The Swedish Presidency intends to start working on a long-term economic recovery of the EU

The main challenges to the Swedish Presidency are managing the economic and financial crises and climate change, declares the Prime Minister Fredrik Reinfeldt in an exclusive interview for the Council website.

Fredrik Reinfeldt, Prime Minister of Sweden
- new President of the European Council
Photo: Pawel Flato

Mr Prime Minister, what are the main priorities of the Swedish Presidency of the Council of the European Union?

We will take on many challenges during our Presidency. We need to continue managing the worst economic and financial crisis since the 1930’s: During the autumn Europe will face increasing unemployment and social exclusion. At the same time, the threat from our changing climate is growing. I believe we need to address the climate change challenge together, in Europe and globally. Therefore, the UN Climate Conference in Copenhagen in December, where Sweden will represent the EU, is of great importance.

By which initiatives does your country intend to help the EU handle the economic crisis, to relaunch the economy, to strengthen Europe's competitiveness globally?

The first economic objective of the Swedish Presidency will be to manage the EU’s efforts to combat the economic downturn. When the financial crisis spread around the world last autumn, the EU handled the acute situation well. During our Presidency, we need to continue the crisis management, while at the same time start working on long-term recovery.

We have to strengthen the supervisory system for the financial markets within the EU and restore functioning financial markets and confidence in them. We also need to reshape the incentive systems so that they do not reward irresponsible behaviour. Furthermore, we must initiate a discussion about fiscal policies in the Member States, and agree on a common exit strategy to return to the rules of the Stability and Growth Pact.

The Swedish Presidency will also address the reality that people all over Europe are now experiencing. Millions of Europeans have lost their jobs in the last months, and millions more are concerned about the future. Unemployment is a harsh consequence of the economic crisis, and we need to tackle this challenge without going in a protectionist direction. We need to reform, adapt, modernise and find a revitalised strategy for sustainable growth and full employment. I think that sort of strategy will increase the competitiveness of the European Union in the long run.

How would the efficiency of the actions of your Presidency in economic matters be influenced by the fact that Sweden is not part of the eurozone?

To hold the Presidency of the European Union means to act in the best interest of all member states; those within the eurozone and those who are not part of the euro cooperation. The economic and financial crisis is a challenge for all of Europe. During our Presidency, we will do our best to lead all EU Member States through these difficult times.

What role will the Swedish Presidency play in ensuring that the European Union not only tackles the threat of climate change, but also becomes a leader in developing the new technologies needed?

To combat climate change is an issue of great importance to Sweden, as well as to the EU and the world as a whole. It affects us all. While ice sheets are melting and sea levels are rising, climate change has become an issue of survival. We can also see how reports from the academic world are getting more and more alarming.

Increased work in combating climate change is key if we want to strengthen our competitiveness globally. In other words, sustainable environmental solutions mean more jobs and more economic recognition in the long run. To incorporate a sustainable perspective in the new Lisbon Strategy for jobs and growth is crucial – from a climate perspective as well as from an economic and competition perspective.

Your country strongly supports further enlargement of the EU. What initiatives will you take concerning the accession negotiations with Croatia and Turkey and the European ambitions of the Western Balkans countries?

Continued progress in the membership negotiations with Turkey and Croatia will be a priority for our Presidency, but will mainly depend on the reform efforts of these countries themselves. During our presidency, progress on Turkey’s implementation of the so called Ankara Protocol will also be followed-up and reviewed. Of course, a resolution of the Cyprus issue would have a positive effect on Turkey’s EU process, as well as for the region and for the EU as a whole.

Enlargement has reinforced stability, security and prosperity in the EU, and increased our influence on the global stage. Continued enlargement is thus of importance to the whole Union. In this context the Swedish Presidency will also work to further strengthen the membership perspective of the Western Balkan countries on the basis of the progress made in each of them.

By which proposals would your Presidency like to make the European Union more safe, open, and secure?

During our Presidency, we will draw up a new strategy in the area of justice and home affairs, which will be called the Stockholm Programme. I believe cooperation in this area needs to be strengthened and developed in order to adapt to the new circumstances in Europe. An EU with 27 Member States and 500 million citizens is very different from the Union founded some fifty years ago. We must be able to guarantee our citizens safety and the rule of law, no matter where in the EU they decide to study, work or live.

The Stockholm Programme will point out the direction towards where we want to go in this area. It includes a more integrated asylum policy with increased solidarity and strengthened legal certainty for refugees arriving in EU Member States, as well as more coordinated fight against cross-border crime and terrorism. At the same time, it is important that we strike the right balance in the fight against crime and still safeguard the rights of the individual.

What does Sweden expect from the new EU Strategy for the Baltic Sea Region?

Since the 2004 EU enlargement, eight of the nine countries in the Baltic Sea region are EU members. I believe it is time for the countries in the region to start working more closely together in order to tackle regional challenges, such as pollution and eutrophication. The Baltic Sea is the largest inland sea within the EU, and it is very sensitive. It is therefore important that we work together to save the Baltic Sea from its environmental problems. But the strategy also aims to increase the competitiveness and growth of the region; by getting the internal market to work better and by increased cooperation regarding innovation and research.

Another aim of the EU Baltic Sea Strategy is to make the region safer and more secure by combating human trafficking and intensifying police cooperation, naval surveillance and military cooperation between the countries in the region.

I hope that the Baltic Sea region in the long run can serve as a role model for other regions in the EU.

How do you assess the coordination work in the EU Presidential 'trio' with France and the Czech Republic?

France, the Czech Republic and Sweden have a close and fruitful cooperation. The trio model has worked very well – not least have we gotten to know each other and our Presidency agendas respectively. This is very helpful in order for the rotating presidencies to work more smoothly. We also have close contact with Spain, who takes over the Presidency of the Council in January.