The EU in 2016 : general report on the activities of the European Union.
Date: 2017-03-13
Institutions: Directorate-General for Communication
Subjects: EU activity, European Union, activity report

The EU in 2016

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GENERAL REPORT ON THE ACTIVITIES OF THE EUROPEAN UNION

 
 
 
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EU, French, UN, and Slovak representatives at the signing ceremony for the EU’s ratification of the Paris Climate Change Agreement. 
(© European Union)

Young people wearing European Solidarity Corps t-shirts. (© European Union)

The Commission President at the EU–Turkey meeting. (© European Union)

Rescuers help the survivors after a powerful earthquake hit the town of Amatrice, Italy. (© Associated Press)

The President of the United States and the Commission President give a joint press conference. (© European Union)

6.  Mourners place flowers and candles in memory of the victims of the terror attacks in Brussels. (© Associated Press)

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The Commission President meets with dairy producers. (© European Union)

EU, Canadian and Slovak representatives at the signing ceremony of the Strategic Partnership Agreement and the Comprehensive 
Economic and Trade Agreement between the EU and Canada. (© European Union)

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Pro-EU demonstrators outside the UK parliament. (© Associated Press)

10.  The  Slovak  Prime  Minister,  the  European  Council  President  and  the  Commission  President  give  a  joint  press  conference.   

(© European Union)

11.  The  Competition  Commissioner  announces  the  EU’s  decision  that  Ireland  must  recover  illegal  State  aid  provided  to  Apple.   

(© European Union)

12.  The military conflict in Syria continues. (© Associated Press)

13.  The  High  Representative/Commission  Vice-President  and  the  NATO  Secretary  General  give  a  joint  press  conference.   

(© NATO/OTAN)

The EU in 2016

GENERAL REPORT ON THE ACTIVITIES OF THE EUROPEAN UNION

Published in accordance with Article 249(2) of the Treaty on the Functioning of the European Union

An interactive version of this publication, containing links to online content, is available 
in PDF, EPUB and HTML format:
europa.eu/general-report/en

The EU in 2016 — General Report on the Activities of the European Union
European Commission
Directorate-General for Communication
Citizens’ Information
1049 Brussels
BELGIUM

The EU in 2016 — General Report on the Activities of the European Union  
was adopted by the European Commission on 24 February 2017  
under reference number COM(2017) 1289.

Print

PDF

EPUB

HTML

ISBN 978-92-79-62698-2

ISSN 1608-7321

doi:10.2775/53694

ISBN 978-92-79-62668-5

ISSN 1977-3374

doi:10.2775/226192

ISBN 978-92-79-62722-4

ISSN 1977-3374

doi:10.2775/65021

ISSN 1977-3374

doi:10.2775/2616

Luxembourg: Publications Office of the European Union, 2017

© European Union, 2017
Reproduction is authorised provided the source is acknowledged. For any use or reproduction of 
individual photos, permission must be sought directly from the copyright holders.

CREDITS
All images and videos © European Union, except:
cover: copyrights as stated on the inside cover 
page 37: © European Union/Deutsche Messe 
page 38: © European Union/Deutsche Messe 
page 56: © Associated Press
page 74: © NATO/OTAN 

Contents

FOREWORD 

CHAPTER 1

A NEW BOOST FOR JOBS, GROWTH AND INVESTMENT 

The Investment Plan for Europe 
Helping small and medium-sized companies 
Boosting the EU economy 
New skills, better protection, more jobs for the young 
Connecting people 
The European Solidarity Corps 
Economic and fiscal policy 
Continuing support for EU Member States 
Extending support beyond EU borders 
An EU Budget Focused on Results 

CHAPTER 2

A CONNECTED DIGITAL SINGLE MARKET 

Better access to goods and services 
Creating the right conditions 
Maximising growth potential 

CHAPTER 3

A RESILIENT ENERGY UNION WITH  
A FORWARD-LOOKING CLIMATE CHANGE POLICY 

Clean Energy for All Europeans 
Energy security, solidarity and trust 
A fully integrated EU market 
Accelerating Clean Energy Innovation 
Decarbonisation of the economy 

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CHAPTER 4

A DEEPER AND FAIRER INTERNAL MARKET  
WITH A STRENGTHENED INDUSTRIAL BASE 

The Single Market 
Making mobility easier for professionals and workers 
Greater efficiency of public procurement 
Strengthening the EU’s industrial base 
Protecting intellectual property 
Delivering better services to rail passengers 
Strengthening ports 
Undistorted competition 
Transparency and the fight against tax avoidance 
Financial markets working for consumers 
Building the Capital Markets Union 

CHAPTER 5

A DEEPER AND FAIRER ECONOMIC   
AND MONETARY UNION 

Controlling State aid and ensuring fair competition 
New boards to bolster the deepening process 
Banking Union 
Financial markets 
Making sure it all works 
Public consultation on the European Pillar of Social Rights 
A new start for social dialogue 
Europe 2020, the European Semester and human capital 

CHAPTER 6

A REASONABLE AND BALANCED FREE TRADE  
AGREEMENT WITH THE UNITED STATES 

Trade as a motor for jobs and growth 
Towards a permanent multilateral Investment Court System 
Free trade must be fair trade 
What the EU negotiated with the United States 
How the EU negotiated with the United States 
After the negotiations 

CHAPTER 7

AN AREA OF JUSTICE AND FUNDAMENTAL RIGHTS  
BASED ON MUTUAL TRUST 

Addressing security threats in the EU 
Upholding the rule of law 
Criminal justice 
Civil justice 
Fundamental rights and judicial systems 
Consumers’ rights 
Gender equality 
Fighting against discrimination 

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Rights of people with disabilities 
Addressing trafficking of human beings 

CHAPTER 8

TOWARDS A NEW POLICY ON MIGRATION 

The European Agenda on Migration 
Protecting those in need of international protection 
Relocation and resettlement 
Saving lives at sea and implementing the ‘hotspot’ approach 
Better control of the EU’s external borders 
Improving channels for legal migration 
Integration of non-EU nationals 
Visas 
Financial support for the efficient management of migration 

CHAPTER 9

A STRONGER GLOBAL ACTOR 

The EU’s neighbourhood 
North America 
China 
The Middle East 
Latin America 
EU–Africa partnership 
Migration 
Human rights 
The 2030 Agenda: Sustainable Development Goals 
International development 
Research and innovation 
Decent work on the EU global agenda 
Security and defence 
Responding to humanitarian crises and emergencies 
International cooperation 

CHAPTER 10

A UNION OF DEMOCRATIC CHANGE 

The European Parliament 
The European Council 
The Council of the European Union 
The European Economic and Social Committee  
and the European Committee of the Regions 
Better regulation 
Monitoring the application of EU law 
Transparency and accountability 
Control of the EU budget 
National parliaments 
The European Ombudsman 
The European Citizens’ Initiative 
Citizens’ dialogues 

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Foreword

Jean-Claude Juncker, President of the 
European Commission, gives his State 
of the Union address for 2016 in the 
European Parliament, Strasbourg, France, 
14 September 2016.

Throughout a year in which the European and global political landscape shifted 
further than many imagined, the EU remained a source of resilience, stability 
and forward momentum for its citizens. By focusing on the areas that matter 
and make most sense for Europeans, no time was lost in delivering on the 
EU’s most pressing challenges.

That progress was facilitated by a renewed sense of unity and commitment 
within the EU. September’s Bratislava Declaration and Roadmap saw all 27 
Member  States  present  agree  on  the  positive  agenda  for  collective  action 
that  I  presented  in  my  State  of  the  Union  address.  Coming  just  3  months 
after the United Kingdom’s referendum on EU membership, this was a crucial 
moment for the EU’s members to come together and look forward. Building on 
that momentum, the European Parliament, the Council and the Commission 
agreed  the  first  ever  Joint  Declaration  on  the  EU’s  legislative  priorities  for 
2017, signed by the three EU institutions in December.

Only  by  working  together  can  we  tackle  our  common  challenges  and  build 
a  European  Union  that  protects,  that  preserves  the  European  way  of  life, 
that empowers its citizens, that defends at home and abroad and that takes 
responsibility.

Over  the  last  year  we  have  made  progress  towards  that,  but  we  have  a  lot 
more to do. Unemployment is now at its lowest in the EU since 2009. Youth 
unemployment  has  dropped  by  10 %  in  the  last  year  alone  but  remains  too 
high, especially in the parts of the EU where the recovery has taken more time.

Foreword

7

That is why in 2016 the Commission committed itself to reinforcing the 
Youth Guarantee, which has already helped 9 million young people take up 
an offer of work, education or training. To back that up, the Commission 
proposed  to  increase  funding  for  the  Youth  Employment  Initiative  by 
€2 billion. This will help support 1 million more young people by 2020.

But when it comes to the young people of the EU — our future — we need 
to invest more than money. There is one 2016 initiative that is particularly 
close to my heart: the launch of the European Solidarity Corps. The Corps 
will enable young people to volunteer for solidarity activities across the EU 
to help the most vulnerable, develop new skills and forge new bonds. That 
is  an  investment  in  our  future.  It  was  only  launched  in  early  December 
but  by  the  end  of  the  month  more  than  18  000  young  Europeans  had 
registered. We are in safe hands!

We need to support those young people by getting our economy working 
for them. That is why in September I announced a large-scale expansion 
of the European Fund for Strategic Investments, which was endorsed by 
the European Council in December.

The numbers speak for themselves: €164 billion of investment has already 
been triggered across all 28 Member States and €22.4 billion of financing 
has been secured for infrastructure projects.

It is also an investment in keeping pace with the digitisation of our economy 
and  society.  That  is  why  in  2016  the  Commission  proposed  a  reform  of 
the EU’s telecommunications markets. If we invest in new networks and 
services we will create at least 1.3 million new jobs over the next decade.

2016 also saw us make good progress on migration. The EU now has a 
comprehensive strategy to save lives, secure our borders and enable us 
to deal with those seeking asylum on our shores. We set up a European 
Border and Coast Guard in record time. We worked together with Turkey to 
implement the EU–Turkey Statement to help destroy the business model 
of people smugglers and traffickers and offer safe and legal ways to the 
EU  for  those  who  need  our  protection.  We  are  tackling  the  root  causes 
of  illegal  migration  by  working  with  our  African  friends  through  new 
migration partnerships. And we are reforming our asylum policy to put in 
place a genuinely Common European Asylum System.

An  EU  that  protects  is  an  EU  that  defends  and  empowers,  at  home 
and  abroad.  In  2016  the  Union  continued  to  stand  up  for  its  values  of 
openness, freedom, tolerance and solidarity. This is what the rest of the 
world  expects  from  us  as  a  positive  global  force.  During  the  year  we 
continued to forge links with our partners, and the new trade partnership 
with Canada shows our commitment to working with like-minded partners 
to create opportunities in the EU and beyond.

The  barbaric  terrorist  acts  on  our  soil  in  the  past  year  have  shown  us 
again what we are fighting for — the European way of life. In the face of 
the worst of humanity we have to stay true to our values and to ourselves. 
It is about defending the beliefs that our society is built on: democracy, 
openness,  tolerance  and  diversity.  And  it  is  about  defending  ourselves 
from those who wish us harm.

That  is  why  we  have  prioritised  security  —  criminalising  terrorism  and 
foreign  fighters  across  the  EU,  cracking  down  on  the  use  of  firearms 

8

and  on  terrorist  financing,  working  with  internet  companies  to  get  terrorist 
propaganda offline and fighting radicalisation in the EU’s schools and prisons. 
We will also defend our borders: for every short-term visitor to the EU, the 
Commission proposed that there be a record of when and where he or she 
entered and exited.

But in order to do all this we need to keep the unity shown by the EU-27 and 
the EU institutions in 2016.

Our ambition now, as the European Union, must not simply be to adapt to a 
changing world, but to shape it. Our goal is not only to protect what we have 
today, but to build a better society for tomorrow.

Our children deserve a Europe that preserves their way of life. They deserve 
a  Europe  that  empowers  and  defends  them.  They  deserve  a  Europe  that 
protects. It is time we — the institutions, the governments and the citizens 
— all took responsibility for building that Europe. Together.

Jean-Claude Juncker

THE EU IN 2016CHAPTER 1

Commission Vice-President Jyrki 
Katainen answers questions from the 
press on the progress of the Investment 
Plan for Europe, Brussels, 1 June 2016.

‘My first priority as 
Commission President will 
be to strengthen Europe’s 
competitiveness and to 
stimulate investment for the 
purpose of job creation.’

Jean-Claude Juncker, political 
guidelines, 15 July 2014

A new boost for 
jobs, growth and 
investment

9

Throughout the year, boosting 
the EU economy was supported 
by policies in areas such as 
research and innovation, 
regional policy, transport, 
employment, the environment, 
agriculture and fisheries. 
Particular emphasis was placed 
on providing small businesses 
with greater access to finance 
and technical support, with the 
launch of the new European 
Investment Advisory Hub, the 
continued success of the EU’s 
programme for small and 
medium-sized enterprises and 
the increase in funding under 
the Investment Plan.

Since the global economic and 
financial crisis the European 
Union has been suffering from 
low levels of investment. 
Collective and coordinated 
efforts at Union level are 
needed to put the EU on 
the path towards economic 
recovery. Boosting jobs and 
growth was a top priority for 
the EU in 2016, building on 
what had been achieved the 
year before.

extend the duration of the 
European Fund for Strategic 
Investments was backed in 
December by the European 
Council. The Commission also 
proposed a new European 
External Investment Plan to 
encourage investment in Africa 
and the EU neighbourhood in 
order to strengthen the EU’s 
partnerships and contribute 
to achieving the Sustainable 
Development Goals.

The Investment Plan for Europe 
mobilised over €163 billion of 
new investments across the 
EU in 2016. The success of the 
Plan led to the announcement 
in September by Jean-Claude 
Juncker, President of the 
European Commission, of 
the extension of the Plan’s 
initial target of €315 billion 
of new investments by 2020 
to at least €500 billion, and 
beyond that to €630 billion 
by 2022. The proposal to 

The Commission simplified 
the procedure for detecting 
and assessing macroeconomic 
imbalances and put greater 
focus on employment and 
social considerations in the 
European Semester (the EU’s 
economic policy coordination 
cycle). It also proposed a new 
set of recommendations for 
structural reforms, with a 
greater emphasis on growth-
enhancing policies such as 
research and innovation.

10

The Investment Plan for Europe

The  Commission,  together  with  the  European  Investment  Bank,  launched  the  Investment  Plan  for 
Europe in 2015. The European Fund for Strategic Investments was created with an initial €21 billion 
of EU money.

Werner Hoyer, President of the 
European Investment Bank, addresses 
the Brussels Economic Forum 2016, 
Brussels, 9 June 2016.

In 2016 the Fund remained firmly on track to deliver on mobilising at least €315 billion in additional 
investments  in  the  real  economy  by  mid  2018.  It  was  active  in  all  28  Member  States  and  was 
expected  to  have  triggered  just  under  €164  billion  in  total  investment  by  the  end  of  December 
2016.

By  the  end  of  the  year  175  infrastructure  projects,  representing  financing  of  €22.4  billion,  had 
been approved under the Fund. In addition, 247 financing agreements, worth €8.2 billion, had been 
approved for smaller companies. Close to 385 000 small businesses were expected to benefit.

THE EUROPEAN FUND FOR STRATEGIC INVESTMENTS —  
INVESTMENT BY SECTOR

Environment and 
resource eﬃciency,
4 %

Transport,
8 %

Digital,
10 %

Social infrastructure, 4 %

Smaller companies, 31 %

422 approved 
transactions in the 
28 EU Member States 
as of December 2016

Research,
development and
innovation, 21 %

Energy, 22 %

THE EU IN 2016Chapter 1 — A new boost for jobs, growth and investment

11

Given  the  success  of  the  Investment  Plan  the  Commission  proposed  in  September  to  extend  its 
duration and financing, targeting at least €500 billion of investments by 2020. The European Council 
endorsed this in December.

The Investment Plan reaches the real 
economy.

The EU is reinforcing the social dimension of the Fund for both microfinance and social entrepreneurship. 
Overall, the total amount of support for these areas is expected to increase from €193 million under 
the Employment and Social Innovation Programme to about €1 billion, mobilising some €3 billion in 
additional investment. Agreements have been signed with more than 100 microfinance providers to 
support over 100 000 micro-entrepreneurs in EU Member States.

Helping small and medium-sized companies

Help for small businesses came from many different sources.

In view of its success, the European Fund for Strategic Investments’ allocation for small businesses 
was increased in July by an extra €500 million.

In  addition  to  the  Investment  Plan,  the  COSME  programme,  the  EU’s  programme  for  small  and 
medium-sized enterprises, is running from 2014 to 2020 with a budget of €2.3 billion to help the 
creation and growth of companies. It helps companies access markets, creates a favourable business 
environment and promotes entrepreneurship. The mid-term budget review proposed to increase the 
budget for financial instruments by €200 million.

In 2016 a further €45 million was used to help small and medium-sized companies find business 
partners, understand EU legislation and access EU funding through the Enterprise Europe Network. 
About 450 000 companies received services from 625 participating organisations in all EU regions 
and 35 non-EU countries.

In  November  the  Commission  adopted  the  Start-up  and  Scale-up  Initiative  to  give  the  EU’s  many 
innovative  entrepreneurs  every  opportunity  to  become  world  leaders.  It  pulls  together  all  the 
possibilities that the EU already offers and adds a new focus on venture capital investment, insolvency 
law, taxation and intellectual property.

Environment and 

resource eﬃciency,

4 %

Transport,

8 %

Digital,

10 %

Social infrastructure, 4 %

Smaller companies, 31 %

422 approved 

transactions in the 

28 EU Member States 

as of December 2016

Research,

development and

innovation, 21 %

Energy, 22 %

12

THE START-UP AND SCALE-UP INITIATIVE

Only 3 % of start-ups go on to scale up,

but they are the EU’s job creation champions    

€

Start        UP

By creating the right conditions 
we can see more scale-ups, 
more jobs and more prosperity

improve access to ﬁnance

remove regulatory barriers

create new opportunities

The Commission is working to:

€

Boosting the EU economy

Throughout the year the creation of jobs and growth was supported by policies in many areas, 
including  regional  policy,  research  and  innovation,  transport,  agriculture,  employment  and 
education.

Commissioner Corina Crețu visits the 
Smart City Experience Lab, Amsterdam, 
the Netherlands, 22 April 2016.

Regional policy

The  European  Structural  and  Investment  Funds,  with  a  budget  of  €454  billion  for  2014-2020, 
continued  to  invest  in  the  Union’s  priority  areas.  Strategically  investing  in  key  growth-generating 
areas, regional policy is a vital pillar of the EU’s Jobs and Growth Agenda.

In  the  years  2014-2020  the  Funds  will  invest  €121  billion  in  research  and  innovation,  digital 
technologies and support for small businesses throughout the EU.

THE EU IN 2016Chapter 1 — A new boost for jobs, growth and investment

13

Two  million  businesses  and  start-ups  will  be  directly  supported  by  the  Funds  to  boost  their 
competitiveness and increase their research and innovation capacity.

In 2016 the EU simplified access to the Funds for small businesses and cities. It also increased the 
uptake  of  financial  instruments  and  ensured  that  an  increased  number  of  combinations  could  be 
made with other EU funds, especially the European Fund for Strategic Investments.

The  evaluation  of  the  Regional  Development  and  Cohesion  Funds  for  the  2007-2013  period  was 
published in September. Key achievements included €2.74 of additional gross domestic product for 
every €1 invested through cohesion policy, over 1 million jobs created, 5 000 km of new roads and 
1 000 km of new railways built.

Research and innovation

Horizon 2020 is the biggest EU research and innovation programme ever, with €77 billion of funding 
available over the 2014-2020 period. It supports world-class research, builds industrial leadership in 
the EU and aims to provide solutions to societal challenges in areas such as climate change, energy, 
health and security.

A budget focused on results in research 
and innovation.

The European Fund for Strategic Investments continued to complement Horizon 2020, in particular 
through  its  support  for  innovative  small  and  medium-sized  companies.  The  Fund  helped  satisfy 
extraordinary  demand  for  support  from  the  EU  Finance  for  Innovators  initiative,  a  joint  initiative 
launched by the Commission and the European Investment Bank under Horizon 2020.

EU research and innovation policy was refocused on three strategic objectives: open innovation, 
open science and open to the world. These were implemented through initiatives at three levels: 
increasing the recognition of research and innovation as a key driver of economic growth and job 
creation (notably through the European Semester and the Horizon 2020 Policy Support Facility); 
improving  the  framework  conditions  for  research  and  innovation;  and  continuing  the  strategic 
programming of Horizon 2020. New initiatives included the Innovation Deals pilot scheme, which 
was launched in 2016 with the aim of reducing barriers to innovation and boosting the circular 
economy, and the European Open Science Cloud. Preparatory work started on longer-term measures 
to improve the innovation environment in the EU, including a call for ideas on a possible European 
Innovation Council.

Space for innovation and investment

In October 2016 the Commission published a Space Strategy for Europe. It aims to maximise the 
benefits to society of the European Union’s space programmes and to unlock the potential of the 
space sector to boost innovation, jobs and growth creation in the EU’s economy. It will help the EU 
space industry to remain a world leader. The Strategy also confirmed the importance of the sector for 
EU security and in strengthening the EU’s role as a global actor.

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The Galileo programme, the EU’s initiative for a state-of-the-art global satellite navigation system, 
reached a major milestone in 2016 following the successful launch of four additional satellites using 
the European Ariane 5 rocket. The initial services — navigation, search and rescue and the public 
regulated service — were announced in December 2016.

Sustainable growth

In 2016 the EU made further progress on the Circular Economy Package proposed in 2015. Many 
natural resources are finite, and the EU is a net importer of many raw materials. To ensure sustainable 
growth  it  has  to  use  its  resources  in  a  smarter,  more  sustainable  way.  Waste  prevention,  better 
design of products, recycling, reuse and similar measures could bring net savings of €600 billion for 
businesses in the EU while reducing total annual greenhouse gas emissions by 2-4 %.

In March the Commission proposed a Regulation that will create an internal market for fertilisers from 
secondary raw materials, thereby turning waste management problems into economic opportunities. 
This  could  create  about  120  000  jobs  thanks  to  the  recycling  of  bio-waste  into  organic-based 
fertilisers.

In November the Commission adopted the Eco-Design Working Plan for 2016-2019 as part of the 
Clean  Energy  for  All  Europeans  package.  This  will  help  establish  product  requirements  that  are 
relevant for the circular economy, increasing the durability of products and making them easier to 
repair, reuse and recycle.

Protecting Europe’s seas

The EU fishing industry is the world’s fourth largest, supplying some 6.4 million tonnes of fish each year. 
Fishing  and  fish  processing  provide  jobs  for  over  350  000  people.  Using  the  resources  of  Europe’s 
oceans sustainably is at the heart of the European Union’s fisheries and maritime policies. In November 
the Commission published its proposals for better international ocean governance. This sets out how the 
EU could contribute to achieving the United Nations Sustainable Development Goals by ensuring that 
the  world’s  oceans  are  managed  more  wisely.  Commissioner  Karmenu  Vella  also  launched  the 
MedFish4Ever initiative in April, drawing attention to the critical state of fish stocks in the Mediterranean 
Sea, where more than 90 % of the assessed stocks are currently overfished.

Commissioner Karmenu Vella at the 
launch of the MedFish4Ever initiative, 
Brussels, 27 April 2016.

Connecting Europe

To  contribute  to  the  digitalisation  and  decarbonisation  of  transport,  in  June  the  Commission  put 
forward  a  list  of  195  transport  projects  that  are  to  receive  €6.7  billion  of  EU  funding  under  the 
Connecting Europe Facility. The investment is expected to create up to 100 000 jobs by 2030.

Selected projects are primarily located within the core Trans-European Transport Network. Among 
the  beneficiaries  are  initiatives  such  as  the  rehabilitation  of  the  Brasov–Sighisoara  rail  section  in 
Romania, the Aveiro–Vilar Formoso railway connection in Portugal, the development of a standard-

THE EU IN 2016Chapter 1 — A new boost for jobs, growth and investment

15

Commissioner Violeta Bulc participates 
in a demonstration of self-driving cars 
at the Innovation Expo, Amsterdam, the 
Netherlands, 14 April 2016.

gauge railway line on the North Sea–Baltic Corridor and the implementation of the Single European 
Sky Air Traffic Management Research Deployment Programme. In October the Commission launched 
the  third  round  of  calls  for  proposals  under  the  Connecting  Europe  Facility  for  transport,  making 
€1.9 billion available to finance key transport projects.

Jobs and growth through agriculture

Agriculture  in  the  European  Union  provides  a  variety  of  quality  food  products  and  environmental 
public goods for citizens and contributes to the cultural and social fabric of rural areas. The agri-food 
sector  accounts  for  nearly  44  million  jobs  in  the  EU,  while  EU  agri-food  exports  are  worth  over 
€120 billion per year.

Jean-Claude Juncker, President of the 
European Commission (centre), meets 
with a delegation of dairy producers,  
St. Vith, Belgium, 15 November 2016.

The common agricultural policy supports this with an annual budget of roughly €59 billion, providing 
support  for  farm  income,  for  farmers  to  deliver  environmental  benefits  and  for  other  activities  to 
increase the sector’s competitiveness, resource efficiency and life in rural areas.

Commissioners Violeta Bulc and Phil 
Hogan, together with Dejan Židan, 
Slovenian Minister for Agriculture, 
Forestry and Food (right), visit 
Pustotnik Farm, a dairy farm promoting 
consumption of local products, Gorenja 
vas-Poljane, Slovenia, 14 July 2016.

16

Annual  direct  payments  to  farmers  provide  basic  protection  for  farm  income  against  the  specific 
shocks to which agriculture is exposed.

In March 2016 the Commission activated exceptional measures to strengthen the position of livestock 
producers. In July it announced a package worth €500 million to reduce milk production and support 
milk producers and farmers in other livestock sectors. Further support was made available to the fruit 
and vegetable sector, which was affected by the Russian import ban.

In January the Commission created the Agricultural Markets Task Force to give recommendations on 
how to improve the functioning of the food supply chain and offer farmers an attractive perspective 
for economic stability and growth. It published its report in November. A Meat Market Observatory 
was set up to improve market transparency for the beef, veal and pork sectors, helping operators to 
read market signals and to cope better with market volatility.

Together  with  other  members  of  the  Commission,  Commissioner  Phil  Hogan  ran  a  concerted 
campaign to tackle non-tariff barriers to trade in non-EU countries where there is a potential market 
for EU products. These efforts resulted in the opening up of markets in China, Colombia, Japan and 
the United States for certain EU exports in 2016. Promising new markets in Indonesia, Mexico and 
Vietnam were also targeted in high-level trade missions.

New skills, better protection, more jobs for the young

EU  funding,  in  particular  through  the  European  Social  Fund,  is  set  to  support  the  upskilling  of 
8 million EU workers between 2014 and 2020. With its budget of €14.7 billion, Erasmus+ will provide 
opportunities  for  over  4  million  people  to  study,  train,  gain  experience  and  volunteer  abroad.  The 
programme  also  provides  support  for  activities  helping  Member  States  modernise  and  transform 
their education and training systems.

Commissioner Marianne Thyssen meets 
with students from the Vocational 
Training School of Athens, Greece, 
21 April 2016.

In May the European Platform Tackling Undeclared Work was launched, the purpose of which is to 
turn undeclared work into declared work. The Platform ensures social protection for millions of people 
in the EU who lose out through risky job arrangements, including dependent work relationships hidden 
as self-employment.

The Commission launched a New Skills Agenda for Europe in June with 10 actions to improve the 
quality of skills and their relevance for the labour market. These include an initiative to help low-
skilled adults improve their literacy, numeracy and digital skills and/or to help them progress towards 
an upper secondary education qualification or equivalent.

To combat youth unemployment the EU continued to support the roll out of the Youth Guarantee 
in Member States. In October a progress report showed how the 2013 Youth Guarantee, backed 
by the Youth Employment Initiative, the European Social Fund and national funding, has made 

THE EU IN 2016Chapter 1 — A new boost for jobs, growth and investment

17

a difference on the ground. Three years on from its launch in 2013 there are 1.4 million fewer 
young people unemployed in the EU. Around 9 million young people have taken up an offer of 
a job, a traineeship or an apprenticeship. It has led to bold structural reforms in many Member 
States  and  helped  build  business–education  partnerships.  To  ensure  the  full  and  sustainable 
implementation  of  the  Youth  Guarantee  the  Commission  proposed  the  continuation  of  the 
Youth  Employment  Initiative  until  2020  and  the  extension  of  its  resources.  Furthermore,  the 
Commission  announced  a  new  dedicated  long-duration  (between  6  and  12  months)  mobility 
scheme for apprentices, Erasmus Pro, within the existing Erasmus+ programme, to support work-
based learning abroad.

The Youth Guarantee and the Youth 
Employment Initiative.

Connecting people

In  2016  the  Erasmus+  programme  for  education,  training,  youth  and  sport,  with  a  budget  of 
€2.2 billion, enabled around 497 000 young people to study, train, volunteer and participate in youth 
exchanges abroad. It also enabled around 141 000 members of staff from educational institutions 
and youth organisations to improve their competencies by teaching and training abroad. During the 
year the programme made available more than €400 million from the overall budget for cooperation 
projects, including those prioritising the promotion of citizenship and the common values of freedom, 
tolerance and non-discrimination through education.

The European Solidarity Corps

In December, 3 months after President Juncker had announced it in his State of the Union speech, the 
Commission launched the European Solidarity Corps. Young people between the ages of 17 and 30 
can sign up for new opportunities to make an important contribution to society across the EU, and to 
gain experience and acquire skills. Participants may be placed with a project either for volunteering 
or for a traineeship, an apprenticeship or a job for a period of between 2 and 12 months. Participants 
will be able to engage in activities in such fields as education, health, social integration, assistance 
in the provision of food, shelter construction, the support and integration of migrants and refugees, 
environmental  protection  and  the  prevention  of  natural  disasters.  By  the  end  of  December  over 
18 000 people had registered.

Economic and fiscal policy

Economic  policy  coordination  in  the  EU  is  organised  annually  in  a  cycle  known  as  the  European 
Semester. It is launched towards the end of each year with the publication of the Annual Growth Survey 
and a recommendation on the economic policy of the euro area. The Commission published country 

18

reports in February 2016 analysing the economic and social challenges in each of the EU’s Member States 
individually.  They  served  as  the  basis  for  discussions  with  Member  States  on  their  policy  choices 
ahead of their national reform programmes and medium-term budgetary plans in April. In late spring 
these reports led to the formulation of the Commission’s country-specific recommendations.

These recommendations provide guidance to Member States on how to boost jobs and growth, with 
a  renewed  focus  on  growth-enhancing  reforms  in  areas  such  as  research  and  innovation,  while 
maintaining sound public finances. During the year recommendations were also addressed to Cyprus 
as it rejoined the full economic governance framework in spring after exiting its economic adjustment 
programme.

On the fiscal front the recommendations made by the Commission in 2016 showed that the Stability 
and  Growth  Pact  can  be  applied  with  intelligent  flexibility.  The  Commission  took  into  account  the 
specificity of expenditure related to unusual events outside the control of the government (such as 
the refugee crisis and counterterrorism) when assessing Member States’ medium-term budgetary 
plans.  Spain  and  Portugal  were  given  more  time  to  correct  their  excessive  deficit  and  the  Council 
followed the recommendation of the Commission to cancel the fine that could have been imposed 
given their respective past fiscal performance. The year saw further progress concerning excessive 
deficits, which allowed the number of Member States found in excessive deficit to be reduced to six, 
down from 24 in spring 2011. Three Member States corrected their excessive deficits in 2015 and the 
related excessive-deficit procedures were formally closed by the Council in June 2016.

Looking at the euro area in particular, the Commission called for a significantly more positive fiscal 
stance for the currency area as a whole to overcome the risk of ‘low growth, low inflation’ and to 
support the monetary policy of the European Central Bank.

The  Commission  also  assessed  whether  the  euro-area  Member  States’  draft  budgetary  plans  for 
2017 complied with the provisions of the Stability and Growth Pact. In several cases the Commission 
found that the planned fiscal adjustments fell short of what is required by the Stability and Growth 
Pact, or risked doing so. 

Ensuring healthy public finances.

Concerning the monitoring of macroeconomic imbalances, the Commission concluded that 13 Member 
States  still  experience  either  imbalances  or  excessive  imbalances.  Along  with  noting  progress  in 
addressing imbalances, the Commission also made the implementation of the procedure clearer and 
more transparent by reducing the number of categories for imbalances from six to four and brought 
a greater focus on employment and social considerations into the European Semester.

THE EU IN 2016Chapter 1 — A new boost for jobs, growth and investment

19

Continuing support for EU Member States

Negotiations continued in the Parliament and the Council on the Structural Reform Support Programme 
proposed by the Commission in November 2015.

Cyprus  successfully  completed  its  3-year  economic  adjustment  programme  at  the  end  of  March 
2016. The Commission continued to support the Cypriot authorities, through its Structural Reform 
Support Service, in implementing growth-enhancing administrative and structural reforms.

In the course of the year good progress was made in implementing the Greek programme, which was 
designed to create the conditions for the return of confidence and to lay the foundation for a lasting 
economic recovery in Greece. The first review was concluded, allowing the second tranche of funding 
from  the  programme,  amounting  to  €10.3  billion,  to  be  paid.  This  second  tranche  was  disbursed  in 
several steps, with the last disbursement approved in October. The Commission supported the work 
of the Eurogroup, which decided on debt measures in May. These measures will be implemented on 
a gradual basis. A first discussion on short-term debt measures took place in early December. On the 
programme  implementation  front,  good  progress  was  made  towards  the  completion  of  the  second 
review.

Greece also received economic support through the Investment Plan for Europe. A first deal backed 
by the European Fund for Strategic Investments was signed in Greece in May. On this occasion the 
European Investment Fund signed three deals with Greek intermediary banks and funds to provide 
additional investment to very small, small and medium-sized companies in Greece.

Extending support beyond EU borders

The  Commission  supported  Georgia,  Kyrgyzstan,  Jordan,  Tunisia  and  Ukraine  with  macrofinancial 
assistance  programmes.  The  aim  is  to  help  countries  geographically,  economically  and  politically 
close  to  the  EU  to  restore  a  sustainable  external  financial  situation,  while  encouraging  economic 
adjustments and structural reforms. The programmes are a complement to International Monetary 
Fund financing.

In September the Commission proposed a new European External Investment Plan that would boost 
investment in African and EU neighbourhood countries and contribute to addressing the root causes 
of migration. It aims to support social and economic infrastructure and small businesses, with a focus 
on job creation, by removing obstacles to private investment. With an input of €3.35 billion from the 
EU budget and the European Development Fund, the Plan would support innovative guarantees and 
similar instruments in support of private investment.

The Plan enables the mobilisation of up to €44 billion in investments. If Member States and other 
partners match the EU’s contribution, the total amount could double, reaching €88 billion.

An EU Budget Focused on Results

In 2016 the Commission made progress with the EU Budget Focused on Results initiative to ensure 
that  EU  resources  are  put  to  good  use  for  the  benefit  of  citizens  and  that  all  EU-funded  projects 
demonstrate clear benefits and value for money.

The  EU  budget  continued  to  be  invested  according  to  the  Commission’s  policy  priorities,  such  as 
stimulating growth, jobs and competitiveness and responding swiftly and effectively to emergencies.

A database of successful projects funded by the EU budget, available on the Commission’s website, 
displayed more than 1 000 projects in 2016.

20

Commission Vice-President Kristalina 
Georgieva (2014-2016) addresses  
a conference on an ‘EU Budget 
Focused on Results’, Brussels,  
27 September 2016.

On the occasion of President Juncker’s State of the Union address in September, the Commission 
presented  its  Mid-term  Review  of  the  Multiannual  Financial  Framework  (2014-2020),  including  a 
package of legislative proposals aiming to:

 ‣ provide additional financial means for efficiently tackling migration and security risks and foster 

economic growth, job creation and competitiveness;

 ‣ increase the flexibility of the EU budget and its ability to quickly and efficiently address 

unforeseen circumstances;

 ‣ simplify financial rules and thus reduce the administrative burden on recipients of EU funds.

THE EU IN 2016CHAPTER 2

Commission Vice-President Andrus 
Ansip (centre) tries out next-generation 
wireless technology at the Mobile World 
Congress 2016, Barcelona, Spain,  
22 February 2016.

‘We must make much 
better use of the great 
opportunities offered by 
digital technologies, which 
know no borders. To do so, 
we will need to have the 
courage to break down 
national silos in telecoms 
regulation, in copyright and 
data protection legislation, 
in the management of radio 
waves and in the application 
of competition law.’

Jean-Claude Juncker, political 
guidelines, 15 July 2014

A connected Digital 
Single Market

100 megabits per second, 
which can be upgraded to 
gigabit speed.

21

The Digital Single Market 
Strategy aims to remove 
online barriers that lead to 
people in the EU missing 
out on goods and services. 
These barriers also mean 
that internet companies 
and start-ups cannot take 
full advantage of digital 
growth. In 2016 the European 
Commission presented 
almost all of its proposals on 
completing the Digital Single 
Market, with the adoption 
of the remaining proposals 
expected in early 2017. 
The Commission presented 
new rules to help people 
and companies buy and sell 
products and services online 
more easily and outlined 
plans to ensure a fairer and 
more transparent online 
market place. It also outlined 
a strategy to help industry, 
companies, researchers and 
public authorities to make the 
most of new technologies.

To increase trust in the 
digital world the Commission 
launched a major partnership 
with industry on cybersecurity 
in July. EU artists, creators 
and cultural diversity were 
in the spotlight during year-
long celebrations of 25 years 
of the EU MEDIA Programme. 
In addition, modernisation 
of the EU’s copyright and 
broadcasting rules created 
more opportunities for 
innovation and creative 
content online and across 
borders.

In September’s State of 
the Union speech President 
Juncker announced WiFi4EU, 
a €120 million plan to bring 
free Wi-Fi to parks, squares, 
libraries and public buildings in 
towns and villages across the 
EU. In addition, the Commission 
wants all households in the 
EU to have access to an 
internet connection of at least 

22

WHY DO WE NEED A DIGITAL SINGLE MARKET?

Only 59 % of people 
living in the EU can 
access 4G networks

4G

90 % of jobs 
will soon require 
digital skills

+ €11 billion 
in savings 
for consumers 
when shopping 
online

Small businesses 
could save €9 000 
per market on legal 
and translation fees 
thanks to harmonised 
national laws in the EU

52 % of potential cross-border 
purchases are blocked

Better access to goods and services

New e-commerce rules to help people and companies

In May 2016 the Commission presented measures to allow consumers and companies to buy and 
sell  products  and  services  online  more  easily  across  the  EU.  The  Commission  proposed  a  Geo-
Blocking Regulation so that people buying products and services in another EU Member State are not 
discriminated against.

The E-commerce Package: towards an  
EU Single Market.

People  and  small  businesses  often  complain  that  high  charges  and  problems  with  parcel  delivery 
prevent them from selling or buying more across the EU. The Regulation adopted by the Commission 
in May aims to increase price transparency and regulatory oversight. To boost consumer trust the 
Commission wants to update the Consumer Protection Cooperation Regulation.

THE EU IN 2016Chapter 2 — A connected Digital Single Market

23

Investigating e-commerce

The  Commission  gathered  evidence  from  nearly  1  800  companies  operating  in  e-commerce  for 
consumer goods and digital content and analysed around 8 000 distribution contracts. In March initial 
findings revealed that geo-blocking was widespread in e-commerce throughout the EU, especially for 
digital content. In September the Commission published a preliminary report that confirmed the fast 
growth of e-commerce in the EU — more than half of adults in the EU ordered goods or services 
online  in  2015.  The  report  identified  business  practices  that  might  restrict  competition  and  limit 
consumer choice. The final report is due in 2017.

Simplifying VAT rules

The current VAT system for cross-border e-commerce is complex and costly for Member States and 
businesses. For businesses the average annual costs of supplying goods to another Member State are 
estimated at €8 000 per Member State. Moreover, EU businesses are at a competitive disadvantage, 
as  non-EU  suppliers  can  supply  VAT-free  goods  to  consumers  in  the  EU  under  the  exemption  for 
imports  of  small  consignments.  The  complexity  of  the  system  also  makes  it  difficult  for  Member 
States to ensure compliance, with losses estimated at around €5 billion annually.

As  part  of  the  Digital  Single  Market  Strategy  the  Commission  presented  a  legislative  package  to 
modernise and simplify VAT for cross-border e-commerce, in particular for small and medium-sized 
companies. It will remove the need for businesses selling to consumers in other Member States to 
register for VAT in any Member State where a customer is located. A further proposal will ensure that 
electronic publications can benefit from the same reduced rates as physical publications.

Modern EU copyright rules

Today, according to Eurobarometer (the Commission’s public opinion survey service), 73 % of young 
people  in  the  EU  listen  to  music,  watch  TV  series  and  films  or  play  games  online.  Almost  20  % 
have  tried  to  access  services  providing  content  in  another  Member  State,  but  broadcasters  find  it 
complicated to meet this growing demand. To improve choice and access to content the Commission 
proposed a Regulation to make it easier for broadcasters to get clearance from rights holders. The 
Regulation  also  simplifies  the  transmission  of  online  programmes  in  other  Member  States  and 
enables channels from other countries to be included in consumer packages.

This  is  complemented  by  a  proposal  for  a  new  Copyright  Directive.  The  draft  Directive  will  help 
museums, archives and other institutions to digitise, and make available across borders, books and 
films that are protected by copyright but no longer available to the public.

Students  and  teachers  want  to  use  digital  materials  and  technologies,  but  almost  a  quarter  of 
teachers face copyright-related restrictions in their digital teaching activities. The proposed Copyright 
Directive will allow educational establishments to use materials to illustrate teaching through digital 
tools and in online courses across borders. It will make it easier for researchers to use text- and data-
mining technologies to analyse large sets of data. The draft Directive also includes a new mandatory 
EU exception so that cultural heritage institutions can preserve works digitally.

Also  according  to  Eurobarometer,  57 %  of  people  in  the  EU  get  their  online  news  from  social 
media, search engines or news aggregators, and 31 % listen to music from online video or music 
sharing sites. The digital era has brought more consumer choice, broader audiences and fresh 
opportunities  for  rights  holders,  creators  and  publishers,  but  many  find  it  difficult  to  receive 
fair remuneration or to negotiate with video-sharing and other online platforms. The proposed 
Copyright Directive aims to create a fairer and more sustainable marketplace by clarifying the 
obligations of online platforms. It will also strengthen the position of rights holders regarding 
negotiation  and  remuneration,  while  recognising  the  important  role  press  publishers  play  in 
investing in and creating quality journalistic content.

24

Creating the right conditions

Farewell to roaming charges

In  April  2016  calling,  texting  and  surfing  online  from  another  Member  State  (roaming)  became 
cheaper, with people only paying a small amount on top of their domestic prices: up to €0.05 per 
minute for calls made, €0.02 per SMS sent and €0.05 per MB of data used (excluding VAT) from their 
mobile devices. As of 15 June 2017 people living in the EU will bid farewell to roaming charges when 
travelling periodically within the Union.

During the year the Commission presented a number of measures to make this happen through a 
proposal to regulate wholesale roaming charges (the prices that operators charge each other for the 
use of their networks) and rules to make the end of roaming work for everyone living in the EU. All 
EU travellers will enjoy the ‘roam like at home’ opportunity by paying the same price for mobile calls, 
SMSs and data when they travel away from their home (their country of residence or with which they 
have stable links). In April new rules took effect that for the first time guarantee the principle of net 
neutrality in EU law.

Roaming: a big day in a long battle.

More and better internet connectivity

By 2020 there will be nearly eight times as much mobile internet traffic as there is today. In 2016 the 
European Commission set out major legislative and policy initiatives to meet this growing demand. 
In February the Commission proposed to better coordinate radio frequencies in the 700 megahertz 
band, to improve mobile internet access and to allow connected cars, remote healthcare and other 
innovative services to work across the continent.

In September the Commission proposed an overhaul of EU telecoms rules and further plans to meet 
the growing connectivity needs of people in the EU. The Commission has the following three objectives.

 ‣ All schools, universities, research centres, transport hubs, hospitals, public services and 

businesses should have access to gigabit connectivity (allowing users to download/upload 
1 gigabit of data per second) by 2025.

 ‣ All households in the EU should have access to connectivity offering a download speed of at 
least 100 megabits per second, which can be upgraded to gigabits per second, by 2025.

 ‣ All urban areas should have uninterrupted 5G coverage, the fifth generation of wireless 

communication systems, by 2025. 5G should be commercially available in at least one major 
city in each Member State by 2020.

These  objectives  can  only  be  achieved  with  massive  investment.  The  new  European  Electronic 
Communications  Code  includes  rules  that  make  it  more  attractive  for  all  companies  to  invest  in 

THE EU IN 2016Chapter 2 — A connected Digital Single Market

25

top-quality  infrastructure,  everywhere  in  the  EU,  both  locally  and  across  national  borders,  while 
maintaining  effective  competition.  The  Commission  also  outlined  a  plan  to  deploy  5G  across  the 
EU.  In  his  2016  State  of  the  Union  speech  President  Juncker  presented  the  WiFi4EU  initiative,  a 
€120 million investment to promote access to wireless connectivity in public places. Free Wi-Fi would 
then be available in parks, squares, libraries and public buildings to benefit citizens and institutions 
with a public mission.

In April the need for government and industry to work together to improve data infrastructure for 
transport was underlined in the Amsterdam Declaration, discussed by transport ministers from all 
28  EU  Member  States.  The  Dutch  Presidency  of  the  Council  of  the  European  Union,  the  European 
Commission, Member States and the transport industry pledged to draw up rules and regulations that 
will allow autonomous vehicles to be used on EU roads.

New EU audiovisual rules for cultural diversity

Today,  people  increasingly  view  programmes  via  video-on-demand  services  (such  as  Netflix)  and 
video-sharing platforms (such as YouTube), whether on their smartphones or gathered around the 
family television. To respond to this new reality the Commission presented a proposal in May for an 
updated Audiovisual Media Services Directive.

The  new  legislation  aims  to  achieve  a  better  balance  of  the  rules  that  today  apply  to  traditional 
broadcasters, video-on-demand providers and video-sharing platforms, especially when it comes to 
protecting children. It will strengthen the EU’s cultural diversity — video-on-demand providers will 
need to ensure at least a 20 % share of European content in their catalogues.

Platforms

In  May  the  Commission  presented  the  results  of  a  comprehensive  assessment  of  the  social  and 
economic role of platforms such as online marketplaces, search engines, payment systems, social 
media,  video  and  content-sharing  sites.  The  Commission  outlined  a  principles-based  approach  to 
fixing problems flagged during the assessment. This included a commitment that comparable digital 
services  should  follow  the  same  or  similar  rules.  Online  platforms  should  behave  responsibly,  in 
particular through voluntary efforts by industry such as the Code of Conduct on Countering Illegal 
Hate Speech Online.

Stepping up cybersecurity

According to the Global State of Information Security Survey 2017 over 80 % of EU companies have 
experienced at least one cybersecurity incident over the last year. This undermines trust and growth 
in the Digital Single Market. In July the Commission launched a new public–private partnership on 
cybersecurity to foster cooperation in the early stages of the research and innovation process and 
to  build  cybersecurity  solutions  for  various  sectors,  such  as  energy,  health,  transport  and  finance. 
This is one of several initiatives to better equip the EU against cyberattacks and to strengthen the 
competitiveness of its cybersecurity sector. These build on the first EU-wide rules on cybersecurity, 
the Directive on the Security of Network and Information Systems, adopted by the Parliament and 
the Council in July.

Improving online privacy

Over the summer the Commission carried out a public consultation on reviewing and updating the 
EU rules on e-privacy, which, together with the General Data Protection Regulation, will ensure better 
protection of the electronic communications (such as telephone calls, web calls and emails) of citizens 
in the EU.

26

Maximising growth potential

Digitising EU industry

According to recent studies the digitisation of products and services could add over €110 billion of 
revenue per year for industry in the EU over the next 5 years.

In  April  the  Commission  unveiled  plans  to  help  EU  industry,  small  and  medium-sized  businesses, 
researchers  and  public  authorities  make  the  most  of  new  technologies.  The  Commission  aims  to 
support and link up existing national initiatives for the digitisation of industry and to focus investment 
on  the  EU’s  public–private  partnerships.  For  example,  the  Commission  will  invest  €500  million  in 
a  pan-EU  network  of  Digital  Innovation  Hubs  where  businesses  can  obtain  advice  and  test  digital 
innovations.

Billions of connected devices, including phones, computers and sensors, should communicate safely and 
seamlessly, regardless of their manufacturer, technical details or country of origin. For this they need 
a common language. The Commission wants to speed up the standard-setting process, for example by 
focusing on 5G, cloud computing, the internet of things, data technologies and cybersecurity.

People and businesses are still not reaping the full benefit of digital public services that should be 
available seamlessly across the EU. The eGovernment Action Plan 2016-2020 outlined 20 measures to 
modernise digital public services and make the EU a better place to live, work and invest. This includes 
establishing a single digital gateway to provide user-friendly access to information, e-procedures and 
advice services throughout the EU. A public consultation carried out in 2016 will help to develop this.

The Commission also presented a blueprint for cloud-based services and world-class data infrastructure 
so that science, businesses and public services can join the big-data revolution. The Commission will 
set up a European Open Science Cloud. This will give the EU’s 1.7 million researchers and 70 million 
science and technology professionals a virtual environment to store, manage, analyse and reuse a large 
amount of research data. To kick-start this the Commission will make all scientific data produced by the 
Horizon 2020 programme open by default as of 2017. The Open Science Cloud will rely on the European 
Data  Infrastructure,  which  will  combine  high-bandwidth  networks,  large-scale  storage  facilities  and 
supercomputer capacity to access and process large data sets stored in the cloud.

Digital skills

According  to  studies  carried  out  by  the  Commission’s  Directorate-General  for  Communications 
Networks, Content and Technology in 2016, 47 % of the EU population have either no or low digital 
skills, yet in the near future 90 % of jobs and most of citizens’ day-to-day lives will require some level 
of digital know-how. As part of the New Skills Agenda for Europe the Commission called on Member 
States’  governments  to  increase  their  efforts,  for  example  by  bringing  digital  competencies  to  all 
levels of education and training. December saw the launch of the Digital Skills and Jobs Coalition, 
bringing together Member States and education, employment and industry stakeholders to develop a 
large digital talent pool and ensure that individuals and the labour force in the EU are equipped with 
adequate digital skills.

Stimulating EU culture and creativity in the digital world

The  connected  Digital  Single  Market  creates  huge  opportunities  for  cultural  and  creative  sectors 
within the EU to grow. However, they also face challenges in this changing environment, such as how 
to find financing. In June the Commission, together with the European Investment Fund, launched a 
€121 million loan guarantee facility to support more than 10 000 small and medium-sized businesses 
in sectors including audiovisual, festivals, music, cultural heritage, design, performing arts, publishing, 
radio and visual arts.

THE EU IN 2016Chapter 2 — A connected Digital Single Market

27

Since 1991 the MEDIA Programme has 
invested in a strong audiovisual sector, able 
to convey the EU’s rich cultural diversity. 
The Programme helps talents in the 
European Union to work together across 
borders.

2016  was  the  25th  anniversary  of  the  EU  MEDIA  Programme,  part  of  Creative  Europe,  the  main 
EU programme dedicated to the cultural and creative sectors. Since 1991 MEDIA has invested over 
€2.4 billion in creativity and cultural diversity in the EU. Each year it supports around 2 000 European 
films,  television  series  and  other  projects.  MEDIA  has  helped  train  more  than  20  000  producers, 
directors  and  screenwriters  and  enabled  them  to  adapt  to  new  technologies.  MEDIA  has  helped 
audiences for European cinema to grow. According to a Commission study into the MEDIA Programme, 
33 % of all cinema admissions in the EU in 2014 were for European films, up from 25 % in 2010.

CHAPTER 3

Commission Vice-President Maroš 
Šefčovič, Giovanni La Via, Member of 
the European Parliament, Jean-Claude 
Juncker, President of the European 
Commission, Ségolène Royal, French 
Minister for the Environment, Energy 
and Marine Affairs, Ban Ki-moon, 
Secretary-General of the United Nations, 
Martin Schulz, President of the European 
Parliament, Commissioner Miguel Arias 
Cañete and Ivan Korčok, Secretary of 
State at the Slovak Ministry of Foreign 
and European Affairs, at the signing 
ceremony for the EU’s ratification of 
the Paris Climate Change Agreement, 
Strasbourg, France, 4 October 2016.

‘Current geopolitical events 
have forcefully reminded 
us that Europe relies too 
heavily on fuel and gas 
imports. I therefore want 
to reform and reorganise 
Europe’s energy policy into a 
new European Energy Union.’

Jean-Claude Juncker, political 
guidelines, 15 July 2014

The EU headed into 2016 
with a commitment to deliver 
secure and affordable energy 
to its citizens and businesses 
and to fight the causes of 
climate change through its 
Energy Union and forward-
looking climate change 
policies.

Throughout the year the 
EU focused on maintaining 
the political momentum of 
the Paris Agreement, which 
legally entered into force in 
November, 30 days after the 
EU’s ratification pushed it 
past the threshold it had to 
reach to take effect. In July 
the Commission presented 
binding greenhouse gas 
emission targets for the period 
from 2021 to 2030 for each 
Member State in the transport, 
buildings, agriculture, waste 
and land-use, and forestry 
sectors. The Commission 
also presented a European 

28

A resilient Energy 
Union with a 
forward-looking 
climate change policy

Strategy for Low-Emission 
Mobility and continued work to 
address international aviation 
emissions.

In November the Commission 
presented its Clean Energy 
for All Europeans package, 
which includes legislative 
proposals in the areas of 
energy efficiency, renewables, 
the internal market and 
governance to help the 
transition to clean energy and 
maximise investment, jobs and 
growth in the EU.

Clean energy is the growth of tomorrow

€144

billion

40 %

In 2014 the EU’s renewable 

energy sector created a turnover 

of around €143.6 billion.

EU companies hold 40 % of 

all patents for renewable 

technologies.

2.4

million

4.0

million

2.4 million people living in the EU 

are employed in sectors providing 

energy eﬃciency products and 

services. More than 1 million 

people work in the renewable 

energy sector, with potentially 

3 million more jobs by 2020.

Source: EurObserv’ER.

Source: European Parliamentary Research Service.

Source: European Commission.

Chapter 3 — A resilient Energy Union with a forward-looking climate change policy

29

Clean Energy for All Europeans

The global transition to clean energy is ongoing and irreversible, and the European Union wants not 
only to adapt, but to lead. It is its global responsibility.

Clean energies in 2015 attracted global investment of over €300 billion. The EU is well placed to 
use its research, development and innovation policies to turn this transition into a driver for jobs and 
growth. By mobilising up to €177 billion of public and private investment per year from 2021 the 
Clean Energy for All Europeans package can generate up to a 1 % increase in gross domestic product 
over the next decade and create 900 000 new jobs.

THE TRANSITION TO A CLEAN ECONOMY

Clean energy is the growth of tomorrow

€144
billion

40 %

In 2014 the EU’s renewable 
energy sector created a turnover 
of around €143.6 billion.

EU companies hold 40 % of 
all patents for renewable 
technologies.

2.4
million

4.0
million

2.4 million people living in the EU 
are employed in sectors providing 
energy eﬃciency products and 
services. More than 1 million 
people work in the renewable 
energy sector, with potentially 
3 million more jobs by 2020.

Source: EurObserv’ER.

Source: European Parliamentary Research Service.

Source: European Commission.

Energy efficiency

The cheapest and cleanest energy is that which is not used at all. That is why the Commission in 2016 
presented new and innovative energy-efficiency measures focused on:

 ‣ setting out the framework for improving energy efficiency in general;

 ‣ improving energy efficiency in buildings;

 ‣ improving the energy performance of products (Ecodesign) and informing consumers (energy 

labelling);

 ‣ financing energy efficiency with the Smart Finance for Smart Buildings proposal.

To underpin these proposals the Commission put forward a new binding EU-wide energy-efficiency 
target of 30 % by 2030. Ambitious energy-efficiency targets are designed to reduce Member States’ 
dependence  on  energy  imports,  boost  the  local  economy,  increase  competitiveness  and  create 
additional green jobs.

30

Becoming a world leader in renewables

Renewables will play a major role in the transition to a clean energy system. The EU has set itself the 
target of collectively reaching a share of at least 27 % for renewables in final energy consumption by 
2030. The proposal for a new Renewable Energy Directive will provide investor certainty and a level 
playing field for all technologies. The Commission’s proposals focus on creating the right conditions 
for renewables to thrive and make the EU a flourishing market for clean energy. The sector already 
employs more than 1 million people and creates a turnover of around €144 billion every year.

Solar and wind technology prices declined respectively by 80 % and 30-40 % between 2009 and 
2015. This cost reduction is enabling consumers increasingly to produce their own renewable energy. 
With the revised Directive consumers will benefit from stronger rights to produce their own electricity 
to consume at home or sell back to the grid.

A fair deal for consumers

Consumers are at the centre of the Energy Union. Everyday operations like billing, changing suppliers 
and getting a new contract when moving house will become easier, quicker and more accurate for 
consumers thanks to the improved management of digital customer information. Consumers will get 
access to reliable and clear information on the best deals on the market, using certified online price-
comparison tools that assist them in making informed choices.

Consumers will also be able to switch suppliers more easily, thanks to the proposal to restrict the use 
of switching fees. The average difference between the incumbent supplier’s standard offer and the 
cheapest offer in the market is more than €50 a year in the EU.

If they wish, consumers will be able to request a smart meter from their energy supplier and benefit 
from  market-based  energy  prices,  and  new  technologies  will  allow  them  to  consume  more  when 
energy is cheap and reduce consumption when prices are high. This means that consumers will have 
better control of their spending on energy services.

Energy security, solidarity and trust

The Energy Security of Supply package proposed in February 2016 built on the progress the EU has 
achieved  over  recent  years  in  keeping  energy-security  risks  at  bay.  The  package  focused  on  gas, 
drawing  on  lessons  learnt  from  the  2014  gas  stress  tests,  but  also  on  intergovernmental  energy 
agreements and on heating and cooling.

The co-legislators adopted the Commission proposal for intergovernmental agreements in December, 
only 9 months after the initial proposal. The new rules will allow the Commission to guarantee that 
no energy deal will jeopardise the security of supply in a Member State or hamper the functioning of 
the EU’s energy market.

In March the EU strengthened its ties with India, a major world player and a crucial partner for the EU 
on energy. The Joint Declaration on a Clean Energy and Climate Partnership goes a long way towards 
building a lasting clean and sustainable energy partnership with one of the fastest-growing major 
economies.

A fully integrated EU market

2016 was an important year for EU energy infrastructure projects, with €800 million made available 
through the Connecting Europe Facility. This support is key to unlocking the additional investment 
needed to eliminate bottlenecks that prevent the free flow of energy.

THE EU IN 2016Chapter 3 — A resilient Energy Union with a forward-looking climate change policy

31

In spring two grant agreements, amounting to €5.6 million, were signed for studies on the construction 
of the Midcat gas pipeline. When built, this pipeline will contribute to integrating the gas markets of 
the Iberian peninsula with the rest of Europe. In addition, €29.9 million of funding was allocated to 
the construction of a 140 km electricity line in Bulgaria that will boost grid access for renewables and 
enhance the capacity of the Bulgarian power grid.

In October a €187 million grant agreement was made for the Balticconnector — the first gas pipeline 
connecting  Estonia  and  Finland.  When  the  gas  starts  flowing,  by  2020,  this  project  will  unite  the 
eastern Baltic Sea region with the rest of the EU energy market.

Taavi Veskimägi, Chief Executive Officer of Elering, 
Andreas Boschen, Head of the Connecting Europe Facility 
Department of the Innovation and Networks Executive 
Agency, and Herkko Plit, Chief Executive Officer of 
Baltic Connector Oy, sign an agreement to invest in the 
Balticconnector, the first gas pipeline connecting Estonia 
and Finland, in the presence of Taavi Rõivas, Prime 
Minister of Estonia, Jean-Claude Juncker, President of the 
European Commission, and Juha Sipilä, Prime Minister of 
Finland, Brussels, 21 October 2016.

Throughout  2016  the  Investment  Plan  for  Europe  remained  a  key  instrument  for  completing  the 
Energy  Union.  The  European  Fund  for  Strategic  Investments  continued  to  create  jobs  and  trigger 
investment in the real economy. The Fund continued to provide strong support for intelligent, forward-
looking investment in energy efficiency, renewables, innovation and modern energy infrastructure.

From 2014 to 2020, €69 billion of cohesion policy funds are available for investments supporting the 
objectives of the Energy Union.

Accelerating Clean Energy Innovation

At  the  end  of  the  year  the  Commission  put  forward  its  ideas  on  Accelerating  Clean  Energy 
Innovation.  This  strategy  proposes  a  set  of  concrete  measures  to  step  up  and  scale  up 
energy-efficient  and  low-carbon  innovative  solutions  with  a  view  to  improving  the  EU’s  global 
competitiveness in this field.

In June the Commission joined Mission Innovation, a global initiative on clean energy, and signed up 
to the Clean Energy Ministerial Framework on behalf of the EU to facilitate multilateral cooperation 

Commission Vice-President Maroš 
Šefčovič and Commissioner Miguel 
Arias Cañete give a joint press 
conference on the Clean Energy 
package, Brussels, 30 November 2016.

32

on  innovation.  In  addition,  a  number  of  action  plans  were  agreed  at  the  G20  Energy  Ministerial 
Meeting in China.

In 2016 four Horizon Prizes were launched to encourage innovation and find solutions to challenges in 
the area of energy innovation. The prizes are worth a total of €6.75 million and are funded under Horizon 
2020, the EU’s research and innovation programme. They will reward innovative approaches to integrating 
solar energy into historical buildings, using renewable energy in hospitals, developing products that help 
cut emissions by reusing carbon dioxide and inventing the cleanest engine of the future.

Relations  with  the  EU’s  key  energy  partners  continued  to  be  high  on  the  agenda  throughout  the 
year. In June the Commission participated in the G20 Energy Ministerial Meeting in Beijing. It was 
an opportunity to discuss energy technology innovation, renewable energy, energy efficiency, energy 
access  and  the  role  of  the  energy  system  in  the  implementation  of  the  Paris  Climate  Change 
Agreement with international partners. The agreement on the EU–China Energy Roadmap was signed 
on the occasion of the EU–China Summit in July.

Commissioner Carlos Moedas (right) 
receives a presentation of the ‘Extreme 
light infrastructure’ project from 
its director, Nicolae-Victor Zamfir, 
Măgurele, Romania, 11 October 2016.

Decarbonisation of the economy

Taking the Paris Climate Change Agreement forward

In  October  2014  EU  leaders  agreed  to  a  binding,  economy-wide  emissions  reduction  target  of  at 
least 40 % by 2030, compared to 1990 levels. This became the EU’s contribution to the Paris Climate 
Change Agreement signed in December 2015.

In  April  2016,  175  parties  set  a  new  record  for  the  most  first-day  signatures  to  an  international 
agreement, underlining the global political will to deliver on the promises made in Paris.

Having brokered the first ever legally binding, global climate deal and built the coalition of developed 
and developing countries that made agreement in Paris possible, it was fitting that the swift ratification 
of the Agreement at EU level in October enabled its global entry into force in November. The EU’s 
Member States have also already individually ratified or will ratify the Agreement.

In November countries met again at the United Nations Climate Conference in Marrakesh to continue 
work on the detailed rulebook for the implementation of the Paris Climate Change Agreement. Heads 
of  State  or  Government  issued  the  Marrakesh  Action  Proclamation,  a  call  for  the  highest  political 
commitment to tackle climate change, which sent a message of global unity and continued resolve 
to deliver on the Paris objectives and the transition to a global low-carbon economy.

Progress was made on the key elements of the Paris package, including access to finance, assistance 
with  technology  and  developing  and  strengthening  the  skills  and  processes  needed  in  developing 
countries to implement their domestic climate plans.

THE EU IN 2016Chapter 3 — A resilient Energy Union with a forward-looking climate change policy

33

The European Parliament approves the 
ratification of the Paris Climate Change 
Agreement.

Implementing the Paris Climate Change Agreement in the EU

Work to deliver on the EU’s pledge began even before the Paris conference with a proposal to revise the 
EU Emissions Trading System, the EU’s main policy instrument for reducing emissions. To complement 
this proposal, in July 2016 the Commission presented binding greenhouse gas emission targets for 
Member  States  from  2021-2030  for  the  transport,  building,  agriculture,  waste  and  land-use,  and 
forestry sectors.

Ambitious climate action creates business opportunities and opens up new markets for innovation 
and use of low-carbon technologies. The Commission has also brought land use and forestry into 
the EU’s 2030 emissions-reduction efforts. The sector not only emits greenhouse gases but can also 
remove  carbon  dioxide  from  the  atmosphere,  with  EU  forests  absorbing  the  equivalent  of  nearly 
10 % of total EU greenhouse gas emissions each year.

In July the Commission published the European Strategy for Low-Emission Mobility, setting the course 
for the development of EU-wide measures on low- and zero-emission vehicles and alternative low-
emission fuels. This Strategy sets out the planned initiatives in the coming years and maps the areas 
in which it is exploring options.

Work  continued  on  strengthening  the  link  between  decarbonisation,  the  transition  to  a  circular 
economy, the quality of air and the environment. The implementation of the Circular Economy Action 
Plan has the potential to reduce annual greenhouse gas emissions by 2-4 % and has already started 
to deliver. The implementation of the Clean Air Policy Package, on which interinstitutional agreement 
was reached in June 2016, will provide significant benefits for tackling climate change. The Investment 
Plan for Europe has also been mobilised to help to deliver on the transition to a resource-efficient, 
circular and zero-carbon economy, with 5 % of the European Fund for Strategic Investments covering 
the environment and resource-efficiency sector.

Building on the momentum of the Paris Climate Change Agreement

In October parties to the Montreal Protocol, which has been successful in phasing out ozone-depleting 
substances,  agreed  in  Kigali,  Rwanda,  to  bring  the  control  of  climate-warming  hydrofluorocarbon 
gases  used  in  refrigeration  and  air-conditioning  systems  within  its  scope.  This  is  a  fast  and  cost-
effective way of delivering on the pre-2020 objectives of the Paris Climate Change Agreement. The 
Kigali Amendment requires developed and developing countries to gradually limit their consumption 
and production of hydrofluorocarbons, with developed countries moving first. The EU is leading the 
world in restricting the use of hydrofluorocarbons. By 2030 EU emissions of these gases will be cut 
by two thirds compared to current levels.

Also in October the International Civil Aviation Organisation, with the active involvement of the EU, 
reached  a  landmark  agreement  on  international  carbon  dioxide  aviation  emissions.  The  so-called 
Global Market-based Measure aims to stabilise international aviation emissions at 2020 levels and 
will oblige airlines to offset the growth of their carbon dioxide emissions beyond that threshold. The 
scheme  is  due  to  start  in  2021  with  a  first  phase  based  on  voluntary  participation.  In  its  second 

34

THE FIRST EVER GLOBAL DEAL 
TO CURB INTERNATIONAL AVIATION EMISSIONS

Participation in the Global Market-based Measure

Voluntary participation from 2021

Mandatory participation from 2027

States exempted

A system based on market size not on geography

The Global Market-based Measure will cover (2020-2035) around 80 % 
of all international aviation emissions to reach carbon-neutral 
growth beyond the levels set for 2020

phase (2027-2035) participation will be mandatory, except for countries with low levels of aviation 
activities. This means that around 80 % of the emissions needed to achieve the objective of carbon 
neutrality from 2020 will be offset between 2021 and 2035.

The  EU  and  its  Member  States  have  been  among  the  main  advocates  of  addressing  greenhouse 
gas emissions in the maritime sector. At the October meeting of the Marine Environment Protection 
Committee  of  the  International  Maritime  Organisation  a  global  and  mandatory  system  to  collect 
fuel-consumption data from ships was agreed. In practice, as of 2019 ships over a certain threshold 
capacity will be required to collect data on fuel consumption and energy efficiency and report it to 
the flag state.

THE EU IN 2016  
 
CHAPTER 4

Commissioner Margrethe Vestager 
addresses members of the press 
following the Commission’s decision 
that Ireland must recover illegal State 
aid paid to Apple of up to €13 billion, 
Brussels, 29 August 2016.

‘Our internal market is 
Europe’s best asset in times 
of increasing globalisation. 
I therefore want the next 
Commission to build on 
the strength of our Single 
Market and to fully exploit 
its potential in all its 
dimensions.’

Jean-Claude Juncker, political 
guidelines, 15 July 2014

A deeper and fairer 
internal market 
with a strengthened 
industrial base

35

The Commission continued to 
put in place the building blocks 
of the Capital Markets Union, 
based on the 2015 Action Plan.

The fight against tax avoidance 
remained an important priority 
in 2016. In January the 
Commission put forward an 
Anti-Tax Avoidance Package, 
including two legislative 
proposals that were adopted 
by the Council. In April it 
presented a proposal on public 
country-by-country reporting 
by multinational companies, 
which was followed in October 
by a major Corporate Tax 
Reform Package.

The Single Market is one of 
the EU’s major achievements 
and its best asset in times 
of increasing globalisation. 
By allowing people, goods, 
services and capital to move 
more freely it opens up new 
opportunities for citizens, 
workers, businesses and 
consumers, creating the jobs 
and growth the EU so urgently 
needs. Work continued in 2016 
in line with the 2015 Single 
Market Strategy.

In March the Commission 
presented a targeted revision 
of the Posting of Workers 
Directive, covering workers 
sent by their employer to 
work temporarily in another 
Member State. In June the 
Commission expressed its 
opinion on how existing EU 
legislation should apply to the 
collaborative economy. Other 
initiatives included the Start-
Up and Scale-Up Initiative and 

the European Professional 
Card.

In April new EU rules came 
into force that changed the 
way Member States and public 
authorities spend a large part 
of the €1.9 trillion spent on 
public procurement annually.

Strengthening the EU’s 
industrial base remained 
a priority. The Commission 
tabled legislative proposals to 
ensure that car manufacturers 
comply strictly with all EU 
safety, environmental and 
production requirements. A 
new automotive industry high-
level group, GEAR 2030, was 
created to reinforce the car 
industry’s competitiveness and 
technological leadership.

A Communication set out how 
the European steel sector can 
overcome its challenges with 
the help of the EU.

36

The Single Market

In  a  Communication  in  June  the  Commission  clarified  how  existing  EU  legislation  applies  to  the 
collaborative economy, covering aspects such as market access requirements, liability and consumer 
protection.

Standards  reduce  costs,  promote  innovation,  allow  interoperability  between  different  devices  and 
services  and  help  companies  to  access  markets.  In  June  the  Commission  presented  a  package  of 
initiatives to modernise and enhance the European Standardisation System in light of technological 
developments, political priorities and global trends.

Making mobility easier for professionals and workers

One objective of the Single Market Strategy is to enable EU citizens to work wherever they choose 
in  the  Member  States.  The  European  Professional  Card  simplifies  the  lengthy  procedures  that 
professionals face before being allowed to work in another Member State. The Card became available 
in January 2016 for five professions (general care nurses, physiotherapists, pharmacists, real-estate 
agents and mountain guides), with a possible extension to other professions in the future.

In  March  the  Commission  presented  a  targeted  revision  of  the  Posting  of  Workers  Directive, 
covering workers sent by their employer to work temporarily in another Member State. The revision 
introduces changes in three main areas: the remuneration of posted workers, including in situations 
of subcontracting; the rules applicable to temporary agency workers; and long-term posting.

Greater efficiency of public procurement

From April new rules changed how public authorities in the EU spend a large part of the €1.9 trillion 
annual  public  procurement  budget.  National  legislation  must  conform  to  the  three  Directives  on 
public  procurement  and  concessions,  which  make  it  easier  and  cheaper  for  small  and  medium-
sized businesses to bid for public contracts, ensure the best value for public money and respect EU 
principles of transparency and competition. The rules also allow environmental, social and innovation 
aspects to be taken into account.

Strengthening the EU’s industrial base

In April the Commission proposed a set of measures to support and link national initiatives for the 
digitisation of industry and related services and to boost investment.

In June an EU-level Smart Specialisation Platform for Industrial Modernisation was set up to support 
cooperation between regions, clusters of companies, business networks and industrial partners and 
to develop ambitious investment projects that can benefit from EU programmes, the Investment Plan 
for Europe and private funds.

More robust and realistic testing methods for both nitrogen oxide and carbon dioxide emissions from 
cars were introduced. The Commission also tabled legislative proposals to overhaul the system that 
allows cars to be placed on the market. The proposed Regulation aims to make vehicle testing more 
independent, increase surveillance of cars in use and introduce more EU oversight.

In July the Commission published the European Strategy for Low-Emission Mobility to develop EU-
wide measures on low- and zero-emission vehicles and alternative low-emission fuels.

THE EU IN 2016Chapter 4 — A deeper and fairer internal market with a strengthened industrial base

37

PUBLIC PROCUREMENT IN THE EU

Every year

over 250 000 public authorities 
in the EU spend more than

14 % of gross domestic product

on the purchase of services, works and supplies

Eﬃcient public procurement ensures that taxpayers’ money is
spent in the best possible way

To achieve a more integrated Single Market for public procurement,
the European Commission works to:

• create and enforce rules for
  open, fair and competitive 
  procurement contracts 

• support the modernisation 
  and professionalism 
  of public buyers

• ensure a level playing ﬁeld 
  for EU companies bidding 
  for contracts both within 
  the Union and abroad

To help the EU automotive industry remain competitive by meeting the challenges of the future a new 
high-level group for the automotive industry, GEAR 2030, was established to work on challenges of 
the future, such as automated driving, connected cars and zero-emission vehicles.

The steel industry represents 1.3 % of EU gross domestic product and plays a significant role in many 
other  industrial  sectors,  such  as  the  automotive  industry.  Despite  the  significant  efforts  made  to 

Commissioner Günther Oettinger 
examines a machine at a trade fair in 
Hanover, Germany, 25 April 2016.

38

innovate and modernise, the EU’s competitive position on the global steel market has deteriorated in 
recent years. Excess production of steel in non-EU countries such as China has given rise to a wave 
of  unfair  trading  practices,  distorting  the  global  market.  In  March  the  Commission  presented  a 
Communication addressing the serious challenges the sector faces. The Commission is taking a range 
of actions such as imposing provisional anti-dumping measures, adopting a prior surveillance system 
for steel products, providing funds to support the modernisation of the steel industry and fostering a 
highly skilled workforce.

Commissioner Elżbieta Bieńkowska 
learns about technologies developed by 
the Fraunhofer Institute of Optronics, 
System Technologies and Image 
Exploitation at a trade fair in Hanover, 
Germany, 25 April 2016.

Protecting intellectual property

The  Single  Market  Strategy  highlighted  the  role  of  intellectual  property  protection  in  promoting 
innovation and creativity, which generates jobs and improves competitiveness.

The  Commission  launched  an  evaluation  of  the  current  legal  framework  on  enforcing  intellectual 
property rights. The Commission’s approach is to ensure that the legal measures and remedies are 
fit  for  purpose,  in  particular  across  borders  and  in  the  online  environment.  It  is  putting  the  focus 
on  commercial-scale  abuses  and  the  ‘follow-the-money’  approach  to  deprive  commercial-scale 
infringers  of  their  revenue  flows,  rather  than  pursuing  individuals.  In  June,  with  the  Commission’s 
support, internet platforms, brand owners and trade associations signed a voluntary agreement on 
stopping the online sale of counterfeit goods.

EU  businesses  also  benefit  from  the  trademark  reform  that  entered  into  force  in  March,  making 
EU  trademark  protection  more  accessible  for  EU  businesses.  It  has  lower  costs,  modern  requisite 
standards for filing new types of trademarks, decreased registration time and stronger means for 
fighting counterfeiting.

In November, with strong support from the European Parliament and Member States, the Commission 
issued a clarification of certain provisions of the Biotech Directive, stating that products deriving from 
essentially biological processes should not be patented.

THE EU IN 2016Chapter 4 — A deeper and fairer internal market with a strengthened industrial base

39

Delivering better services to rail passengers

The Fourth Railway Package.

The  Parliament  and  the  Council  agreed  in  April  on  measures  to  make  railways  in  the  EU  more 
innovative  and  competitive.  The  Fourth  Railway  Package  will  gradually  open  domestic  passenger 
rail markets to competition, favouring the emergence of new business models and more choice for 
consumers (increased frequency, better services and lower fares).

Strengthening ports

In June the Parliament and the Council reached agreement on a Common European Framework for 
Seaports. The Ports Regulation will guarantee financial transparency and optimal resource use, giving 

BETTER SEAPORTS FOR A STRONGER ECONOMY

New rules will unleash the economic potential of 329 main ports in the EU, 
helping to sustain 3 million jobs.

Better market access
and higher quality of service

More transparency in the use of public
funds and better governance

More investment and jobs

More eﬃcient use of public money
and fair competition

People

Infrastructure

Cargo owners 

Logistics operators 

Port services 

75 % 
of the EU’s external trade goes by ship

 
 
40

investors more confidence, ensuring fair competition and stimulating investment. More investment 
will result in more jobs and more prosperity. The sector currently employs 469 000 people directly 
and helps sustain 3 million jobs. The Regulation will ensure high-quality services at EU ports and give 
ports more autonomy, for example to define their infrastructure charges.

Commissioner Pierre Moscovici 
visits the customs facilities of 
the port of Rotterdam with Eric 
Wiebes, Dutch Secretary of State 
for Finance, Rotterdam, the 
Netherlands, 31 May 2016.

Undistorted competition

Competition policy contributes to a properly functioning Single Market in which companies compete 
on their merits and efficiencies are passed on to EU consumers. Healthy companies facing strong 
competition in domestic markets are best equipped to compete in the global market place.

The fight against cartels is one way to keep competition strong. The Commission decided in July that 
five truck manufacturers had colluded for 14 years on pricing and passing on the costs of compliance 
with stricter emission rules. They were fined a record €2.9 billion.

Antitrust rules also ensure that the conduct of a dominant company does not distort competition in a 
specific market. During the year the Commission had three investigations ongoing against Google for 
alleged abuse of its dominant position.

Close monitoring of State aid fostered competitiveness and innovation in 2016. This aimed to prevent 
public money from being granted to ailing companies, allowing the development of more innovative 
companies.

The Commission also published a Notice on the scope of EU State aid control of public spending. 
This will help public authorities and companies to understand when public support measures do not 
constitute State aid and are not subject to State aid rules.

In  January  the  Commission  concluded  that  Belgium  broke  EU  State  aid  rules  by  giving  a  select 
number of multinationals substantial tax advantages worth at least €700 million. This put smaller, 
non-multinational  competitors  at  a  disadvantage.  At  least  35  multinationals,  mainly  from  the  EU, 
must now return unpaid taxes to Belgium. In August the Commission decided that Ireland had granted 
undue tax benefits of up to €13 billion to Apple, the equivalent of a substantial subsidy not available 
to other businesses. Three other cases, involving Luxembourg’s tax treatment of Amazon, McDonald’s 
and GDF Suez (Engie), were ongoing at the end of the year.

One of the purposes of the Commission’s competition law enforcement is to prevent mergers from 
harming competitive markets. The vast majority of notified mergers in 2016 posed no competition 
problems and were cleared after a routine review. However, the Commission decided in May to prohibit 
the  proposed  acquisition  of  Telefónica  UK  by  Hutchison  since  it  had  strong  concerns  that  mobile 
customers in the United Kingdom would have had less choice and paid higher prices as a result of the 
takeover, and that the deal would have harmed innovation in the mobile sector.

THE EU IN 2016Chapter 4 — A deeper and fairer internal market with a strengthened industrial base

41

Transparency and the fight against tax avoidance

In January the Commission adopted an Anti-Tax Avoidance Package, which calls on Member States 
to take a stronger and more coordinated stance against companies seeking to avoid paying their fair 
share of tax and to implement international standards against base erosion and profit shifting. Key 
features of the proposals are:

 ‣ legally binding measures to block the most common methods used by companies to avoid 

paying tax (the proposal for an Anti-Tax Avoidance Directive);

 ‣ a proposal on country-by-country reporting between Member States’ tax authorities of tax-
related information on multinationals operating in the EU (amendment to the Directive on 
Administrative Cooperation);

 ‣ a recommendation on preventing tax treaty abuse;

 ‣ actions to promote good governance internationally, including a new EU process for listing non-

EU jurisdictions that refuse to play fair.

The Anti-Tax Avoidance Directive was adopted by the Council in July. Member States must transpose 
the rules into their own legislation by the end of 2018 and apply them from January 2019. The new 
rules on country-by-country reporting between tax authorities were agreed by the Council in March, 
and Member States must transpose them into national law by mid 2017.

Agreements were signed with Andorra and Monaco under which, from 2018, the EU’s Member States 
and  these  two  neighbouring  countries  will  automatically  exchange  information  on  the  financial 
accounts of each other’s residents.

Fair taxation: the Commission 
presents new measures against 
corporate tax avoidance.

In April the Commission proposed that large multinational companies active in the EU Single Market 
with a turnover in excess of €750 million should publicly disclose the corporate income tax they pay, 
on a country-by-country basis. The proposed rules will ensure greater corporate tax transparency, 
enabling citizens to assess multinationals’ tax strategies and their contribution to welfare.

Also in April the Commission presented measures to modernise VAT in the EU. The Action Plan is the 
first step towards a single EU VAT area equipped to tackle fraud, support business and help the digital 
economy and e-commerce.

In July the Commission presented the next steps to boost tax transparency and the fight against tax 
evasion and avoidance at the EU and international levels. Initiatives focused on closing existing gaps 
in the tax framework that allow cross-border tax abuse and illicit financial flows.

42

Commissioner Jonathan Hill 
(2014-2016) outlines proposals 
on public tax transparency at the 
European Parliament, Strasbourg, 
France, 12 April 2016.

In September the Commission presented a ‘scoreboard of indicators’ (economic, financial, stability 
and tax good governance indicators) to help Member States identify the non-EU jurisdictions to be 
prioritised for screening in the common EU listing process. Considerable progress has been made by 
Member States towards creating a first common EU list of non-EU jurisdictions that refuse to adhere 
to international tax good governance standards.

In October the Commission adopted a major Corporate Tax Reform Package that includes three new 
proposals: to create a more modern and fairer tax system for businesses; to close loopholes between 
EU Member States and non-EU countries; and to provide dispute-resolution rules to relieve problems 
with double taxation for businesses.

More  concretely,  the  Package  included  the  relaunch  of  the  Common  Consolidated  Corporate  Tax 
Base, which will overhaul the way companies are taxed in the Single Market, ensuring a fairer, more 
competitive and more growth-friendly corporate tax system. The Common Consolidated Corporate 
Tax Base also contains important new elements to improve its anti-avoidance and growth-promoting 
capacities.

The Commission also proposed an improved system to resolve double taxation disputes in the EU, 
adjusting current dispute-resolution mechanisms to better meet the needs of businesses for which 
double taxation is a major obstacle.

The Corporate Tax Reform Package also includes a proposal to extend the already agreed internal EU 
rules against hybrid mismatches to those involving non-EU countries.

Financial markets working for consumers

Financial firms should make the most of the economies of scale in a truly integrated EU market, while 
online services offer new opportunities and innovative solutions.

The Member States should have implemented the Mortgage Credit Directive by March 2016. By the 
end of the year 19 Member States had fully enacted the Directive. The new rules will ensure that 
consumers who purchase a property or take out a loan secured against their home are adequately 
informed and protected against risks. The Directive should promote competition in mortgage markets 
and offer new business opportunities to lenders and intermediaries alike, leading to cost reductions 
in the future that directly benefit consumers.

By  September  Member  States  were  also  required  to  implement  the  Payment  Accounts  Directive, 
which creates a right for all consumers to access basic payment account services irrespective of their 
financial situation. Only 14 Member States (Bulgaria, the Czech Republic, Denmark, Germany, Estonia, 
Ireland, Lithuania, Hungary, Malta, Austria, Poland, Slovenia, Slovakia and the United Kingdom) had 
done so by the end of the year. France and Finland had notified partial measures for the transposition 
of the Directive into national law..

THE EU IN 2016Chapter 4 — A deeper and fairer internal market with a strengthened industrial base

43

Building the Capital Markets Union

The  Commission  continued  to  build  a  Capital  Markets  Union  based  on  the  Action  Plan  on  Capital 
Markets Union adopted in 2015. It presented a Communication on accelerating the implementation 
of the Action Plan and developing further priorities, including a pan-EU personal pension product.

The first measure entered into force in April 2016. It makes infrastructure investment more attractive 
for insurance companies that are well equipped to provide the long-term financing needed.

In  July  the  Commission  proposed  changes  to  existing  legislation  to  encourage  an  increase  in  the 
uptake  of  European  venture  capital  funds  and  European  social  entrepreneurship  funds,  making  it 
easier and more attractive for private investors to invest in small and growing companies.

In  September  the  Commission  announced  a  broader  strategy  on  sustainable  finance  to  support 
investment in clean technologies. In November the Commission made available up to €300 million of 
co-investment in a large-scale, pan-EU venture capital fund of funds. This will help strengthen the EU 
venture capital industry’s capacity to offer attractive returns to institutional investors and extend the 
reach of this channel to a wider set of Member States.

Also in November the Commission tabled a legislative proposal on business restructuring and second 
chance.  The  proposal  aims  to  enable  honest  entrepreneurs  to  benefit  from  a  second  chance  after 
overcoming bankruptcy, contributing to a dynamic business environment and promoting innovation.

CHAPTER 5

Commission Vice-President Valdis 
Dombrovskis is interviewed at the New 
York Stock Exchange, United States,  
5 October 2016.

‘Over the next 5 years, I 
want to continue with the 
reform of our Economic and 
Monetary Union to preserve 
the stability of our single 
currency and to enhance the 
convergence of economic, 
fiscal and labour market 
policies between the Member 
States that share the single 
currency.’

Jean-Claude Juncker, political 
guidelines, 15 July 2014

A deeper and fairer 
Economic and 
Monetary Union

The 2017 cycle of the 
European Semester was 
launched in mid November. 
The Commission reiterated 
its call to Member States to 
redouble their efforts in line 
with the principles of the 
‘virtuous triangle’ of boosting 
investment, pursuing structural 
reforms and ensuring 
responsible fiscal policies, and, 
in doing so, to put the focus 
on a fair and just relationship 
between the individual and 
society and delivering more 
inclusive growth.

44

Economic integration through 
a completed Economic and 
Monetary Union brings the 
benefits of greater size, 
internal efficiency and 
robustness to the EU economy 
as a whole and to the 
economies of the individual 
Member States. This in turn 
offers opportunities for 
economic stability, higher 
growth and more employment 
— outcomes of direct benefit 
to EU citizens. While there is 
still much progress to be made, 
work towards completing the 
Economic and Monetary Union 
moved ahead apace through 
many European Commission 
initiatives in 2016.

The major challenges continued 
to be further reducing the 
number of people exposed to 
the risk of social exclusion 
and supporting the trend of 
falling unemployment. Though 
still too high, unemployment 

reached a 7-year low of 9.8 % 
in November in the euro area.

Moreover, the EU continued 
working towards the 
completion of the Banking 
Union as a key building block 
of Economic and Monetary 
Union.

Progress was made throughout 
2016 on streamlining 
the procedures of the 
European Semester, the EU’s 
cycle of economic and 
fiscal policy coordination. 
Recommendations adopted 
during the 2016 Semester 
process provide guidance 
for all Member States and 
the euro area as a whole, 
and aim to promote policies 
and reforms that create 
more jobs, increase social 
fairness and convergence and 
inspire growth by supporting 
investment strategies.

Chapter 5 — A deeper and fairer Economic and Monetary Union

45

Controlling State aid and ensuring fair competition

State aid control has an important role to play in ensuring a level playing field within the Banking 
Union. Since the beginning of the financial crisis in 2008, 113 banks in the EU, representing around 
30  %  of  the  EU’s  banking  system  by  assets,  have  restructured  under  the  conditions  applicable  to 
State aid following the receipt of public money. Member States have supported the banks by injecting 
€655.3 billion in capital (4.5 % of the EU’s gross domestic product in 2015) and providing €1 293.1 billion, 
or 9.2 % of gross domestic product, in guarantees and other liquidity support. The aid has been given 
to secure citizens’ savings, avoid uncontrolled bankruptcy and prevent the subsequent collapse of the 
banking system across the continent. Since then most banks that received aid during the crisis have 
returned to viability, after implementing a considerable part of their restructuring plans. Those whose 
business models failed beyond repair (42 out of 113 banks) were wound down in an orderly way.

In  July  the  Commission  closed  its  antitrust  investigation  into  credit  derivative  swaps  by  making 
commitments  binding  upon  data  provider  Markit  and  the  International  Swaps  and  Derivatives 

THE EUROPEAN SEMESTER: A NEW APPROACH 
TO COUNTRY-SPECIFIC RECOMMENDATIONS

November

December

January

February

March

April

May

June

July

August

September

October

Autumn economic forecasts

Winter economic forecasts

Spring economic forecasts

Country 
reports for 
each 
Member 
State 
(reform 
agenda and 
imbalances)

Bilateral 
meeting with 
Member 
States

Commission 
proposes 
country-speciﬁc 
recommenda-
tions for 
budgetary, 
economic and 
social policies

Fact-ﬁnding 
missions to 
Member 
States

Bilateral 
meeting with 
Member 
States

Annual 
Growth 
Survey and 
related 
documents

Recommen-
dations for 
the euro area

Opinion on 
the dra(cid:144) 
budgetary 
plans

Council 
discusses 
opinions on 
the dra(cid:144) 
budgetary 
plans

Council adopts 
euro-area 
recommendations 
and conclusions on 
the Annual Growth 
Survey and the Alert 
Mechanism Report

European 
Council adopts 
economic 
priorities based 
on the Annual 
Growth Survey

Council 
discusses 
the country- 
speciﬁc 
recommen-
dations on 
the Annual 
Growth 
Survey

European 
Council 
endorses 
the ﬁnal 
country- 
speciﬁc 
recommen-
dations

Member 
States 
adopt 
budgets

Dialogue 
on the 
Annual 
Growth 
Survey

Member States 
present their national 
reform programmes 
(economic policies) 
and stability or 
convergence 
programmes (on 
budgetary policies)

Dialogue on the 
proposals for 
country-speciﬁc 
recommenda-
tions

n
o
i
s
s
i
m
m
o
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n
a
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p
o
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u
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a
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i
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= euro area

Member States 
present dra(cid:144) 
budgetary plans

Dialogue 
on the 
Annual 
Growth 
Survey

Debate/ 
resolution 
on the 
European 
Semester 
and the 
country- 
speciﬁc 
recommen-
dations

 
 
 
 
46

Association. The two entities will, for 10 years, license key data and intellectual property rights to 
exchanges  on  fair,  reasonable  and  non-discriminatory  terms.  This  measure  will  help  make  credit 
derivative swaps trading safer and cheaper for investors.

In  March  the  Commission  announced  its  preliminary  view  that  the  period  of  applicability  of  the 
Insurance  Block  Exemption  Regulation  should  not  be  extended.  This  preliminary  position  was 
subsequently endorsed in December following an impact assessment. The Regulation will therefore 
expire in March 2017.

According to the European Central Bank, card payments in 2014 accounted for 46 % of electronic payments 
in the EU. Multilateral interchange fees, collectively agreed by banks and imposed on retailers for the 
acceptance of cards, can translate into higher prices for consumers. This is addressed by the Interchange 
Fees Regulation, which entered into force at the end of 2015 and capped these fees at competitive levels. 
A second set of rules under the Regulation became applicable in June 2016, making payment costs more 
transparent to retailers and consumers and allowing them to make efficient choices.

In parallel, the Commission continued its antitrust proceedings against multilateral interchange fees 
agreed by Visa and MasterCard for interregional transactions, which are not covered by the Interchange 
Fee Regulation. Interregional multilateral interchange fees are the fees that EU merchants pay for 
accepting payments made with cards issued outside the European Economic Area.

In June the General Court confirmed the Commission’s findings that Groupement des Cartes Bancaires 
(which manages the ‘CB’ card payment system in France) had restricted competition in the French 
issuing market by making it difficult for new players to enter. The General Court’s judgment is subject 
to appeal.

New boards to bolster the deepening process

Commission Vice-President Valdis 
Dombrovskis meets with Mario Draghi, 
President of the European Central Bank, 
Brussels, 8 June 2016.

Economic governance in the EU was strengthened by the establishment of an independent advisory 
European  Fiscal  Board.  Implementing  the  proposal  contained  in  the  Five  Presidents’  Report  —  a 
document  compiled  by  the  President  of  the  Commission  and  his  counterparts  in  the  European 
Parliament, the European Central Bank, the Eurogroup and the Euro Summit — and based on the 
Commission’s Decision of October 2015, the Board became operational in November 2016. Its role 
is to evaluate the implementation of the EU fiscal framework and to advise the Commission on the 
fiscal stance appropriate to the euro area as a whole. The Board also cooperates with Member States’ 
national fiscal councils and provides specialist advice at the request of President Juncker.

The Board is independent and is composed of respected specialists who provide independent expertise 
in their fields, appointed after consultations with the Member States, the national fiscal councils and 
the European Central Bank.

THE EU IN 2016Chapter 5 — A deeper and fairer Economic and Monetary Union

47

In September, as a further step in implementing the Five Presidents’ Report, the Council recommended 
that euro-area Member States establish or identify national productivity boards. These boards should 
analyse developments and policies in the field of productivity and competitiveness and contribute to 
fostering ownership and implementing the necessary reforms at the national level. In this way they 
will promote sustained economic growth and convergence. The boards will regularly publish reports 
on their analysis.

Banking Union

The EU continued working towards the completion of the Banking Union as a key building block of a 
resilient and dynamic Economic and Monetary Union. The Banking Union was conceived to ensure that 
banks in the euro area are stronger and better supervised. Should problems arise it will be possible 
to resolve them more easily and without using taxpayers’ money.

In January another milestone of the Banking Union, the Single Resolution Mechanism, became fully 
operational. The Single Resolution Mechanism is an essential complement to the European Central 
Bank-led Single Supervisory Mechanism for more integrated bank oversight and crisis management 
in the Banking Union. The Single Resolution Mechanism bolsters the resilience of the financial system 
and helps avoid future crises in the Banking Union by making sure that banks are resolved effectively 
and on time.

Negotiations also continued in the Parliament and the Council on the third pillar of the Banking Union, 
the  European  Deposit  Insurance  Scheme,  which  builds  on  the  existing  national  deposit  guarantee 
schemes. The bank-funded European Deposit Insurance Scheme would ensure an additional safety 
net for savers across the EU. It would improve risk sharing within the banking sector across a bigger 
pool of institutions. Vulnerability to large local shocks would be reduced.

The final pillar of the Banking Union: 
building a fund to keep savings secure.

http://europa.eu/!BH34Dq

In parallel to the work on the European Deposit Insurance Scheme, Member States recognised that 
further steps have to be taken in terms of reducing and sharing risks in the financial sector in order to 
address a number of remaining challenges. The Commission’s proposed rules on total loss absorption 
capacity are designed to help ensure that banks’ creditors, rather than taxpayers, pay for problems 
in banks.

Moreover,  by  the  end  of  2016  a  majority  of  Member  States  had  transposed  and  implemented  in 
national  law  the  relevant  legal  provisions  of  the  Single  Rulebook,  ensuring  even  more  consistent 
regulation and high-quality supervision in the Banking Union. All but eight Member States had enacted 
the Bank Recovery and Resolution Directive, setting out harmonised and improved tools for dealing 
with  banking  crises,  while  20  Member  States  had  also  fully  implemented  the  Deposit  Guarantee 
Directive, thus ensuring that EU citizens’ savings in those Member States are protected.

48

Financial markets

Benchmarks are vital for the functioning of the financial market. The Benchmarks Regulation entered 
into force in June. It improves the functioning and governance of benchmarks and ensures that they 
are not subject to manipulation. The new rules will help to protect investors and consumers.

In November the Commission proposed new rules for key players in the financial market to ensure 
that both central counterparties and national authorities in the EU have the means and are prepared 
to act decisively if a crisis scenario occurs. Central counterparties act as the counterparty to both sides 
of a transaction in a financial instrument. The main objective of the proposal is to ensure that central 
counterparties’ critical functions are preserved, while maintaining financial stability and preventing 
the costs associated with the restructuring and the resolution of failing central counterparties from 
falling on taxpayers.

In the same month the Commission proposed amendments to the Capital Requirements Regulation 
and the Capital Requirements Directive, which spell out prudential requirements for institutions and 
rules on governance and supervision of institutions respectively. It also proposed the amendment of 
the Bank Recovery and Resolution Directive and the Single Resolution Mechanism Regulation, which 
spell  out  the  rules  on  the  recovery  and  resolution  of  failing  institutions  and  establish  the  Single 
Resolution Mechanism. The amendments contain measures that will strengthen the resilience of the 
EU banking sector and thereby increase markets’ confidence in it.

Making sure it all works

During  the  year  the  Commission  announced  its  EU  Regulatory  Framework  for  Financial  Services 
follow-up on the main findings and next steps resulting from the call for evidence. This is an initiative 
to gather feedback from stakeholders and gauge the cumulative impact and interaction of current 
financial  rules.  The  Commission  plans  to  focus,  among  other  things,  on  removing  unnecessary 
regulatory  constraints  on  bank  finance  and  small  and  medium-sized  enterprise  financing  and  on 
enhancing the proportionality of rules in banking, derivatives markets, insurance asset management 
and the credit rating sector. Other measures, some of which have already been proposed, will reduce 
undue regulatory burdens such as supervisory reporting and public disclosure requirements for the 
EU financial industry. The Commission intends to make rules more consistent and forward looking and 
address inconsistent interactions and gaps in the EU regulatory framework.

Public consultation on the European Pillar of Social Rights

In March the Commission put forward a first, preliminary outline of what will become the European 
Pillar  of  Social  Rights.  As  mentioned  by  President  Juncker  in  his  State  of  the  Union  address  in 
September 2015, ‘We have to step up the work for a fair and truly pan-European labour market 
… As part of these efforts, I will want to develop a European Pillar of Social Rights, which takes 
account of the changing realities of Europe’s societies and the world of work. And which can serve 
as a compass for the renewed convergence within the euro area.’ In his 2016 address President 
Juncker reiterated his commitment to the European Pillar of Social Rights, saying that the EU is 
not social enough and that the Commission will continue to work with energy and enthusiasm to 
change that.

The  Pillar  will  identify  a  number  of  essential  principles  in  the  areas  of  access  to  employment, 
working conditions and social protection, focusing on new challenges such as ageing, globalisation, 
technological change and social divergence inside the Economic and Monetary Union.

Throughout 2016 the Commission engaged in a debate with other EU institutions and with national 
authorities, social partners, civil society, academics and citizens on the content and role of the Pillar 

THE EU IN 2016Chapter 5 — A deeper and fairer Economic and Monetary Union

49

THE EUROPEAN PILLAR OF SOCIAL RIGHTS: THREE PRIORITIES

SOCIAL
RIGHTS

JOBS

Equal opportunities 
and access to the labour market

Fair working conditions

Adequate and sustainable 
social protection

to move towards a deeper and fairer Economic and Monetary Union. The outcome of this debate will 
feed into an initiative that will be published in spring 2017.

The  Pillar  should  build  on,  and  complement,  the  EU’s  social  rules  in  order  to  guide  policies  in  a 
number  of  fields  essential  for  properly  functioning  and  fair  labour  markets  and  welfare  systems. 
Once established the Pillar should become the reference framework to screen the employment and 
social  performance  of  participating  Member  States,  to  drive  reforms  at  national  level  and,  more 
specifically, to serve as a compass for the renewed process of convergence within the euro area.

A new start for social dialogue

In June the Commission signed a statement on ‘A new start for social dialogue’, together with the Dutch 
Presidency of the Council of the European Union and the European cross-industry social partners (the 
European Trade Union Confederation, BusinessEurope, the European Association of Craft, Small and 
Medium-Sized Enterprises and the European Centre of Employers and Enterprises providing Public 
Services). The statement is part of the new start for social dialogue initiated by President Juncker at 
a high-level conference in March 2015, together with European, national and sectoral social partners 
and with the other EU institutions.

The  statement  underlines  the  fundamental  role  of  the  European  social  dialogue  as  a  significant 
component of EU employment and social policymaking.

The Commission will continue to involve social partners in policymaking and lawmaking in the EU, as 
well as in economic governance and the European Semester. Member States have agreed to closely 
involve the social partners in the design and implementation of reforms and policies and to improve 
social dialogue at national level. Member States have also committed to involve the national social 
partners throughout the European Semester in order to contribute to the successful implementation 
of country-specific recommendations.

50

Europe 2020, the European Semester and human capital

Skilled people are one of the main drivers of long-term economic growth, competitiveness and jobs. 
This  important  link  was  further  emphasised  in  the  Commission’s  Communication  on  ‘Improving 
and  modernising  education‘.  To  compete  in  a  global  economy  the  EU  relies  on  the  quality  of  its 
human capital. Investing in people via high-performing and efficient education and training systems 
is  a  prerequisite  for  long-term  prosperity.  The  EU’s  highly  skilled  workforce  drives  research  and 
development and translates new ideas into innovation. Knowledge and skills gained in the education 
system  help  guarantee  employment  and  a  stable  income,  reducing  the  risk  of  poverty  and  social 
exclusion.

The European Semester: the tool to keep 
EU Member States in the all-clear.

Consequently, reforms to education and training systems are a high priority in most Member States 
and also feature prominently in the 2016 European Semester. A total of 21 Member States received 
a country-specific recommendation in the area of education and training.

THE EU IN 2016CHAPTER 6

Barack Obama, President of the United 
States, and Jean-Claude Juncker, President 
of the European Commission, give a joint 
press conference at the NATO Summit, 
Warsaw, Poland, 8 July 2016.

‘Under my presidency, the 
Commission will negotiate 
a reasonable and balanced 
trade agreement with the 
United States of America, 
in a spirit of mutual and 
reciprocal benefits and 
transparency … I will also 
be very clear that I will not 
sacrifice Europe’s safety, 
health, social and data 
protection standards or our 
cultural diversity on the altar 
of free trade.’

Jean-Claude Juncker, political 
guidelines, 15 July 2014

A reasonable and 
balanced free trade 
agreement with the 
United States

For the EU, free trade must 
be fair. That is why significant 
steps were taken in the course 
of the year to have robust 
trade-defence instruments in 
place.

51

Open trade strengthens the 
EU’s economy and creates jobs. 
It also provides consumers in 
the EU with more choice and 
buying power and helps firms 
compete abroad.

In 2016 over 31 million jobs 
in the EU were supported by 
exports to non-EU countries.

The EU–United States 
economic relationship is the 
world’s biggest. Every day the 
two trade goods and services 
worth €2 billion, so every trade 
and investment barrier that is 
removed could bring significant 
economic gains.

Agreeing on the Transatlantic 
Trade and Investment 
Partnership — one of the 
European Commission’s 10 
priorities — will not be a 
deal at any price, however. 
The EU will safeguard 
regulators’ independence, the 

precautionary principle and 
governments’ right to regulate 
to protect their people and the 
environment.

The EU is ready to engage with 
the new administration in the 
United States following the 
natural pause in negotiations 
after the presidential elections 
held in November.

Throughout 2016 the EU 
sought to maintain the global 
trading system and to ensure it 
continued to adapt to a fast-
changing world. It played an 
active role in the World Trade 
Organisation to keep the global 
economy open for trade in a 
way that reflects and respects 
the needs and concerns of 
developing countries. EU 
trade policy also sought to 
ensure that others respected 
international trade rules and 
that trade was a force for 
sustainable development.

52

Trade as a motor for jobs and growth

The European Union is one of the world’s most open economies. Open trade strengthens its economy, 
creates jobs, gives citizens more choice and buying power as consumers and helps EU firms compete 
abroad.

Every day the EU exports hundreds of millions of euros’ worth of goods and imports hundreds of 
millions more. The EU is the world’s largest exporter of manufactured goods and services, and is itself 
the biggest export market for around 80 countries. Together the 28 Member States account for 16 % 
of world imports and exports.

Jean-Claude Juncker, President of the European Commission, 
Chrystia Freeland, Canadian Minister for International Trade, 
Justin Trudeau, Prime Minister of Canada, Donald Tusk, 
President of the European Council, Commissioner Cecilia 
Malmström, Martin Schulz, President of the European 
Parliament, High Representative/Commission Vice-President 
Federica Mogherini and Robert Fico, Prime Minister 
of Slovakia, at the signing ceremony of the Strategic 
Partnership Agreement and the Comprehensive Economic 
and Trade Agreement between the EU and Canada, Brussels, 
30 October 2016.

In October the EU’s Comprehensive Economic and Trade Agreement with Canada was signed at the 
EU–Canada Summit in Brussels. As the EU’s most advanced and progressive trade agreement to date, 
the Comprehensive Economic and Trade Agreement is a landmark accord that sets the benchmark 
for future agreements. It includes the most ambitious chapters on sustainable development, labour 
and the environment ever agreed upon in bilateral trade agreements. The deal will benefit exporters 

THE EU–CANADA TRADE AGREEMENT — 
A PROGRESSIVE MILESTONE IN EU TRADE AGREEMENTS

Helping to generate growth
 and jobs at home

Protecting EU innovators
and traditional products

Ensuring good cooperation 
in the future

Ending customs duties

Streamlining trade in services

Protecting democracy, consumers 
and the environment

Letting EU businesses bid
for Canadian public contracts

Stepping up regulatory 
cooperation

Promoting and 
protecting investment

‘

Our new trade deal with Canada is the best and most progressive agreement we have ever, 
as a European Union, negotiated. On top of the new opportunities it creates for businesses and 
citizens, it also marks a new approach to investment protection that is transparent 
and that is impartial.

President Juncker, G20 Summit, 4 September 2016

’

THE EU IN 2016Chapter 6 — A reasonable and balanced free trade agreement with the United States

53

both big and small, creating opportunities for EU and Canadian companies and their employees, and 
also for consumers.

In  addition,  the  EU  continued  negotiations  on  several  other  free  trade  agreements.  The  aim  was 
to help create jobs and growth for EU citizens and companies. For example, in 2016 negotiations 
continued with Japan and began with Indonesia and Tunisia, and the EU was engaged in plurilateral 
negotiations for an Environmental Goods Agreement and a Trade in Services Agreement negotiated 
with a number of members of the World Trade Organisation.

Towards a permanent multilateral Investment Court System

The  EU  wants  firms  to  invest  with  confidence,  knowing  they  are  protected  if  things  go  wrong.  In 
the negotiations for a Transatlantic Trade and Investment Partnership the Commission has included 
a  proposal  for  an  Investment  Court  System  of  the  sort  that  it  has  already  included  in  the  trade 
agreements  with  Canada  and  Vietnam,  and  will  include  in  future  negotiations.  Built  around  the 
same  key  elements  as  domestic  and  international  courts,  the  Investment  Court  System  enshrines 
governments’ right to regulate and ensures transparency and accountability.

Free trade must be fair trade

For the EU, free trade must be fair. Significant steps were therefore taken in the course of the year to 
have robust trade-defence instruments in place to ensure a level playing field for EU producers and 
to address the harm from unfair foreign competition that has led to the loss of thousands of jobs, 
notably in the steel industry.

The  Commission  has  been  using  these  instruments  to  their  fullest  extent,  putting  in  place  an 
unprecedented number of anti-dumping and anti-subsidy measures — 41 on steel products, including 
18 on products originating in China.

Breaking a deadlock that has lasted for years, the Council finally agreed on its negotiating position on 
a proposal to modernise the EU’s trade-defence instruments, allowing the final stage of negotiations 
with the Parliament and the Commission to begin. This proposal, tabled by the Commission, aims 
to provide the EU’s trade-defence instruments with more transparency, faster procedures and more 
effective enforcement, and in some cases to impose higher duties.

In the same field, another proposal was put forward on a new method for calculating dumping on 
imports  from  countries  where  there  are  significant  market  distortions,  or  where  the  state  has  a 
pervasive  influence  on  the  economy.  The  purpose  is  to  make  sure  that  the  EU  has  trade-defence 
instruments that are able to deal with the current realities in the international trading environment 
while  fully  respecting  the  EU’s  international  obligations  within  the  framework  of  the  World  Trade 
Organisation.

What the EU negotiated with the United States

Better access to the US market

In 2016 the EU continued to pursue its aim of negotiating better access for the EU to the US market 
by removing customs duties and other barriers to trade and by facilitating new trade and investment 
opportunities in new areas. This would apply to all companies, however large or small.

The Transatlantic Trade and Investment Partnership would help generate jobs and growth, cut prices 
and  give  citizens  more  choice  of  goods  and  services.  At  the  same  time  it  would  uphold  the  high 

Helping to generate growth

 and jobs at home

Protecting EU innovators

and traditional products

Ensuring good cooperation 

in the future

Ending customs duties

Streamlining trade in services

Protecting democracy, consumers 

and the environment

Letting EU businesses bid

for Canadian public contracts

Stepping up regulatory 

cooperation

Promoting and 

protecting investment

‘

Our new trade deal with Canada is the best and most progressive agreement we have ever, 

as a European Union, negotiated. On top of the new opportunities it creates for businesses and 

citizens, it also marks a new approach to investment protection that is transparent 

and that is impartial.

President Juncker, G20 Summit, 4 September 2016

’

54

standards of protection existing in the EU. The Partnership could also help the EU and the United 
States to protect and strengthen shared values such as democracy and the rule of law.

With the Partnership, firms in the EU could export more to the United States and import more of the 
goods and services they need to make their final products. Services account for nearly three quarters 
of the EU’s economy, yet EU firms still face hurdles when they try to sell their services on the US 
market. According to Eurostat the United States buys 15 % of the EU’s agricultural exports, especially 
high-value-added products. The EU would like to see the Partnership make it possible to increase 
these exports further. Under the Partnership the EU also wants European firms to be able to bid for 
US government contracts on equal terms with US companies.

Regulatory cooperation — cutting red tape and costs without cutting corners

The EU sought to break new ground for a trade deal by getting regulators in the EU and the United 
States to work together much more closely than they do now. To export to the United States EU 
firms must meet Washington’s rules and standards. Often these rules and standards ensure the 
same level of safety or quality, but differ in their technical details — for example the colour of 
the wiring in the plugs and sockets used on either side of the Atlantic. In some cases checks on 
technical requirements unnecessarily repeat those already done on the other side of the Atlantic. 
These  factors  can  be  costly,  especially  for  smaller  firms  and  consumers.  Working  together  on 
regulations could cut these costs while upholding the EU’s strict levels of protection for people and 
the environment.

Trade rules to make it easier and fairer to export, import and invest

The EU continued its efforts to put in place new, or further develop, trade rules to help all EU firms 
benefit fully from the Transatlantic Trade and Investment Partnership.

Exporters’ stories: how the EU’s trade 
agreements benefit companies and 
communities.

Under the agreement, the EU wants:

 ‣ to ensure that smaller companies can benefit from the Partnership;

 ‣ to promote free and fair competition, including rules to stop firms colluding to fix prices or 
abusing market power and provisions relating to state-owned enterprises and subsidies;

 ‣ to help firms save time and money on paperwork at customs;

 ‣ firms to be able to access the sustainable energy and raw materials resources they need;
 ‣ to protect EU firms’ intellectual property;

 ‣ to put sustainable development at the heart of the agreement.

THE EU IN 2016Chapter 6 — A reasonable and balanced free trade agreement with the United States

55

Under the Partnership, as in all its other trade agreements, the EU will protect public utilities at all 
levels of government, including the local level. The Partnership will not require countries to liberalise, 
deregulate  or  privatise  public  services  at  national  or  local  level.  This  includes  public  health,  state 
education and public transport, along with water collection, purification, distribution and management.

How the EU negotiated with the United States

The Commission negotiated the Transatlantic Trade and Investment Partnership on the basis of a 
mandate agreed unanimously by the governments of the EU’s Member States. Negotiations began 
in June 2013. In 2016 four rounds of talks took place. In an intensification of the negotiations, Trade 
Commissioner Cecilia Malmström met her US counterpart Michael Froman nine times in the course 
of the year. Progress continued to be made across a range of areas. However, the EU always made 
it clear that getting a good agreement was more important than simply concluding negotiations as 
quickly as possible.

On  its  dedicated  website  the  Commission  continued  to  publish  EU  textual  proposals  —  the  EU’s 
initial proposals for legal text on topics in the Partnership — in areas such as services and regulatory 
cooperation.  The  Commission  also  published  detailed  reports  about  each  round  of  negotiations 
on its website. In addition the Commission published dozens of documents about the Partnership, 
some in all of the official EU languages. These included brochures explaining in plain terms the aims 
and  potential  content  of  the  agreement.  These  actions  continued  as  negotiations  progressed  and, 
together, made the negotiations the most transparent ever undertaken for an EU trade agreement.

As  is  usual  when  negotiating  a  trade  agreement  the  Commission  used  the  weekly  meetings  of 
the Council’s Trade Policy Committee to keep the governments of the Member States informed of 
progress  in  the  negotiations.  The  Commission  also  kept  the  European  Parliament  —  in  particular 
the  International  Trade  Committee  —  abreast  of  the  negotiations,  with  both  Trade  Commissioner 
Malmström and Partnership negotiators appearing before the Parliament and its committees. The 
Member  States  and  Members  of  the  European  Parliament  had  access  to  Partnership  negotiating 
documents in line with the practices agreed with them.

This ensured democratic oversight throughout the negotiations. It also meant that the governments 
of the Member States and directly elected Members of the European Parliament were fully informed 
of the state of play of the negotiations and of the EU’s negotiating positions. The European Parliament 
continued to follow the talks closely.

The  Commission  was  particularly  active  in  publicising  discussions  about  the  proposed  agreement 
and explaining what the EU sought to get out of them. It also addressed concerns about the claimed 
negative impacts of the Partnership. In particular the Commission made significant efforts to ensure 
that any interested stakeholders could engage directly with negotiators and to publish information 
about the negotiations online. During each negotiating round EU and US negotiators convened joint 
meetings with hundreds of stakeholders representing a wide field of interests. The Commission used 
social media to keep citizens informed, including a dedicated Twitter account that had over 26 500 
followers by the end of 2016.

In the course of the negotiations the Commission continued to draw on the Advisory Group it had set 
up to provide additional expert input for EU negotiators. It comprises men and women representing 
environmental, health, consumer and workers’ interests, along with various business sectors.

After the negotiations

Once a text has been agreed the proposed Transatlantic Trade and Investment Partnership document 
will be published online. It will then be submitted for ratification through the relevant procedures.

CHAPTER 7

Mourners place flowers and candles 
in memory of the victims of the terror 
attacks in Brussels, 22 March 2016.

‘I intend to make use of 
the prerogatives of the 
Commission to uphold, within 
our field of competence, our 
shared values, the rule of law 
and fundamental rights, while 
taking due account of the 
diversity of constitutional and 
cultural traditions of the 28 
Member States.’

Jean-Claude Juncker, political 
guidelines, 15 July 2014

An area of justice 
and fundamental 
rights based on 
mutual trust

The Commission took action 
to improve the protection of 
fundamental rights in the 
areas of data protection, 
the sharing of personal 
information and consumers’ 
rights, and stepped up efforts 
to boost gender equality, fight 
discrimination and eradicate 
human trafficking.

56

In 2016 the Security Union 
gave an urgent and firm 
response to terrorism, while 
progress was also made on the 
rights of citizens and internal 
market issues in the field of 
civil justice.

The EU is currently facing a 
very serious terrorist threat. 
Attacks on European soil, 
returning foreign terrorist 
fighters and the evolving 
nature of terrorism have 
presented EU Member States 
with new and unprecedented 
challenges.

The European Commission 
therefore insisted on 
developing a genuine and 
effective Security Union. A 
series of measures were 
taken in 2016 to address all 
dimensions of the terrorist 
threat: the prevention of 
radicalisation, including 
online; the criminalisation 

and detection of travel for 
terrorist activities and support 
for terrorists; the exchange of 
information; tackling terrorism 
financing; cutting access to 
firearms and explosives; and 
supporting partner countries, 
particularly around the 
Mediterranean.

Elsewhere, the EU agreed on 
new Directives to improve 
the procedural rights of 
citizens involved in criminal 
proceedings. In the area of 
civil justice, legislation was 
introduced to help families and 
couples by simplifying family 
and civil law.

As regards corporate 
governance, rules were agreed 
to improve shareholders’ 
rights. The Commission also 
proposed more proportionate 
remuneration rules for credit 
institutions and investment 
firms.

Chapter 7 — An area of justice and fundamental rights based on mutual trust

57

Addressing security threats in the EU

Charles Michel, Prime Minister of 
Belgium (lighting a candle), and 
Jean-Claude Juncker, President of the 
European Commission (centre), pay 
tribute to the victims of the terrorist 
attacks in Brussels, 22 March 2016.

In 2016  the  EU  began a series of initiatives  to help counter  the threat of  terrorism  at  home  and 
abroad.

The Commission’s proposal to check EU citizens against the relevant databases whenever they cross 
external borders was the subject of a political agreement between the Parliament and the Council in 
December. Systematic checks of non-EU nationals are already mandatory.

Views on the fight against terrorism.

In January the European Counter Terrorism Centre was launched at Europol’s headquarters in The 
Hague. The main aim of the centre is to promote more efficient operational cooperation and improve 
the communication of security information between Member States. In addition the Commission 
adopted the Action Plan on Terrorist Financing, designed to cut terrorists off from their sources of 
revenue and to trace them through their financial activities. In December the Commission adopted 
a  package  of  measures  to  strengthen  the  EU’s  capacity  to  fight  the  financing  of  terrorism  and 
organised crime. The proposals presented by the Commission will complete and reinforce the EU’s 
legal framework in the areas of money laundering, illicit cash flows and the mutual recognition of 
the freezing and confiscation of assets.

Following the adoption in 2015 of the Directive on the Prevention of the Use of the Financial 
System for the Purposes of Money Laundering or Terrorist Financing, the Commission stepped 
up its support for Member States in transposing the Directive more efficiently into their national 
legislation. In July the Commission adopted a new proposal to amend the Anti-Money Laundering 
Directive,  with  the  aim  of  further  enhancing  the  EU’s  legal  framework  following  the  terrorist 
attacks that took place in 2015 and 2016 and the revelations contained in the ‘Panama Papers’. 
The  Commission  also  increased  its  support  for  Member  States  in  transposing  the  fourth  Anti-
Money Laundering Directive more efficiently and gave more power to Member States in the fight 

58

against terrorism. In July the Commission adopted a list of non-EU countries that have strategic 
deficiencies in their anti-money laundering and countering terrorist financing regimes.

Another  priority  was  to  work  towards  the  improved  exchange  of  information,  in  particular  for  law 
enforcement purposes. The Commission prioritised the enforcement of the existing Prüm Framework 
(an information-exchange tool that can offer automated comparison of DNA profiles, fingerprint data 
and  vehicle  registration  data)  and  made  proposals  to  improve  information  exchange  on  criminal 
convictions through the European Criminal Records Information System.

IMPROVING INFORMATION EXCHANGE AND OPERATIONAL COOPERATION

Reinforcing Europol: 
European Counter Terrorism 
Centre
• launched on 1 January 2016 to 
facilitate coordination and 
cooperation between national 
authorities

• future law enforcement 
intelligence hub

Passenger Name Record 
Directive
• adopted on 21 April 2016: 
regulates the transmission of 
passenger data by air carriers 
to Member States

• contains robust safeguards for 
privacy, data protection and the 
respect of fundamental rights

• data may only be processed for 
the prevention, detection, 
investigation and prosecution of 
terrorist oﬀences and serious 
crime

Prüm Framework
• DNA analysis ﬁles

• ﬁngerprint identiﬁcation 

systems

• vehicle registration data

European Criminal Records 
Information System
• created in 2012: electronic 

interconnection of criminal records 
databases

• being extended to nationals of non-EU 

countries

• over 100 000 messages exchanged 
between national authorities each 
month

Common risk indicators
• concern foreign terrorist ﬁghters

• support the work of national border 
authorities when conducting checks

• help prevent criminals escaping 
detection by travelling through 
another Member State

In July the EU Passenger Name Record Directive was adopted. The Directive obliges air carriers to 
transfer data on passengers on international flights to the Member States of arrival or departure. 
The  data  will  be  analysed  and  used  for  the  purpose  of  fighting  serious  crime  and  terrorism.  The 
Commission has started working with Member States to ensure its quick implementation.

The final adoption of the revised Europol Regulation took place in autumn 2016. It further increases 
Europol’s  accountability,  effectiveness  and  efficiency  and  ensures  scrutiny  of  its  activities  by  the 
European Parliament, together with national parliaments.

The EU Internet Forum held in December provided a framework for joining together the efforts of 
industry  and  law  enforcement  agencies  in  tackling  terrorist  material  online,  while  involving  and 
engaging with civil society in the development of more efficient counter and alternative messages. 
The EU Internet Referral Unit established at Europol helps to reduce the volume of terrorist material 
online.

THE EU IN 2016Chapter 7 — An area of justice and fundamental rights based on mutual trust

59

The Radicalisation Awareness Network Centre of Excellence was established to bolster the support provided 
to practitioners and to provide tailor-made support services to Member States and non-EU countries.

In September the Commission adopted a Communication on ‘Enhancing security in a world of mobility’. 
In  November  it  proposed  to  establish  a  European  Travel  Information  and  Authorisation  System  to 
determine  the  eligibility  of  all  visa-exempt  non-EU  nationals  to  travel  to  the  Schengen  area,  and 
whether such travel poses security or migration risks. This System will contribute to more efficient 
management of the EU’s external borders and improve internal security, while facilitating legal travel 
across Schengen borders.

TACKLING HATE SPEECH AND DISCRIMINATION, BOTH ONLINE AND OFFLINE

The European Commission, Facebook, 
Twitter, YouTube and Microso(cid:6) 
unveiled a new code of conduct 
to combat illegal hate speech online 
in May 2016

Launching of 
a high-level group
combating racism, xenophobia 
and other forms of intolerance

www.

One-stop-shop website
with information about EU funding 
for projects promoting tolerance 
and combating racism, xenophobia 
and discrimination

Racism, xenophobia and other 
forms of intolerance have been 
growing and spreading across 
the EU at enormous speed

In order to protect minorities and combat the rising wave of racism and xenophobia the Commission 
reached an agreement in May with Facebook, Twitter, YouTube and Microsoft on a code of conduct to 
counter the spread of illegal hate speech online.

In April the Commission began work on an effective EU Security Union that would address the need for 
a common approach to transnational threats. In December the Commission presented its third Progress 
Report Towards an Effective and Genuine Security Union, which outlined the new Terrorist Financing 
Package,  an  important  step  in  stemming  the  financial  resources  that  sustain  terrorism.  The  Report 
also welcomed the adoption of a set of proposals to strengthen the effectiveness and efficiency of the 
Schengen Information System. It underlined the significant progress made on key EU legislative files 
to counter terrorism and organised crime and to reinforce security at the EU’s borders. The Parliament 
and the Council reached political agreement on the Directive on Combating Terrorism, the revision of 
the Firearms Directive and the revision of the Schengen Borders Code to allow systematic checks on 
EU citizens.

60

Upholding the rule of law

Commissioner Vĕra Jourová receives 
Koen Lenaerts, President of the Court 
of Justice of the European Union, 
Brussels, 28 April 2016.

During the year the Commission pursued its efforts to promote and uphold the respect of the rule of 
law in the European Union.

The Commission also continued to encourage Member States to improve the quality, independence 
and  efficiency  of  their  national  justice  systems,  as  effective  justice  systems  support  economic 
growth and defend fundamental rights. The Commission adopted the 2016 EU Justice Scoreboard, 
which shows that, despite a positive overall trend, certain Member States are still facing particular 
challenges in this area.

In July the Commission adopted a Rule-of-Law Recommendation on the situation in Poland, setting 
out the Commission’s concerns and recommending how these can be addressed. Believing that there 
is a systemic threat to the rule of law in Poland, the Commission assessed the overall situation and 
reached the conclusion that important issues of concern remain regarding the rule of law in Poland. 
The Commission laid out further concrete recommendations to the Polish authorities in December on 
how to address these concerns.

Commission First Vice-President Frans 
Timmermans addresses the European 
Parliament on recent developments 
in Poland and their impact on 
fundamental rights, Strasbourg, France, 
13 September 2016.

Criminal justice

Improving procedural rights and judicial cooperation

The Parliament and the Council adopted three new Directives on the procedural rights of suspects 
and accused persons:

THE EU IN 2016Chapter 7 — An area of justice and fundamental rights based on mutual trust

61

 ‣ the Directive on the Strengthening of Certain Aspects of the Presumption of Innocence and of 

the Right to be Present at the Trial in Criminal Proceedings;

 ‣ the Directive on Procedural Safeguards for Children who are Suspects or Accused Persons in 

Criminal Proceedings;

 ‣ the Directive on Legal Aid for Suspects and Accused Persons in Criminal Proceedings and for 

Requested Persons in European Arrest Warrant Proceedings.

On judicial cooperation in criminal law, the EU concluded a review of the 2010 Mutual Legal Assistance 
Agreement with the United States, agreeing on actions to improve and speed up cooperation.

The first EU Directive protecting minors in 
criminal proceedings.

Finally, the Member States agreed to begin work on improving access to digital evidence in criminal 
investigations through the Council Conclusions on improving criminal justice in cyberspace adopted 
in June.

Civil justice

Simplifying family and civil law

In 2016 the EU adopted legislation to help international couples manage their property and share it 
in case of divorce or the death of one of them.

The  EU  also  adopted  legislation  simplifying  the  circulation  of  certain  public  documents  between 
Member States. There will be no more need for an apostille stamp on public documents such as birth 
certificates, and the process for obtaining certified copies and translations will be made simpler.

The Commission proposed improvements to the EU rules that protect children in the context of cross-
border parental responsibility disputes related to custody, access rights and child abduction. The new 
rules will speed up legal and administrative proceedings and ensure that the child’s best interest is 
always taken into account.

The  Commission  also  presented  a  legislative  proposal  on  early  restructuring  and  second  chance, 
along with other insolvency-related matters. The initiative addresses the most important barriers to 
the free flow of capital, building on national regimes.

Improving corporate governance rules

In  2016  negotiations  between  the  Parliament  and  the  Council  on  the  revision  of  the  Shareholder 
Rights Directive led to a political agreement that will still need to be formally approved by the two 
institutions.

62

As  regards  credit  institutions  and  investment  firms,  the  Commission  assessed  the  remuneration 
rules in the Capital Requirements Directive and adopted a targeted amendment to take into account 
proportionality considerations following the assessment of the rules.

Fundamental rights and judicial systems

Standing up for EU fundamental rights

In May the Commission published its 2015 Report on the Application of the EU Charter of Fundamental 
Rights, highlighting how fundamental rights were taken into account and promoted in its policy and 
legislative work.

The Report focused on the first Annual Colloquium on Fundamental Rights, on the theme of ‘Tolerance 
and respect: preventing and combating anti-Semitic and anti-Muslim hatred in Europe’. The Colloquium 
resulted in a list of concrete actions in the areas of combating racism, xenophobia, hate speech and 
hate crime and promoting tolerance, diversity and non-discrimination.

The second Annual Colloquium on Fundamental Rights focused on ‘Media pluralism and democracy’. 
It  also  led  the  Commission  to  define  follow-up  actions  aiming  to  protect  the  media  from  political 
pressure and safeguard their financial independence, to support the protection of journalists facing 
threats and hate speech and to monitor freedom of expression in the Member States.

Improving data protection

The Data Protection Reform Package was adopted in April 2016. It will become applicable in 2018. 
The General Data Protection Regulation is an essential step in strengthening citizens’ fundamental 
rights in the digital age and facilitating business by simplifying rules for companies in the Digital 
Single Market. A single law will also do away with the current fragmentation and costly administrative 

Giovanni Buttarelli, European Data 
Protection Supervisor, meets with 
Commissioner Julian King, Brussels, 
24 November 2016.

Data protection: problems and solutions.

THE EU IN 2016Chapter 7 — An area of justice and fundamental rights based on mutual trust

63

burdens, leading to savings for businesses. In addition, a specific Data Protection Directive for the 
police and criminal justice sector will ensure a consistently high level of data protection and thereby 
facilitate the exchange of information and cooperation between Member States’ police and judicial 
authorities.

Protecting EU citizens’ personal data when transferred to US law enforcement

In June the EU–US Data Protection Umbrella Agreement was signed. It sets high standards for the 
protection  of  personal  data  transferred  by  law-enforcement  authorities.  The  European  Parliament 
gave its consent to the conclusion of the Agreement in December.

Making EU–US data transfers safer

In  July  the  Commission  adopted  the  Decision  putting  in  place  the  EU–US  Privacy  Shield,  allowing 
for safe personal data transfers from the EU to companies in the United States. The Privacy Shield 
puts in place strong obligations on companies’ handling of data, clear safeguards and transparency 
obligations on US government access, effective protection of individual rights and an annual joint 
review mechanism.

Consumers’ rights

Increasing respect for consumer rules in the online world

The  Commission  proposed  to  revise  the  Consumer  Protection  Cooperation  Regulation  to  bring 
enforcement of EU consumer laws up to speed with the online world. The European Consumer Centres 
regularly inform enforcement authorities about key issues for consumers.

At the trilateral EU–China–US Consumer Product Safety Summit in June the authorities agreed to 
strengthen product safety cooperation, particularly on products sold online.

New online tool to solve disputes

In  2016  the  European  Commission  launched  the  Online  Dispute  Resolution  platform.  It  facilitates 
the online, out-of-court resolution of disputes between EU consumers and traders related to online 
shopping.

Keeping EU consumers safe

The Rapid Alert System for Dangerous Non-Food Products allows for the quick exchange at EU level of 
information on dangerous products found on the market and on the measures taken to prevent them 
from reaching consumers. In 2016, 2 126 alerts on dangerous products were circulated among the 
31 European national authorities participating in the system and the European Commission. This is a 

Commissioner Vytenis Andriukaitis 
addresses the ‘Food and drinks: 
connecting with the mindful consumer’ 
session at the 14th European Business 
Summit, Brussels, 2 June 2016.

64

slight increase on the 2 072 alerts recorded in 2015. These alerts mostly concerned products posing 
a risk of injury (such as motor vehicles) or posing a chemical risk (such as toys containing phthalates).

Protecting consumers against misleading and aggressive commercial practices

To ensure that national enforcement authorities have adequate tools to better protect consumers in 
the online and offline world the Commission adopted an updated version of the 2009 guidance on the 
application of the Unfair Commercial Practices Directive. The document aims to make the application 
of the Directive simpler.

Gender equality

Boosting gender equality

In December 2015 the Commission published a Strategic Engagement for Gender Equality to shape 
the Commission’s policy on gender equality until 2019. In June 2016 the Council adopted Conclusions 
on the Commission’s strategic engagement.

In  March  the  Commission  also  proposed  EU  accession  to  the  Council  of  Europe  Convention  on 
Preventing and Combating Violence against Women and Domestic Violence, which sets legally binding 
standards to prevent violence, protect victims and punish perpetrators.

Mapping out actions on gender equality

The Report on Equality Between Women and Men 2015 shows some progress in employment and 
decision-making. Nevertheless, significant gender gaps remain in pay and pensions.

The Commission is committed to addressing the challenges related to work–life balance. Providing 
a better balance between a person’s family life and their professional responsibilities will encourage 
better sharing of care responsibilities between women and men, strengthen gender equality, reduce 
the pay and pension gaps, address the demographic challenges in the EU and enable businesses to 
fully benefit from all available talents.

In 2016 the Commission awarded funding for awareness-raising and education activities to prevent 
and combat violence against women, to be carried out by national authorities.

Fighting against discrimination

The Commission started implementing the list of actions to advance lesbian, gay, bisexual, transgender 
and intersex equality, including activities in areas such as non-discrimination, education, health, hate 
crime and hate speech.

The 2016 Roma Report revealed serious bottlenecks, such as residential and educational segregation 
and forced evictions of Roma people.

Rights of people with disabilities

Around 80 million people in the EU have some degree of disability. The adoption of the European 
Accessibility  Act,  which  started  to  be  discussed  in  the  Parliament  and  the  Council  in  2016,  would 
improve the accessibility of everyday products and services, such as mobile phones, transport and 
banking services. In October the Parliament and the Council formally approved the first EU-wide rules 
to make the websites and mobile apps of public sector bodies accessible by the blind, deaf and hard 

THE EU IN 2016Chapter 7 — An area of justice and fundamental rights based on mutual trust

65

of hearing. Public sector bodies include state, regional and local authorities and bodies governed by 
public law, such as public hospitals, universities and libraries. As part of the September Copyright 
Package the Commission proposed legislation to implement the Marrakesh Treaty to facilitate access 
to published works for people who are blind, have other visual impairments or are otherwise print 
disabled.

To help people with disabilities travel more easily between Member States, the EU launched the EU 
Disability Card initiative. The card will provide equal access to certain specific benefits, mainly in the 
areas of culture, leisure, sport and transport, based on a system of mutual recognition.

Addressing trafficking of human beings

In May the Commission presented its first Report on the Progress Made in the Fight against Trafficking 
in Human Beings. This is crucial in order to increase the number of investigations and prosecutions, 
to  establish  appropriate  mechanisms  for  the  early  identification  and  protection  of  victims  and  to 
enhance measures to prevent the trafficking of human beings.

The Commission published a Study on the Gender Dimension in Trafficking of Human Beings, in line 
with the requirements of the EU legal and policy framework.

The Commission will develop knowledge on the gender dimensions of human trafficking, including the 
gender consequences of the various forms of trafficking and potential differences in the vulnerability 
of  men  and  women  to  victimisation  and  its  impact  on  them.  Its  specific  objectives  and  tasks  are 
to address the gender dimension of vulnerability, recruitment and victimisation, to address gender 
issues related to traffickers and those creating demand and to examine law and policy responses to 
the trafficking of human beings from a gender perspective.

CHAPTER 8

 Commissioner Dimitris Avramopoulos 
at the launch of the European Border 
and Coast Guard, Kapitan Andreevo, 
Bulgaria, 6 October 2016.

‘The recent terrible events 
in the Mediterranean have 
shown us that Europe 
needs to manage migration 
better, in all aspects. This is 
first of all a humanitarian 
imperative. I am convinced 
that we must work closely 
together in a spirit of 
solidarity.’

Jean-Claude Juncker, political 
guidelines, 15 July 2014

In 2015 and 2016 the EU 
experienced an unprecedented 
influx of refugees and 
migrants. According to 
Eurostat more than 1 million 
people applied for international 
protection in the European 
Union in 2015, and the 
final figure for 2016 is also 
expected to exceed 1 million. 
Most of them were fleeing 
from war and terror in Syria 
and other countries.

Numerous new measures were 
introduced in 2016 in order to 
deal with the situation. These 
included focusing on rescue 
operations while carrying 
out border surveillance with 
the support of EU agencies 
and saving more lives at sea; 
securing the EU’s external 
borders, notably through the 
‘hotspot’ approach; stepping 
up efforts in the relocation and 
resettlement of people in need 

66

Towards a new policy 
on migration

of protection; and developing 
new measures in the fight 
against migrant smuggling. 
In addition, the Commission 
proposed revised EU asylum 
legislation and increased its 
efforts to ensure the full and 
correct implementation of 
the existing EU legislative 
framework.

Finally, through the Asylum, 
Migration and Integration 
Fund and the Internal Security 
Fund, the EU increased the 
amount of financial support it 
provides to Member States for 
the development of a common 
approach to migration and 
the efficient management of 
migration flows.

The EU also focused on 
opening new channels for 
legal migration. The aim was 
to improve the EU’s ability to 
attract and retain highly skilled 
workers and better integrate 
non-EU nationals, to enhance 
the competitiveness of the 
EU’s economy and to cope with 
demographic challenges.

2016 also saw increasing 
cooperation with countries of 
origin and transit to help them 
effectively address the root 
causes of irregular migration.

Chapter 8 — Towards a new policy on migration

67

The European Agenda on Migration

In 2016 the European Commission followed up on the European AgBenda on Migration, proposing 
measures to tackle the immediate challenges of the ongoing migration and refugee crisis. It also 
sought to equip the EU with the tools to better manage migration in the medium and long term, in 
the areas of irregular migration, borders, asylum and legal migration.

The European Agenda on Migration: 
2 years on. 

Protecting those in need of international protection

In April the Commission published a Communication presenting options for how to reform the EU’s 
existing rules on migration and asylum.

Based  on  the  feedback  received,  in  May  the  Commission  presented  a  first  package  of  legislative 
proposals on the reform of one aspect of the Common European Asylum System, proposing new rules 
to reform the Dublin System, which determines which Member State is responsible for an asylum 
claim. At the same time the Commission proposed to transform the European Asylum Support Office 
into a fully fledged European Union agency for asylum that will facilitate implementation and improve 
the functioning of the Common European Asylum System.

Commissioner Christos Stylianides 
visits a refugee camp in Elaionas, 
Greece, 19 April 2016.

In July the Commission completed the proposed overhaul of the Common European Asylum System 
with a second package of proposals revising the three remaining pieces of legislation making up the 
EU’s Asylum System. The reforms simplify, clarify and shorten the asylum process, creating a fairer 
and more efficient EU procedure for dealing with asylum claims — one that is generous to the most 
vulnerable but strict with those who try to abuse it. The reforms will also allow for both the quick 
identification of people in genuine need of international protection, offering them protection for as 

68

long as they need it, and the ability to return those who do not have the right to receive protection in 
the EU. The reforms will also make sure that, wherever they arrive, asylum seekers can benefit from 
the same dignified reception standards.

In December the Commission adopted its fourth Recommendation on the specific measures Greece 
needs  to  take  to  fully  implement  the  EU  asylum  standards  under  the  Dublin  Regulation.  The 
Recommendation noted that despite the difficult situation Greece was confronted with it had made 
significant  progress  in  putting  in  place  the  essential  institutional  and  legal  structures  for  a  fully 
functioning Asylum System, and there is a good prospect for such a system to be in place in the near 
future.  It  was  therefore  recommended  that  transfers  to  Greece  under  the  Dublin  Regulation  be 
resumed  gradually  after  15  March  2017,  based  on  individual  assurances  for  each  applicant  and 
excluding vulnerable categories of migrants. The aim is to encourage relocation efforts and restore a 
fully  functioning  Dublin  System  as  a  key  element  re-establishing  the  normal  functioning  of  the 
Schengen area, and with a view to the future reform of the System.

Commissioners Tibor Navracsics and 
Dimitris Avramopoulos speak with 
young refugees and football players, 
Kraainem, Belgium, 2 March 2016.

Relocation and resettlement

In  March  and  October  the  European  Council  called  for  an  acceleration  in  the  implementation  of 
relocation in order to alleviate the huge pressure on Greece and Italy.

The  temporary  emergency  relocation  scheme  was  established  in  2015,  with  Member  States 
committing to relocate 98 255 people from Italy and Greece by September 2017. Member States 
also agreed in 2015 to resettle over 22 000 people in clear need of international protection from 
outside of the European Union.

By  the  end  of  2016,  9 602  refugees  had  been  relocated  —  7 198  from  Greece  and  2 404  from 
Italy — to 24 participating states. Moreover, by the end of the year almost 14 000 people had been 
provided safe and legal pathways to the EU through resettlement in 21 resettling states.

In March the members of the European Council and their Turkish counterparts agreed to end irregular 
migration from Turkey to the EU and replace it with legal channels for the resettlement of refugees 
in the European Union. An EU–Turkey Statement was agreed upon in which it was announced, among 
other things, that all new irregular migrants or asylum seekers crossing from Turkey to the Greek 
islands would be returned to Turkey, after an individual assessment of their asylum claims in line with 
international and EU law and on the basis that they would receive protection in Turkey. In addition, 
for every Syrian returned to Turkey from the Greek islands another Syrian would be resettled in the 
EU from Turkey directly. By the end of the year 2 672 Syrian refugees had been resettled from Turkey 
under this provision.

THE EU IN 2016Chapter 8 — Towards a new policy on migration

69

CREATING SAFE AND LEGAL ROUTES FOR ASYLUM SEEKERS

Daily crossings are down from 10 000 
in a single day in October 2015 to a daily average 
of 80 since the EU–Turkey Statement 
was implemented

1 984 irregular migrants 
returned from Greece to Turkey

1 984

6

8

2014

2015

2016

EU

Facility for Refugees in Turkey

€2.2 billion
already mobilised

€0.8
billion

€2.2 billion out of €3 billion 
already mobilised to improve 
conditions for refugees: health, 
education, socioeconomic support 
and humanitarian assistance

Syrian refugees 
resettled
2 672

TURKEY

1 984
Irregular migrants 
returned from Greece

For every Syrian readmitted by Turkey from the Greek islands 
another Syrian is being resettled from Turkey to the EU

In  September  the  Commission  reported  on  the  sharp  decrease  in  the  numbers  of  people  crossing 
irregularly or losing their lives in the Aegean Sea. From June onwards an average of 80 people arrived 
daily, compared with over 10 000 arriving in a single day in October 2015.

The  Commission  worked  together  with  Greece  and  Italy  to  develop  the  procedures  needed  to 
facilitate relocation, including appropriate security screening of relocation candidates supported 
by  the  European  Border  and  Coast  Guard  Agency  and  Europol.  For  both  Greece  and  Italy,  a 
Protocol for Relocation was endorsed in June 2016 by all EU Member States, the United Nations 
High Commissioner for Refugees, the International Organisation for Migration and the European 
Asylum Support Office.

Testimonies from people that have 
benefited from relocation. 

70

Return and readmission

As  part  of  the  Common  European  Asylum  System  Reform  package  the  Commission  proposed  to 
improve the EU’s fingerprint database for identifying asylum seekers and irregular border-crossers. 
The proposal would allow Member States to store and search data on non-EU nationals or stateless 
persons who are not applicants for international protection and are found to be staying irregularly 
in  the  EU.  A  new  Regulation  on  the  European  Border  and  Coast  Guard  reinforced  the  role  of  the 
Agency in supporting Member States during return operations. In addition the Council adopted the 
Commission’s proposal for a European travel document, introducing a uniform format with enhanced 
security features to facilitate the return of irregularly staying non-EU nationals.

Within the framework of the Schengen Evaluation Mechanism, the Commission, together with experts 
from Schengen countries, evaluated the return systems in 10 EU Member States and associated countries 
between 2015 and 2016. Six evaluation reports were adopted by the Commission, and recommendations 
were made to the Council to address weaknesses detected in the national return systems.

Enhancing return and readmission is also one of the key objectives of the new Migration Partnership 
Framework, launched by the Commission in June 2016 to tackle the root causes of irregular migration 
and to better manage migration in cooperation with non-EU countries. (For more information on the 
Partnership Framework see Chapter 9.)

The fight against migrant smuggling

In February a European Migrant Smuggling Centre was established within Europol, and an agreement 
was reached on closer operational cooperation between the European Border and Coast Guard Agency 
and  Europol.  This  included  the  sharing  of  personal  data  gathered  from  voluntary  interviews  with 
migrants involved in joint operations coordinated by the European Border and Coast Guard Agency in 
order to better investigate smugglers.

Saving lives at sea and implementing the ‘hotspot’ approach

The European Border and Coast Guard

The European Border and Coast Guard Agency contributed to the rescue of over 169 000 people in 
2016 in the central Mediterranean alone.

By the end of 2016 the European Border and Coast Guard had more than 1 550 officers deployed to 
support Member States at the external borders, complementing the Member States’ existing national 
capacities of over 100 000 border guards.

Building  on  a  proposal  from  December  2015,  political  agreement  was  reached  in  June  2016  on 
the Regulation on the European Border and Coast Guard, which entered into force in October. The 
European Border and Coast Guard comprises two pillars — the strengthened European Border and 
Coast Guard Agency, built from the ‘old’ Frontex agency, and the border management authorities of 
the Member States, including coast guards to the extent that they deal with border-control tasks.

Under the new mandate the Agency’s role and activities were significantly expanded. Since October 
important progress has been made in making the new Agency fully operational, including the setting 
up of mandatory rapid-reaction pools for border guards and equipment and the launch of new pools 
for return intervention teams. These can be deployed in support of Member States, which have the 
primary role in and competence for reinforcing controls at the external borders.

Hotspots

As part of the effort to manage the migration crisis the implementation of the ‘hotspot’ approach 
continued  in  Greece  and  Italy.  Operational  and  financial  support  was  provided  by  the  EU  and  the 

THE EU IN 2016Chapter 8 — Towards a new policy on migration

71

relevant EU agencies (the European Asylum Support Office, the European Border and Coast Guard 
Agency and Europol), including through the deployment of Member State experts and guest officers.

Located at key arrival points in the most affected Member States, such as Greece and Italy, hotspots 
are reception areas where all those arriving are identified, registered and properly processed. The 
hotspot workflow and the relocation process also include integrated and systematic security checks 
and  require  the  provision  of  adequate  reception  conditions  to  avoid  overcrowding,  with  specific 
attention paid to vulnerable groups, including children.

The  implementation  of  the  hotspot  approach  is  primarily  the  responsibility  of  the  Member  State 
concerned. However, since March 2016 Europol personnel have performed secondary security checks 
in the Greek hotspots. To make the security process at the external borders more robust Europol set 
up a pool of 116 guest officers — experts seconded by national services — to support Member States 
in need. The first two groups of guest officers were deployed in the Greek hotspots in order to support 
Europol personnel. Five hotspots were operational in Greece and four in Italy in 2016, with other ports 
of disembarkation in Italy performing similar functions.

Better control of the EU’s external borders

Back to Schengen — a Roadmap

In March the Commission presented a detailed Roadmap with the concrete steps needed to return 
to  a  Schengen  area  that  is  functioning  normally,  as  the  system  had  been  severely  tested  by  the 
migration and refugee crisis.

Due to the large number of irregular migrants and asylum seekers arriving in Greece huge pressure 
was  put  on  the  EU’s  external  borders  in  that  country,  revealing  serious  deficiencies  and  having 
consequences  for  the  Schengen  area  as  a  whole.  In  view  of  this  Greece  was  asked  to  adopt  and 
implement an action plan to respond to the Council and Commission recommendations, while other 
Member States were asked to assume responsibility and provide immediate support to Greece.

In May the Council adopted a Recommendation to Austria, Germany, Denmark, Sweden and Norway 
allowing for temporary internal border controls. Despite the progressive stabilisation of the overall 
situation in the Schengen area, in November the Commission recommended that the Council allow 
those countries to maintain internal border controls under strict conditions and for a limited period.

The Smart Borders Package

In April the Commission proposed a Smart Borders Package with the aim of modernising the Schengen 
area’s external border management and helping Member States deal with the increasing traveller 
flows, while contributing to the fight against terrorism and serious crimes.

At the core of the Package is the establishment of the Entry–Exit System to modernise border control 
and to provide precise and automated information to border guards during border checks. The System 
also allows access to assigned national law-enforcement authorities and Europol to contribute to the 
prevention, detection and investigation of terrorist offences or other serious criminal offences.

At the same time the Commission proposed a Communication on ‘Stronger and smarter information 
systems for borders and security’, which sets out actions to improve the functioning and interoperability 
of existing information systems and potential new systems to address information gaps.

In November the Commission proposed to establish a European Travel Information and Authorisation 
System to strengthen security checks on visa-free travellers.

In December the Commission proposed to strengthen the operational effectiveness and efficiency of 
the Schengen Information System to enhance the System’s ability to fight terrorism and cross-border 

72

crime, improve border and migration management and ensure the effective exchange of information 
between Member States to increase the security of EU citizens.

Western Balkans leaders’ weekly videoconferences

Weekly videoconferences involving the leaders of the western Balkans led to strong coordination and 
improved  information  sharing  between  EU  Member  States  and  their  immediate  neighbours  along 
another important migratory route.

Improving channels for legal migration

A proposal for a revised Blue Card, presented by the Commission in June, aims to improve the EU’s 
ability  to  attract  and  retain  highly  skilled  workers  in  order  to  enhance  the  competitiveness  of  its 
economy and cope with demographic challenges. Blue Card holders will be given more flexible access 
to highly skilled work across the EU, with the possibility of a self-employed side activity, immediate 
family reunification and faster access to long-term residence status in the EU.

Integration of non-EU nationals

In the field of integration the Commission adopted an Action Plan on the Integration of Third-Country 
Nationals in June. It aims to support Member States in their efforts to integrate non-EU nationals. The 
Action Plan provides a common policy framework that should help Member States as they further 
develop and strengthen their national integration policies. It presents 50 concrete actions in key areas 
such  as  pre-departure  and  pre-arrival  integration,  education,  employment  and  vocational  training, 
access to basic services, active participation and social inclusion.

Visas

The  Commission  tabled  legislative  proposals  in  early  2016  to  transfer  Georgia,  Kosovo  (this 
designation is without prejudice to positions on status, and is in line with United Nations Security 
Council  Resolution  1244 (1999)  and  the  International  Court  of  Justice  Opinion  on  the  Kosovo 
declaration of independence), Turkey and Ukraine to the visa-free list for short stays following the 
positive assessment of these countries’ visa liberalisation action plans or roadmaps. The proposals 
for Kosovo and Turkey were made on the understanding that the Kosovan and Turkish authorities 
would  fulfil  the  outstanding  benchmarks  of  their  respective  visa  liberalisation  roadmaps  before 
the adoption of the respective proposals by the Parliament and the Council. The Commission also 
proposed  a  legislative  amendment  to  strengthen  the  suspension  mechanism,  which  will  allow  the 
EU to suspend visa-free travel for citizens of a non-EU country in case of a significant increase in 
migratory or security risks. Political agreement was reached between the Parliament and the Council 
on the revised suspension mechanism and on visa liberalisation for Georgia.

During the year the EU signed visa waiver agreements with Kiribati, the Marshall Islands, Micronesia, 
Peru, the Solomon Islands and Tuvalu.

Negotiations  were  launched  with  Tunisia  in  October  on  an  agreement  to  facilitate  the  process  of 
issuing short-stay visas and an agreement to establish procedures for the readmission of irregular 
migrants.

In November negotiations on visa facilitation and readmission were launched with Jordan.

In  2016  the  Canadian  government  announced  that  it  intends  to  lift  the  visa  requirement  for  all 
Bulgarian and Romanian citizens travelling to Canada as from December 2017.

THE EU IN 2016Chapter 8 — Towards a new policy on migration

73

Financial support for the efficient management of migration

The  EU  also  increased  its  financial  support  to  Member  States  for  the  development  of  a  common 
approach to migration and the efficient management of migration flows, mainly through the Asylum, 
Migration and Integration Fund and the Internal Security Fund. The emergency assistance component 
of these Funds allowed the EU to provide a swift and flexible response to migration challenges by 
making  available  additional  funding  to  those  Member  States  facing  huge  migratory  pressure.  In 
March the Commission proposed an Emergency Assistance Instrument to be used within the EU to 
provide a faster, more targeted response to major crises, including helping Member States cope with 
large numbers of refugees. Up to 2018 some €700 million of EU funding will be made available 
through  this  Instrument  via  partner  organisations,  such  as  UN  agencies,  the  Red  Cross  and  non-
governmental organisations. €198 million has already been allocated to organisations for projects 
carried out in Greece, in close consultation with the Greek authorities.

On top of this the EU increased the 2015-2016 budgets of the European Asylum Support Office, the 
European Border and Coast Guard Agency and Europol, reinforcing their capacity to provide on-the-
ground responses to migration challenges.

FUNDING UNDER THE ASYLUM, MIGRATION AND INTEGRATION FUND  
AND THE INTERNAL SECURITY FUND 2014-2020

Asylum, Migration 
and Integration Fund 

Internal Security Fund 

of which

of which

Funding for
2014-2020
€5.7 billion

Emergency 
funding awarded*  
€497.6 million

Funding for
2014-2020
€4.1 billion

Emergency 
funding awarded* 
€254.6 million

Internal Security Fund borders and visas
€3 billion

Internal Security Fund police 
€1.1 billion

State of play on 31 December 2016

*  Asylum, Migration and Integration Fund emergency assistance was awarded to the following Member States: Belgium, Bulgaria, Germany, Greece, France, Croatia,
  Italy, Cyprus, Hungary, Netherlands, Austria, Slovenia, Finland and Sweden. Internal Security Fund emergency assistance was awarded to the following Member States: 
  Belgium, Bulgaria, Greece, France, Croatia, Italy, Hungary and Slovenia.

Source: European Commission. 

CHAPTER 9

High Representative/Commission  
Vice-President Federica Mogherini and  
Jens Stoltenberg, Secretary General 
of NATO, give a joint press conference 
following the meeting of  
NATO Ministers for Foreign Affairs, 
Brussels, 6 December 2016.

A stronger global 
actor

‘We need a stronger Europe 
when it comes to foreign 
policy. The Ukraine crisis 
and the worrying situation 
in the Middle East show how 
important it is that Europe is 
united externally.’

Jean-Claude Juncker, political 
guidelines, 15 July 2014

74

The EU needs a strong common 
foreign policy to respond 
efficiently to global challenges, 
including the crises in its 
neighbourhood, project its 
values and contribute to peace 
and prosperity in the world.

With that in mind the EU put 
promoting international peace 
and security, development 
cooperation, human rights and 
responding to humanitarian 
crises at the heart of its foreign 
and security policies throughout 
2016.

Internationally, the EU used 
its diplomatic and economic 
influence to press for political 
solutions to conflicts in Syria, 
Libya and Ukraine. It continued 
to work intensively to foster 
the normalisation of relations 
between Kosovo and Serbia.

In spring 2016 High 
Representative of the Union 

for Foreign Affairs and Security 
Policy/Commission Vice-
President Federica Mogherini 
and several other European 
Commissioners visited 
Iran to launch discussions 
on cooperation on trade, 
investment, energy and climate 
change, and human rights.

A Global Strategy for the EU’s 
Foreign and Security Policy 
was presented in June by 
High Representative/Vice-
President Federica Mogherini. 
The strategy outlines priorities 
and objectives to maximise 
the EU’s ability to tackle 
international challenges. The 
follow-up on security and 
defence has been particularly 
swift, leading to the adoption of 
substantial conclusions by the 
Council of the European Union 
in November and proposals 
for EU–NATO cooperation 
in December. The European 
Commission also proposed a 

European Defence Action Plan 
in November with the aim of 
setting up a European Defence 
Fund. This comprehensive 
defence package was endorsed 
by the European Council in 
December, with concrete follow-
up tasks for 2017.

During the year the EU 
began implementing the UN 
Sustainable Development 
Goals. The EU Emergency Trust 
Fund for Africa was set up and 
closer cooperation on migration 
was agreed with five African 
countries.

Humanitarian crises continued 
to take a heavy toll, and in 
2016 the EU allocated relief 
assistance of over €2.1 billion 
for food, shelter, protection 
and healthcare to 120 million 
people in over 80 countries.

The EU’s neighbourhood

Chapter 9 — A stronger global actor

75

Relations  with  countries  that  lie  to  the  south  and  east  of  the  EU  are  crucially  important.  This 
relationship is guided by the European neighbourhood policy, which was revised in 2016. The policy 
offers genuine partnerships between the EU and neighbouring countries based on good governance, 
political, economic and security issues and migration policies.

The eastern neighbourhood

The EU’s policies towards countries to its east are comprehensive and tailor-made for the needs of 
the individual countries. They are therefore wide reaching and focus on a number of priority areas, for 
example social and economic development, good governance and energy efficiency, and they make 
it easier for people in the EU and the eastern neighbourhood to meet, work and study in and travel 
between the regions.

The EU has Association Agreements, which include Deep and Comprehensive Free Trade Areas, with 
Georgia, Moldova and Ukraine. The agreements with Georgia and Moldova came into force in July. 
Closer relations with Armenia, Azerbaijan and Belarus were also pursued. Significant progress was 
made in agreeing visa-free travel for Ukrainians and Georgians to visit the EU.

Supporting  political  and  economic  reform  in  Ukraine  was  an  EU  priority  throughout  the  year, 
with  substantial  financial  support  being  provided  under  the  European  Neighbourhood  Instrument 
(€200  million  for  new  programmes  focusing  on  transparent  and  accountable  governance), 
humanitarian assistance (€22.4 million) and macrofinancial assistance (€2.21 billion). Brussels and 
Kyiv also held talks on gas deliveries.

The EU continued to insist on the peaceful settlement of the conflict in eastern Ukraine through the 
full implementation of the Minsk agreements. It continued its sanctions against Russia for its illegal 
annexation of Crimea and Sevastopol and its role in destabilising Ukraine.

Russia

In early 2016 the Member States affirmed the principles guiding the EU’s approach to Russia. These 
include full implementation of the Minsk agreements, strengthening relations with eastern partners 
and  other  neighbours,  particularly  in  central  Asia,  strengthening  internal  EU  resilience,  engaging 
selectively  with  Russia  on  issues  of  EU  interest  such  as  foreign  policy  and  global  matters  and 
intensifying the EU’s support for Russian civil society and contacts between EU and Russian citizens. 
In the absence of the complete implementation of the Minsk agreements the sanctions imposed in 
2014 in response to Russian actions in Ukraine remained in place. The further deterioration of the 
human-rights situation in Russia and growing restrictions on civil society continued to be at the top 
of the EU’s agenda.

The southern neighbourhood

In the EU’s southern neighbourhood region the neighbourhood policy is about supporting individual 
countries in areas where the EU can make a specific and positive contribution.

Particular attention is given to countries affected by the refugee crisis. The Commission continued to 
implement the EU Regional Trust Fund in Response to the Syrian Crisis and launched activities under 
the EU Emergency Trust Fund for Africa to address the migration crisis. Following the Supporting Syria 
and the Region conference held in London in February, agreements were reached with Jordan and 
Lebanon to help them cope with the large influx of Syrian refugees. The EU notably increased trade 
with Jordan to help create jobs, in particular for Syrian refugees inside the country.

Tunisia benefited from particular attention in 2016 as the EU supported its democratic transition.

76

Syria

The  crisis  in  Syria  remained  one  of  the  gravest  challenges  the  international  community  faced  in 
2016. The EU continued its diplomatic and humanitarian efforts in close coordination with the UN 
and with UN Special Envoy Staffan de Mistura. The EU scaled up its financial assistance, with over 
€9 billion in aid since the crisis began. The EU’s support for Syria was reaffirmed when EU leaders met 
in October to discuss the country. High Representative/Vice-President Federica Mogherini also tried to 
facilitate a regional understanding on the future of Syria, leading the EU regional initiative that aims 
to identify common ground on post-conflict arrangements with regional players, examining the scope 
for reconciliation and reconstruction once a credible political transition is firmly under way.

Libya

Throughout the year the EU remained fully committed to Libya and the country’s transition towards 
an  inclusive  and  stable  democracy,  and  to  supporting  UN  mediation  efforts  in  that  process.  The 
EU  currently  provides  substantial  funding  for  projects  and  activities  in  Libya  across  six  sectors 
corresponding  to  the  priorities  of  its  bilateral  cooperation:  civil  society;  democratic  governance; 
health; youth, active citizenship and socioeconomic integration; migration and protection; and political 
process, security and mediation.

The western Balkans and enlargement negotiations

The EU’s enlargement process is vital for the stability of the western Balkans. Supporting security 
and prosperity in the western Balkans is an investment in the future of the region and is in the EU’s 
interest.  Bosnia  and  Herzegovina  applied  for  EU  membership  and  the  Council  decided  to  take  the 
process forward, while Albania, with support from the EU, passed key laws to reform its judiciary. This 
should improve life for Albanians and help take the country forward on its path towards the EU. The 
EU and Kosovo concluded a Stabilisation and Association Agreement. In the former Yugoslav Republic 
of Macedonia, mediation from the EU and other international players enabled an agreement that led 
to calm and orderly parliamentary elections in December.

Talks between Kosovo and Serbia on normalising relations also progressed. Meanwhile, EU membership 
talks with both Montenegro and Serbia advanced steadily.

Turkey

Commissioner Johannes Hahn visits 
a supermarket for refugees managed 
by the World Food Programme, 
Turkey, 26 April 2016.

In 2016 relations between the EU and Turkey developed in many areas, as had been agreed at the 
EU–Turkey Summit of November 2015. A key development was the EU–Turkey deal in March, in which 
the  EU  focused  on  the  handling  of  the  migration  flows  and  on  fighting  the  smuggling  model  and 
trafficking in human beings. A Facility for Refugees in Turkey was established to support Syrian refugees 
and their overstretched host communities, coordinating €3 billion in funding for 2016 and 2017. 

THE EU IN 2016Chapter 9 — A stronger global actor

77

The visit by Martin Schulz, President of the 
European Parliament, to Turkey.

The EU supported Turkish democracy after the coup attempt in July, and called on the authorities to 
observe the highest standards of the rule of law and fundamental rights in its wake.

Western Europe

Non-EU western European countries are closely connected to the EU. Norway and Switzerland are 
among  the  EU’s  main  trade  and  investment  partners  and  are  important  partners  in  research  and 
innovation.  However,  challenges  remain  with  Switzerland.  Although  the  vote  in  December  by  the 
Swiss Federal Assembly on amendments to the Foreigners Act was a step in the right direction, an 
institutional  framework  agreement  for  managing  and  updating  the  complex  system  of  sector-by-
sector agreements to fully unlock the potential of the bilateral relations is still missing.

North America

United States

Priorities in the relations between the EU and the United States in 2016 included counterterrorism, 
strengthening economic growth and addressing the global refugee crisis. This was reflected at the 
meeting  between  Barack  Obama,  President  of  the  United  States,  Donald  Tusk,  President  of  the 
European  Council,  and  Jean-Claude  Juncker,  President  of  the  European  Commission,  in  Warsaw  in 
July.

Several rounds of talks on the Transatlantic Trade and Investment Partnership took place.

In June the EU and the United States signed the EU–US Data Protection Umbrella Agreement, which will 
ensure a data protection framework for data transfers to the United States within the framework of 
judicial and law-enforcement cooperation. In December the Council adopted the Decision authorising 
the European Union to conclude the Agreement.

Commission Vice-President Maroš 
Šefčovič, High Representative/
Commission Vice-President Federica 
Mogherini, John Kerry, US Secretary 
of State, and Dr Ernest Moniz, US 
Secretary of Energy, at the US–EU 
Energy Council meeting at the State 
Department in Washington DC, United 
States, 4 May 2016.

78

In July the EU–United States Privacy Shield was adopted to protect the personal data of citizens and 
provide clarity for businesses.

Washington and Brussels also cooperated on the European Border and Coast Guard and on tackling 
the refugee crisis.

In December the United States and the EU signed an Acquisition and Cross-Servicing Agreement on 
logistical support for each other’s military operations.

Canada

The  year  was  also  an  important  one  in  the EU’s  relations  with  Canada,  with  the  signature  of  two 
groundbreaking  agreements  —  the  Strategic  Partnership  Agreement  and  the  Comprehensive 
Economic  and  Trade  Agreement.  Once  in  force  the  two  Agreements  will  upgrade  the  overall 
cooperation  framework  between  the  EU  and  Canada.  The  Strategic  Partnership  Agreement  will 
enhance  political  dialogue  on  a  broad  range  of  areas,  including  international  peace  and  security, 
economic and sustainable development, justice, freedom and security. The Comprehensive Economic 
and Trade Agreement will promote jobs and growth, bring important economic benefits on both sides 
of the Atlantic by generating trade and investment and set global standards on the protection of 
labour rights and the environment.

China

A new EU strategy on China was agreed in July. The EU’s engagement with China will be principled, 
practical and pragmatic and will stay true to its interests and values — in particular to international 
rules and norms and respect for human rights.

The EU–China Summit in Beijing in July provided the opportunity for strategic discussions on issues 
of shared interest, including economic reforms and overcapacity in the steel sector.

The EU–China 2020 Strategic Agenda for Cooperation has been the basis for relations since 2013, 
and an environment policy dialogue has been ongoing since 2005.

Jean-Claude Juncker, President of 
the European Commission, Xi Jinping, 
President of China, and Donald Tusk, 
President of the European Council, at 
the 18th EU–China Summit, Beijing, 
China, 12 July 2016.

The Middle East

Iran

Following the historic nuclear agreement reached in July 2015 between the international community 
and  Iran,  High  Representative/Vice-President  Federica  Mogherini  visited  Tehran  in  April  2016  with 

THE EU IN 2016Chapter 9 — A stronger global actor

79

High Representative/Commission 
Vice-President Federica Mogherini 
and Mohamad Javad Zarif, Iranian 
Minister for Foreign Affairs, at a 
joint press conference in Tehran, 
Iran, 16 April 2016.

seven European Commissioners to increase cooperation in areas such as economic relations, transport, 
science, humanitarian issues, energy and human rights.

Iraq

The EU’s efforts in Iraq focused on supporting the government in carrying out urgently needed political, 
economic and human-rights reforms, not least within the framework of the EU–Iraq Partnership and 
Cooperation Agreement. Cooperation with Iraq continued in the battle against ISIL/Da’esh. The EU is 
providing humanitarian aid to cover the most urgent needs of displaced Iraqis and is supporting the 
stabilisation of liberated areas.

Latin America

In 2016 the EU strengthened its relations with Latin America and the Caribbean. The EU and Mexico 
launched negotiations to modernise the global agreement in order to, among other things, enhance 
the framework of the bilateral dialogue on global issues (notably on climate change, energy, food 
security,  the  global  economy  and  security)  and  adapt  EU–Mexico  relations  to  the  new  realities  of 
global  trade  and  investment  policies  and  flows.  The  EU  and  Cuba  continued  their  formal  political 
dialogue, and in December signed a Political Dialogue and Cooperation Agreement, which constitutes 
the new legal framework for the relationship. In May the EU and the Common Market of the South 
(Mercosur) reinvigorated negotiations for a bi-regional Association Agreement with the first exchange 
of offers since 2004.

The  EU  provided  political  support  to  the  peace  process  in  Colombia.  The  EU  Trust  Fund  launched 
in December will be a key element in the EU’s efforts to support the implementation of the peace 
agreement.

A meeting of foreign ministers from the EU and the Community of Latin American and Caribbean 
States was held in Santo Domingo, Dominican Republic, in October. It contributed to strengthening the 
strategic partnership and paved the way for a summit to be held between the EU and the Community 
of Latin American and Caribbean States in 2017.

80

EU–Africa partnership

In the Horn of Africa the EU approved a new political and economic agreement with Ethiopia and was 
a prime supporter of elections in Somalia. The EU continued supporting the fight against terrorism in 
the region, and also in the Sahel. The year saw the signature and entry into force of the Economic 
Partnership Agreement between the EU and the Southern African Development Community.

Commissioner Neven Mimica meets with locals 
in Matam, Senegal, 27 April 2016.

Migration

During the year the EU sought tailor-made partnerships with non-EU countries of origin and transit 
using all of the policies at its disposal. In June the European Council adopted the proposal by the High 
Representative/Vice-President and the Commission to launch a new Migration Partnership Framework 
with key partners in Africa to better manage the situation together.

As part of the European Agenda on Migration the priorities are saving lives at sea, increasing returns, 
enabling  migrants  and  refugees  to  stay  closer  to  home  and,  in  the  long  term,  helping  countries 
address the root causes of irregular migration.

EU SUPPORT FOR NON-EU PARTNER COUNTRIES 
TO ADDRESS THE MIGRATION CRISIS

Trust Fund in Response
to the Syrian Crisis
‘The MADAD Fund’

EU Emergency Trust 
Fund for Africa

Facility for Refugees 
in Turkey

€742 million

€2.5 billion

€3 billion

Horn of Africa window 
(€1.346 billion)
Sahel/Lake Chad window 
(€883 million)
North Africa window 
(€267.9 million)

Source: European Commission. 

THE EU IN 2016Chapter 9 — A stronger global actor

81

Under the Partnership Framework, work was launched with five priority countries — Ethiopia, Mali, 
Niger, Nigeria and Senegal. In parallel, dialogues on migration with countries of origin and transit 
continued in order to implement the outcome of the 2015 Valletta Summit.

During the year the EU Emergency Trust Fund for Africa started to deliver on concrete projects, and 
cooperation with the EU’s partners is now showing its first results.

Human rights

2016 was marked by serious violations of human rights and increasing harassment and attacks on 
human-rights defenders and non-governmental organisations internationally. The Global Strategy for 
the EU’s Foreign and Security Policy, launched in June, restated that human rights are at the heart of 
the EU’s external action and are fully consistent with the EU’s interests. High Representative/Vice-
President Federica Mogherini launched the #EU4HumanRights campaign to raise awareness of the 
EU’s and Member States’ efforts to pursue the priorities identified in the 2015-2019 Action Plan on 
Human Rights and Democracy. These included advocating, defending and promoting human rights 
worldwide.

In 2016, on the International Day 
for the Elimination of Violence 
against Women (25 November), the 
European Commission launched 
a campaign on the elimination of 
violence against women.

The 2030 Agenda: Sustainable Development Goals

The  EU  is  committed  to  the  2030  Agenda  and  to  implementing  the  Sustainable  Development 
Goals.  Commissioner  Karmenu  Vella  and  Dutch  Minister  Sharon  Dijksma  attended  the  second  UN 
Environment Assembly in May in Kenya. The ministers present agreed to implement the Sustainable 
Development Goals on issues such as sustainable production, consumption, chemicals, waste, climate 
change and oceans.

The Commission has set out a strategic approach for achieving sustainable development in the EU and 
around the world. Proposals were presented on 22 November by High-Representative/Vice-President 
Federica Mogherini, First Vice-President Frans Timmermans and Commissioner Neven Mimica. In this 
context the Commission issued a Communication on the next steps for a sustainable European future 
that joins up the sustainable Development Goals of the 2030 Agenda with the EU policy framework 
and Commission priorities. These next steps will assess levels of progress, identify the most relevant 
sustainability concerns and ensure that all actions and policy initiatives, within the EU and globally, 
take the Sustainable Development Goals on board at the outset.

82

International development

In 2016 the EU began implementing the Sustainable Development Goals in international cooperation.

In September the EU launched the European External Investment Plan to implement commitments on 
financing for development and the 2030 Agenda for Sustainable Development.

In  November  the  Commission  proposed  a  revised  European  Consensus  on  Development,  putting 
forward a shared vision and framework for action on development cooperation for the EU and its 
Member States. It proposes a blueprint for aligning the Union’s development policy with the UN 2030 
Agenda for Sustainable Development. It forms part of the international community’s agreed response 
to new trends and challenges posed by globalisation. The European Development Days forum was 
the  first  major  international  gathering  to  discuss  this.  The  EU  also  continued  its  work  on  a  new 
partnership with the African, Caribbean and Pacific countries after 2020. It has proposed an umbrella 
agreement, complemented by tailored regional partnerships for Africa, the Caribbean and the Pacific 
addressing the specific regional opportunities and challenges faced.

To show the EU’s continued support for Afghanistan a major international conference was held in 
Brussels in October. In November a donors’ conference was held for the Central African Republic, at 
which international donors pledged over €2 billion.

Research and innovation

Science  diplomacy  is  a  key  part  of  the  EU’s  international  activities.  During  the  year  the  Joint 
Communication on ‘An integrated EU policy for the Arctic’ included Arctic research and emphasised 
the role of science in international cooperation.

The Global Research Collaboration for Infectious Disease Preparedness mobilised funders worldwide 
to implement urgent research into the Zika outbreak. Following a specific call in 2016, Zika research 
projects worth €30 million were selected for Horizon 2020 funding.

Decent work on the EU global agenda

At the International Labour Conference held in June Jean-Claude Juncker, President of the European 
Commission,  made  a  pledge  prioritising  a  social  Europe,  youth  employment  and  social  dialogue. 
He  also  promoted  the  Commission  initiative  on  a  European  Pillar  of  Social  Rights.  Together  with 
Commissioner Marianne Thyssen he stressed the importance of International Labour Organisation 
standards and highlighted the need to reflect on the future of work. The EU made a key contribution to 
the work and outcomes of the Conference. Comprehensive guidance on decent work in global supply 
chains was adopted, addressing due diligence, cross-border social dialogue, trade and transparency.

Security and defence

In  November  EU  foreign  and  defence  ministers  agreed  to  implement  the  Global  Strategy  for  the 
EU’s Foreign and Security Policy in the area of security and defence. These conclusions were based 
on an Implementation Plan on Security and Defence, which was presented to ministers by the High 
Representative/Vice-President and Head of the European Defence Agency, Federica Mogherini.

The  Strategy  includes  proposals  to  strengthen  civilian  and  military  capabilities,  deepen  defence 
cooperation, improve the EU’s rapid response to crises, establish a permanent planning and conduct 
capability at the strategic level for non-executive military missions, explore the potential for greater 

THE EU IN 2016Chapter 9 — A stronger global actor

83

cooperation  with  partner  countries  on  security  and  defence  and  further  implement  the  work  on 
capacity-building in support of security and development.

This  was  the  first  of  three  elements  of  the  new  EU  Defence  Package  endorsed  by  the  European 
Council in December. The second element was the European Defence Action Plan proposed by the 
Commission,  aiming  to  set  up  a  European  Defence  Fund  to  support  investment  in  joint  research 
and the joint development of defence equipment and technologies. It also proposed measures for a 
strengthened Single Market for defence. The third element comprised cooperation between the EU 
and NATO as a follow-up to their Joint Declaration signed in Warsaw in July 2016.

In April EU Member States agreed on greater coordination to strengthen the EU’s response to hybrid 
threats such as cyberattacks, the disruption of energy supplies or financial services, the undermining 
of public trust in government institutions and the exploitation of social tensions.

Responding to humanitarian crises and emergencies

Reshaping aid at the World Humanitarian 
Summit.

The EU continued to help those caught up in natural disasters and human-made crises around the 
world  by  allocating  relief  assistance  of  €2.1  billion  for  food,  shelter,  protection  and  healthcare  to 
more than 120 million people in over 80 countries.

PROVIDING HUMANITARIAN ASSISTANCE WORLDWIDE

65.3 million
people are forcibly 
displaced worldwide

53 % of refugees 
worldwide come 
from Syria, Afghanistan 
and Somalia

21.3 million
refugees

40.8 million 
internally displaced

1.8 million 
seeking asylum

© European Union/ECHO/Caroline Gluck

The EU gives more than
€1 billion a year
to help refugees

The EU and its Member 
States are the world’s 
largest donors 
of humanitarian aid, with 
over €6.3 billion 
provided in 2016

84

The EU is at the forefront in financing humanitarian aid in all major conflict zones where massive 
numbers of people are displaced, from Iraq and Syria to the Central African Republic, South Sudan 
and Yemen.

For the first time ever the EU provided humanitarian assistance within its borders, with support for 
Greece  to  cope  with  the  flow  of  refugees.  For  the  period  from  2016  to  2018  €700  million  of  EU 
funding is being made available through humanitarian partners.

New initiatives also took shape. As a direct follow-up to the lessons learned from the Ebola crisis that 
hit west Africa in 2014 the EU set up a European Medical Corps, which was deployed to provide a 
rapid response to emergencies with health consequences both inside and outside the EU.

Some 4 % of the EU’s overall humanitarian budget was dedicated to education for children affected 
by emergencies, representing one of the most underfunded sectors of humanitarian aid. More than 
3.8 million children obtained access to educational activities in 47 countries. Commissioner Christos 
Stylianides also announced a further increase to 6 % in 2017.

International cooperation

EU–United Nations

A high-level EU delegation participated in the UN General Assembly ministerial week and the Summit 
on Addressing Large Movements of Refugees and Migrants, where the EU successfully advocated for 
global responsibility. The Syrian crisis, climate change and the implementation of the 2030 Agenda 
dominated discussions. Throughout the year, EU–UN cooperation ensured coordination across a wide 
range of activities, from peace missions to diplomatic efforts, human rights, tackling hunger, building 
inclusive  societies,  good  governance  and  fighting  criminality.  The  close  ties  between  the  two 
organisations  were  also  stressed  by  High  Representative/Vice-President  Federica  Mogherini  during 
her speech at the United Nations Security Council in June.

Donald Tusk, President of the 
European Council, Ban Ki-moon, 
Secretary-General of the United 
Nations, and Commission First Vice-
President Frans Timmermans at the 
71st plenary session of the United 
Nations General Assembly, New York, 
United States, 18 September 2016.

EU–NATO

In Warsaw in July Donald Tusk, President of the European Council, Jean-Claude Juncker, President 
of  the  European  Commission,  and  Jens  Stoltenberg,  Secretary  General  of  NATO,  signed  the  first 
ever  EU–NATO  Joint  Declaration,  giving  new  impetus  to  their  partnership.  It  underlined  their  joint 
commitment  to  working  together  on  countering  hybrid  threats;  operational  cooperation,  including 
maritime issues; cybersecurity and defence; defence industry research; exercises and defence; and 
security capacity-building. In December the EU and NATO endorsed, in a parallel process, a common 
set of proposals for the implementation of the Joint Declaration.

THE EU IN 2016Chapter 9 — A stronger global actor

85

Cooperating on the international stage

The EU engaged actively with global partners in forums such as the G7 and the G20 to address global 
political and economic challenges. In their Hangzhou Summit communiqué in September G20 leaders 
emphasised the need for greater inclusiveness so that economic growth serves the needs of everyone 
and benefits all countries and all people.

(Clockwise from left) François Hollande, 
President of France, David Cameron, Prime 
Minister of the United Kingdom, Justin Trudeau, 
Prime Minister of Canada, Jean-Claude Juncker, 
President of the European Commission, Donald 
Tusk, President of the European Council, 
Matteo Renzi, Prime Minister of Italy, Angela 
Merkel, Chancellor of Germany, Barack Obama, 
President of the United States, and Shinzō Abe, 
Prime Minister of Japan, at the G7 Summit, Ise, 
Japan, 26 May 2016.

CHAPTER 10

Martin Schulz, President of the European 
Parliament (right), awards the 2016 Sakharov 
Prize for Freedom of Thought to Nadia Murad 
Basee Taha and Lamiya Aji Bashar, Strasbourg, 
France, 13 December 2016.

‘The proposal and election of 
the President of the European 
Commission in the light of the 
outcome of the European Parliament 
elections is certainly important, 
but only a first step in making the 
European Union as a whole more 
democratic. A European Commission 
under my leadership will be 
committed to filling the special 
partnership with the European 
Parliament … I am also committed 
to enhanced transparency when it 
comes to contact with stakeholders 
and lobbyists.’

Jean-Claude Juncker, political guidelines, 
15 July 2014

In September 2016 President 
Juncker’s State of the Union address 
took stock of the achievements 
of the past year and presented 
his priorities for the year ahead. 
He outlined how the Commission 
will address the most pressing 
challenges, such as migration, 
terrorism, economic growth and 
employment. The doubling of the 
duration and value of the Investment 
Plan was at the forefront of the 
Commission’s proposed actions 
and was widely supported by the 
Parliament and the Council.

Two days after the speech, all EU 
Member States except the United 
Kingdom gathered in Bratislava, 
Slovakia, to begin a political 
reflection on the further development 
of an EU of 27 Member States. It 
followed a national referendum 
on the United Kingdom’s EU 
membership, held in June, which 
resulted in a vote to leave the EU.

8686

A Union of 
democratic change

The Bratislava Declaration and 
Roadmap, agreed by EU leaders, set 
out the objectives until March 2017. 
It included restoring full control of 
external borders, ensuring internal 
security and fighting terrorism, 
strengthening EU cooperation on 
external security and defence, 
boosting the Single Market and 
offering better opportunities for 
young people.

The European Parliament

Chapter 10 — A Union of democratic change

87

Jean-Claude Juncker, President of the 
European Commission, delivers his 
2016 State of the Union address to 
the European Parliament, Strasbourg, 
France, 14 September 2016.

In  2016  the  European  Parliament  addressed  all  major  issues  of  EU  politics  and  debated  topics 
ranging from the refugee and migration crisis to the referendum in the United Kingdom, and from 
security and the threat of terrorism to corporate taxation. It took important legislative decisions to 
enable EU action in areas including passenger name records, data protection and the Digital Single 
Market. Many high-profile visitors addressed the Parliament during the year, including King Willem-
Alexander of the Netherlands, Toomas Hendrik Ilves, President of Estonia, Rosen Plevneliev, President 
of  Bulgaria,  Reuven  Rivlin,  President  of  Israel,  and  Mahmoud  Abbas,  President  of  the  Palestinian 
Authority, along with the heads of EU institutions.

The European Parliament awarded the 
2016 Sakharov Prize for Freedom of 
Thought to Nadia Murad Basee Taha and 
Lamiya Aji Bashar, two Yazidi victims of 
ISIL/Da’esh brutality.

The European Council

The  European  Council  met  in  February,  March,  June,  October  and  December.  Heads  of  State  or 
Government addressed and provided orientations on key issues such as boosting growth, jobs and 
competitiveness,  completing  the  Single  Market,  EU  trade  policy,  internal  and  external  aspects  of 
migration policy, security, and energy and climate change. The leaders also met in an informal setting 
in Bratislava to discuss the state of the Union and their common future in the aftermath of the UK 
referendum.

88

THE BRATISLAVA ROADMAP

Bratislava
Summit
16 September 2016

European 
Council
15 December 2016

European 
Council
9 and 10 March 2017

European 
Council
20 and 21 October 2016

Malta
Summit
3 February 2017

Rome
Summit
25 March 2017

MIGRATION

SECURITY

ECONOMY

Assist Bulgaria in protecting 
its border with Turkey

New plan on security and 
defence

European Border and Coast 
Guard rapid-reaction pool

Deals with non-EU countries:
• reduce illegal immigration
• increase returns

Implementation of the 
EU–Turkey Statement

Support for western 
Balkans countries

Agreement on the long-term 
migration policy and the 
principle of solidarity

Improved checks at the EU’s 
external borders

Reinforced EU–NATO 
cooperation

Travel Information and 
Authorisation System 
(ETIAS)

Better information 
exchange between security 
services

Fight against radicalisation

Extension of the European 
Fund for Strategic 
Investments

Fight against youth 
unemployment

Renewed consensus on a 
free and fair trade policy

Review of Single Market 
delivery

CLIMATE

BORDERS

BREXIT

COOPERATION

Paris Agreement 
ratiﬁcation

Launch of the
European Border and 
Coast Guard Agency

EU-27 Brexit 
negotiation principles

Better working 
methods and 
communication

THE EU IN 2016Chapter 10 — A Union of democratic change

89

The Council of the European Union

The rotating presidency of the Council was held by the Netherlands and Slovakia in 2016. The ongoing 
migration crisis, armed conflicts around the world and the fight against terrorism were major topics 
discussed in the Council during the year. The Council made progress in a number of areas, including 
taxation, energy and climate change, the financing of the economy and the deepening of the Single 
Market.

The European Economic and Social Committee 
and the European Committee of the Regions

Jean-Claude Juncker, President of 
the European Commission (right), 
receives a visit from Georges 
Dassis, President of the European 
Economic and Social Committee, 
Brussels, 26 September 2016.

The  European  Economic  and  Social  Committee  took  a  significant  stance  on  the  refugee  crisis  in 
2016.  At  the  request  of  the  Commission,  the  Committee  also  provided  an  exploratory  opinion  on 
the  European  Pillar  of  Social  Rights.  In  September  the  Committee  adopted,  at  the  request  of  the 
Commission, an exploratory opinion on sustainable development.

The  European  Committee  of  the  Regions  organised  a  European  Summit  of  Regions  and  Cities  in 
Bratislava,  Slovakia,  in  July.  It  adopted  a  declaration  calling  for  a  forward-looking  vision  for  Europe 
based on strengthening investment for promoting cohesion, sustainable growth and job creation in the 
EU’s cities and regions. The Committee also hosted the European Week of Regions and Cities in October.

Commissioner Corina Crețu with 
Markku Markkula, President of the 
European Committee of the Regions, 
at the 14th European Week of Regions 
and Cities, Brussels, 10 October 2016.

90

Better regulation

Interinstitutional Agreement on Better Law-making

In April the European Parliament, the Council of the European Union and the European Commission 
signed a new Interinstitutional Agreement on Better Law-making, based on a Commission proposal, 
to  improve  the  application  of  better  regulation  principles  by  all  institutions.  This  means  taking 
ambitious action where needed to tackle problems in the EU and designing such action in the most 
effective, efficient and open manner possible. The Agreement promotes evidence-based policymaking 
throughout the legislative cycle along with a systematic evaluation of how legislation performs in 
practice. The Agreement will make the EU legislative process more transparent, open to stakeholder 
input and easier to follow.

SIMPLER RULES BUT THE SAME HIGH STANDARDS

Reducing regulatory 
burdens and red tape

Revised 
Smart Borders 
proposal

Cutting costs:

€1.1 billion

€480 million

Action plan 
on VAT

Increasing 
revenues by 
€7 billion

Cutting 
compliance 
costs by 55 %

Better reporting 
on greenhouse gas 
emission reductions

Saving
€345 000-€460 000
each year

New prospectus rules

Saving
€130 million
each year

A streamlined common 
agricultural policy

250
Regulations

Around 
40 acts

Data protection

Single Rulebook:

€2.3 billion
of beneﬁts
each year

The Regulatory 
Fitness Platform

Bringing together 
experts from 
Member States 
and civil society

Reviewing citizens’ 
online suggestions 
and making 
recommendations 
to the Commission 
for burden 
reduction

Making sure 
the EU’s Rulebook 
is ﬁt for purpose

The 2017 European Commission Work Programme

In October the Commission adopted its Annual Work Programme for 2017, setting out a list of actions 
that  it  will  take  in  the  coming  year  and  identifying  where  it  intends  to  withdraw  already-tabled 
proposals or review existing legislation. The 2017 Work Programme follows up on the 10 political 
priorities of the Commission.

THE EU IN 2016Chapter 10 — A Union of democratic change

91

REFIT Scoreboard

The Commission’s work on a wide range of actions to evaluate, revise and simplify EU legislation and 
to reduce regulatory burdens was reflected in the REFIT Scoreboard presented together with the 2017 
Work Programme. The REFIT Scoreboard showed the state of play on 231 initiatives for simplifying and 
reducing administrative burdens in existing legislation. The Commission also published a Scoreboard 
Summary outlining the key elements of the REFIT Scoreboard and providing detailed information on 
the first 22 REFIT Platform opinions, along with the way in which the Commission intends to follow up.

REFIT Platform

The REFIT Platform brings together 48 high-level experts from a diversity of stakeholders, the European 
Economic  and  Social  Committee,  the  European  Committee  of  the  Regions  and  all  Member  State 
governments. It advises the Commission on how to make EU Regulations more efficient and effective, 
while reducing administrative burden without undermining policy objectives. Much of the work of the 
Platform is based on stakeholder input (often communicated through the ‘Lighten the load — Have 
your say’ website). Meetings took place in January, April, May, June, September and November, and 
24 opinions were adopted across a wide range of policy areas covered by EU legislation.

Regulatory Scrutiny Board

The Regulatory Scrutiny Board is an independent body of the Commission that scrutinises the quality 
of  draft  impact  assessments  and  of  major  retrospective  evaluations  and  fitness  checks.  It  was 
established in July 2015, replacing the Impact Assessment Board. In the course of 2016 the board 
reviewed and issued opinions on 60 impact assessments and seven evaluations.

New web presence and feedback mechanisms

During the year the Commission took further steps to open up the EU decision-making process to 
stakeholder and citizen input. Draft delegated and implementing acts were, from the end of June, 
open for public feedback for a period of 4 weeks. By the end of the year 106 draft delegated and 
implementing acts had been published.

Roadmaps or inception impact assessments for new initiatives, evaluations and legislative proposals 
have been open for stakeholder comments and contributions since July 2015. By the end of 2016, 
338 roadmaps and inception impact assessments had been published for feedback. During the same 
period 147 legislative proposals were published for feedback.

Monitoring the application of EU law

In  July  the  Commission  adopted  its  33rd  Annual  Report  on  Monitoring  the  Application  of  EU  Law, 
which reviewed the Member States’ performance in applying EU law and highlighted the main trends 
in enforcement policy in 2015. The Report showed that the total number of infringement procedures 
was at a consistently lower level compared to 5 years before.

The Commission has reinforced its preventive action to support Member States in the implementation 
process for Union legislation. When Member States fail to transpose a Directive within the agreed 
deadline the Commission continues to make full use of the financial sanctions system, including the 
provision introduced by the Treaty of Lisbon for late transposition of Directives.

In December the Commission, in its Communication entitled ‘EU law: better results through better 
application’, set out how it will step up its efforts on the application, implementation and enforcement 
of EU law for the benefit of all citizens, consumers and businesses in the EU.

92

Transparency and accountability

Proposal for a mandatory transparency register

In September the Commission proposed to establish a mandatory Transparency Register, covering the 
European Parliament, the Commission and, for the first time, the Council.

Access to documents

The right of public access to documents is an important tool in the field of transparency. In August the 
Commission adopted its 2015 Report on Requests for Access to Documents. Requests increased by 
more than 8 % (6 752 applications in 2015 compared to 6 227 in 2014). The requested documents 
were fully or partially disclosed in 84 % of cases.

Control of the EU budget

After a positive recommendation from the Council, the Parliament gave its final approval in April to 
the way the Commission implemented the EU budget in 2014.

In  July  the  Commission  presented  an  Integrated  Financial  Reporting  Package  on  the  EU  budget, 
putting together all of the available information on the EU’s revenue, expenditure, management and 
performance in 2015. The reports demonstrated that the EU budget delivered results in line with the 
Commission’s priorities and was implemented properly. They also provided important input into the 
annual discharge procedure for 2015.

Klaus-Heiner Lehne, President of the 
European Court of Auditors (right), 
presents the Court of Auditors’ Annual 
Report for 2015 to the Committee on 
Budgetary Control of the European 
Parliament, Brussels, 13 October 2016.

When deciding whether to grant, postpone or refuse a discharge the Parliament takes into consideration 
the Annual Report of the European Court of Auditors. In October the Court presented its Annual Report 
on the Implementation of the EU Budget in 2015. The external auditor of the Commission gave the 
EU accounts a clean bill of health for the ninth year in a row, and also confirmed that both the revenue 
side and administrative expenditure continued to be free from significant errors. Moreover, the Court 
estimated a decreased overall error rate (3.8 %) for the third consecutive year.

It is important to note that, for around 80 % of the EU’s annual budget, in particular in the areas of 
agriculture and cohesion policy, the Member States are primarily responsible for the daily management 
of EU funds, with the Commission exercising an important control function.

THE EU IN 2016Chapter 10 — A Union of democratic change

93

National parliaments

In July the Commission adopted two Annual Reports for 2015 on Subsidiarity and Proportionality and 
Relations with National Parliaments.

Subsidiarity issues in 2016

During  the  year  the  Commission  received  68  reasoned  opinions  from  national  parliaments  under 
the Subsidiarity Review Mechanism, claiming that legislative acts presented by the Commission did 
not comply with the subsidiarity principle. A total of 14 of these reasoned opinions concerned the 
Commission proposal to review the Posting of Workers Directive. After careful analysis the Commission 
concluded that the proposal complied with the subsidiarity principle and decided to maintain it, giving 
reasons for its decision in July.

Relations with national parliaments

In 2016 the Commission continued to strengthen its relations with national parliaments. The number 
of  opinions  received  from  national  parliaments  increased  from  350  in  2015  to  613  in  2016,  an 
increase  of  75  %.  Commissioners  met  with  national  parliamentarians  during  their  many  visits  to 
Member States, at interparliamentary meetings and at other events.

The European Ombudsman

The European Ombudsman investigates complaints about maladministration in the institutions and 
bodies  of  the  European  Union.  Inquiries  carried  out  in  2016  covered  topics  ranging  from  the 
composition of Commission expert groups to rules on access by tobacco lobbyists to the Commission, 
Commission  Special  Advisors,  the  Code  of  Conduct  for  Commissioners  and  the  transparency  of 
trilogues between the European Parliament, the Council and the Commission during the legislative 
procedure.

Pascal Diethelm, President of 
OxyRomandie, Commissioner Vytenis 
Andriukaitis, James Crisp, News Editor 
of EurActiv, Emily O’Reilly, European 
Ombudsman, and Roberto Bertollini, 
Chief Scientist and World Health 
Organisation Representative to the EU, 
participate in the Ombudsman’s event 
on improving transparency in tobacco 
lobbying, Brussels, 27 April 2016.

The European Citizens’ Initiative

A European Citizens’ Initiative allows 1 million citizens from at least one quarter of EU Member States 
to invite the Commission to propose a legal act in areas where the Commission has the power to do 
so. In 2016 the Commission registered three new initiatives and announced plans in its 2017 Work 
Programme to legislate on issues raised by an earlier initiative (Right2Water).

94

Citizens’ dialogues

Throughout the year the Commission continued to engage with the public through citizens’ dialogues. 
The Commission President, Vice-Presidents and Commissioners, along with a number of Members of 
the  European  Parliament  and  national  politicians,  took  part  in  dialogues  during  the  year.  The  73 
dialogues provided citizens with a unique opportunity to discuss face-to-face with decision-makers 
regarding what is happening in the European Union, how the EU is tackling key challenges and how 
its  actions  benefit  citizens,  while  enabling  EU  and  national  politicians  to  listen  to  and  learn  from 
citizens from right across the Union on a wide range of topics.

Jean-Claude Juncker, President of the 
European Commission, addresses a 
citizens’ dialogue in St. Vith, Belgium, 
15 November 2016.

THE EU IN 2016Getting in touch with the EU

ONLINE

Information in all the official languages of the European Union is available on the Europa website:
europa.eu

IN PERSON

All over Europe there are hundreds of local EU information centres.
You can find the address of the centre nearest to you at:   
europa.eu/contact

ON THE PHONE OR BY EMAIL

Europe Direct is a service that answers your questions about the European Union. You can contact this service by freephone:  
00 800 6 7 8 9 10 11 (certain mobile telephone operators do not allow access to 00 800 numbers or may charge for these calls), or 
by payphone from outside the EU: +32 22999696, or by email via europa.eu/contact

READ ABOUT EUROPE

Publications about the EU are only a click away on the EU Bookshop website:    
bookshop.europa.eu 

You can also obtain information and booklets in English about the European Union from:

European Commission Office in Northern 
Ireland
74-76 Dublin Road
Belfast, BT2 7HP
UNITED KINGDOM
Tel. +44 2890240708
Internet: ec.europa.eu/unitedkingdom

European Commission Office in Scotland
9 Alva Street
Edinburgh, EH2 4PH
UNITED KINGDOM
Tel. +44 1312252058
Internet: ec.europa.eu/unitedkingdom

European Commission Office in Wales
2 Caspian Point, Caspian Way
Cardiff, CF10 4QQ
UNITED KINGDOM
Tel. +44 2920895020
Internet: ec.europa.eu/unitedkingdom

EUROPEAN COMMISSION 
REPRESENTATIONS

European Commission Representation in 
Ireland
12-14 Lower Mount Street
Dublin 2
IRELAND
Tel. +353 16341111
Internet: ec.europa.eu/ireland
Email: eu-ie-info-request@ec.europa.eu

European Commission Representation in 
Malta
Dar l-Ewropa
254, Triq San Pawl
Valletta VLT 1215
MALTA
Tel. +356 23425000
Internet: ec.europa.eu/malta/home_en
Email: comm-rep-mt@ec.europa.eu 

European Commission Representation in 
the United Kingdom
Europe House
32 Smith Square
London, SW1P 3EU
UNITED KINGDOM
Tel. +44 2079731992
Internet: ec.europa.eu/unitedkingdom

EUROPEAN PARLIAMENT 
INFORMATION OFFICES

Information Office in Ireland
12-14 Lower Mount Street
Dublin 2
IRELAND
Tel. +353 16057900 
Internet: europarl.ie
Email: epdublin@europarl.europa.eu

Information Office in Malta
254 St. Paul Street
Valletta VLT 1215
MALTA
Tel. + 356 21235075
Internet: europarlmt.eu/en
Email: epvalletta@europarl.europa.eu 

Information Office in the United Kingdom
Europe House
32 Smith Square
London, SW1P 3EU
UNITED KINGDOM
Tel. +44 2072274300
Internet: europarl.org.uk
Email: eplondon@europarl.europa.eu

Information Office in Scotland
The Tun, 4 Jackson’s Entry
Holyrood Road
Edinburgh, EH8 8PJ
UNITED KINGDOM
Tel. +44 1315577866
Internet: europarl.org.uk
Email: epedinburgh@europarl.europa.eu

There are European Commission and European Parliament representations and offices in all the Member States of the European Union.  
The European Union also has delegations in other parts of the world.

Did you find this publication useful? Let us know: comm-publi-feedback@ec.europa.eu

The European Union

0

500 km

Reykjavík

Iceland

Norway

Oslo

Sweden

Stockholm

Azores (PT)

Madeira (PT)

(FR)

Guadeloupe
(FR)

Martinique
(FR)

Mayotte
(FR)

Réunion
(FR)

Canary Islands (ES)

French
Guiana
(FR)

Finland

Helsinki

Tallinn
Estonia

Riga

Latvia

Lithuania
Vilnius

United Kingdom

Dublin

Ireland

Denmark

Copenhagen

London

Netherlands

Amsterdam

Berlin

Brussels

Belgium

Germany

Paris

Luxembourg
Luxembourg

France

Portugal

Lisbon

Madrid

Spain

Warsaw

Poland

Prague
Czech
Republic

Slovakia

Vienna

Bratislava

Bern
Switzerland

Austria

Budapest

Hungary

Slovenia
Ljubljana

Zagreb
Croatia

Romania

Italy

Rome

Bucharest

Bulgaria
Sofia

Bosnia and
Herzegovina

Sarajevo

Belgrade

Serbia

Montenegro
Podgorica

Pristina

Kosovo

* UNSCR 1244 / ICJ 22.7.2010

Skopje

The former
Yugoslav Republic
of Macedonia

Tirana
Albania

Greece

Athens

Valletta

Malta

Member States of the European Union (2017)

Candidate countries and potential candidates

Ankara

Turkey

Cyprus

Nicosia

N
A
-
A
D
-
1
7
-
0
0
1
-
E
N
-
C
(
P
r
i
n
t
)

N
A
-
A
D
-
1
7
-
0
0
1
-
E
N
-
N

(
P
D
F
)

N
A
-
A
D
-
1
7
-
0
0
1
-
E
N
-
E

(
E
P
U
B
)

N
A
-
A
D
-
1
7
-
0
0
1
-
E
N
-
Q

(

H
T
M
L
)

T

H

E

E

U

I

N

2

0

1

6

E

N