EU leaders agree on Lisbon, climate and economic plans

At their last summit under the French presidency, EU leaders came to an agreement on three major issues: the Lisbon treaty, climate change and the commission’s €200bn economic recovery plan.

Irish prime minister Brian Cowen said that after a “long” council, and despite objections from “several” member states, an agreement on the Lisbon treaty was reached that would allow Ireland to keep its commissioner.

Ireland is also to get “necessary legal guarantees” on taxation, family and ethical issues and common security and defence policy to assuage Irish fears about abortion and neutrality, as well as losing its 12.5 per cent corporate tax rate.

“I am particularly pleased that our requirement on keeping a commissioner for Ireland will be met,” Cowen told journalists in Brussels on Friday. “This was very hard fought and is a very, very significant concession by others. It is a major achievement by Ireland.”

Also ahead of leaders when they first met on Thursday was a tough battle to uphold ambitious climate targets agreed last year. Objections raised by Poland and other carbon-reliant (mostly eastern European) member states threatened to water down a package that MEPs must still agree to next week.

These countries managed to receive a two per cent concession in the emissions trading scheme, which means they will get extra allowances for emissions reductions made since 2005, rather than from the 1990 base year set by the Kyoto protocol.

EU leaders agreed to uphold the ambitious 20 per cent emissions reduction target by 2020, with a 30 per cent reduction if a post-2012 accord is reached at the UN Copenhagen climate conference next year. The commission is to present an analysis to council by March 2010 on the results of the conference and what it would take for the further 10 per cent reduction.

They also agreed a 60 per cent cut in CO2 from cars by 2020; using half the funds from the emissions trading scheme to help developing countries tackle climate change; measures to help developing countries offset emissions; and a huge growth in the use of renewable energy.
On the economic recovery package, leaders have signed up to the commission’s proposal, with a slight difference. Rather than dedicating “at least” 1.5 per cent of the EU’s gross domestic product (GDP) to the financial stimulus plan, the compromise text reads that the €200bn will be made up of “around” 1.5 per cent of GDP.

The amount would equate to 1.2 per cent of national GDP and 0.3 per cent from central EU funds.

The move comes after objections from Germany, which didn’t want to inject further funds into the economy. It said that its own financial package amounted to 1.3 per cent, and therefore exceeded the commission’s target.

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