Editor's note

Rotating presidencies cover 18-month period

The Council of the EU is the institution representing the member states' governments. Also known informally as the EU Council, it is where national ministers from each EU country meet to adopt laws and coordinate policies.

The presidency of the Council rotates among the EU member states every 6 months. During this 6-month period, the presidency chairs meetings at every level in the Council, helping to ensure the continuity of the EU's work in the Council.

The EU member states holding the presidency work together closely in groups of three, called 'trios'. This system was introduced by the Lisbon Treaty in 2009. The trio sets long-term goals and prepares a common agenda determining the topics and major issues that will be addressed by the Council over an 18 month period. On the basis of this program, each of the three countries prepares its own more detailed 6-month program.

For example, priority actions in the Latvian Presidency included three main items: EU competitiveness and growth, making best use of European digital potential, and strengthening the EU's role as a global actor.

The current trio is made up of the presidencies of Italy, Latvia and Luxembourg. 

See: http://www.consilium.europa.eu/en/council-eu/presidency-council-eu/ 

Luxembourg’s program

Luxembourg’s rotating presidency of the Council of Ministers will take place for the twelfth time in its long history; so, one can say that the country is quite experienced in holding such presidencies...

It has to be remembered that Luxembourg has been one of the founding EU member states (at that time in 1952, it was called “Communities”).

During the presidency, the country’s authorities will address European continued efforts towards current EU program to promote growth and jobs in the member states (with a particular emphasis on the Investment Plan for Europe), and further improving economic governance in the framework of the EMU.

Luxembourg’s Presidency will also have to steer the debate inside the Council on the EU’s future migration and asylum policy, following the tragic events in the Mediterranean, as well as handing the sensitive question of the future relationship between the United Kingdom and the EU in the light of the planned referendum on membership of the EU.

Christian Braun, Permanent Representative of Luxembourg to the EU described the set of priorities of the Luxembourg Presidency of the Council and addressed other challenges ahead already on 9 June 2015 in Brussels.

Provisional calendar of meetings under the Luxembourg Presidency of the Council can be seen at:

Provisional calendar of meetings under the forthcoming Luxembourg Presidency of the Council.

In the shadow of a scandal…

Luxembourg is the richest and most affluent country in the EU, with a public debt at the level of 30 per cent (half the required in the EU level, while about six states in the Union are having it over 100%). According to the OECD’s general secretary, the country’s welfare is due to a progressive financial sector.

But here starts modern troubles, some say…

At the wake of the former country leader, J.-C. Juncker’s nomination to the head of the European Commission, a scandal broke out dobbed LuxLeaks, an analogy to Wikileaks.

The country’s financial sector, with a silent approval of the financial ministry and high-rank officials including Mr. Juncker, invented a so-called tax ruling, aimed at imposing a nominal (and very small, indeed) tax duty on foreign companies registered in the country. Thus, hundreds of European as well as American companies used the “tax heaven” to reduce taxation burden, stripping their home countries of tax dividends.

For example, instead of a regular Luxembourg’s corporate tax of 28,5%, such companies paid a nominal 2% due to a “special agreement” with the finance ministry. Some regarded the practice as violating the “true competition”, though –legally speaking- there is no ground for infringement, as corporate taxation rules are within the member states’ competence.

In the northern part of the country’s capital, so-called “golden mile” presently reside about 140 foreign banks and subsidiaries “covering” a morally fraudulent activity of about 350 foreign companies and firms…

Country’s prime-minister -in total, serving for about 18 years, definitely knew about the tax ruling, as the scheme was “invented & applied” mainly through 1995-2013 when he was at the head of country’s economic policy. However, his argument was and still is simple enough: about 30 tax havens in the world (and over 10 in Europe, including the UK and Holland) used that practice and no one has been blamed so far… That’s true; but not in the voice of the present head of the European Commission, which shall control the competitiveness of the EU’s economy.  

Therefore, Mr. Juncker announced that during 2015 his country would amend existing tax ruling in line with the EU’s recommendations, e.g. through the necessary financial transparency. Besides, Luxembourg recently joined the new EU’s banking union rules concerning exchange of information on banks’ transaction.  

Council of the EU: main competences

1. Negotiates and adopts EU laws

The Council is an essential EU decision-maker. It negotiates and adopts legislative acts in most cases together with the European Parliament through the ordinary legislative procedure, also known as 'co-decision'. Co-decision is used for policy areas where the EU has exclusive or shared competence with the member states. In these cases, the Council legislates on the basis of proposals submitted by the European Commission.

The Council is responsible for coordinating member states' policies in specific fields, such as:

·                     economic and fiscal policies: The Council coordinates member states' economic and fiscal policies to strengthen economic governance in the EU, monitors their budgetary policies and strengthens the EU's fiscal framework, and also deals with the legal and practical aspects of the euro, financial markets and capital movements

·                     education, culture, youth and sport: The Council adopts EU policy frameworks and work plans in these areas which set out the priorities for cooperation between member states and the Commission

·                     employment policy: The Council draws up annual guidelines and recommendations for member states, based on European Council conclusions on the EU employment situation

The Council defines and implements EU foreign and security policy on the basis of guidelines set by the European Council. This also includes the EU's development and humanitarian aid, defence and trade. Together with the High Representative of the Union for Foreign Affairs and Security Policy, the Council ensures the unity, consistency and effectiveness of the EU's external action. 

The Council provides the mandate to the Commission to negotiate on behalf of the EU agreements between the EU and non-EU countries and international organisations. At the end of negotiations, the Council decides on the signature and conclusion of the agreement, based on a proposal from the Commission. The Council also adopts the final decision to conclude the agreement, once the Parliament has given its consent (required in areas subject to co-decision) and it has been ratified by all EU member states.

These agreements may cover broad areas, such as trade, cooperation and development, or they may deal with specific subjects such as textiles, fisheries, customs, transport, science and technology, etc. 

The Council adopts the EU budget together with the Parliament.

Conclusion: starting with human health conference…

Luxembourg is taking over the rotating presidency of the Council of Ministers from July till December 2015.

The very first “Presidency-event-conference” – concerning health-related issues – is already scheduled for July 8, just a week into the new presidency.

The meeting will focus on the new EU’s agenda (announced during the Latvian Presidency in Riga in May 2015) concerning digitalized and personalized medical service.

According to diplomatic sources, the first conference’s aim would be to explore the topic from the patient’s perspective, looking at how to promote wider access to these tailor-made treatments. Likely issues to feature on the program are how to streamline national processes for assessing new products and how to equip doctors to make use of them.

Our Magazine’s staff wishes all the best to the Luxembourg’s Presidency!