27 October 2005
Tony Blair hosted a meeting in London with the leaders of the European Union countries.
Opening statement
Tony Blair:
Good afternoon. First of all I will say a few words, and the President of the Commission will say a few words, and then we will have time for questions. You have got statements I think on Iran, on Syria, and on Pakistan and the earthquake and so on. I don’t think I will say any more about those, but obviously I am very happy to answer questions on them, since I think they are self-explanatory.
The purpose of today’s summit was to try and set a clear direction on how Europe responds to the challenge of globalisation. We had the No votes in the French and Dutch referendums, we then had a summit in which we were unable to reach agreement on the European Union budget. There is a very strong sense in the European Union that we need to reconnect Europe with the concerns of the citizens of Europe, and there is a very strong feeling amongst the leaders of the European Union that we have got to put Europe back on track and moving in the right direction. And the purpose of today’s meeting was to see if we could get broad agreement to the direction of economic policy that was set out in the paper we commissioned from the European Commission. And I would like to thank President Barroso and his colleagues for producing that paper, which sets out very clearly the challenge facing Europe, it sets out what the nation states should do, it sets out what should happen at the European level. And I believe I can say clearly that there was a broad agreement to that paper as the right direction for Europe’s economic and social policy for the future.
In addition, however, we wanted to develop certain new directions for Europe in order to put substance behind that, and so there were a series of areas of work, on which the British and the Austrian Presidencies will work, with the European Commission in the lead, which will cover areas such as the need to boost significantly research and development, and innovation, and support for the knowledge economy in the European Union.
Secondly and specifically, there was a discussion about university reform and the university sector in Europe, and the need to develop strong centres of excellence across the European Union, able to compete, not just with the United States of America, but also with the emerging economies of China and India and elsewhere. And thirdly, in respect of energy, there was an agreement to take forward work in the energy sector, including how we try to establish a common European grid. Obviously there are already on a bilateral basis certain interconnections. There is a lot more we can do however, and it is important too that energy policy is something that we work on together as a European Union, given the fact that according to the European Commission, over the next few years we will start to import round about 90% of our oil and gas needs in Europe.
In addition, there was a great deal of discussion on the issue of migration, and there was a strong desire to take better and more co-ordinated action against illegal migration, at the same time as recognising the benefits of lawful migration to the European economy.
And then finally in relation to these aspects of new and different work, there is further work that will happen in respect of how we give people a greater opportunity to combine family life and work, the whole issue to do with work-life balance, since again as the Commission paper indicated to us, we are going to face a Europe in the future where fewer people are of working age, and many more people are of retirement age. And the idea is to produce these streams of work in outline for the December summit, and then conclusions in the March summit next year.
In addition to that we have agreed that we will bring forward proposals for the globalisation fund, the purpose of that being, not to prevent companies being able to lay off their workers, but to ensure that where that does happen as a result of globalisation, we are able to give people support, rather as the UK has done in the case of Rover.
Now in each of these areas there will be more work that we do for example in relation to immigration, along with action on counter-terrorism. We will present some proposals to the December summit for more concerted European action in those areas.
So the purpose of today if you like was to set a direction in favour of reform, on the basis of the Commission paper, to agree new areas of work, to have them agreed in outline in time for them to effect the priorities for the European budget negotiation, and then to produce at a later time full conclusions in the months ahead.
And what came out very strongly from the discussion today, it is not that there aren’t differences of view or differences of emphasis, but I think that if I can summarise it, what people really believe is this, that Europe sometimes needs to do more and sometimes needs to do less, but in each case needs to do it better. There was a very, very strong support for the Commission proposals to reduce the amount of regulation, and particularly for what Commissioner Verheugen announced the other day, with 68 pieces of legislation set aside, and I think there is a whole raft of further proposals in the same direction. And this is the first time that the European Commission has really grasped this issue and started to drive it properly, because whereas people know there are certain areas - and research and development and energy are two - where Europe has to do more, there are other areas where Europe should do less, or where it regulates it should be actually to improve the workings of the European economy, in particular the single market, rather than hinder them.
And I think the only other thing I would say by way of opening is this, that the impact I think of the enlargement countries was very, very considerable in our discussions now. It is a very interesting reflection. They bring a dynamism and a vitality that I think is important and interesting and is helping energise the original members too.
And finally, I am well aware of the fact that we have still got the budget deal, and that that is the crucial thing that we have to get right. But in my view it would be a lot easier to get this right, with a clear direction, with the priorities established, so that the budget is part of putting Europe on the right track, and not separate from it. Now it is obviously going to be a tall order, it is going to be a very difficult thing to achieve, but I have said that the British Presidency will give it our best try, and we will do so. And once again Jose, many thanks indeed for what you and your colleagues have done, and congratulations to you for the work of the Commission, which I think is excellent and got strong support around the table.
Jose Manual Barroso:
Thank you very much Prime Minister, Tony. Ladies and Gentlemen, it was really a great meeting, with a great atmosphere. Substantial discussions, but also concrete results, and I want to congratulate Prime Minister Blair and the British Presidency for inviting us here, in this great setting, with marvellous weather arrangements - not only outside, but inside the room - because the spirit was really good. I am also very grateful for the support that was given to the paper I brought to the discussion, because it set a direction, and also by the endorsement of the suggestions that we are making there, and that the British Presidency also made for the future. We are now going to work with the British Presidency, and with the next Presidency, the Austrian Presidency, we will report an interim report to the December Council, the December summit, and hopefully by the spring Council and the autumn Presidency we will produce those results for one more decision by the Heads of State and Government.
We agreed on a number of areas. Prime Minister Blair already presented, I will not counter them. I want to tell you that I believe now that this sets the right political context for an agreement on the budget in December. This is really crucial, let’s be frank. The success of the summit in December will be measured by an agreement on the budget, we need it, we need it for Europe, we need it for the new member states, we need it to go ahead with our European project.
I believe Europe is on the move again, and now we are moving from analysis to action, with concrete results. I think this was an important point around the table, there was not only broad agreement, with differences indeed it is true, but a broad agreement around the priorities, but the wish to translate this into action, and the wish to make the case for Europe. As the Prime Minister was saying, sometimes we need to … the other way, but we need Europe, it is the European level that gives us the leverage globally to go ahead with our programme to benefit the citizens.
And I believe that the citizens do not want abstract discussions about the institutions. The institutions are important, yes, but now they want to see us focus on concrete results, on such matters as demography, as the fight against illegal immigration, a common approach to energy, how can we boost research and innovation so that we can win the global competitiveness …, and that basic idea I think that was coming out of this summit is that Europe, if we want to preserve our values, we have to modernise our policies. And there was a strong emphasis, to a large extent because of the new member states, as the Prime Minister was saying, the need to modernise, the need to see the globalisation as not only a threat, as sometimes people put it, but as a big opportunity that Europe can win this battle of globalisation if we really modernise our policies, if we make the economic reform in Europe, if we modernise our social policies we can win this important challenge.
I believe this was very, very spontaneously the best assessment of what happened around the table. Once again, thank you very much Tony for the great, the great preparation and the success of this informal, but very substantial meeting.
Question and answer session
Question:
Prime Minister, two topics if I may. Iran, if I could take you back to Iran. Strong words today on Iran from the EU, but what do you say to those who say it is merely words and words simply aren’t enough with this regime? And you talked of getting broad agreement here, do you wish you could get broad agreement in your Cabinet and what are you going to do to re-impose it?
Tony Blair:
On the latter, I think these issues like smoking, it is a curious thing, partly because it is not the normal part of politics, people can often have far sharper disagreements and I guess probably they would be the same type of disagreements in this room, and any room. I didn’t actually put it to the leaders of the European Council, but I suspect they might have been divided in the same way. But we just take the policy forward, and it is pretty obvious the direction in which it is all going, which is towards increasing restriction, and that is for very good health reasons. But I wouldn’t, to be honest, read too much into it.
In respect of Iran, well what you say is indeed what people will say, and we will have discussions with our main allies over the next few days. And this of course is the position that Iran has had, it is just that it has been expressed again and maybe people are just noticing this. I have got to say I am sure there are people in Iran in their leadership who believe that the world is sufficiently distracted with everything else, that we can’t really afford the time to focus on this issue. And I think they would be making a very big mistake if they do that. These sentiments are completely and totally unacceptable. I have never come across a situation of the President of a country saying they want to wipe out, not that they have got a problem with, or an issue with, but want to wipe out another country. This is unacceptable.
And their attitude towards Israel, their attitude towards terrorism, their attitude on the nuclear weapons issue, it isn’t acceptable. Now if they continue down this path then people are going to believe that they are a real threat to our world security and stability. And as I say, they may believe that with everything else, the eyes of the world will be elsewhere, but I felt a real sense of revulsion at those remarks, and to anybody in Europe, knowing our history, when we hear statements like that made about Israel, it makes us feel very angry. It is just completely wrong, this, and it indicates and underlines I am afraid how much some of those places need reform themselves. Because how are we going to build a more secure world with that type of attitude? It is a disgrace I am afraid. And I am aware, I haven’t said in precise terms what we can do, but this is a discussion that we will be having with our allies. And you know there has been a long time in which I have been answering questions on Iran, with everyone saying to me: "Tell us you are not going to do anything about Iran." If they carry on like this, the question people are going to be asking us is: When are you going to do something about this? Because you imagine a state like that, with an attitude like that, having a nuclear weapon?
Question:
Prime Minister, you mentioned that you had discussions on immigration. In light of recent events in Morocco and Spain, the Spanish Prime Minister is proposing a Euro-Africa Immigration Ministers meeting. Can you tell me did you agree on a date? And secondly, do you share the view that western governments should work with African and Asian governments to actually target those who actually go for organised immigration, and also create a kind of environment to educate those who are targeted to let them be aware of the situation in Europe, when they get to Europe? Thank you very much.
Tony Blair:
Yes, I am sure that we will have such a meeting, when exactly I can’t be sure, but it is obviously a very, very pressing issue, and the Spanish Prime Minister spoke at length about it. But look, everybody understands, and this is one of the reasons why it is so important the development part of the agenda is also recognised, and we will again for the December summit be bringing forward proposals on that. But you are right, there is a real problem with illegal immigration, with those that organise it, and one of the things that Europe has got to do is to work together better, to share information, to have both our police, those who control and patrol our borders, and our security services work far better in identifying these people and making sure that they don’t engage in what is a very wicked trade. Now that, cracking down on illegal immigration is a major part of then allowing proper controlled lawful migration, and obviously we want to work very closely with other countries in order to ensure that this, which is of mutual benefit to us both, is taken forward, and we will do that.
Question:
Prime Minister, just on Iran, you have expressed your anger and disgust at this, and there has been a strong condemnation from the European Union, and the Charge d’Affaires was summoned to the Foreign Office this morning. Has there been any response yet from Iran, and if not, what response do you want to hear from them? And on our meeting today, do you feel any closer, or more confident that you will get a budget resolution in December? And President Barroso, you said that was crucial in December, but why, because this budget is for 2007-13, so does it really matter if it is decided next year instead of in December?
Tony Blair:
On Iran, as far as I am aware we have heard nothing back from Iran. What they have to do is they have to alter their basic attitude, but the fact that it is being expressed by the President of the country doesn’t give you a great deal of confidence. In respect of the budget deal, it is still very, very challenging, but at least we have got the right context now in which it can be taken forward. The reason why it is important - and I will let President Barroso speak in a minute - it is very, very important, particularly for the accession countries. For the rest of us frankly, as you rightly say, it is 2007, but for the accession countries this is major help that they are going to get, and if the budget is in crisis they can’t then plan ahead, and that is why it is really, really, important for those countries to get a budget agreement if we possibly can.
President Barroso:
Exactly. And there are some technicalities associated with what Prime Minister Blair just said now, because after we approve the budget at European summit level, we have to approve with the parliament, because we need the agreement of the three institutions - the Council, the Commission and the parliament - the regulations for … It takes a lot of time. So if we don’t have that agreement by December, it will mean that the new member states will not get the funds they are expecting for their development, for their growth, on time. Because as you may know, in the budget there are some compulsory expenditures, for instance those that are already in treaties, the Common Agricultural Policy, the spending will go on, the … expenditure, it will go on, but the cohesion for the development for instance, and all the programmes for research, they will not go on because we don’t have the legal instruments for that. So it is really, I am not just saying that to make some pressure, it is really a need to have that agreement by December, and let me tell you that today I am more optimistic than I was yesterday about that possibility.
Question:
Prime Minister, rightly or wrongly, some of your colleagues were upset with you in June after discussions about the budget. Do you feel that they are less unhappy, do you feel reconciled with them now? And a second quick question on energy, the UK has always been reluctant to work in developing a European energy policy, and all of a sudden now you announce that you want a common EU energy policy. What or who makes you change your mind?
Tony Blair:
First of all, no, it was fine, there was a very good atmosphere at the meeting, and I don’t know, you will have to ask my colleagues whether they are any less or more pleased with me. In respect of energy policy, what do you mean - who or what made up my mind? I think I made up my mind that it was a good idea if we could get energy policy as the right type of European policy. But why has Britain always opposed any idea of a common European energy policy? Because we feared that what would happen is the European Commission would go in and start regulating North Sea oil platforms, and causing difficulties for us and all the rest of it. If that was a European common energy policy, it wouldn’t be worth having. What is worth having, however, is how do we improve the competitiveness and the efficiency of European business, how do we reduce prices for consumers, and things like how we get the best interconnection on the European grid - that is absolutely the type of thing that we should be looking at.
There was quite a large discussion about nuclear power around the table, some member states will be completely against nuclear power, and that is their decision and no-one is forcing anyone to do what they don’t want to do. On the other hand, those states that either have or may have an interest in nuclear power, they have a common interest in the research, in the science, in the technology, and these are things that a common energy policy can explore. And then of course if you take into account the fact that we are going to import such huge amounts of our energy, it matters, doesn’t it, how and on what terms we do that. And for Europe to have some common ideas on that, it seems to me sensible, and it is a classic example, this, you see I never thought the people in Europe necessarily want Europe to do less, sometimes they want Europe to do more. Illegal immigration is a very clear example of that. What they don’t want is Europe, and in particular the European Commission, to be interfering unnecessarily in bits of their lives that they say look this is something we can regulate. And I think what is different, and extremely refreshing if I may say so, about this Commission and this Commission President, is that they are focusing on where the European Commission can add value to the European project, and that is what it should be.
Question:
Prime Minister, Mr President. Nice summit, nice day, but apparently it hasn’t stopped Gerhard Schroeder warning you that Chancellor Merkel won’t be a soft touch on EU budget restraints, and it hasn’t stopped Mr Chirac saying - very reluctantly we are told - that he is not going to be bounced on budgetary pressures, by the threat that it could derail the world trade talks with regard to tariffs and farm subsidies. So it looks as if you have come out today, all in a jolly good mood, but with the prospect of getting your budget in the next two months, not eased, but in some respects made more difficult by your colleagues’ statements of their positions. Perhaps you could both advise me on this.
Tony Blair:
Yes, we can advise you. I mean I never thought that the new Chancellor Merkel issue would be a soft touch, so there is no surprise there. And France has a very clear position. But we have got to try and reach an agreement, and the fact that people are in a good spirit and a good mood is, let me tell you, a definite improvement from June. So we will wait and see. But of course it is going to be difficult. The important thing though is that it is in everybody’s interest to get this agreement done, but it is a lot easier to do it if you have identified clearly the direction in which you want Europe to move, that is the point. But Mike, I am not minimising for an instant the difficulty still in getting an agreement, all I am going to do is try my best to get one.
President Barroso:
And let’s think where we were sometime ago and where we are now. You will remember that sometime ago people would say that this summit will be a confrontation between opposite models, or social models, for Europe, and I think we could avoid those traps. There was the idea of having a one size fits all model for Europe - that was not the conclusion; or the idea of having my model is better than yours - that was not the conclusion. The conclusion was that if we want to keep our models, and indeed there are different models in Europe, we have to modernise, we have to reform, we have to face up to those challenges of globalisation.
I think this was a good, a great, conclusion from this summit. And so it was possible to build a new consensus, we are building a new consensus on Europe to make Europe move forward. That is why I really believe the spirit was good, and of course now we have to deliver results. Now it is no longer about analysis, it is about action. The good spirit now has to be translated into concrete results. One of them of course is the financial perspective. I insist, that is obvious, we need it for Europe, for the new member states, but also on the other issues that were decided that the Commission now will work with the British Presidency and with the Austrian Presidency that we can put forward those very concrete proposals. So I really believe that compared with the expectation some months ago, we can say that it was a real success, this summit.
Question:
It is a question about the global shock absorber fund, that there was a bit of a disagreement I think about that today, Chancellor Schroeder, amongst others, saying he was quite sceptical about the merits of this. I just wondered if you could explain, having rejected this idea not very long ago, or a very similar idea, why you think it is a good idea now?
Tony Blair:
What was the idea I rejected?
Question:
Well it was a very similar idea put forward by the Prodi Commission to set up this kind of a fund, which I think virtually every member state, apart from I think Spain, rejected.
Tony Blair:
Thank you for reminding me of my previous inconsistencies, it was a difficult thing. Let’s be very clear what this could be and could not be. I think around the table there was more a sort of well give us the detail and be precise about what it is, rather than we are against it. And I think I could summarise the situation very clearly. If it is about baling out companies, or preventing the restructuring that is necessary, or trying to as it were resist the force of globalisation, then I don’t think people would support it. If it is about helping people cope with the impact of globalisation, for example in retraining, reskilling, helping people find new jobs if they lose their existing jobs, then I think that is what a modern labour market policy is about, and people would support it, and financed from within the existing budget. I think that if people were going to be asked to spend large sums of additional money, they might object to it, but that is not what is being proposed. Now what we said we would do is bring back for the December summit clear specifics on this.
But you know I think the interesting thing is that in every single field, what is happening now is that people are wanting to get the European economic project moving in the right direction, and therefore their issue about the globalisation fund was not the issue you might have expected, you know is it enough, does it stop this, does it stop that? It was really telling me that this assists our economic competitiveness, rather than harms it. Now that is interesting in itself, but that is the test that people apply. And I think again on the Services Directive for example where there were concerns expressed, people nonetheless want the thing to move forward. And that is what I got out of today, people want to push Europe forward again, and obviously we have got to persuade people that the globalisation fund is going to be used for the purpose I have described, and I am sure we can do that.
Question:
Mr Prime Minister, will the British government endorse the European Union/US agreement to end the transatlantic airline route monopolies, including the restrictions at Heathrow airport? The European Commission and the US government are on track to present a new draft Open Skies Agreement by December, and you have stressed the importance of developing services in markets like this one, for a global economy, so can we expect you to support the push to end the current protectionist system, which many people argue is as outdated as the Common Agricultural Policy, and has the added disadvantage of being ruled illegal by the Court of Justice?
Tony Blair:
Help me out of this one, Jose.
President Barroso:
This matter was not today discussed. The second point is, at least the Commission, we are very much pushing for an agreement to the Open Skies Agreement, yes, and we hope we can have an agreement on that, it is our consistent position. And on behalf of the European Commission I can just say, I mentioned this recently with President Bush when I met him in the White House, it is very important, this Open Skies Agreement, on both sides because we also need better access to the United States airports.
Prime Minister:
And don’t worry, I am coming to my very clear position, which is that I hope we are supporting the Commission, but I can’t be absolutely sure until I have checked it.
Question:
Prime Minister of Britain, and President of the European Union, … doesn’t have a flag, but we all see the volunteers at ground level when they go with their dogs to rescue people. What about natural disasters, when are you going to organise so that there is an emergency natural disasters real team to go and help in the moment, and what are the propositions now for any natural disasters, earthquakes and … And on a lighter note, some of my colleagues were saying, have you chosen the geese behind you because of the Aviary flu?
Tony Blair:
No, that was just the remarkable good luck of the British Presidency, with extraordinary prescience. Look, the point you make about disaster relief though is very, very important. Our Development Secretary, Hilary Benn, has put forward some proposals recently for the UN, in order to improve far better the mechanisms of the UN and also to create a kind of standing fund that allows us to move very, very quickly into these situations. And I think as the south-east Asian earthquake has shown, once again, it is necessary to have a better system of international response to these situations. And so I think that is one thing that we will take forward over the coming months. I know it has had a reasonably good reaction from other countries, but we are very determined to do what we can to achieve it. And I know from the conversations that I have had with Kofi Annan that he is looking carefully at it too. But you are quite right, we need a better system for dealing with this.
Question:
To both of you, first on Syria. Given your discussions today, how welcome or unwelcome are the Syrians going to be at the Euro-Med meeting next month? And secondly, not as President of the Council, Prime Minister, but as the Prime Minister of Britain, what is your response to Mr Chirac’s tough line on the WTO negotiations, basically telling you today that he is ready to veto the Hong Kong deal if it is not to his satisfaction?
Tony Blair:
Well I want a deal at the WTO, and I think everyone does. I am not going to enter into that discussion any further today before I see what negotiating positions people are actually putting forward.
And in respect of Syria, I think there will be a discussion at the UN Security Council shortly on that. And again this is an example of where Europe and America are working very closely together, indeed France and America are working closely together, which is positive.
I think I would just say one concluding thing. There are three areas in which the European Union has got to work better and work more closely and do more, and in each of these three areas there is now broad agreement. The question is can we get that reflected, not just in any budget deal, but also in the forward programme of the European Union? One, that we have to do more to prepare our economies for the challenge of globalisation, in particular by investing in the knowledge economy, research and development, innovation, university education and so on. Secondly, that we must do more to combat illegal immigration and terrorism, the security threats our citizens face, and that Europe should share data better, should make sure that when people are arrested and charged, they can be transferred across jurisdictions better, share evidence better, retain the data that we need to, share things like DNA database and so on, all these things. And thirdly, that Europe, where it needs to, has a strong common security and foreign policy.
And in relation to Iran for example, and Syria, it is interesting that today Europe has a common strong position, it is articulating that position in a common way, and what is more it is doing so in partnership with the United States. I think that is a good augury for the future. There are now nine separate missions around the world in which the European defence policy - because NATO has decided not to be engaged - are bearing responsibility, and I think that is again a very good sign for the future. And that is what people want, people want Europe to be focusing on those major questions.
And I think if I could just end by saying this. There was something of a sort of palpable sense of relief that the discussion that we had today, of course we weren’t debating something as difficult and detailed as the European budget, and therefore in one sense you are bound to have a better atmosphere, but on the other hand what was interesting was that there was a palpable sense of relief, as I say, that round the table we were debating things that if our public had heard us debating would be saying yes those are things I want you debating. The discussions you had over other issues that occupied a long period of our time, fine, but those are the things I want to hear you talking about - jobs, living standards, terrorism, crime, immigration, how we stand up for ourselves in the world and make our weight count. And I think that was one of the things that was very good out of today’s discussion and gives us I think something to build on for the future.
President Barroso:
Just on trade, I just want to announce to you that the Commission will announce tomorrow a new offer to renounce the old Doha development round. Time is running out, we are going to do it tomorrow, it will be a new offer, but with the strong conditionality that it should move as well. We need an ambitious and balanced round that promotes actively the European interest in that negotiation, but at the same time helps the poorest countries and yet reinforces the multilateral … system for world trade. It is very important to have a success in Doha, and that we can have more confidence in the global economy. We need this, it would be good news for the global economy, that is why tomorrow we are coming with a new offer that we hope will give a contribution to move ahead with this Doha development round. Others have to do the same and have to match our offer, not only on agriculture, because it is not only about agriculture, but it is also about non-agricultural products, it is also about services others have to match. And so it is an offer with a strong conditionality on it and it will be announced tomorrow.
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