregulatorydialoguewiththeUnitedStatesandinformaldialogueon economicandregulatoryissueswithChina,Russia,JapanandIndia.Itheldabriefexchangeof views.

TheCouncilrequestedthepermanentrepresentativescommitteeandtheeconomicandfinancial committeetoexaminefurthertheissuesandtoreportbackatafuturemeeting.

11370/06(Presse209) 14 EN 11.VII.2006

ACCOUNTING STANDARDS - FUNDING OF THE IASB - Council conclusions

TheCounciladoptedthefollowingconclusions:

"TheCouncilemphasisestheimportanceofhighqualityfinancialstatementsforthedevelopmentof theEUfinancialmarkets;andacknowledgestheroleoftheInternationalAccountingStandards Board(IASB)inproducingInternationalFinancialReportingStandards(IFRS),aswellas interpretationsofthesestandards.TheCouncilnotesthatthecurrentfundingschemeoftheIASB expiresattheendof2007,andconsidersthatstableandsecurefinancingmustbeensuredinorder fortheIASBtofulfilitsfunction.

TheCouncilwelcomesthecurrentprivatesectoreffortstocreateabroadbasedvoluntaryfinancing systemfortheIASBandrecognisestheneedtofinalisethefinancingsysteminordertopreventany disruptionoftheoperationsoftheIASB.

TheCouncilstressestheimportanceofthefollowingfactors,whichmustbetakenintoaccountin structuringafuturefinancingsystemoftheIASB:

– thefinancingsystemwouldbenefitfromaverybroadbaseofcontributorsandthe involvementofstakeholdersfromallpartsoftheworldsoastoavoidpossibleconflictsof interest;

– financingallocationsshouldbeclearlydeterminedforallcategoriesofcontributorstaking intoaccounttheprecisefinancingneed;andtheyshouldbebasedonobjectivecriteriafor contributorsfromdifferentgeographicalregionsorjurisdictions;

– takeholdersbenefitingfromtheuseofIFRSfinancialstatementsshouldbetheprimary contributorstothefinancingoftheIASB;

– therelevantpartiesareurgedtocooperateintheirjurisdictionsinrelationtothepractical modalitiesrelatingtothefundingoftheIASB.TheCommissionisinvitedtomonitorthis processinsidetheEUandprovideitsassistance, ifneeded;

– afinancingsystembasedonvoluntarycontributionsshouldbereviewedafterthreeyears ofoperationinordertoseeifthesystemhasfulfilleditsobjectives.Thepossibilityof fundingtheIASBpartlythroughpublicmeansremainstobeexamined;

11370/06(Presse209) 15 EN 11.VII.2006

– inmoregeneralterms,theIASBshouldcontinueto:

1) strengthenitsgovernancestructure,withaviewtoadequatelytakeintoaccountthepublic interest,includingfinancialstabilityaspects;

2) strengthenitsdueprocesswithstakeholdersincludingworkplanningandsettingof standardsaswellastheirinterpretationsinparticularrelatingtoconsultation,sothat viewsofallIFRSusersandinvestorsarefullytakenintoaccount.Inthiscontext,impact assessments,fieldtestingandreasoningbehindanyactionsshouldbedeveloped;and cooperationwithotherstandardsettingbodiesshouldinvolvestakeholdersusingIFRS;as wellas

3) ensurethatstakeholdersareadequatelyrepresentedintheIASCFoundation,IASBand InternationalFinancialReportingInterpretationsCommittee(IFRIC)governingbodies, bringingadditionaltechnicalexpertise;

TheCouncilalsostressesthatcompanies,whichintheEUarecurrentlyfinancingEFRAG,should continuetodevoteresourcesforthatpurpose.

TheCouncilinvitestheCommissionandtheEconomicandFinancialCommitteetomonitorthe IASBissues,andreporttotheCouncilonaregularbasis,startinginautumn2006,soastoassess thateffectiveprogresshastakenplaceontheabovementionedissues."

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OTHER BUSINESS

– Financial services: clearing and settlement of securities transactions

TheCouncilwasbriefedbytheCommissiononitsintentionsregardinginitiativesaimedat improvingtheclearingandsettlementofsecuritiestransactionsintheEU.

ThepresidentoftheCouncilindicatedthattheissuewouldbediscussedingreaterdetailbeforethe endoftheyear.

*

* *

At lunch, ministers discussed preparations for the International Monetary Fund's annual meeting in Singapore on 19 and 20 September, in particular as regards reform of IMF governance.

11370/06(Presse209) 17 EN 11.VII.2006

OTHER ITEMS APPROVED

TAXATION

Electricity in Sweden

TheCounciladoptedadecisionamendingdecision2005/231/ECauthorisingSwedentoapplya reducedrateoftaxationtoelectricityconsumedbycertainhouseholdsandservicesector companies. (10552/06)

COHESION POLICY

Structural funds and cohesion fund (2007-2013)*

TheCounciladoptedaregulationlayingdowngeneralprovisionsontheEuropeanregional developmentfund,theEuropeansocialfundandthecohesionfund.Italsoadoptedaregulation establishingtheCohesionfundforthe20072013period. (9077/06, 9078/06)

(See press release 11538/06)

EXTERNAL RELATIONS

Ivory Coast - Restrictive measures

TheCounciladoptedadecisionimplementingcommonposition2004/852/CFSPconcerning restrictivemeasuresagainstIvoryCoast,addingidentifyinginformationtothelistofpersons affectedbytherestrictivemeasuresimposedbyUnitedNationsSecurityCouncil(UNSC) resolution1572(2004),asextendeduntil15December2006 byUNSCresolution1643(2005) (10497/06) .

On30May2006,thecommitteeestablishedpursuanttoUNSCresolution1572(2004)approvedan updatedconsolidatedlistofpersonssubjecttorestrictivemeasures.Thelistiscomposedofthe followingnames:CharlesGoudéBlé,DjuéNgoranEugèneKouadioandMartinKouakouFofie.

11370/06(Presse209) 18 EN 11.VII.2006

Commonposition2004/852/CFSPrestrictstheprovisionofarmsandmilitaryassistanceand establishestheframeworkforavisabanandassetsfreezeonpersonsconstitutingathreattopeace andnationalreconciliation.Italsoprohibitsthedirectorindirectimportofallroughdiamondsfrom IvoryCoast,whetherornotoriginatinginthatcountry.

International Criminal Tribunal for the former Yugoslavia – Freezing of assets

TheCounciladoptedadecisionimplementingcommonposition2004/694/CFSPbyamendingthe listofpersonstowhomeconomicsanctionsshouldapplyforhavingbeenindictedbythe InternationalCriminalTribunalfortheformerYugoslavia(ICTY) (10897/06) .

FollowingthetransferofMrDraganZelenovictothecustodyofICTYon10June,hisnamehas beenremovedfromthelist.

Thelistnowcontainssixnames.

Cooperation with Croatia on drugs monitoring

TheCouncilauthorisedtheCommissiontoopennegotiationswithCroatiawithaviewto participationbyCroatiaintheworkoftheEuropeanMonitoringCentreforDrugsandDrug Addiction(EMCDDA).

TheEMCDDAisthecentralreferencepointfordruginformationintheEU.Itwassetupin1993 andisbasedinLisbon.ItsroleistoprovidetheEUanditsmemberstateswithobjective,reliable andcomparableinformationondrugsanddrugaddiction.

ENLARGEMENT

Bulgaria and Romania - EU code of conduct for business taxation

TheCounciltooknoteofareportontheassessmentofalistofpotentiallyharmfultaxmeasuresin BulgariaandRomaniawhichmustbeeliminatedoramendedinordertobringtheircorporatetax systemsinlinewiththeprinciplesofthecodeofconductforbusinesstaxationbythedateoftheir accessiontotheEU.

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EUROPEAN SECURITY AND DEFENCE POLICY

Sudan/Darfur - EU supporting action - EU special representative

TheCounciladoptedadecisionconcerningtheimplementationofjointaction2005/557/CFSPon anEUcivilianmilitarysupportingactiontotheAfricanUnionmission(AmisII)intheDarfur regionofSudan (10517/06) .

Underthisdecision,thefinancialreferenceamountofEUR2,2millionsetoutinNovemberlast yearbydecision2005/806/CFSPfortheextensionofthesupportingactionwillalsocover expenditureforitscontinuationuntil31October2006.TheCouncilwillevaluatenolaterthan30 September2006whetherthesupportingactionshouldagainbecontinued.

TheCouncilalsoadoptedon5July,bywrittenprocedure,ajointactionrenewingandrevising, until28February2007,themandateoftheEUspecialrepresentative(EUSR)forSudan(10483/06), Mr.PekkaHaavisto,withafinancialreferenceamountofEUR1million.

TheEUSRforSudanensurescoherencebetweentheEU'ssupportingactiontoAmisII,political effortstopromotepeaceinDarfurandactivitiesrelatingtoimplementationofthepeaceagreement aswellastheEU'spolicyobjectivestowardsSudan.

TRADE POLICY

Anti-dumping - Belarus and Russia - Potassium chloride

TheCounciladoptedaregulationimposingadefinitiveantidumpingdutyonimportsofpotassium chlorideoriginatinginBelarusandRussia(10609/06) .

FISHERIES

Faroe Islands - Imports of haddock and quotas for shrimps, prawns and lobsters

TheCounciladoptedadecisionenablingtheEUDenmark/FaroeIslandsjointcommitteetoamend theEUDenmark/FaroeIslandsagreement,withaviewtoallowingdutyfreeimportsintotheEUof frozenhaddockandincreasedquotasforshrimps,prawnsandNorwaylobster(10299/06) .

11370/06(Presse209) 20 EN 11.VII.2006

EU/Guinea-Bissau agreement

TheCounciladoptedadecisionapprovingthesigningofanagreementwithGuineaBissauwitha viewtoextendingforoneyeartheprotocolestablishingfishingopportunitiesandthefinancial contributionprovidedforintheEU/GuineaBissauagreementonfishingoffthecoastof GuineaBissau (10451/06) .Theagreementwillbeappliedonaprovisionalbasispendingadoption ofaCouncildecisiononitsconclusion.

Theagreementcoverstheperiodfrom16June2006to15June2007.Fishingopportunitiessetout intheprotocolareallocatedtomemberstatesasfollows:

– shrimps:Italy1776grossregisteredtonnes(GRT),Spain1421GRT,Portugal1066GRT, Greece137GRT

– finfish/cephalopods:Spain3143GRT,Italy786GRT,Greece471GRT

– tunaseiners:Spain20,France19andItaly1

– surfacelonglinersandpoleandlinevessels:Spain21,France5andPortugal4.

TheCommunity'sfinancialcompensationamountstoEUR7260000.

EU/São Tomé and Príncipe agreement

TheCounciladoptedaregulationapprovingtheconclusionofanagreementwithSãoToméand Príncipeextendingforoneyeartheprotocolestablishingfishingopportunitiesandthefinancial contributionprovidedforbytheEU/SãoToméandPríncipeagreementonfishingoffthecoastof SãoToméandPríncipe(10392/06) .

TheagreementstipulatesfishingopportunitiesforEUfishermenfortheperiodfrom1June2005to 31May2006.

DECISIONS TAKEN BY WRITTEN PROCEDURE

Southern Indian Ocean fisheries agreement

TheCounciladoptedon6July2006adecisionapprovingthesigningofaSouthernIndianOcean fisheriesagreement (10521/06) .Theobjectivesofthisagreementaretoensurethelongterm conservationandsustainableuseoffisheryresourcesandtopromotesustainabledevelopment, takingintoaccountinparticulartheneedsoftheleastdevelopedstatesborderingthezone.

11370/06(Presse209) 21 EN 11.VII.2006

TRANSPARENCY / PUBLIC ACCESS TO DOCUMENTS

TheCounciladopted:

thereplytothelettersenttotheCouncilbytheEuropeanOmbudsmanconcerning complaint817/2006/TNmadebyMrMartinSKÖRVALD( 8785/06 );

thereplytothelettersenttotheCouncilbytheEuropeanOmbudsmanconcerning complaint0386/2006/BMmadebyMrJoséManuelROSAPEREZ,theSwedishdelegation votingagainst( 8988/06 );

thereplytoconfirmatoryapplication25/c/01/06madebyMrMogensHOBOLTH (9541/06 );

thereplytoconfirmatoryapplication26/c/01/06( 9661/06 );

thereplytoconfirmatoryapplication27/c/01/06,theSwedishdelegationvotingagainst (9750/06 ).

APPOINTMENTS

Committee of the Regions

TheCounciladopteddecisionsappointing:

– Asalternatemember:

MrPavelHORÁK,DeputyPresidentoftheOlomoucRegion,inplaceofMrIvan KOSATÍK (10319/06) ;

– Asfullmember

MrHeliodoroGALLEGOCUESTA,MayorofPalencia,inplaceof MrFranciscoJoséVÁZQUEZVÁZQUEZ (10424/06).

11370/06(Presse209) 22 EN 11.VII.2006

Economic and Social Committee

TheCounciladoptedon4July,bywrittenprocedure,adecisionappointingMrJanne METSÄMÄKIasamemberoftheEconomicandSocialCommittee.

TheCounciladoptedadecisionappointingmembersoftheEconomicandSocialCommitteefrom thefollowingcountries:CzechRepublic,Germany,Estonia,Spain,France,Italy,Latvia,Lithuania, Luxembourg,Hungary,Malta,Austria,SloveniaandSlovakia (10434/06).

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