On Sunday afternoon, 6 December, the Council held a "conclave" dedicated to examining the report on Agenda 2000 which reflects the substantial progress achieved since Cardiff in identifying the key elements of the package and in moving forward in the technical examination of all legislative texts, and which will be presented to the European Council on 11/12 December in Vienna.

The debate focused in a first round on all topics related to Agenda 2000 (except structural funds) especially the future financial framework and, in a second round, a more detailed examination was made of key issues relating to the structural funds.

The President will inform the President of the European Council about these discussions.

The Council welcomes the Commission's first Regular Progress Reports on the basis of the conclusions of the Luxembourg and Cardiff European Councils. The Council notes that the assessment of the Commission was based on the same objective accession criteria as defined by the European Councils in Copenhagen and Madrid and as used in the opinions delivered by the Commission in July 1997, and considers that the methodology of the Commission allowed an objective, balanced and fair analysis of the state of progress. The Council welcomes the substantial progress made by candidate countries in their preparations for membership and encourages them to continue with their efforts throughout the accession process. It noted that although progress in the adoption of the acquis varies considerably between countries and between sectors, the difference between those with whom negotiations have begun and the other candidates has generally narrowed. It also noted the Commission’s views on the variable progress made by a number of countries, including some with which negotiations have been opened, towards meeting the Copenhagen criteria. The Council noted the particular progress made by Latvia and Lithuania and the new situation in Slovakia following the elections which augurs well for its integration into European structures. It also noted the progress made by Bulgaria and the reform efforts being made by Romania. It encouraged all candidates to intensify their preparations for membership. The Commission’s analysis with regard to Turkey was generally shared by the Council which noted the need for particular efforts by Turkey to ensure the rule of law in a democratic society according to the Copenhagen criteria and the relevant conclusions of European Councils; it also stressed the importance of further developing relations with this country on a sound and evolutionary basis. In this process the Council reaffirms the importance of the European Strategy for Turkey. The Council recalled the great importance which it attaches to the treatment of minorities, an area which needs continued attention. The Council underlines the need for the rhythm of legislative approximation to be accelerated and matched by the development of corresponding implementation capacity. The transposition of the acquis is not sufficient in itself but must be followed by effective implementation and enforcement. Therefore the development of administrative and judicial capacities is a crucial aspect of preparation for accession and the existence of credible and functioning structures and institutions an indispensable pre-condition for future membership. The Council highlighted the need for special attention to be paid, in advance of accession, to the effective application of all elements of the single market acquis including the establishment of a functioning system of state aid control. Policies should be pursued to foster economic and social convergence. Other sectors requiring attention include the environment, the nuclear sector and justice and home affairs. In this context the Council recalled the primary importance of the enhanced pre-accession strategy for the central and eastern European countries and the specific pre-accession strategy for Cyprus. The role of the Association Agreement bodies in monitoring the adoption and implementation of the acquis was also reaffirmed. The Council encouraged the Commission to continue to pay particular attention to helping candidates with which negotiations have not yet begun to intensify their preparations for membership and encouraged those candidates to make full use of the catch-up facility. It expressed its satisfaction that the Accession Partnerships have already enabled the candidate countries of central and eastern Europe and the Union to focus on priorities and to align them with available resources. This approach will be reinforced by the availability of two new pre-accession instruments from 2000 onwards and will increase the need for a clear link between resources and priorities. The Council welcomed the extension of the mandate of the Technical Assistance and Information Exchange Office (TAIEX) to cover the entire acquis. The Council noted with satisfaction that the European Conference, decided in Luxembourg, has, in its first two meetings, already proved to be a successful multilateral forum in the framework of the enlargement process. The Council noted the Commission's intention to present, early next year, an update of its favourable 1993 Opinion on Malta's application for membership with a view to appropriate follow-up by the Council. The Council generally endorsed the Commission's report, including the analysis in the composite paper. The Council noted the Commission’s intention to propose the opening of negotiations with Latvia before the end of 1999, if the momentum of change is maintained. It also noted the Commission’s view that the important progress made by Lithuania should allow the Commission to propose the opening of negotiations if recent decisions are tested in practice. Furthermore, it noted the Commission’s view that the new situation in Slovakia following the elections allow for the prospect of opening negotiations on condition that the regular stable and democratic functioning of its institutions is confirmed. The Council welcomed the intention of the Commission to present it with further progress reports next year. However, at this stage the Council did not make any recommendations to the European Council to extend the accession negotiations.

The Council took note of the Presidency's Report on the progress of preparations for the implementation of the Amsterdam Treaty. It confirmed the importance to ensure a full functioning of the Treaty as soon as it enters into force.

The Council welcomed the progress made so far and insisted upon the need to proceed speedily with the remaining preparatory work. In particular, it asked the Permanent Representatives Committee to prepare the necessary adaptations of the working structures in the area of justice and home affairs, in the light of the discussions of the K.4 Committee.

The Council considered it useful to draw up a precise working time-table for the forthcoming months. On that basis, the Council, with the assistance of the Permanent Representatives Committee, will review regularly the ongoing preparations and the progress achieved.

The Council agreed on a progress report for the European Council in Vienna on developing a comprehensive EU policy towards Russia. It instructed the relevant Council bodies to study how the EU's priorities identified in the report should be pursued.

The Council looked forward to receiving the proposal on EU food aid for Russia which the Commission was due to adopt on 9 December. It welcomed the intention of the Commission to submit the draft Memorandum of Understanding (MoU) on the modalities and conditions for such aid, negotiated with the Russian authorities on the basis of the mandate provided by the Council of 24 November. The Council underlined the importance of adequate control mechanisms for the delivery of aid and the subsequent use of revenues accruing from the sale of such aid, including :

The Council also stressed the need for close coordination with the United States on the issue.

It decided to review the implementation of food aid at forthcoming sessions on the basis of reports by the Commission.

The Council noted the Commission's intention to put aside some 20 MECUs from TACIS 1999 to alleviate consequences of the Russian crisis on neighbouring countries, on the basis that this would be consistent with the long-term priorities of EU assistance programmes for Russia. It invited the Commission to provide further information on this issue.

Ministers prepared the commemorative ceremony of the European Union on the occasion of the 50th anniversary of the adoption of the Universal Declaration of Human Rights which will be held in Vienna on 10 December 1998. To this end they approved the text of a solemn declaration of the European Union to be issued on this occasion.

This ceremony will be opened by the President of the Republic of Austria, Thomas Klestil. The President of the European Parliament, José Maria Gil Robles, the President of the European Commission, Jacques Santer and the OSCE Chairman- in- office and Minister for Foreign Affairs of Poland, Bronislaw Geremek and the President of the Council Wolfgang Schüssel will take the floor. The speeches will address both the manifold current challenges in the field of human rights as well as the concrete achievements of the European Union regarding the protection and promotion of human rights. The importance of human rights in the wider Europe as well as future perspectives of the European Union's human rights policy will also be discussed.

A varied cultural programme will be an important part of the commemorative ceremony, which will take place between 15.00 and 17.00 in the ceremonial hall of the Imperial Palace in Vienna.

The Council discussed the Note of the Netherlands delegation proposing the creation of a Task Force on Asylum and Migration.

The Council took note of the discussion in the COREPER on 25 November and 2 December 1998 and at the JHA Council on 3/4 December 1998.

The Council recognised that the problem of mass influxes of asylum seekers and illegal immigrants raised the need to establish a common, integrated, cross-pillar approach targeted at the situation in the most important countries of origin of asylum seekers and migrants, and to establish to that end a High Level Working Group of the Council. The Council agreed that :

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ANNEX

Tasks proposed for the ad hoc High Level Group by the Netherlands delegation in its note:

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In preparation of the European Council in Vienna on 11/12 December 1998, the Council approved :

Over lunch Ministers had an orientation discussion on the development of a European defence identity. The French and the UK Ministers briefed their colleagues on the declaration on European defence at the British-French Summit at Saint-Malo on 3/4 December 1998. The Ministers will continue their discussion.

The Council discussed the Middle East Peace Process. Referring to the declaration by the EU Presidency of 4 December, it again strongly urged both sides to exercise restraint and to continue with the implementation of the Wye River Memorandum agreed on 23 October. Violence, mutual recrimination and the setting up of new conditions only threaten to unravel the fragile progress achieved since Wye. In this context the Council welcomed the speech delivered by President Arafat in Stockholm on 5 December.

The Council noted with satisfaction that the Ministerial conference on assistance to the Peace Process held in Washington on 30 November 1998 had shown continued broad international support for the Peace Process and financial solidarity with the Palestinian people. The Council confirmed the readiness of the EU to take the lead in the follow-up to the Conference, in the first instance through the organisation in Germany on 4 February 1999 of a meeting of the Ad Hoc Liaison Committee to review next steps in the donor effort. Expressing its appreciation for the considerable efforts not least by Special Envoy Moratinos in relation to the Washington conference, the Council invited the Presidency, the Envoy and the Commission to set work in hand to ensure a successful follow-up in 1999.

The Council stressed the important contribution by UNRWA to the Middle East Peace Process. The Council invited the Commission to report back to it as soon as possible on disbursement of community funds to UNRWA's budget.

The Council discussed developments on the ground in Kosovo, and noted with concern the recent intensification of military action. Increased activity by the KLA has prompted an increased presence of Serbian security forces in the region. The Council called on both parties to refrain from violence and live up to obligations set out in UNSCRs 1160 and 1199, 1203 and 1207.

The Council deplored the lack of clear commitments of both parties to support the negotiation process. KVM deployment should not serve as an alibi for the Parties not to enter into direct talks. The Council expressed continuing support for the efforts of Ambassador Hill and EUSE Ambassador Petritsch, and called on the two Parties to work constructively to achieve early tangible progress.

The Council welcomed the fact that considerable and flexible humanitarian assistance from the EC and Member States has allowed refugees and internally displaced persons to begin returning to their homes. It encouraged ECHO to continue responding flexibly and rapidly to emergency needs.

The Council also noted that, although access for the delivery of humanitarian aid is improving, administrative obstacles to humanitarian workers still exist (visas, radio licences, registrations etc.), and called on the FRY authorities to remove such obstacles.

On the basis of its 26 October Declaration on a comprehensive approach for Kosovo, the Council noted that the EU would play a special role on reconstruction issues. It noted the Commission's intention to organise an expert level meeting on overall damage assessment in early 1999, once the results of the Commission's ongoing damage assessment are available. The Council agreed that it would discuss at its next meeting the necessary steps, in the light of progress towards an interim agreement.

The Council has requested its competent bodies to ensure that the overall amount for reconstruction assistance to former Yugoslavia foreseen for 1999 on the Obnova line and the geographic distribution meet the needs and EU political priorities, in particular with regard to Kosovo. It also asked the same bodies to examine whether and how conditionality could be applied to projects in this very specific area. The Council expects an interim report on this issue at its meeting on 25/26 January 1999.

The Council recalled its condemnation of the recent action by the FRY authorities against the independent media and agreed to impose a visa ban on FRY and Serb personalities responsible for the repression of independent media in the FRY, in the form of a Common Position to be adopted within the end of the year, and has instructed its competent bodies to finalise the relevant text. It recalled that 10 MECU were available in 1998 for support for the independent media for the former Yugoslavia, of which 6 MECU were committed to the FRY. The Council agreed that pressure on the FRY authorities should be matched by support for the independent media and noted that the Commission would seek to maintain this at 1998 levels, depending on the situation on the ground. The Council urged the FRY and Serbian authorities to bring their relevant legislation in line with the Council of Europe standards.

The Council took note of the Decree of the Government of Serbia on a special tax for airline companies from countries implementing the flight ban on JAT. It also noted the Commission opinion that the payment of this tax constituted a breach of Article 2.2 of Council Regulation 1295/98 on the freezing of funds of the FRY/Serbian Government. The Council reiterated that any similar measures from the Government of Serbia and the FRY will be met with a firm and unified response.

The Council invited the Commission and competent bodies to make proposals to enable the European Union to play its part in stopping the flow of money and weapons to Kosovo Albanian armed groups, with a view to making a decision as soon as possible.

The Council has noted the request by the OSCE for EU funding for demining in Kosovo, which would facilitate refugee return and enhance security. The Council urged the OSCE to present a detailed request to enable the competent bodies to examine it as soon as possible.

The Council welcomed the fact that the EU forensic mission team had been granted access and necessary operational authorizations by the FRY/Serbia authorities to the required sites within the FRY, and instructed its competent bodies to finalise, as soon as possible, a Joint Action covering financial and other aspects of the mission.

The Council deplored the attitude of the FRY authorities with regard to co-operation with ECMM and stated that there can be no link between FRY co-operation with ECMM, which is an UNSCR requirement, and the improvement of relations with the EU. It requested the Yugoslav side to enable both an ECMM liaison presence in Pristina and ECMM presence in Belgrade and Podgorica.

The Council expressed its continued political and economic support for Montenegro and for the ongoing process of democratisation, and requested the Commission to further assist Montenegro by developing specific projects on the OBNOVA budget line in early 1999.

Recalling its 26 October Conclusions, the Council has instructed its competent bodies to study options, on the basis of a Commission proposal, for the exemption of Montenegro Airlines from the flight ban on Yugoslav carriers, with a view to a decision at the 25/26 January 1999 Council.

The Council welcomed the peaceful course and outcome of the referendum on the Constitution, which will be a fundamental element in the construction of a stable democracy in the Country. It deplored the Democratic Party's attitude to the referendum and its boycott of the democratic and parliamentary institutions, and tasked the Council's competent bodies to recommend an adequate EU response.

The Council noted the holding of the Conference on Reconstruction and Development in Croatia, in Zagreb on 4/5 December, in which the EU decided to participate in the light of some encouraging developments in Croatia's attitude to refugee return. At the same time, the Council stated that participation in the conference does not imply its full satisfaction with return implementation. It urged the Croatian Government to increase efforts along this path, and to fully implement all the commitments recently undertaken, including in the fields of legal discrimination against returnees, of the media and of election law reform.

The Council looks forward to the Peace Implementation Conference (PIC) in Madrid on 15/16 December, the conclusions of which will set the agenda for the international community and all local authorities for the next crucial period of peace consolidation in BiH. It pledged continued strong support for the High Representative Carlos Westendorp, whose leadership has been instrumental in achieving fundamental progress in the Dayton peace process. The Council, recalling the EU's strong support for ICTY, welcomed in this context the arrest by SFOR of General Krstic and his transfer to The Hague.

The Council welcomed the formation of a new Government in the Former Yugoslav Republic of Macedonia, and pledged its willingness to work closely with it to further develop EU - FYROM relations on the basis of the Cooperation Agreement which entered into force on 1 January 1998. The EU is looking forward to the Ministerial meeting of the Troika with Prime Minister Georgievsky as a sign of visible EU support for the country, and will use the occasion to urge the new Government to continue along the road of reforms and cooperative development with due regard to the rights of minorities.

The Council heard a report from Commissioner PINHEIRO on his latest contact with South Africa's Minister for trade and industry Alec Erwin on the 1st December 1998 in Cape Town.

The Council welcomed the substantial progress made during these negotiations and noted that nevertheless a few points still remained open for discussion.

After an exchange of views the Council agreed to report on this matter to the European Council in Vienna on 11–12 December 1998, in the margins of which it could be discussed.

Finally the Council agreed to revert to the question at a later session.

The Council heard a report by Commissioner VAN DEN BROEK on the good progress made in the negotiations with Switzerland during the last week and on the elements to be taken into account in order to reach a global and balanced package.

The Council supported the Commission's negotiating strategy and invited the Commission to pursue the negotiations actively and to report back to the Permanent Representatives Committee on the outcome of these discussions.

In his concluding remarks the President stressed the EU's resolve to achieve as soon as possible with the Swiss authorities a global political solution mutually satisfactory for both parties.

The Council reached a political agreement on the renewal of the Community scheme of generalized tariff preferences (GSP) for developing countries for the years 1999 to 2001. The regulation will be formally adopted in December as soon as the text has been finalised.

It is recalled that the Community opened in 1971 generalised tariff preferences for developing countries in order to sustain economic and social development of the developing countries and their smooth and gradual integration into the world economy.

To make it easier for beneficiaries to use these preferences, all GSP legislation in force has been brought together in this regulation. It will cover both industrial and agricultural products and will include general, social and environmental incentives, as well as drugs and arrangements for Least Developed Countries (LDCs).

In parallel to the provisions of the Lomé Convention and subject to the expiry of appropriate amendment of the non-discrimination clause, it has been agreed that the Commission will present to the Council appropriate proposals by which the LDCs, by the year 2005, will benefit from duty-free access to the Community market for essentially all products from all LDCs, to be obtained progressively, starting in the year 2000, and from simplified and reviewed rules of origin including cumulation provisions that apply to the LDC's exports.

In this context the Council and the Commission also reiterated the importance of compliance with international labour law and environmental protection standards, which make a full contribution to sustainable development. They reaffirmed their intention to take account of progress made in this matter in their cooperation with the countries concerned.

The Council took note of the reports of the Presidency and the Commission on the preparations for the Summits to be held with Canada in Ottawa on 17 December and with the US in Washington on 18 December 1998.

In this context the Council noted with approval a report by the Commission on the state of play on the dispute with the United States about the EU banana import regime.