European Council 8-9 december
On 8-9 December, Prime Minister Fredrik Reinfeldt participated in the European Council summit. The economic crisis dominated the discussions, which resulted in a strengthening of economic cooperation between the euro countries through a forthcoming intergovernmental agreement. EU Member States that do not have the euro as their currency are also invited to join in the cooperation.
Prime Minister Fredrik Reinfeldt talking with a journalist at the EU summit in Brussels. Photo: Andreas Persson/Permanent Representation of Sweden to the EU.
The EU summit was preceded by extensive discussions on possible amendments, or protocols, to the Treaty that might be necessary to strengthen the economic cooperation. However, since the 27 Member States were unable to agree on a common solution, the possibility was created at the meeting of an intergovernmental agreement between the euro countries, with an invitation to the other countries to join in.
"This meant it was not possible for me to deliver on the mandate I had with me from the Committee on European Union Affairs," Mr Reinfeldt said at the press conference after the meeting.
"It is one thing to allow this kind of deepening of cooperation by a treaty or in the form of a protocol, even though one is not part of it. But the question of whether Sweden should agree to subscribe to a text that is written as if we belonged to the euro area is another matter altogether."
Sweden has given notice that the agreement must be analysed and accepted by the Riksdag before there can be any question of joining in.
Firewall and budgetary frameworks
The agreement contains areas in which economic governance will be improved, as well as a strengthening of the financial firewall that is intended to prevent the economic crisis from spreading to more countries. Among other measures, the euro countries will introduce a rule in their national legislation requiring a balanced budget. This is a measure Sweden supports.
"In Sweden we already have a national framework of this kind. On several occasions we have also expressed our wish that other countries create similar budgetary frameworks. We therefore think it is a very good thing that this requirement was also entered for the countries in the euro area," said Mr Reinfeldt.
The euro countries also decided to increase the degree to which sanctions against countries that breach the rules of the Stability and Growth Pact apply automatically.
The reinforcement of the financial firewall means that the total lending capacity for supporting countries in financial difficulties will increase. The firewall includes both the euro areas temporary European Financial Stability Facility (EFSF) and the permanent European Stability Mechanism (ESM), which is now planned to be brought forward to 2012. In total, the EFSF and ESM will have a lending capacity of EUR 500 billion, though this figure will be evaluated before the EU summit in March.
The resources for loans via the International Monetary Fund (IMF) are also being strengthened. Both members of the euro area and other Member States will consider contributing funds to the IMF. Of the non-euro countries, Sweden and Denmark have already expressed their willingness to participate.
"We are quite convinced that a stronger financial firewall in Europe is essential to reduce the pressure of interest rates in the most exposed countries. But in reality, it is also a means of putting all of Europe in a better position, including Sweden," says Mr Reinfeldt.
EU enlargement and foreign affairs
The continued enlargement of the EU was another issue on the agenda of the summit. The heads of state and government welcomed the progress made by Montenegro, while urging continued reforms, including in the fight against organised crime. Accession negotiations with Montenegro are expected to start in June next year.
The progress made by Serbia was also welcomed. At the same time, continued efforts were urged in the dialogue with Kosovo in order for Serbia to obtain candidate country status in March 2012.
The European Council expressed its concern about the nuclear technology programme in Iran and welcomed the work of the foreign ministers on producing tougher sanctions. At the same time, Sweden emphasised the importance of the EU advocating a diplomatic solution to the issue of Iran's nuclear energy programme.
In connection with the summit, an accession treaty was signed with Croatia under which the country will become a full EU member in July 2013. Until then, Croatia will now be able to participate as an observer in various meetings, including those of the European Council and the Council of Ministers.
European Council - summits
The European Council consists of the heads of state or government of the Member States, the permanent President, Herman van Rompuy, and the President of the Commission. The High Representative of the Union for Foreign Affairs and Security Policy, Catherine Ashton, also takes part in these meetings. The European Council determines the EU's general political guidelines and priorities. The European Council meets twice per six-month period at what are generally referred to as EU summits. The country holding the Presidency may also convene extra summits.
When the Treaty of Lisbon entered into force on 1 December 2009, the European Council became an institution with a permanent President.
