PODCAST on ten issues to watch in 2017

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EPRS European Parliamentary Research Service Transcript of an EPRS Podcast January 2017 PODCAST on ten issues to watch in 2017 Voice 1: Sarah Voice 2: Brian JINGLE to open podcast You re listening to the European Parliamentary Research Service podcast on the ten issues to watch in 2017. (to introduce the topic) The challenges posed by migration flows, the threat of terrorism, Brexit and international trade issues have taken a great deal of the EU s time and efforts in 2016. But where will the focus be in 2017? Brexit, trade, migration and security issues will still feature high on the EU s agenda but other issues are competing for attention! including rising inequalities, the future of the Economic and Monetary Union and relations with the new Trump administration. But there s more! Don t miss it JINGLE to recognise the start of the podcast content part Since the debt crisis in 2009, the EU seems to have been operating in constant crisis mode with new social, economic, political and security

challenges forcing EU leaders and institutions into long and often difficult discussions. But what are the policies and issues which are going to focus our attention in 2017? Let s start with a hard social and economic reality: rising inequalities. Despite declining unemployment, income inequality remains at record high levels in many OECD countries, and Europe is no exception though there are marked differences across countries. But inequality not only refers to differences in salary, but also in opportunities, such as access to education and health. And although most tools and policies to fight inequality in the broader sense remain the preserve of the Member States, there are some things the EU is planning to do in 2017 For instance, working towards inclusive growth and social innovation, ensuring the social dimension of the Economic and Monetary Union through the creation of a European Pillar for Social Rights, pushing for more cooperation and coordination between national tax authorities to combat fraud and tax evasion and increasing access to better education and employment, especially among young people. To achieve this, new rules on apprenticeships will be put forward in 2017 as part of the EU s New Skills Agenda, and EramusPro, a branch of the Erasmus+ programme to support long-term apprenticeships abroad, will be launched.

A second issue to watch in 2017 is transport and low-emission mobility. To deliver on the promise of keeping global warming below 2 degrees centigrade, the EU is preparing a number of proposals to make transport less polluting. For example, to subject lorries, buses and coaches to emission regulations and monitoring schemes, similar to those that already apply to cars and vans, after 2020. Dieselgate is also set to remain on the agenda, as the Parliament s special committee inquiring into the use of "defeat devices" is due to present its findings in early 2017. Decisions will also need to be taken in relation to financial support for transport and infrastructure, and this will be linked to the negotiations on the multiannual financial framework which are set to begin this year and will involve the European Parliament seriously. To increase competition in the transport sector, the EU will adopt new rules to open up the EU road haulage market as well as the rail and maritime sectors. But let s now turn to monetary issues MUSIC JINGLE 2017 will be a very important year in the road to a genuine economic and monetary union, as many of the so-called stage 1 measures which build on existing instruments should be finalized and the transition to stage 2 (where new structures will need to be put in place) will finally begin. So, what measures are in the pipeline for 2017?

Well, next to the launch of the European Pillar of Social Rights, the proposal to set up a European deposit insurance scheme is likely to be adopted this year, once the Parliament gives it the green light. The Commission will also propose several measures to make progress on building a capital markets union. In the first quarter of 2017, the Commission is also expected to unveil plans on how to move to the next level of a complete EMU. Another important issue to follow in 2017 is the EU budget, as debate on its future, particularly BEYOND 2020 is likely to intensify! But let s take it step by step Each year, Parliament and Council agree how much money will be spent on the various EU policy areas, respecting the multi-annual financial framework which is decided every 5 years. But confronted with a series of never-ending crisis, the EU institutions have had to push flexibility to the limits raising the number of voices calling for a reform of the EU budget, to strike a better balance between predictability of investments and capacity to respond to new challenges. The European Parliament is one of those voices, and it has long pushed for a review of the current framework to make sure there s enough money to achieve the EU s objectives. A decision on the mid-term review of the current budgetary framework, which runs until 2020, is expected in 2017.

Next to budgetary issues, 2017 looks set to see priority given to fostering the simplification and modernization of the common agricultural policy, or CAP, so that it can better contribute to the EU s climate and sustainability goals, and help create new jobs and growth. To simplify the CAP, the Commission has proposed a set of measures which it hopes will be endorsed by MEPs and Member States before the end of the year, so they can start being applied in 2018. This year we re also likely to see the launch of the Commission s consultation on the CAP post 2020, so we ll keep an eye on this debate! Want to know what else is coming up in 2017? Stay with us! MUSIC JINGLE As Europe watched with incredulity the result of the UK referendum, an era of uncertainty had already begun for both the EU and the UK And since there is no precedent of an EU Member State leaving the club, countless legal and procedural aspects linked to Brexit will now need to be analysed. Article 50 of the Treaty on the European Union provides for a legal way out of the EU but many issues still remain unclear for instance, is the decision reversible? What should a withdrawal agreement contain? And how should both parties continue their relations in the future? After nearly 40 years together, it won t be an easy divorce So Brexit will take up our attention not only in 2017 but for many years to come! But there s another issue which is likely to remain high in the EU s agenda: migration.

In the past two years, nearly 2.3 million asylum-seekers have arrived in the EU fleeing war and persecution, and the flow will continue throughout 2017 so all three institutions, European Parliament, Council and Commission have agreed to give it high priority in the months to come. But what concrete steps will they take? Well, the relocation of 160.000 asylum-seekers that was agreed in 2015 should be completed by the end of this year, and the announced reform of the Common European Asylum system should move up a gear! In the European Parliament, work on all the proposals has begun at committee level and MEPs have already backed the idea of setting up an EU asylum agency. 2017 will also be the moment to take stock of the migration deal with Turkey and to conclude further agreements with countries of origin and transit of migrants, such as Mali, Niger and Senegal. The mid-term review of the European Agenda on Migration due in 2017 will provide yet another opportunity to see which policies are working and which ones are not Linked to the challenge of migration is external security, and 2017 will bring a baptism of fire for the EU s new defence mechanisms! But the increasing militarization coupled with an intensifying spiral of mistrust between the world's major powers suggest that peace in Europe should not be taken for granted

The ongoing conflicts in Syria, Libya, Ukraine and Yemen, tensions with Russia and the uncertainties about Trump s take on foreign policy add a sense of urgency to the implementation of the European Defence Action Plan and the Defence Fund. And directly linked to the many conflicts in the EU s neighbourhood is the continuing threat of terrorism and the need to deal with the foreign fighters returning home to Europe. The European Parliament will have to deal this year with important dossiers, including on human rights violations in the context of war crimes and the new legislative proposal to foster security and sustainable development in partner countries, by providing more effective assistance to all security actors. Russia s actions in Ukraine are likely to continue challenging security in Europe in the months to come, forcing the monitoring of the military and humanitarian situation in Crimea and eastern Ukraine. Ukraine has embarked on an ambitious reform path but the fight against corruption will remain at centre-stage. To support the government s efforts, a new EU-funded 16 million three-year anti-corruption programme will kick off early this year. In June and again in December 2017, EU leaders will need to agree on whether or not to extend economic sanctions on Russia, but with a potential US reset with Russia will western unity on Russia prevail?

Relations with the new Trump administration will also be an important topic in 2017 And with Republicans maintaining control of both houses of Congress and Trump s unpredictable diplomatic agenda, uncertainty about the direction that domestic and foreign US policy will take in 2017 is making many in Europe very nervous The US position on issues such as climate change, international trade, cybersecurity and data privacy will also have world-wide implications. The EU institutions, including the European Parliament, are committed to working constructively with the newly elected Congress and President, and to continue cooperating on issues such as the environment and energy, data protection, combating tax fraud, terrorist financing and security and defence, but will the US show the same level of commitment? Many questions will need months to find answers but what s clear is that 2017 is set to be a moment of truth for many internal and external challenges facing the EU. These were only 10 of the many issues to watch in 2017, but in the rapidlychanging world we live in, other unexpected events and policy issues may quickly climb up the EU s agenda. So stay tuned! You are listening to the European Parliamentary Research Service podcasts. MUSIC JINGLE TO CONCLUDE