Waltzing with the Austrian Presidency 1 Table of contents INTERVIEW OF OTHMAR KARAS, MEP (EPP) 4­7 PRIORITIES OF THE Austrian PRESIDENCY 8­9 POLITICAL CALENDAR FOR THE NExT SIx MONTHS 10 wHAT ABOUT Austria? 11 Some useful words 17 "May I have a dance?" 18 3 INTERVIEW OF OTHMAR KARAS, AUSTRIAN EPP MEP, ECON COMMITTEE MEMBER Hot Topics On the 2nd of May 2018, the European Commission presented its proposal on the Multiannual Financial Framework (MFF) post-2020. The European Commission President, Jean-Claude Juncker, expressed the hope that the European Parliament and the Council would agree on the future EU budget before the next European elections. What are the ambitions of the Austrian Presidency with regard to this Steinbach Dieter Photocredit: issue? The Austrian Presidency seeks, at least, to reach a preliminary settlement on the future MFF1. This certainly bears multiple Othmar KARAS difficulties in achieving, as compromises must be reached between diverging positions. The negotiations on the United Kingdom’s On the one hand, there are advocates for a exit from the EU constitute a challenging higher EU-budget in order to tackle the dossier. The withdrawal of the country future challenges while supplementing the should take place in March 2019. How is loss of contributions from Britain leaving the Austria looking to advance the Brexit Union. negotiations in the coming months? On the other hand, there is a group calling Brexit will be one of the dominant topics, for budget cuts, or a stable budget in terms not only in the upcoming months but also in of percentage, claiming that a smaller EU the years to follow. The Austrian Presidency should coincide with a smaller budget. is well aware of the challenges in the run-up While the Austrian government belongs to to March 2019, as negotiations must be the latter, it will have to mediate between concluded by the end of October 2018. the two camps to reach a compromise, Otherwise, the ratification of the Brexit- which they have promised to achieve. Treaty, in the remaining Member States, Nevertheless, Austria supports increased cannot be implemented within the given spending for the protection of external timeframe. Therefore, Austria will focus on borders as well as for the fight against root maintaining the unity among the EU-27 and causes of illegal migration. laying the foundations for a positive and 1 MFF: Multiannual Financial Framework successful relationship with the UK for the Financial Transaction Tax. The concrete period after its withdrawal. In this regard, proposal is scheduled to be published in Austria will undertake all efforts to support autumn during the Austrian Presidency; it Michel BARNIER in his role as the EU’s would be based on Article 48 of the Lisbon Brexit-chief negotiator. Treaty and would therefore not require a Treaty change. This would not directly On the 17th of May, the European strengthen the European Parliament, as it Commissioner for Transport, Violeta BULC, still only has to be consulted. However, it presented the Third Mobility Package would strengthen the European Union’s aiming for a clean, connected and capacity to act and therefore the European competitive mobility in the EU. What will Parliament strongly supports this move. Of be the priorities of the Austrian Presidency course, the Member States would have to on this legislative package? endorse it by unanimity before it can enter into force. Security and safety are the two main priorities for transport during the Austrian However, the European Parliament has Presidency. Security and safety are not only slowly gained power in the recent years in to be maintained but also to be improved the field of taxation, as there have been and promoted further. The reduction of special and investigation committees on tax fatalities has stagnated; therefore, the issues. TAXE 1 and 2 concerned the European Union aims to take action and to revelations of the LuxLeaks-affair and PANA diminish the number of fatalities by 50 investigated the implications of the Panama percent until 2030. To make this happen the Papers. All the three temporary committees Commission is drafting two legal initiatives, issued recommendations to the identifies an EU Strategic Road Safety Commission and the Council. The present Action Plan and is eager to enhance special committee TAXE 3 exerts pressure communication on connected and to follow these recommendations and to automated mobility systems. There seem to investigate the background of the shocking be no efforts on the other hand, to make murders of journalists in Malta and Slovakia, progress in the direction of an EU-wide toll connected to fraud and tax issues. A system for passenger cars based on the permanent committee on taxation is driven mileage. Austrian Transport Minister therefore an interesting idea to replace the already announced publicly that this project constant prolongations of temporary is not in commuters’ interest and therefore committees. will not be pursued during the Austrian Presidency. In its proposal for the next MFF, the European Commission suggests reducing The European Commission has recently the financing for the Common Agricultural put forward the idea of strengthening the Policy (CAP). What is the position of powers of the European Parliament in the Austria on this proposal? What will be the field of taxation. What is your position on approach of the Austrian Presidency with this issue? Do you think that a permanent regard to the negotiations on the reform of parliamentary committee, dedicated to the CAP? taxation, should be created? Austria takes a stance very similar to the The idea put forward by the Commission is European Parliament, when it comes to the to skip unanimity in decisions of the CAP: No cuts in the budget, if not even an Member States when it comes to the increase of the funding especially for rural Common Consolidated Tax Base for the development. While it will be very Corporation Tax, VAT, Digital Tax and the challenging to reach this goal, Austria will 5 put particular effort in convincing other the European Commission’s proposal of Member States on this point. A more declining direct payments from EUR 60.000 ambitious, fundamentally reformed CAP onwards as a negotiation basis for the with a stronger emphasis on environmental upcoming CAP reform. and climate protection will require a corresponding budget. Austria will support Priorities of the Austrian Presidency of the Council The completion of the Digital Single The Austrian Presidency has a clear position Market is a priority for the European on these issues as set out in the priorities. Commission but also for the Estonian, Chancellor Sebastian KURZ not only Tell us more about Austria Bulgarian and Austrian Presidencies. On supports the Commission's proposal of which specific initiatives, for the increasing the border guards but also development of the Digital Single Market, strongly advocates to implement the is the Austrian Presidency going to place necessary steps earlier than indicated. greater emphasis? However, we cannot stop there. In order to reach a true Common Foreign Policy, we Within this legislative period, the European have to eradicate unanimity in the Council Commission has set the direction towards a on these issues. Only then will the European genuine Digital Single Market with various Union be able to act and react accordingly initiatives and legislative proposals to new emerging challenges. encompassing industry, the internal market, e-Government and infrastructure. Now, Bulgaria and Austria are working jointly on towards the end of the legislative period, the issue of the EU perspective for the Austria is determined to set the pace in Western Balkans. What initiatives is the order to finalize remaining proposals. Free Austrian Presidency going to put forward flow of data, the supply of digital content, in this respect? online and other distance sales of goods have to be finalized in trilogue negotiations Over the past decades, Austria has not just - although the latter would be very deepened the economic relationship with challenging. The recently published the Western Balkans but also strongly proposals for the Digital Europe Programme supported the political process in the 2021-2027 and the Connecting Europe region. The longstanding historical ties and Facility should reach at least a General expertise in the region are an invaluable Approach in the Council so that ideally the asset in supporting the Western Balkans trilogue negotiations could start. region in line with the New Strategy. There is now a clear perspective for the countries Protecting the EU’s external borders is of the Western Balkans with the indicative expected to be among the priorities of the accession date of 2025. We must now open Austrian Presidency. In its MFF proposal, the accession talks with Albania and the European Commission suggests the Macedonia. In this regard, the Austrian creation of a standing corps of around Presidency will be crucial in laying the 10 000 border guards as well as an cornerstone for our common future. increase of the EU budget for the management of external borders, Austria is arguing in favour of the migration and asylum. Is Austria satisfied strengthening of the principle of with this proposal? subsidiarity. Is the Austrian Presidency going to have concrete proposals in this interest that can and have to be settled on direction? What should we expect? regional or even local level where rules can be tailor made. The Austrian Presidency will apply subsidiarity as a general principle of all legal processes. It is clear that European challenges like the Foreign Policy or the protection of the external borders of the European Union can only be dealt with on European level. Nevertheless, there exist other issues such as services of general Tell us more about Austria If I decide to go to Austria just for one Of which Austrian tradition are you week-end, according to you, what are the proudest? places that I should absolutely visit? Due to our rich history, there are countless To get a glance of what Austria is, I traditions we hold dear.