The Council held an open debate - televised to the press and wider public - on the Presidency work programme for the first half of 1998.

In his introductory remarks, the President of the Council highlighted the main challenges for the months to come : conduct the work on the issue of EMU so as to ensure the best possible prospects for success, take forward the internal policy reforms under Agenda 2000 and, in the run up to the Cardiff summit in June, review the action plans which Member States are preparing to tackle unemployment and break down the barriers to the single market to provide a stimulus to EU economies and to increase the number of jobs.

The programme also gives priority to addressing the other great worries in the lives of people throughout the EU such as the growth in crime and the trade in drugs and concerning, in particular, the quality of the environment.

The President stressed that in the General Affairs Council, two particular tasks will be of vital importance : firstly, to get the enlargement process off to a start that gives it the best prospect of coming to a conclusion as soon as possible, in order to definitively correct the divisions in Europe of the last 50 years and, secondly, making a reality out of the Common Foreign and Security Policy.

Following the President's presentation, the President of the Commission gave an overview of the Commission's intentions with reference to the main issues of the Presidency work programme.

During the open debate Ministers commented on the priorities of the Presidency and gave their full support to work for the implementation of this ambitious programme.

The Council considered the report of the Ministerial troika mission that visited Algiers from 19-20 January. It welcomed the visit as an effective expression of the deep concern of the European Union at the situation in Algeria, of the strong sympathy of the peoples of the European Union with their Algerian neighbours, and of the hope that the suffering of the Algerian people should come quickly to an end. The Council strongly reiterated its condemnation of all acts of terrorism and indiscriminate violence.

The Council reaffirmed the strong commitment of the Union to remaining engaged on this issue. The visit of the troika should be regarded as a key step towards an extensive dialogue with the Algerian Government, begun with the visit of Foreign Minister Attaf to Luxembourg in November. This dialogue has taken on a new quality and urgency. Taking forward talks on the EU-Algeria Association Agreement would be instrumental in pursuing the dialogue.

Through this intensified expression of international concern and support, the Council hoped that the Algerian Government would be in a better position to engage in finding the solution to the terrorist problem.

The Council regretted that offers of humanitarian assistance have not been taken up, but agreed they remain on the table should the Algerian authorities see scope for a meaningful role for neighbourly assistance.

The Council called for greater transparency on the part of the government of Algeria about the situation, in which terrorist groups continue to perpetrate cowardly and brutal attacks on innocent civilians. The Council regretted that the Algerian authorities have felt unable to provide unhindered access for international organisations, NGOs and the media. The Council hoped that the Algerian authorities would feel able to accept a visit by Representatives of the United Nations in the near future. The Council continues to urge the Algerian authorities to reconsider these points in the light not only of the EU's approach but also of the support which this approach has received internationally.

The strengthening of inclusive democratic institutions and of the role of the judiciary will help to isolate and undermine those who seek political change through violence. In this context the Council encouraged more frequent contact between Algerian and European parliamentarians. The forthcoming visit of the representatives of the European Parliament will be an important step in this regard.

The Council looked forward to a further meeting between the Algerian Foreign Minister and the Presidency to continue a broad dialogue. Within the scope of this dialogue, the Council reaffirmed the willingness of the Union and its Member States to discuss any concerns and proposals that the Algerian authorities might seek to bring to its attention, including the struggle against terrorism.

The Presidency briefed the Council on the outline arrangements for the European Conference in London on 12 March, the launch of the accession process on 30 March and the start of accession negotiations on 31 March in Brussels in accordance with the European Council conclusions at Luxembourg.

The President of the Council reported on his recent visit to China and Hong Kong from 19-21 January. The Council agreed the proposal for an EU/China meeting at Head of Government level. It expressed a strong interest in pursuing an intensified dialogue with China on human rights questions and in developing a common approach within the EU on this aspect of the relationship.

The Council discussed the Union's relationship with Iran following the return of Member States' Heads of Mission in November and in light of the interest shown by the new Iranian Government under President Khatami in more constructive exchanges with the EU. Ministers considered that the interests of the EU and its Member States lay in continuing a collective and co-ordinated policy towards Iran.

The Council decided that the conclusions of their 29 April 1997 meeting merited review and that recent developments in Iran strengthened the case for renewed Ministerial contacts. The Council invited the Political Committee to prepare for the February General Affairs Council a review of the EU's policy towards Iran, taking into account recent developments in Iran as well as progress in the areas of concern to the EU set out in the Edinburgh Declaration of 1992 and 29 April General Affairs Council Declaration.

The Council expressed concern about the growing instability in Burundi and the stalemate in negotiations. It asked its appropriate bodies to review the situation in the Great Lakes region, taking into account the report of the latest visit by the EU's Special Envoy, Mr Aldo Ajello, and to make appropriate recommendations.

The Council took note of the report by the Presidency and the Commission on the outcome of the 7th EU-Japan Summit which took place in Tokyo on 12 January 1998.

The Council defined the European Union's position for the first Cooperation Council with Russia held on 27 January, preceded by a political dialogue on international issues the previous evening over dinner.

The Council approved a 46 point action plan to tackle the growing problem of the influx of migrants from Iraq and the neighbouring region, in accordance with the urgent recommendation of the European Council in Luxembourg on 13-14 December.

In late 1997 Member States reported a significant increase in the number of migrants originating in Iraq and the neighbouring region, many travelling by boat to the EU. Evidence suggests that recent arrivals include an increasing number of ethnic Kurds of Turkish as well as Iraqi nationality, and also a small but growing number of migrants of other nationalities using the same transit routes. Many of the migrants have sought asylum either on first arrival in the EU or in a subsequent Member State. Many are economic migrants but a substantial number is in need of protection. The migrants almost always make use of traffickers, of whom the majority appear to be part of organised crime networks, with contacts within the EU.

The reasons for the influx are complex and unclear: further analysis is required. As far as Iraq is concerned, a combination of political and economic factors appear to be involved: the long-standing rivalry between the two main Kurdish parties in northern Iraq, cross-border operations in the area conducted by Turkish armed forces against the PKK organisation, economic insecurity, and the repressive policies of Saddam Hussein. As far as migration from Turkey is concerned, the long-running conflict in south-east Turkey between the Turkish security forces and the PKK has resulted in a large scale displacement of rural populations and depression of the regional economy.

The EU recognises that a key element in tackling the problem is to establish effective co-operation with the Turkish government, given that most of the migrants transit Turkey or originate from Turkey. Close collaboration with the UNHCR is also essential. The EU recognises the important contribution which humanitarian assistance to northern Iraq has played.

In responding to the influx of migrants, Member States recognise the need to ensure that humanitarian considerations continue to be given proper weight and that the obligations of Member States to provide protection in accordance with international law continue to be honoured. But equally the procedures for seeking and granting asylum should not be open to abuse. An essential element in combating illegal immigration is to ensure equal and consistent controls at the external frontiers of the European Union. Member States also recognise the need to tackle the involvement of organised crime in the trafficking of illegal immigrants.

Against this background, the action plan contains the following main elements:

The Council asked for the action plan to be implemented urgently and in a coherent and co-ordinated way, and for its implementation to be effectively monitored and reviewed. To this end, the Justice and Home Affairs Council on 19 March will review progress on implementing the relevant action points, and the General Affairs Council on 30 March will review overall implementation, taking account of the conclusions of the JHA Council.

The Council discussed the situation in the Middle East peace process in the light of the Presidency's recent contacts with the US, its visit to Israel and the Palestinian territories, and the 20/22 January meetings in Washington between President Clinton and Prime Minister Netanyahu and Chairman Arafat, respectively.

The Council reiterated the view expressed in the conclusions of the Luxembourg European Council that full and unconditional implementation of commitments made by the parties under the existing agreements is essential to restore mutual confidence in the peace process and provide a firm basis for a full resumption of negotiations on the Palestinian track. It stressed in particular the need for early progress on credible and significant further redeployments in line with the commitments made at the time of the Hebron Agreement, as well as on other outstanding commitments under the Interim Agreement. The Council also underlined the importance of maximum and sustained cooperation between the parties in fighting terrorism, and of the avoidance of unilateral acts which pre-empt final status talks, in particular on settlements and Jerusalem.

The Council reiterated its support for US efforts to restore momentum in the peace process and reaffirmed its intention to play an active role in support of the negotiations, including through the activities of its Special Envoy, Ambassador Miguel Angel Moratinos.

Vice President Manuel Marin presented a communication on the role of the European Union in the Peace Process and its future economic assistance. The Council instructed its competent bodies to examine the communication further with a view to an in-depth discussion, at a later Council meeting, on the future of EU assistance.

OTHER DECISIONS

Adopted without discussion.

"THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on European Union and in particular Article J.2 thereof,

Whereas the conflict in Afghanistan has caused untold suffering for the Afghan people, and threatens the stability of the region and its economic development;

Whereas the war's exports of terrorism and illegal drugs cause serious damage to Member States of the Union, and more widely;

Whereas the Union is determined to play an effective role in efforts to stop the fighting, and to restore peace, stability and respect for human rights and international principles in Afghanistan;

Whereas the Union attaches the highest importance to respect for the Convention on the Elimination of All Forms of Discrimination against Women, and denounces the continuing discrimination against girls and women in Afghanistan;

Whereas the Union is deeply concerned by the blockade imposed on the Hazarajat region, the recent bombing of Bamiyan airport which has disrupted aid supplies, as well as by reports of massacres of innocent civilians and mass execution of prisoners of war,

HAS DEFINED THE FOLLOWING COMMON POSITION:

Art. 1. The objectives of the Union in Afghanistan are:

Art. 2. In order to support the United Nations peace efforts, the Union shall continue to:

The Union shall also:

Art. 3. In order to promote respect for all human rights, fundamental freedoms and international humanitarian law the Union shall:

Art. 4. In order to help the suffering civilian population of Afghanistan, the Union shall:

Art. 5. In order to promote the fight against drugs, the Union, shall:

Art. 6. The Council notes that the Commission will direct its action towards achieving the objectives and the priorities of this Common Position by appropriate Community measures.

Art. 7. The Union shall call upon all Afghan authorities to close down training camps for foreign terrorists inside Afghanistan.

Art. 8. This Common Position shall be reviewed within twelve months.

Art. 9. This Common Position shall take effect on the date of its adoption.

Art. 10. This Common Position shall be published in the Official Journal."

The Council gave its political agreement to the regulation on assistance to the applicant countries in the framework of the pre-accession strategy and in particular on the establishment of Accession Partnerships - the formal adoption will take place once the European Parliament has given its Opinion.

This regulation constitutes the framework for the individual accession partnerships to be established with the applicant countries of Central and Eastern Europe as the key feature of the enhanced pre-accession strategy, in line with the conclusions of the Luxembourg European Council.

Each accession partnership will cover the priorities on which preparations for accession must concentrate as well as the financial resources for assisting each applicant country to implement priorities identified during the pre-accession period (this regulation, however, has no financial implications, as under the pre-accession strategy the assitance of the Community is provided for in specific programmes and regulations).

The regulation stipulates that following a proposal from the Commission the Council shall decide by qualified majority on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnerships, as well as on subsequent significant adjustments.

Where an element that is essential for continuing to grant pre-accession assistance is lacking, in particular when the commitments contained in the Europe Agreement are not respected and/or progress towards fulfilment of the Copenhagen criteria is insufficient, the Council, acting by qualified majority on a proposal from the Commission, may take appropriate steps with regard to any pre-accession assistance granted to an applicant country.

The Council adopted the decision concerning the conclusion of the Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and Tunisia, of the other part.

This Agreement, which replaces the 1976 Cooperation Agreement and successive protocols of adjustment, will come into force on 1 March 1998. It is concluded for an unlimited period.

As with other Euro-Mediterranean Agreements, it is set in the context of the strengthening of the Union's Mediterranean policy, the aims of which are to give a new dimension to the Union's relations with its Mediterranean partners and to participate, at bilateral and regional level, in the development of this region in a climate of peace, security and stability. It will enable the relations between the Community and Tunisia to be strengthened with the introduction of balanced relations based on reciprocity, partnership and co-development, in observance of democratic principles and human rights.

The principal features of the Agreement are a regular political dialogue; the progressive establishment of a free trade area in line with the WTO provisions; provisions on freedom of establishment, the liberalization of services, free movement of capital and competition rules; the strengthening of economic cooperation on the widest possible basis in all areas of concern to relations between the two parties; social and cultural cooperation; financial cooperation involving appropriate financial resources intended to provide significant support for Tunisia in its efforts to bring about reform and economic adjustment and social development, which are linked to the creation of a free trade area.

The Council, and the Representatives of the Governments of the Member States meeting within the Council, adopted the decision concerning the conclusion of the Partnership and Cooperation Agreement signed with Ukraine on 14 June 1994 by the then 12 Member States, as well as the Additional Protocol enabling the new Member States - Austria, Finland and Sweden - to become parties to it.

The Agreement, which will come into force on 1 March 1998, constitutes a new step towards the establishment of a close and mutually profitable partnership between the EU and Ukraine. The Agreement will introduce a new dimension to the parties' relations. It is intended to govern political, economic and trade relations between the EU and Ukraine and establish the basis for social, financial, scientific, technological and cultural cooperation.

Responsibility for applying the Agreement will lie with the joint institutions - the Cooperation Council, the Cooperation Committee and the Parliamentary Cooperation Committee.

The additional protocol will be applied on a provisional basis pending its entry into force following the completion of the necessary procedures by all parties.

The Council adopted the decision concerning the conclusion of the Interim Agreement signed on 14 November 1996 with Uzbekistan.

Pending the entry into force of the Partnership and Cooperation Agreement signed on 21 June 1996, the Interim Agreement enables early implementation of its trade-related provisions (e.g. general principles, payments, competition, protection of intellectual, industrial and commercial property). On the institutional level, the interim Agreement will be administered by the Joint Committee set up by the 1989 Agreement with the Former Soviet Union.

The Council adopted the decision concerning the conclusion of the Agreement on international humane trapping standards between the Community, Canada and Russia, as well as the "Agreed Minute" between Canada and the Community concerning the signing of the Agreement.

The EC-Russia-Canada Agreement's main purpose is to lay down harmonized technical standards offering a sufficient level of protection to the welfare of trapped animals and governing both the production and use of traps, and to facilitate trade between the parties in traps, pelts and products manufactured from species covered by it.

The "Agreed Minute" will enable the Community and Canada to implement on a bilateral basis the provisions of the Agreement, pending its entry into force after signature and conclusion also by the Russian partner.

The Council approved the action plan for the coordinator of the process of stability and good-neighbourly relations in South-eastern Europe (the Royaumont process).

It is recalled that the process of stability and good neighbourly relations in South-Eastern Europe, launched in December 1995 on the initiative of the EU - which chairs the process - is aimed at guiding the implementation of the Paris peace agreement by incorporating it into a wider perspective covering the whole region. To this end it promotes the definition and implementation of projects which relate to civil society. On 27 October 1997 the Council approved the text of the terms of reference of the coordinator of the Royaumont process, whose task will be to impart a greater degree of continuity to the process and to act as a contact point for the various participants, particularly in order to facilitate the definition and implementation of projects. On 28 November 1997, the Council approved Mr Panagiotis Roumeliotis as coordinator of the Royaumont process.

The Council amended the Joint Action on the control of exports of dual-use goods adopted in 1994 (see press release 11871/94 Presse 274), taking into account developments in the Nuclear Suppliers' Group and the Missile Technology Control Regime.

The Council adapted the Common Position of 28 October 1996 on Burma, in order to reflect the fact that the "State Law and Order Restoration Council" (SLORC) was dissolved and replaced by the "State Peace and Development Council" (SPDC).

The Council approved, on behalf of the Community, the draft decision of the EC-Andorra Committee amending the Appendix to the EEC-Andorra Agreement concerning the definition of the concept of "originating products". The aim is to align the Appendix on the Origin Protocols of the other European countries and at the same to permit bilateral cumulation between the Community and Andorra.

The Council approved, on behalf of the Community, two draft decisions of the EEA Joint Committee amending Protocol 31 to the EEA Agreement, on cooperation in specific fields outside the four freedoms.

The aim of the draft decisions is to extend cooperation to the EEA countries in the fields of public health and of civil protection; they provide a framework for cooperation and specify the arrangements for full participation by the EFTA/EEA states in the relevant Community programmes and projects in these areas.

Following political agreement on 1 december 1997, the Council formally adopted its common position on the programme of Community action to improve the indirect taxation systems of the internal market, called 'Fiscalis' Programme. The common position will be forwarded to the European Parliament in the framework of the codecision procedure.

According to the common position, the programme will be established for the period 1 January 1998 to 31 December 2002, with a financial framework set at 40 MECU.

The objectives of the programme are the following:

The programme comprises actions concerning communication and information-exchange systems, manuals and guides, exchanges of officials, seminars and multilateral controls as well as a common training initiative in the field of indirect taxation systems.

The Commission, which will be responsible for the implementation of this programme, will be assisted in this task by the Standing Committee on Administrative Cooperation in the field of Indirect Taxation (Committee procedure IIb).

The programme will be subject to continuous evaluation, carried out jointly by the Commission and Member States.

Le Conseil a adopté, à l'unanimité, la position commune relative à la proposition de décision modifiant le programme KAROLUS. La position commune comprend les six amendements de première lecture du Parlement européen repris par la Commission; elle sera maintenant transmise au Parlement européen pour une deuxième lecture conformément à la procédure de co-décision.

Le programme KAROLUS sur l'échange de fonctionnaires nationaux chargés de la mise en oeuvre de la législation communautaire relative au marché intérieur a été instauré par la décision 92/481/CEE. Il s'agit d'un programme de 5 ans (1993-1997) doté d'un budget de 7,7 MECUs. La proposition en objet vise à prolonger la durée de KAROLUS jusqu'à la fin de 1999, avec une enveloppe financière supplémentaire de 4,5 MECUs, et à l'étendre aux fonctionnaires des pays associés d'Europe centrale et orientale, des pays AELE ainsi que de Chypre.

A la suite de l'accord politique à la majorité qualifiée intervenu lors de sa session du 27 novembre 1997, le Conseil a formellement adopté la position commune concernant la proposition de directive portant troisième modification de la directive 83/189/CEE prévoyant une procédure d'information dans le domaine des normes et réglementations techniques. Les délégations allemande et néerlandaise se sont abstenues; la délégation belge a voté contre en fournissant l'explication de vote reproduite ci-dessous.

La proposition fera l'objet d'une seconde lecture par le Parlement européen, conformément à la procédure de co-décision.

La directive 83/189 est une des pièces maîtresses pour le bon fonctionnement du marché intérieur. Elle assure la transparence réglementaire, condition préalable à la sécurité juridique demandée par les opérateurs économiques.

Les modifications prévues dans la position commune visent à étendre aux services de la société de l'information les mécanismes d'information et de coopération déjà mis en place par la directive 83/189/CEE pour les réglementations techniques concernant les marchandises. En effet, les Etats membres sont amenés à réglementer de plus en plus souvent en cette matière, avec le risque sérieux d'apporter des réponses différentes aux particularités de ces services et de créer ainsi une refragmentation du Marché Intérieur.

Les services de la société de l'information représentent une gamme très étendue de nouveaux services, appelés à un développement considérable dans les prochaines années, et se caractérisant par le fait qu'ils sont prestés à distance par voie électronique et à la demande individuelle des destinataires. Il s'agit par exemple des journaux électroniques, de la vente électronique à distance de biens et de services (jeux, divertissements interactifs, loisirs), de services d'éducation ou de soins à distance etc.

Plus spécifiquement, la position commune prévoit un report de 4 mois de l'adoption d'un projet de règle technique relatif aux services en cas d'opposition de la Commission ou d'un Etat membre dans les trois mois suivant sa notification, au lieu de 6 mois comme pour les projets relatifs aux marchandises.

Cette période de statu quo serait étendue à 12 mois lorsque le projet porte sur une matière couverte par une proposition de la Commission, et à 18 mois si le Conseil arrête une position commune.

En ce qui concerne les services financiers la solution de compromis suivante a été retenue:

Par ailleurs, la position commune exclut expressément du champ d'application de la directive les règles concernant des questions qui font déjà l'objet d'une réglementation communautaire en matière de services de télécommunications.

Le délai de transposition de la directive dans le droit national serait de 12 mois après son adoption.

"La délégation belge approuve les objectifs visés par la proposition de directive. Elle estime néanmoins qu'il convient de soustraire l'ensemble du secteur financier au champ d'application de la directive. En appliquant les dispositions de la directive au secteur financier, on impose à celui-ci une charge qui n'est pas proportionnelle aux avantages qu'il peut en retirer.

Plus spécifiquement, la Belgique estime que la proposition a) ne contribue pas à définir clairement l'obligation de notification dans le secteur financier, ni à assurer la sécurité juridique qui y est liée, b) n'apporte qu'une valeur ajoutée limitée pour ce qui est de la transparence dans le secteur financier et c) crée une discrimination indésirable entre les services financiers."

As it does every year, under the Interinstitutional Declaration of October 1993 on democracy, transparency and subsidiarity, the Council adopted a declaration on the legislative programme for 1998 proposed by the Commission. Referring to the important deadlines for the Union (EMU, enlargement, Agenda 2000), the Council indicated the internal and external fields on which it will lay particular stress in 1998.

The Council adopted the decision appointing the Members and Alternate Members of the Committee of the Regions for the period from 26 January 1998 to 25 January 2002 (see separate Press Release 5272/98 Presse 14).