How will the oil embargo imposed on Iran affect the EU countries?
On 23 January, the EU Foreign Affairs Council adopted a package of EU sanctions against Iran. Given the EU's serious concerns over the Iranian nuclear programme, the EU broadened its restrictive measures against Iran by targeting the sources of finance for the nuclear programme, i.e. by banning imports of Iranian oil and petroleum products. The prohibition concerned import, purchase and transport of such products, as well as related finance and insurance. It allowed however the possibility of honouring contracts until 1 July 2012.
On 25 June, EU decided that the latest package of EU sanctions against Iran will enter into force as scheduled. This means that exemptions ended, as scheduled, on 1 July: therefore, all contracts for importing Iranian oil had to be terminated by 1 July. From the same date, EU insurers can no more provide third-party liability and environmental liability insurance for the transport of Iranian oil.
The objective of the EU remains to achieve a comprehensive, long-term settlement on the basis of meaningful negotiations between the E3+3 and Iran. We are determined to try and achieve a negotiated agreement with Iran to reassure the international community about the purely peaceful nature of the Iranian nuclear programme. The choice is Iran's. It is now up to Iran to decide what it wishes to do. To that aim, the EU has a consistent twin-track approach – negotiations and implementation of sanctions.
In this context, EU3+3 and Iran met in Istanbul (April 2012), Baghdad (May 2012) and Moscow (June 2012), for talks led by HRVP Ashton and Dr Jalili. A technical meeting at experts' level also took place in Istanbul on 3 July. We are grateful to Turkey for having hosted those talks.
Broadly speaking, the EU is well stocked with oil and petroleum products, with stocks to cover about 120 days of consumption or 4.5 years of imports from Iran. Moreover, EU Member States have managed to replace crude oil imports from Iran on the global market. Therefore, we do not expect major disruption in the EU market. In fact, it seems to me that the world market is also well-supplied (prices have been on a downward trend in the last months), and that oil prices should not be significantly affected by the entry into force of the embargo.
Will EU step up its support to the Syrian opposition? Will the current support continue? Will the EU recognise the Syrian opposition as the official representative of Syria?
The EU is engaging with all opposition groups, urging them to put aside their differences and to agree on a set of shared principles towards an inclusive and peaceful transition in Syria. We will continue along this line. Only a united and inclusive opposition can be considered as a reliable partner for a transitional process in the country. All ethnic and religious groups have to feel safe and reassured for their future in Syria. There is still work to be done in this respect, after the meeting in Cairo.
It is necessary that the international community speaks with one voice. Russia has significant leverage on the regime and the joint statement of President Obama and President Putin is a step towards a common approach. Syrian ownership of the political process is key.
We will continue to cooperate and act in concert with the international community, notably the United Nations and the League of Arab States. Let me also stress that we have intense consultations with our Turkish colleagues and appreciate Turkey's role in handling this crisis. We are also supporting the refugees who are fleeing into Turkey with humanitarian aid and supplies.
Finally, let me recall that the EU has condemned in the strongest terms the unacceptable shooting down by Syria of the Turkish military plane last June and commended Turkey for its measured and responsible reaction.
Turkey is concerned that the Action Plan related to the Re-admission Agreement to be submitted to it by the EU might be delayed. Do you think there might be such a delay? How will the visa exemption process proceed?
First of all, let me say that the initialling of the Re-admission agreement on 21 June and the adoption by the Council of a mandate for the Commission to open a visa dialogue aimed at visa liberalisation mark an important breakthrough in an issue that has been pending for a very long time. It shows how the Positive Agenda can deliver results that will be for the benefit of Turkish citizens.
The process foresees that the Commission takes steps towards visa liberalisation, in parallel to the signature of the readmission agreement. Therefore it is key that Turkey now signs the readmission agreement. On this basis, the European Commission will present an Action Plan for Turkey that will ultimately lead to visa-free travel. This Action Plan will be discussed in Brussels between the Commission and the Member States, and will then be presented to Turkey. It is premature to put a specific time on when the discussions will be completed and when the Plan will actually reach Turkey, but the trigger point is certainly the signature by Turkey of the readmission agreement.
What is important here is the fact that a perspective has been set in motion, which will eventually allow – upon Turkey fulfilling the requirements of the Action Plan – Turkish citizens to travel without visas to Europe.
Regarding the latest summit where EU took up the economic crisis, can we say that “we have seen light at the end of the tunnel”?
Let me recall the major decisions taken at the Summit: first, the establishment of a single banking supervisory mechanism, and, second, the authorisation given to the European Stability Mechanism (ESM) to directly inject funds into banks. It was also agreed to recapitalise Spanish banks with the existing European Financial Stability Facility (EFSF) until the ESM becomes available, and that the financial assistance will then be transferred to the ESM, without gaining seniority status. The heads of state or government of the euro area also affirmed their commitment to ensure the financial stability of the euro area by allowing EFSF/ESM funds to buy bonds of member states that comply with budget discipline. These are far-reaching steps towards stricter European financial and economic integration and should break the vicious circle between sovereign debt and bank liabilities.
But let me also recall that the Summit delivered important decisions concerning economic growth. For instance, it mobilised 120 billion euro to foster European growth, with a particular focus on infrastructure development, small and medium enterprises and youth employment.
Now these will have to be implemented in practice, but nobody can deny the capacity of the EU to take bold decisions and act decisively. If you look in a longer-term perspective, I am optimistic that the EU will come out of this crisis – which did not originate in Europe – more united, stronger and better equipped to adapt to the challenges of the new century.
Views such as multi speed Europe and core Europe are strongly being debated in relation to EU integration, particularly after the crisis. Where in your opinion is the European integration heading towards?
There is an important debate in Europe as to the future architecture of the Union that will emerge from the current difficulties. Crucial decisions have already been taken to reinforce cooperation on fiscal discipline and monitoring mechanisms. I am thinking about the "Fiscal Compact", which will enter into force on 1 January next year, as an example. Another example is the proposal launched by several member states to introduce a financial transaction tax. And, within the Eurozone, unprecedented steps have been taken with the 'six-pack' laws, that tighten up EU level fiscal and macroeconomic surveillance, and opens up the possibility for sanctions on those countries that break the rules. And we are building on this with further laws in the pipeline.
When you look at the Schengen rules, you see that some Member States apply the full package, while some others do not. Or the Euro: 17 out of the 27 Member States share the currency, while the others keep their own, or have yet to undertake the procedure to join the Eurozone. It shows that the EU is able to adapt to the circumstances.
Let me conclude by saying that in my view the Europe that will emerge from its current difficulties will be a different Europe from what we see today, in terms of institutional architecture, level of economic and financial integration, but also in terms of competitiveness and economic performance. It is in the history of the European Union to take leaps forward at times of difficulties and to emerge from the difficulties stronger and more integrated, but always true to its values of democracy, freedom and solidarity.
