Below is the text of the Presidency Conclusions, following the Cannes European Council meeting held on 26th and 27th June 1995.
Meeting with 15 Member States for the first time, the European Council has considered the basic questions which confront the Union today and how they might be tackled, on both the internal and external fronts. It has thus laid solid foundations for a new stage in the process of European integration, with revision of the Union Treaty, completion of economic and monetary union and the achievement of a further major enlargement.
At home, the Union must provide an improved response to its citizens' legitimate expectations, that is to say, it must make it a priority to mobilize all its resources, including those of the Member States, to combat the scourge of unemployment effectively. This means implementing a broad range of measures at both national and Community level in full compliance with the convergence criteria; compliance with these criteria is also a precondition for introduction of a single currency: in particular, the Community's economy must be made more dynamic, by making sure that it remains competitive with its principal rivals and by mastering new technologies, especially information technologies. Finally, people's desire for security must be satisfied.
Externally, the Union is determined to work towards stability and peace on the continent of Europe, by preparing for the accession of the associated European countries. Their presence here in Cannes today provides confirmation that they are destined to join the Union. The Union also intends to strengthen relations in all spheres with the Mediterranean countries, to implement the customs union with Turkey as part of a developing relationship with that country, to establish close and balanced relationships with Russia and the CIS countries, to strengthen its special relationship with the ACP, to give fresh impetus to transatlantic relations and forge closer links with Latin America and Asia.
To be able to achieve these ambitions, the Union will need to complete preparation for the 1996 Intergovernmental Conference in the next few months; the discussions of the Reflection Group set up in Messina will be a contribution to that process.
The European Council heard a statement from the President of the European Parliament, Mr Klaus Hänsch, on the main questions dealt with.
I. ECONOMIC, SOCIAL AND MONETARY QUESTIONS
1.1. Despite the resumption of economic growth, the unemployment rate will remain unacceptably high in 1995. It is therefore of the utmost importance that, in line with the five guidelines set out in Essen, Member States should press ahead with structural reforms of the employment market, the effectiveness of which has been demonstrated by some initial examples. The fight against unemployment and equal opportunities questions will remain the most important task facing the European Union and its Member States. The European Council calls on the Member States to give effect to those efforts in the form of multiannual programmes to be put forward in the autumn. The Council and the Commission will cooperate in preparing the first annual report on the implementation of these programmes, which will be submitted to the Madrid European Council. In this context, the European Council emphasizes the need for careful preparation of the report provided for at its Essen meeting on the inter-
As an economic entity, the European Union offers additional room for manoeuvre and a specific added value that make for the creation of lasting employment. The European Council calls upon the Council and the Commission to study the mutually reinforcing effect of increased coordination of economic and structural policies and to report back to it at its Madrid meeting.
The European Council takes note of the interim report examined by the social partners in the Standing Committee on Employment on 19 June. Rolling back unemployment means implementing stability-
The European Council emphasizes that such macro-
1.2. The European Council places particular emphasis on the need to foster growth of a kind that will create jobs, to step up measures to bring young people and the long-
At the European Social Conference in Paris on 30 March 1995, the social partners, the European Confederation of Trade Unions, UNICE and the European Association of Craft and Small and Medium-
1.3. The initiative of entrepreneurs, their decisions on hiring and on investments, also brings growth. The aim must therefore be to create a "virtuous" spiral of initiative, employment and growth. To do that, individual incentives to productivity need to be strengthened, competition stimulated and, in general, market flexibility increased.
The European Council notes with satisfaction the Commission's reports on the development of local employment initiatives and SMEs, as well as the report from the CIAMPI Group on competitiveness, which it received with great interest.
The European Council emphasizes the importance it attaches to the development of local employment initiatives in particular in the field of services linked with the environment and living standards, crafts and traditional products. It takes note of the Commission communication on the subject. It places emphasis on the need to disseminate initiatives undertaken at national level. The Commission communication will be examined by the Council on Social Affairs and Labour, which will submit a report to the Madrid European Council.
The European Council emphasizes that small and medium-
The European Council emphasizes the importance of developing investment in research, development and education at national and Community level. It likewise emphasizes that in order to stimulate employment, competitiveness and innovation, it is important to combat excessive regulation where simplification is justified, without jeopardizing what has been achieved. In this context, noting the outcome of the discussions of the group of independent experts, it would like the Commission to propose specific measures for administrative simplification which could be taken by the competent bodies before the end of the year.
1.4. Investment promotion also has a role to play in combating unemployment. The European Council welcomes the progress made with implementation of the priority projects adopted at Essen, in particular the agreements reached on defining the regulatory framework. In this connection, other measures should be adopted to establish fairer competition between modes of transport.
The fourteen transport projects, although at different stages of maturity, are all being worked upon: for more than half of them, which are also the most significant financially, preparatory studies are under way, and in some cases completed; for the others, construction work has already begun.
The European Council requests the Commission to re-
The European Council also calls upon the Commission to make every endeavour to ensure that projects eligible under the Financial Regulation can be submitted at the earliest opportunity so that the appropriations available can be released as from adoption of that Regulation in 1995.
The European Council notes, in the light of the Commission's estimate, that the fourteen transport projects defined as priorities in Essen will represent 75% of the appropriations available under the "networks" heading, i.e. an amount in the region of ECU 500 million for 1995 and 1996.
1.5. The European Council emphasizes the development potential of new growth sectors (for example, multi-
1.6. The proper functioning of the internal market is fundamental to a dynamic economy and thus to job creation. The Community and its Member States must therefore give priority to the effective working of the internal market. The European Council welcomes the communication from the Commission and the Council Resolutions on this subject. The effective and uniform application of Community legislation throughout the Union will increase confidence in the single market on the part of industry and the public. The European Council also restates the importance it attaches to rigorous application of the principle of subsidiarity; in this context, the European Council calls on the Commission to implement the 1993 programme for the revision of existing legislation as soon as possible and to report back for its Madrid meeting.
1.7. The European Council reiterates its concern that the introduction of greater competition into many sectors in order to complete the internal market should be compatible with the general economic tasks facing Europe, in particular balanced town and country planning, equal treatment for citizens, -
2. Economic and Monetary Union
The European Council restates its firm resolve to prepare the transition to the single currency by 1 January 1999 at the latest in strict accordance with the convergence criteria, timetable, protocols and procedures laid down in the Treaty. To that end:
II. EXTERNAL RELATIONS
The European Council reaffirms that negotiations on the accession of Malta and Cyprus to the Union will begin on the basis of Commission proposals, six months after the conclusion of the 1996 Intergovernmental Conference and taking the outcome of that Conference into account. It stresses the importance it attaches to preparing the accession of the associated countries to the Union and approves the Council conclusions on the White Paper on integrating those countries into the internal market and the Council report on implementing the strategy of preparing for accession (see Part B, page 3). It invites the Commission to report back to its next meeting on progress in implementing the White Paper and on the studies and analyses requested at Essen. The success of the Conference on Stability in Europe (held in Paris on 20 and 21 March 1995) will help bring the countries of Central and Eastern Europe and the European Union closer together. The European Council calls on the countries concerned and on all the parties to implement the agreements and arrangements in the Stability Pact, which has now been entrusted to the OSCE, and calls on the countries concerned to work for the practical improvement of good-
Against this general background, the European Council, which is particularly concerned at the situation in former Yugoslavia, adopted the statement in Part B (page 13).
The European Council reaffirms the European Union's concern to contribute to political stability and prosperity in the Baltic Sea region. It awaits with interest the progress report on cooperation in that region.
The European Council refers to the need for Slovenian real estate legislation to be harmonized with European rules, as laid down in the statement of 6 March 1995. In addition, it hopes that the Association Agreement with Slovenia will be signed as soon as possible and that Slovenia will subsequently participate in the structured dialogue.
It is pleased to note the initialling of the new Agreement with Tunisia. It urges early conclusion of the Agreements with Morocco and Israel. Lastly, it calls for rapid progress to be made in the negotiations with Egypt, Jordan and Lebanon. It welcomes the closer ties between the European Union and Turkey.
Gravely concerned by the situation in Algeria, the European Council renews its appeal to all those involved in political life to break the cycle of violence and find a political solution through peaceful dialogue and free and fair elections. It reaffirms its readiness to support an economic restructuring policy in Algeria.
The European Council pays tribute to the efforts made by the Parties directly concerned in the Middle East Peace Process to achieve, despite the difficulties in their path, a just, lasting and comprehensive peace in the region. It expresses the fervent hope that the Israeli-
With regard to security, the European Council considers that dialogue between Russia and the Atlantic Alliance should be stepped up, using the existing mechanisms. It further considers that conclusion of an agreement, perhaps in the form of a charter, should be envisaged. This process must be compatible with NATO and WEU policies and with the gradual integration of the countries of Central and Eastern Europe.
In the near term the European Council, noting that progress has been made with regard to the situation in Chechnya and relying on confirmation of that progress, has decided in favour of signing the Interim Agreement.
The European Council welcomes the progress of Ukraine's economic reforms achieved in close cooperation with the international financial institutions, and the decision to grant Ukraine the first tranche of a balance-
In addition, it welcomes the annual Summits between the European Union and Japan held in Paris on 19 June, and between the European Union and Canada on 17 June which demonstrated the willingness to strengthen and rebalance their relations.
It intends to work resolutely for peace and disarmament within the framework of the common foreign and security policy:
III. INTERNAL MATTERS
The European Council takes note of the reports submitted by the Member States on their domestic measures to combat wastage and misappropriation of Community funds. It invites the Commission to prepare a comparative summary for the European Council in Madrid. On this basis, it calls on Member States and all Institutions to persevere in the battle against fraud and waste.
It also asks the Council to see to it that the Convention on checks on persons crossing the Union's external frontiers is signed before the next European Council meeting, subject to solutions being found to the questions outstanding. Finally, it invites the last States concerned to complete their procedures for ratifying the Dublin Convention.
IV. PREPARATION FOR THE 1996 INTERGOVERNMENTAL CONFERENCE
The European Council notes with satisfaction that preparations for the 1996 Intergovernmental Conference are now well under way. The Reflection Group of personal representatives of the Foreign Affairs Ministers and of the President of the Commission, with two representatives of the European Parliament also taking part, was set up in Messina on 2 June 1995. The Group has received reports from the institutions on the functioning of the Treaty on European Union, which will provide an input for its work. It has drawn up its programme of work.
The European Council confirms that, in line with its conclusions at Corfu, the Reflection Group will examine and elaborate suggestions relating to the provisions of the Treaty on European Union due for review and other possible improvements in a spirit of democracy and openness, on the basis of the evaluation of the functioning of the Treaty as set out in the reports. It will elaborate options in the run-
Furthermore, in view of the lessons which may be learnt more than a year and a half after the entry into force of the Treaty on European Union and of the challenges and risks linked in particular to the prospect of a further enlargement, the European Council considers that thoughts should now focus on a number of priorities to enable the Union to respond to its citizens' expectations:
Lastly, the Group will bear in mind the advantages of seeking improvements in the working of the Institutions that do not require any amendment to the Treaties and can thus enter into force without delay.
As part of the strategy for preparing for the associated countries' accession to the Union, the necessary procedures should be established to ensure that they are kept fully informed of developments in the discussions at the Intergovernmental Conference, bearing in mind their status as future members of the Union.
The Heads of State and Government will continue discussing this matter at their informal meeting in Majorca on 22 and 23 September 1995 and the European Council will receive a full report from the Reflection Group for its meeting in Madrid in December 1995.