Brussels European Council - President Sarkozy’s press conferences

Brussels European Council – Second press conference given by M. Nicolas Sarkozy, President of the Republic (excerpts)

Brussels, 14 March 2008

EXCHANGE RATES

THE PRESIDENT – (…) A brief press briefing to tell you what we did this morning. First of all, France’s satisfaction that the European Council expressed concern regarding the exchange rate situation. It would have been inconceivable for the European Council to keep silent on this point. You’ve long been aware of my firm beliefs on the subject and I was very happy with the statement by the Eurogroup President, M. Juncker. I share in every respect his analysis which was moreover reflected and supported by that of the President of the Commission who too voiced his concern.

SMALL BUSINESS ACT

I’d also like to say how pleased I am with the initiative of the Commission who, in the next few weeks, will present the famous European "Small Business Act" making it possible to improve our SMEs’ access – as you know, this is a French economic problem – to public procurement, as I have constantly demanded, drawing attention to the mechanisms in place in the United States and in Canada. It’s done. Our persuasion was successful.

TRADE NEGOTIATIONS

As regards economic relations with third countries – and I’m thinking of the trade negotiations –, I also want to say how happy I am to see in the European communiqués the arrival of the words I set great store by: reciprocity, fair competition, defence of European interests. (…)

IMMIGRATION

Also the European Council calls for the framing of a common policy on immigration, migration, this is the French presidency’s priority. It’s a good sign.

CARBON TAX/ENVIRONMENT TAXES

We had a long and moreover pretty interesting debate on the balancing measures which need to be taken on a carbon tax for countries not playing the game, how we protect our industries. We can’t tell our businesses to make efforts to protect the environment, while at the same time importing products from countries which make no effort. The Commission is mandated to find a mechanism, which we haven’t found, but the mere fact that one is being considered in principle is absolutely fine.

Also Gordon Brown and I strongly emphasized the need to develop environmental taxation. I’m very satisfied to see that the Council is asking the Commission to reflect on the best ways of encouraging clean products, with an explicit reference to the issue of environmental VAT. As you know, this is the idea Gordon Brown and I had proposed and which I firmly believe in, that we can compensate for the additional cost of clean products, cars or buildings for example, through lower taxes. The idea I’m championing is that clean products should benefit from a lower VAT rate. Because sometimes, often, consumers say, "listen, it’s really not normal that buying a clean car costs more than buying a polluting car". We didn’t take a decision on VAT, we’re not there yet, but the Council is asking the Commission to reflect and make proposals on this. (…)

Q. – You talked about an environmental VAT, has the Commission been mandated to think about it or to come up with a proposal?

THE PRESIDENT – (…) In our debate we explicitly talked about environmental VAT. (…) Britain and France were very much in favour of us opening this debate (…) and the Commission has been asked to come up with proposals. I’d like us to be able to say there’s automatically a lower VAT rate on environmentally friendly products. For example, in the field of construction, I have told Christine Lagarde and Bernard Kouchner that since it costs more to build in an environmentally-friendly way [High Environmental Quality or HQE – Haute Qualité Environnementale], it would seem to me pretty normal for those who do so to be charged a lower VAT rate. We’re not there yet, but the Council has asked the Commission to work on the matter; this is very important in the European process.

CLIMATE PACKAGE/BIOFUELS/RENEWABLES

Q. – Can you tell us a little bit more about the climate package, particularly about biofuels and the proportion of energy produced from renewable sources? Have or haven’t the targets been called into question?

THE PRESIDENT – (…) Countries produce different amounts of CO2 and let’s be blunt, France is the best placed. A number of us, including Gordon Brown and France, insisted on our targets not being indicative, they had to be binding. (…) We have succeeded in making Europe an example to the world when it comes to environmental protection. If we made our targets indicative, that would put paid to everything and so we’ve kept the targets: 23% by 2020. I shan’t go into the details since there are 19 pages. (…) Europe has to stay the leader and the example when it comes to environmental targets. A target of 23% [of all energy] to come from renewable sources is very tough, including for France, I can tell you it isn’t a simple matter.

FRANCE/NUCLEAR ENERGY/CO2 REDUCTION TARGET

Q. – Another question in this area, how is the Commission taking account of our nuclear energy?

THE PRESIDENT – There was a whole debate on this, how to deal with it? We ourselves hesitated, should we call into question, reopen the Commission’s draft compromise or instead accept it? We’ve actually opted to accept the compromise proposed by the Commission, even though we think that the 23% target doesn’t take into consideration the fact that because of France’s nuclear power plants we produce less greenhouse gas than the others. We’d have liked less ambitious targets on renewable energies given that we produce less greenhouse gas. Well, in fact, with the ministers we defended the position of approving the Commission’s compromise. Put yourselves in the place of countries like Estonia which have only got a cable coming from Finland. It’s tough for them too. If France doesn’t show the example and reopens the issue because she finds it tough for her, then for the others it’s even worse. No, we’ve embarked on a very difficult path, but an exemplary one on environmental protection, and, well, we have to stick to it. And from this point of view, I repeat again that France and the Commission are moving hand in hand. I can only welcome once again the great trust existing between President Barroso and the French delegation on every issue. (…)

CHINA/TIBET

Q. – I know you didn’t discuss foreign affairs here, but, given that the Chinese regime is cracking down on the demonstrations of monks who’ve decided, on the eve of the Olympic Games, to publicize their battle and are demanding greater freedom, wouldn’t it be to Europe and France’s credit to have a common strong position on the eve of the Beijing Olympic Games on demanding respect for these rights, instead of waiting for a crackdown and recording that it’s taken place?

THE PRESIDENT – Frankly, when I was in China, during a press conference with President Hu Jintao, I asked for the abolition of the death penalty, ratification of the United Nations Covenant on Civil and Political Rights (…). I talked about human rights in an unusually open way for visitors to China since I did so at a press conference in the presence of the Chinese President.

GREECE/MACEDONIA

Q. – Today I believe you had a meeting with the Greek Prime Minister, Mr Karamanlis. What is France’s position on the problem between Macedonia and Greece regarding Macedonia’s name? We had the impression that France was supporting Greece.

THE PRESIDENT – Yes, that’s right. I made the Greek Prime Minister aware on several occasions of our position on the matter of Macedonia’s name, since that’s what we’re talking about. I said that we supported the Greek position. The Greeks are friends. And then, you know, ever since a book was written in Greece on the Sarkozy of Thessaloníki¹, I feel obliged to show solidarity! (…)

AUSTRIAN HOSTAGES/NORTH AFRICA

Q. – There are two Austrian hostages in North Africa, and there have been calls for their release. The response was that it was impossible. What must be said? How do you think we must react?

THE PRESIDENT – The Austrian Chancellor drew our attention to this. I believe they are two Austrian tourists. The Austrian Chancellor asked us for Europe to show solidarity, political solidarity which goes without saying. (…) And I told Alfred Gusenbauer that, of course, he could count on our full, wholehearted support in this particularly appalling situation for these Austrian tourists. (…)./.

¹ A Greek book recounts the history of President Sarkozy’s mother’s family who came from Thessaloníki.

Brussels European Council – First press conference given by M. Nicolas Sarkozy, President of the Republic (excerpts)

Brussels, 13 March 2008

UNION FOR THE MEDITERRANEAN

THE PRESIDENT – (…) I’m pleased to announce to you that tomorrow morning the decision will formally be taken to transform the Barcelona Process into a Union for the Mediterranean. So this evening the decision was taken very enthusiastically and unanimously. It will be stated formally in the communiqué issued tomorrow. I also got agreement with the President of the Council to meet you this evening. Mrs Angela Merkel is also holding a press conference.

So this is very important news: the revitalization of the Barcelona Process, transformed into a Union for the Mediterranean on the basis of the Franco-German paper issued following the meeting we had in Hanover – which I didn’t give you details of at the time, preferring to rally all the European countries round this idea. I should add that the discussion was extremely easy-going, that the Austrian Chancellor strongly approved this initiative, that the Luxembourg Prime Minister requested we take a decision in principle. We have also asked the Commission President, Mr Barroso, to make proposals to us on its governance on the basis of the Franco-German paper.

There was also confirmation of the idea of a Europe/Mediterranean summit in Paris under French presidency. I think I can say that this is the third French initiative: after the simplified treaty, and the Committee of Wise Men, we now have the Union for the Mediterranean which has achieved a very wide consensus in Europe. This is very good news, since everyone has agreed that in this Mediterranean area, countries had to learn to make peace, to rally round projects, as did Jean Monnet in his time. It’s an initiative, as you know, which was very important to me. I had the opportunity to talk about it during the presidential campaign and, for me, it’s very moving to see that this idea which Romano Prodi, José Luis Zapatero and I defended in Rome, and the Chancellor and I clarified, got agreement on in Hanover, is seeing the light of day, since all the European countries have given it an enthusiastic welcome.

Q. – How will the Union be financed?

THE PRESIDENT – It will be financed by the Commission’s usual methods, we all agreed on this. A great deal of money has been invested in the Mediterranean area, but the political transparency, the political project was itself in a bit of a rut. There are several reasons for this. The instinct behind Barcelona was right. But what wasn’t working in the Barcelona Process? Essentially, the fact that we weren’t coming together on specific projects. Now we’re going to draw up a roadmap based on specific projects; there are ideas around the table. France is proposing an Erasmus system for students from Mediterranean countries, to make the Mediterranean the cleanest sea in the world, establish an area of security, and discussion of an energy policy between the North and South of the Mediterranean. First change: these are concrete projects. The second change is above all – and José Luis Zapatero was right to say this – that this project for the Union of the Mediterranean mustn’t simply be Europe’s project. It’s also the project of the southern shore of the Mediterranean. This is what wasn’t working in the Barcelona Process. For example as regards the decisions, the 27 were taking decisions and then afterwards we went to try and explain them to the others. No, we want to take the decisions together, North and South, hence the idea – and this is a change – of a co-presidency, with a summit every other year, with one president from the European countries bordering the Mediterranean and one from the non-EU Mediterranean coastal States. (…)

Q. – You say it’s a project which is really dear to your heart, but there’s nevertheless a feeling that in the past few months, since the Toulon and Tangiers speeches, France has had to reduce her ambitions a great deal to get the project accepted, particularly by her German partners. What’s going to remain of the 13 July initiative?

THE PRESIDENT – How has France reduced her ambitions? Honestly, I’m very happy to answer your question. Give me an example of a reduction of these ambitions and I’ll try and reply.

Q. – For example, the idea at the outset was to open the project only to countries bordering the Mediterranean, with observer status for the others.

THE PRESIDENT – I’ve never supported the idea of excluding some EU countries from the projects, quite the contrary. In the first project, in the first speech, all the European countries were called on to participate on a voluntary basis. (…) I don’t think you can say that we’ve given up the project’s ambition which was to start from Barcelona’s achievements – that too is, I believe, how I phrased it – and move towards the Union for the Mediterranean.

Second change: I had talked about the “Mediterranean Union” and it was José Luis Zapatero who proposed the “Union for the Mediterranean”; he thought that was more positive, that’s fine. I had talked about the co-presidency, I had talked about a secretariat strengthening in a way the Council’s autonomy. Then there was another discussion: last week I had lunch with Mr Barroso in Paris and we discussed the role of the Commission, because he too has to account for the use of the billions of euros invested, so there you are. But frankly, I think that the initial project isn’t far removed from the present one. (…)

What was important for me was:

1) to rally everyone around the Mediterranean priority;

2) to win acceptance for the view that Barcelona was a good idea, that the instinct behind it was right, but that frankly it hadn’t produced all the fruit we’d been entitled to expect from it; and

3) we needed to move on to a new stage called the Union for the Mediterranean. (…)

Q. – The Barcelona Process was criticized for its lack of strategy; there was no strategic vision. What is there in the Union for the Mediterranean which can to an extent remedy this deficiency? What’s the end purpose? Is it integration? You mentioned Jean Monnet, what’s your long-term aim for the Union for the Mediterranean?

CONCRETE PROJECTS/MEDITERRANEAN SEA/ERASMUS

THE PRESIDENT – It’s very simple: for it to have concrete projects. Basically, it’s to create an area of peace, prosperity and security. That’s the vision. And how do we achieve it? How was Europe created? By taking the two belligerents bordering each other, Germany and France, and bringing them together in the coal and steel community. What do we want to do with the Union for the Mediterranean? We’re going to take everyone and try and bring them together, for example on cleaning up the Mediterranean Sea. After all, it’s difficult to clean up the Mediterranean if you work only in the north. Another example, there’s the Erasmus idea, I don’t know if we’re going to adopt it – I’ll campaign hard for us to do so –: Erasmus allows students from all over the EU to study in any EU university. Well, I’d like us to establish a sort of Mediterranean Erasmus.

And bit by bit, gradually through these concrete projects, I’d like our Mediterranean area to become one of peace, and not one of confrontation. That’s the idea I’m promoting, in brief of course, there would be so many other things to say. (…)

EURO RISE

Q. – How worried are you about the rise in the euro which we’ve seen recently? Can we do anything about it? Do you believe the ECB has to act? And as regards the sovereign wealth funds, do you believe that Europe needs rules similar to the ones the United States has to protect its industry against the risk of being bought out by foreign groups?

THE PRESIDENT – That’s something we didn’t talk about this evening, it’s a matter I have discussed bilaterally with Gordon Brown. You know that the British Prime Minister and I share the same view, that we have to take initiatives, that the world needs rules and transparency. You know what I think about the level of the euro, I’ve talked about it on innumerable occasions. (…)

UNION FOR THE MEDITERRANEAN

Q. – With the Union for the Mediterranean, do you think there’s any longer any point in the neighbourhood policy? The neighbourhood policy, which was created to balance the EU’s relations with the East of Europe and with the Mediterranean…

THE PRESIDENT – …no. On the contrary, it can give some ideas, since the Polish Prime Minister immediately seized on the proposal for the Union for Mediterranean, to say that he would make a proposal for a neighbourhood policy directed towards the North. So you see, it doesn’t go against it. (…)

EUROPEAN UNION PRESIDENT

Q. – You mentioned, in Lisbon I believe, the names of Tony Blair and Jean-Claude Juncker for the future European Union Presidency. Since then, there’s been a lot of criticism of Tony Blair’s name, including, I think, within the UMP [Union pour un Mouvement populaire – the French right-wing political party]. Do you think he would still make a good candidate and have you got other ideas on possible candidates, and if so, who?

THE PRESIDENT – The decision won’t of course be taken in the UMP. It’s a matter on which I can’t express an opinion since I’ll be EU President when we choose the person. So it would be very bad to start the French presidency by taking sides.

Secondly, it would be a mistake to deal with the matter of the EU president, independently of those of the Commission president and high representative. It’s a package deal. When the time comes, I’ll have to make a number of contacts, but you will understand that I’m not adopting any position and that I’m sticking to the proper discretion of a future EU president. (…)

UK/FRANCE

Q. – (on Britain)

THE PRESIDENT – (…) I’m paying a State visit to Britain. You know my position: Europe needs Britain, that’s what I think. And this isn’t new, I’ve thought it for a very long time. Anyone who’s been following me for a long time knows that I’ve constantly championed this idea, that we need Britain in Europe. I’ve constantly championed this. And this applies to Tony Blair and Gordon Brown. I know Gordon Brown well, I was finance minister, not for as long as he was, but, in short, I’ve worked with him a lot. I know him personally. I think what he’s doing for Europe at the moment is very courageous and he’s doing it well. I support his efforts, because if he manages to get the simplified treaty ratified it will help all of us in Europe because we need the unanimous approval of all the countries. And so, yes, we need Britain, I’ve every intention of developing this idea in London.

Let me add that on all these matters of the transparency and ethics of capitalism, rules on sovereign wealth funds, transparency in all this, we’re in total agreement. We agree on the need to reform the international institutions. On the IMF there are still points we certainly need to talk about. But, honestly, I work with Gordon Brown in a climate of trust. I had suggested going to London to him when we had the last summit and we’ll perhaps take other initiatives under the French presidency. And also I’ve a lot of admiration for what Gordon Brown did over the ten years he was British Chancellor of the Exchequer. He did quite a lot of modernizing. (…)./.