European Commission President Jose
Manuel Barroso attends a press conference at the EU headquarters in
Brussels, capital of Belgium, Dec. 12, 2008. European Union (EU) leaders
wrapped up a two-day summit here on Friday with compromised deals on an
economic stimulus package, climate change and the Lisbon Treaty.
(Xinhua/Xu Jinquan) Photo
Gallery>>>
BRUSSELS, Dec. 12 (Xinhua) -- European Union (EU)
leaders wrapped up a two-day summit here Friday with compromise deals on an
economic stimulus package, climate change and the Lisbon Treaty.
"Three major decisions have been taken in unanimity,"
said French President Nicolas Sarkozy, whose country holds the EU presidency, at
a press conference after chairing the meeting with his EU counterparts.
Sarkozy said EU leaders agreed on the need for an
economic recovery plan on the basis of the European Commission's proposal.
In a bid to coordinate national efforts within the EU
to support a sluggish economy hit by the financial crisis, the Commission
proposed in November a EU-wide economic stimulus package worth 200 billion euros
(264 billion U.S. dollars).
The sum amounts to 1.5 percent of the EU's gross domestic product, with 1.2 percent coming from EU governments and the rest from EU funding.
French President Nicolas Sarkozy (L), whose country holds the EU presidency, attends a press conference with European Commission President Jose Manuel Barroso at the EU headquarters in Brussels, capital of Belgium, Dec. 12, 2008.(Xinhua/Xu Jinquan) Photo Gallery>>>
But EU heads of state watered down the original
proposal by pledging "around" 200 billion euros to the package, instead of "at
least."
Germany, the largest economy in the EU, had been
opposed to a call for it to expand its national fiscal stimulus plan for the
benefit of the EU economy as a whole, saying their current plan worth 32 billion
euros (42 billion U.S. dollars) was enough.
However, EU leaders failed to decide on a proposal
pushed by France and Britain to cut value-added tax (VAT) on green goods and
labor-intensive services such as restaurants, putting off the debate until a
meeting of finance ministers in the spring.
An ambitious climate change and energy package proved
to be the toughest topic tackled by the EU leaders.
"This is quite historic. You will not find another
continent in this world that has given itself such binding rules as we have just
adopted," Sarkozy said. "The objectives remain the same."
In March 2007, EU heads of state and government
pledged to reduce EU's emissions by 20 percent in 2020 compared to 1990 levels,
and to have 20 percent of renewables in total energy consumption and achieve 20
percent energy savings, also by 2020.
This time, they struggled to get the details settled.
A deal was possible after concessions were made to Italy, Germany and Poland,
among several other central and eastern European members.
Prior to the summit, German Chancellor Angela Merkel
had warned against any action that would endanger employment or investment in
her country. Italy had also expressed hope that the package would meet its
demand to protect its manufacturing industry.
Central and eastern European countries led by Poland
and Hungry also requested special treatment since their energy demand relies
heavily on more polluting coal.
After hard-fought negotiations, EU leaders agreed to
give free emission permits to industries threatened by stricter climate change
rules and heavily coal-dependent power plants.
Sarkozy also declared that the stalled ratification
process of the Lisbon Treaty will be re-launched, after Ireland agreed to hold a
second referendum by the end of October 2009.
"The Irish will be consulted again," he said.
In exchange for Ireland's commitment, EU leaders
agreed to take a decision not to trim the European Commission so as to maintain
the current "one country, one seat" principle.
Irish voters in June 2008 vetoed the Lisbon Treaty, a
key instrument aimed at streamlining EU institutions and decision-making,
putting the much-needed reforms on hold.
They were concerned that Ireland might lose its voice
in the future European Commission, the executive arm of the EU, since the Lisbon
Treaty would see the number of commissioners reduced.
EU leaders will also take measures to relieve other
concerns of Irish voters, including Ireland's military neutrality, its
opposition to abortion and national rights on taxation, Sarkozy said.
"Europe succeeded in its credibility test," European
Commission President Jose Manuel Barroso told the same press conference,
describing the summit as one of the most important since he assumed the top EU
post.
With the EU taking the lead in the global fight
against climate change, it is now time for others, especially the United States,
to follow suit, Barroso said.
"Our message to our global partners is this -- yes,
you can; yes, you can also do what we are doing," he said, citing the famous
slogan used by U.S. President-elect Barack Obama in his campaign for the White
House.
Sarkozy also urged others to do the same.
"People will not follow Europe unless we set the
example," he said.
The EU wanted to set ambitious targets for itself so
as to lead global talks on the fight against climate change at an international
summit in Copenhagen next year.
On the first day of the EU summit, when negotiations
were deadlocked, UN Secretary General Ban Ki-moon called on the bloc to show
leadership.
"What we need today is leadership," Ban said on the
sidelines of an international climate change meeting in Poznan, Poland.
"We look for leadership from the European Union. The
decisions currently being made by European leaders in Brussels are (of) great
consequence for the whole world," he said.
