MEPs debate the results of the 15 December EU Summit with European Council and Commision. Opening statements by Charles MICHEL, President of the European Council and by Ursula von der LEYEN, President of the European Commission.

Strasbourg

debate

plenary session

MICHEL, Charles (BE)

VON DER LEYEN, Ursula (DE, EC)

European Council meeting 15 December 2022 (T)

Conclusions of the European Council meeting of 15 December 2022: opening statements by Charles MICHEL, President of the European Council and by Ursula von der LEYEN, President of the European Commission

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, Madam President. Parliament. European. President of the European Parliament. President of the Commission. Ladies and gentlemen, Colleagues. For nearly one year, Russia has pursued a strategy of destruction, a strategy of terror, trying to bomb the people of Ukraine into submission. And we have witnessed this strategy in Bakhmut, in Soledar or more recently, in Dnipro.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, But Ukrainians are resisting and they will continue to resist. And we, the European Union, will continue to support them for as long as it takes. We will continue our military support thanks to an increase of the European Peace Facility. The time is now. They urgently need more equipment and personnel in favour of supplying thanks to Ukraine.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, We have also adopted a macro financial assistance programme of €18 billion and we are stepping up the pressure on the Kremlin with the ninth package of sanctions. This also increased our material aid, especially to help Ukrainians face winter. As Russia continues to destroy their infrastructure. We have sent nearly 80,000 tonnes of material such as generators, boilers and transformers.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, The European Union and its Member States massively supporting Ukraine. We have already committed nearly €50 billion and European citizens are in favour of this support. According to the latest Eurobarometer. Our citizens know that supporting Ukraine means supporting peace, democracy and the international order.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, Ladies and gentlemen, the European Council had a debate on our transatlantic relationship. A debate closely linked to another key priority for the EU, our European competitiveness, especially of our industry and future technologies. And this will feature at our next European Council meeting in February. The European Union and the United States. We are close allies, yet even allies sometimes have differences. And this is the case with the Inflation Reduction Act.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, This legislation increased $370 billion package of subsidies and tax credits to develop an ecosystem of advanced technologies to foster the climate transition and to promote American leadership in these sectors. And it be clear these doors are loadable and legitimate. But their translation into the IRA poses serious problems for international competition and trade rules. And we sincerely hope the dialogue with our American friends will lead to increased positive results. Let us be clear.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, In my opinion, European companies must be able to benefit from the same conditions as Canadian and Mexican companies. But dear colleagues, we must look reality straight in the face. Our American ally, is embracing a massive state aid policy and China continues to invest state money in its technology sector. In Europe, we must also act to show our European industry and to our citizens that we are up to the challenge.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, Our European model consists of a social market economy that implies, for very good reasons. Higher labour and environmental costs and the current energy crisis means that we will have to face higher energy costs for the foreseeable future. The EU has helped to build a global system based on free trade while striving to ensure a level playing field. But we cannot stand idly by as our main competitors embrace policies of massive economic support for their companies.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, We must therefore mobilise massive resources to drive for work an ambitious Europe industrial policy to boost competitiveness, to turbocharge productivity and to spur investment. This is why, in December, the European Council has tasked the Commission with bringing forward proposals in view of our next meeting.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, Ladies and gentlemen, I think it's clear that this is a key moment to support the economic future and the future of the internal market in the European Union, and that should be part of the European Council meeting in February. We need to take decisions on this. The first one relates to the State aid regime. This is part of the European Union's ambition to put faith in globalisation and private initiative.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, We need to develop the economic base of the European Union. And we can see that the world around us has meant that we have to look at changes that are going to be necessary and we want operational proposals from the Commission. So that we can benefit from a changed regime there. While guaranteeing the rules of the internal market. It's important to ensure that there are no double standards.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, We need to ensure that we consolidate the dynamics of this internal market. The second point relates to common sense. We want to mobilise current existing resources at the European level, say the budget, the recovery plan, but also at the national level. We need to ensure that there is more flexibility. We need to reorient and prioritise funding so that we can deal with the situation as it develops.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, And then the third issue that we need to deal with is to ensure solidarity. Not all European countries have the same financial capabilities and we need to ensure a level playing field with our competitors. But we also need to ensure that there is more economic and social convergence at the European level as well. So I am therefore one of those who believes that we need to look at a possible extension of the shaw mechanism so that we can provide a realistic and tangible responsible to the issue of solidarity.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, Then a fourth point I'd like to express my solidarity for the idea, which was raised during the State of the Union speech by the President of the Commission here with regard to a European Sovereignty Fund. This is something that will take more time. There is going to need to be detailed work on this if we're going to bring it forward. But if we believe in the strategic autonomy of the European Union, if we believe it's important to pool our resources so that we can invest in the future.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, And also pull the benefits, then we need to come up with something like that. And it's the European Investment Bank that should play a major role there. We need to base ourselves on the Commission's proposals with the mobilisation of the Parliament and Member States to ensure that we have a tool that reflects economic power. And I think this is closely linked to strategic autonomy and independence.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, We're very aware that the situation under which the European Union was built has now changed, because China is changing the rules of the game by providing massive subsidies and is also being changed by our main partners at the international level. This in many areas, they're changing their priorities. They've established this massive plan and that means that we have to act rapidly and decisively to consolidate the capacities of the internal market so that we can ensure that it's a key trump card for the future of the European Union.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, These are a few points that I wanted to share with you colleagues. Just very briefly, let me make a few other points that relate to the European Council meeting of December, on energy, I think you will followed the debates, and I think we've made significant progress since our last meeting here in the Parliament.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, There was a proposal from the Commission and now we have this ceiling for the price of gas. This is a decision that has improved the situation with regard to gas prices. And we've also seen that storage issues have been eased. But this is an issue that we're going to continue to have to talk about. Particularly when the commission proposal on reforming the electricity market comes out, which is another extremely important issue.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, Finally, the Council was also an opportunity to briefly touch on the issue of migration with the ambition of coming back in February to discuss it in more detail. The figures are well known in 2022 there was a significant increase in illegal arrivals to the European Union, so we're going to have to once again commit ourselves to the issue.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, We're going to have to deal with the external factors that relate to migration. We have to work with our partners. We have to secure the EU's external borders, but we're also going to have to move forward on the migration pact. There's an agreement here on legislative work and I hope that together with the Council, the Parliament will be able to move forward and implement the roadmap that we currently have, which means that we may well in a fair and responsible manner, be able to deal with the challenge of migration.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, And to conclude, colleagues, I can't finish without leaving you with a thought for women, young people and the people of Iran who are rising up against a brutal regime. A regime that keeps them in a reign of terror, and the Council aims to boost the sanctions regime. And this is particularly the case because Iran is supporting Russia militarily in its attack on Ukraine.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, So the faces of the women, the young people, the Iranians who are rising up for freedom, these are the faces of freedom, of democracy and of standing up and taking responsibility. And we should be committed in supporting those who stand up for freedom and democracy.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, Let me conclude by saying that 2023 will certainly be a key year for the European project. Just a few days after the start of the year, we already face uncertainties, but there are also some things we can look to. We're having this debate on European strategic autonomy. We have these pillars that are at the heart of what we do. So energy that is key for sovereignty. And we also need to deal with climate challenges and we also need to support our families and ensure the competitiveness of businesses. That's all one pillar.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, Then we have defence. We're providing military support to Ukraine. And there's a statement from NATO, which was validated by myself and the president of the Commission, and we want to boost Europe's capacities in the field of security. And then the third pillar is the technological basis innovation. All societies that have progressed in the history of the world that have managed to raise living conditions, have based themselves on technology and innovation.

SOUNDBITE (English, French), Charles MICHEL, President of the European Council, These are key challenges, if we want to ensure a secure and prosperous future for our citizens. And all of this is based on the double promise of our Founding Fathers: peace and prosperity. That's what the European Union was based on. And once again, unity will be the key factor for us to deal with the challenges that we collectively face. So I thank you for this excellent cooperation that we have with the European Parliament. And you can count on the Council even more than you imagine. Thank you.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, Thank you very much president Metsola. Dear Roberta. President Michel, dear Charles. Honourable Members. First of all, let me wish a very happy birthday to you, president Matsola. I am sure that I'm speaking for all members of this House when I say how much I admire, strength and the resolve you bring to your position as President of the European Parliament.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, Because this kind of strength and resolve is exactly what Europe needs as Russia's war against Ukraine continues. The latest symbol of Russia's terror is, you might have all seen it, a yellow kitchen, a very simple yellow kitchen and an apartment building in dnipro. One day the room is filled with happiness. A little girl celebrates her birthday, surrounded by this yellow furniture and by a loving family.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, The day after the kitchen is no more. The family is no more. The girl's father has been killed by Russian missiles. All their lives have been shattered by Russian imperialism. And this is what Ukraine is standing up against. This is what we are all standing up against. We have just launched as European Union the first tranche of €3 billion of our €18 billion support package for 2023. And again, we will remain at Ukraine's side for as long as it takes.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, We have also shown strength and resolve to replace Russian fossil fuels and to bring down prices, and our joint efforts are paying off now. Gas prices are now lower than they were before Russia's invasion in Ukraine. The prices of Dutch TTF have dropped more than 80% since August. We have been able to replace most of the Russian fossil fuels. Our gas storages are still over 80% full. This is among the highest level ever this time of the year.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, And most importantly, we managed to double the amount of additional renewable energy that was coming to our market during the last year. Of course, some external factors helped the mild weather and China's COVID lockdown, but at the same time, other external factors also made our life more difficult. It's exactly this unusual, warm and dry weather also resulted in a sharp decrease in hydropower, you all recall it.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, So we've been able to completely get rid of the Russian coal. We have been able to wind down the Russian oil. We have been able to really fence off the blackmail of Russia, what the gases concern, because Putin decided to cut 80% of the gas supply. And this was a big strategic mistake. We freed ourselves from his grip. And thus, honourable member that we came through this winter safely. Is first and foremost the result of unity, the result of collective hard work and I think we should take pride in this.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, So for this winter we are safe, but we are not out of the woods yet. We now have to prepare for next winter. And here the joint energy platform is up and running with the support of Member States and European industry we are creating a European consortium, that will allow us to aggregate demand and effectively leverage the EU's political and market weight. That's what we always wanted our collective market power of 27.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, Now we aim at launching negotiations with a key international gas suppliers already in early spring, with the aim to conclude first joint contracts well before summer. Honourable Members, These achievements show the power of Europe's collective ambition and will, and we need more of the same for the year ahead of us. And it is good to know that the Swedish Presidency shares this ambition, because not only our energy systems are at a crossroads, the competitiveness of the whole of our economy needs to be maintained and this transformational task is huge.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, Just keep in mind that in less than three decades we want to reach net zero. That's a huge transformation. And everybody knows that the key to manage or even better, to lead this transformation is our clean tech sector. The International Energy Agency estimates that the market for mass manufactured clean energy tech will be worth around $650 billion a year by 2030, a year more than triple today's value. And this is why, of course, the United States put forward the Inflation Reduction Act.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, So we discuss the pros and the cons here in the plenary in December. Today, I want to lay out our answer. That's a Green Deal industrial plan. The Green Deal Industrial plan will be built on four pillars. The first pillar is about speed and access. We need to create a regulatory environment that allows us to scale up fast and to create conducive conditions for. The clean tech industry. Speed and access over and over.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, If there's anything the companies are complaining about, it's that, for example, permitting is too slow and that there are too many barriers. So to help make this change happen, speed and access, we will put forward the new Net-zero Industry Act. What is it? Just think this act will follow the same model as the CHIPS Act. It will specially look at how to simplify and fast track permitting for new clean tech production sites. Competitiveness, that's the key word. Enable the companies to go forward with innovation and with production that is so crucial.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, The second pillar of the Green Deal Industrial plan will boost investment and financing of clean tech production. We will propose to temporarily adapt our state aid rules to speed up again and to simplify. So easier calculations, simpler procedures, accelerated approvals, for example, with simple tax break models. But at the same time, if we give state aid and this is for the level playing field globally, we have to be very careful that we preserve the level playing field for businesses all across Europe.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, So in our single market. And thus, the second or the other side of the coin of state aid beyond the European sovereign duty fund, that I announced in my State of the Union. We will have to look into a bridging solution to provide fast and targeted financial support where it is most needed for the clean tech sector, state aid one side of the coin, investment the other side of the coin.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, The third pillar of the European of the Green Deal industrial plan has to do with skills people just two figures. As an example, the battery industry will need 800,000 skilled workers by 2025. That's huge, this figure. So this is why we launched the European Battery Academy. This is one part to address this topic.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, Or take the solar industry, 1 million skilled workers are needed by 2030. This is twice as much as we have today. This is a huge challenge, but it's a huge opportunity to create good jobs, well-paying jobs, the jobs of the future. And this will be the absolute priority of our European Year of Skills.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, And finally, the fourth pillar, we will follow through with our ambitious trade agenda for clean tech to deliver net zero globally, there will be a need for strong and resilient supply chains and this is linked to trade. So we will seek to conclude new trade agreements with Chile, with Mexico, with New Zealand, with Australia.

SOUNDBITE (English), Ursula von der LEYEN, President of the European Commission, We will do everything to progress with India, with Indonesia, and we have a unique window of opportunity now to take forward. Finally, the EU Mercosur agreement. So honourable members, this is the plan. Time is of the essence and I count on your support to make it happen. Long live Europe. Thank you.