15/12/2008

European Council, 11-12.12.2008

The European Council on 11 and 12 December 2008 approved a European Economic Recovery Plan, equivalent to about 1,5 % of the GDP of the European Union (a figure amounting to around EUR 200 billion). The plan provides a common framework for the efforts made by Member States and by the European Union, with a view to ensuring consistency and maximising effectiveness.

<p>Nikolas Sarkozy, President of the French Republic,<br />President of the European Council<br />Photo: Council of the European Union</p>

Nikolas Sarkozy, President of the French Republic,
President of the European Council
Photo: Council of the European Union

The European Council also reached agreement on the energy/climate change package which should enable this package to be finalised with the European Parliament by the end of the year. This decisive breakthrough will enable the European Union to honour the ambitious commitments entered into in this area in 2007 to maintain its leading role in the search for an ambitious and comprehensive global agreement at Copenhagen next year.

The European Council demonstrated its intent, through concrete decisions, to give new impetus to the European Security and Defence Policy in order to meet the new security challenges.

Lastly, the European Council discussed the factors designed to respond to the concerns expressed during the Irish referendum and established an approach to enable the Treaty of Lisbon to come into force before the end of 2009.

Climate: targets for 2020 approved

European leaders agreed on an ambitious energy/climate packageconfirming the "20-20-20" plan. Under the plan, the 27 commit to three targets for 2020: reducing greenhouse gas emissions by 20 %, increasing the proportion of renewable energies to 20 % and making energy savings of 20%. This package is made up of four elements that cover an emissions trading scheme, a fair distribution of effort between countries, promotion of renewable energies and CO2 capture.

For the sake of solidarity, the 27 decided to reserve for the new Member States 12 % of the emission allowances originally intended to be auctioned, to support the modernising of their industries and their energy production.

Unanimity for the Recovery Plan

The global financial crisis is hitting the economy now. Europe wants to act with unity to prevent a recessionary spiral and support economic activity and employment. The Economic Recovery Plan approved at the summit will serve as a framework for actions that will be conducted at EU level and in Member States depending on their circumstances.

At EU level, European leaders support an increase in intervention by the European Investment Bank, in particular to benefit SMEs, for renewable energy and for clean transport. They favour increased efforts on the part of the various European funds to support employment and infrastructure investment.

At Member State level, the leaders stress the role of targeted measures, having an immediate effect, to support demand – for example measures to assist the automotive and construction sectors. Such measures may take the form of increased public spending, tax cuts, reductions in social security contributions, or support for certain categories of enterprises or for private households.

 

More information:
Presidency conclusions

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