1. The EU Summit concluded with member states reaching agreement on a variety on areas. In response to reports of US iantelligence gathering and the NSA tapping Ms Merkel’s phone, it was agreed that France and Germany will lead in seeking bilateral talks with the USA. 

The steps necessary to enhance the Single Market’s digital dimension were also agreed and the commitment to complete the Digital Single Market by 2015 was made. 

Discussion on the current work on economic recovery and on the Banking union was deferred to the December European Council. But EU leaders confirmed their commitment to reach a political agreement on the Commission proposal on the Single Resolution Mechanism by the end of the year, to allow for adoption by the EP before the end of its current term in April 2014.

On migration and in response to the Lampedusa tragedy, EU leaders agreed a series of actions and tasked the European Commission, EU agencies and the External Action Service on a number of issues. They also agreed to define key aspects of the EU’s policy on asylum and migration in June 2014.

2. Members of the European Parliament voted to cut EU spending in 2014 by more than €8 billion to €142.6 billion, down from €150.8 billion in 2013. The 5% drop in spending will apply to most expenditure, though EU cohesion funds, which are used to assist the EU’s poorest regions, face the deepest cuts of over €7 billion. The only policies that will see a modest increase are those covering research and employment projects and humanitarian assistance.

3. In the week that EU leaders were meeting for an EU summit, reports by German weekly Der Spiegel alleged that Chancellor Merkel’s mobile phone was tapped by the US National Security Agency. These allegations emerged just days after the French Le Monde reviled that the NSA got hold of 70 million telephone records of French citizens within a 30-day period. The Guardian, the British daily, has also reported that the phone calls of about 35 world leaders were monitored by the NSA. The news have caused recriminations and concern among EU leaders, with Germany and France complaining publicly and privately to US President Barack Obama. But despite calls from the European Parliament’s President, Martin Schulz, to halt negotiations on the EU-US trade agreement until the issue is resolved, EU Member States leaders have expressed the wish not to allow this diplomatic debacle stand in the way of the mutually beneficial trade deal.

4. Research from the London School of Hygiene and Tropical Medicine and York University has shown that 18 British hospitals earned £42m in 2010 from providing healthcare services to foreign patients. Furthermore, the research found that medical tourists spent an estimated £219m on hotels, restaurants, shopping and transport in the UK and that more people leave the UK seeking medical treatment abroad than arrive in this country for care: about 63,000 people from the country travelled to hospitals and clinics abroad in 2010, while about 52,000 people came to the UK seeking treatment.

5. In a move to simplify EU law, the European Commission has proposed a uniform VAT return. According to the Commission, VAT returns were one of the problems reported most by companies. Starting in 2017 the VAT return submission will be identical in all EU countries. The new return form will contain five mandatory information boxes: chargeable VAT, deductible VAT, net VAT amount (payable or receivable), total value of input transactions and total value of output transactions. Member states will be allowed to add 21 optional boxes depending on the need of each national administration. Having one identical VAT return form will not only ease the burden on the national fiscal authorities, it also “reduces the loopholes that can be used for tax evasion purposes,” the Commission said.

6. The Czech Republic is holding national elections this weekend, amid concern for the fragile state of the economy and scandals engulfing the Conservative government. The left-wing Social Democrats are expected to come first, with polls giving them 26% of the vote.

7. The European Central Bank (ECB) is starting work to assess the financial health of some 130 large banks across the Eurozone, accounting for about 85% of the euro area banking system. This comprehensive evaluation will be comprised of three elements: supervisory risk assessment, asset quality review and a stress test. The evaluation will start in November and will take 12 months, it will be carried out in cooperation with national authorities in Member States and will be supported by independent third parties at all levels at the ECB and at the national competent authorities. The process should be concluded by October 2014 just in time for the ECB to fully assume its supervisory role (planned for November 2014).

8. EU Member States agreed to resume membership talks with Turkey, after Germany signalled its intention to support the opening of a new negotiating chapter in Turkey’s accession process. The process, which has been put on hold since the summer, when EU leaders criticised Turkey for the way its police handled anti-government protests in Istanbul, has been stalled for years, without any new negotiating chapters opened since 2010. A European Commission report praised recent judicial reforms in Turkey and the government’s announcement last month of a package of laws designed to salvage a peace process with Kurdish insurgents.

9. The European Commission adopted its 2014 work programme. Growth and jobs remain the Commission’s top priority in 2014, with a particular focus on combatting youth unemployment and facilitating access to financing. The Commission will continue work on completing the banking union, reinforcing economic governance and exploring further deepening of the EMU. The adoption of the Single Resolution Mechanism Fund is a priority, and the Single Supervisory Mechanism becomes operational in 2014. The Commission also plans to take a longer-term perspective and look ahead in a variety of key sectors like energy and climate change, a modern industrial policy, justice and home affairs policies, and the rule of law.

——————————–

The European Movement UK is Britain’s longest standing pro-European organization, campaigning for decades to inform the debate around the benefits of EU membership. 

We are a not-for-profit, non-governmental organization, funded exclusively by our members. Visit www.euromove.org.uk to see how you can join us and help keep Britain in the EU.