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Frequently Asked Questions: End of milk quotas

Why and when were quotas established?

Milk quotas were introduced to address the structural oversupply on the EU market of the late 1970s and early 1980s that had led to the infamous milk lakes and “butter mountains”. EU dairy farmers were guaranteed a price for their milk (considerably higher than on world markets) regardless of market demand. Despite different efforts in the 1970s to slow down EU production, it continued to rise much faster than domestic demand. The system was also having a negative impact on world market prices, as the EU frequently subsidised exports on to the world market.

In July 1983, the European Commission proposed to introduce milk quotas, and this was agreed by the Council on March 31, 1984. The regime required a quota being fixed for each individual producer or purchaser, with a levy (“superlevy”) payable for those who exceed their quota. Subsequent changes have meant producers only have to pay the levy when the Member State also exceeds its national quota.

Do quotas cover all milk, such as sheep and goat’s milk?

No, only cow’s milk. Other milks represent only a tiny share of the EU milk market.

Have quotas achieved their purpose?

The system of quotas – and the threat of levy – helped to cap the expansion of EU production. The butter and skimmed milk powder “mountains”, which had exceeded 1 million tonnes, fell steadily. However, there have been other important changes to the Common Agricultural Policy which have led to a much more market-oriented sector. Successive reforms of the CAP have seen a reduction in guaranteed prices, with a range of policy tools aimed at stabilising farm revenues, notably the system of direct payments, primarily decoupled from production.

Why remove them now?

Milk quotas were originally introduced for 5 years, but the expiry date has been put back several times. The final date was decided in the 2003 CAP reform, and reconfirmed in 2008 with concrete steps to provide a “soft landing” by the end of March 2015. The primary reasons for deciding to end milk quotas was that there has been a considerable increase in consumption of dairy products in recent years, especially on the world market – projected to continue in future – while the quota regime is preventing EU producers from responding to this growing demand. For example, EU exports of dairy products to Korea have more than doubled between 2010 and 2014 from €99mn to €235mn. This corresponds to an increase in the EU’s share of Korean dairy imports from 28% to 37% over the same period. With close to €55bn, the dairy sector represents 15% of the total EU agricultural output. Milk is produced in every single EU Member State without exception in around 650 000 dairy farms. On top of that, there are about 5 400 dairy processing companies in the EU employing 300 000 people. They should be given the possibility to fully benefit from the growing global consumer demand, particularly in Asian markets.

Because the end of milk quotas represent opportunities but also concerns, successive reforms have found other, more targeted ways of helping to support more vulnerable areas, where there are strong social and economic reasons for trying to maintain dairy farming.

I am a milk producer, what does it mean for my daily work?

The end of quotas means that there is an administrative simplification in terms of monitoring daily production. However, there is also an additional requirement and responsibility to monitor market signals more closely (producer organisations and cooperatives may play a decisive role in this respect). In this sense, the Commission has set up the Milk Market Observatory in order to increase market transparency and make the sector aware of the market situation. The slowdown in EU production since the end of last year in the face of less positive market signals is a clear example of where the sector is already responding to the market.    

Does this leave dairy farmers without any protection or support?

Extreme price volatility is limited by the “safety net” instruments still available under the Common Market Organisation (public buying in of butter and skimmed milk powder and private storage aid schemes). The Commission has also the possibility to intervene in exceptional circumstances, as it was the case last year with the Russian import ban in the Baltics countries and in Finland.

As well as the system of “decoupled” CAP Direct Payments, Member States have a range of options open to them which they decide at national on regional level. Options include an additional payment for areas with natural constraints and the possibility for voluntary coupled support for certain regions or certain sectors in fragile situation. In implementing the 2013 CAP reform, 18 Member States have introduced a coupled payment for the dairy sector – worth just over €800 million in 2015.

Also, under Rural Development Programmes, Member States or regions have the flexibility to target support at specific challenges such as dairy farms in fragile areas. Possible measures available here include support for investments in physical assets, payments to areas facing natural constraints, income stabilisation tools, advisory services, incentives for innovation, but there are more. Another option includes support for establishing Producer Organisations.

As well as this financial support, the CAP provides practical and organisational support under the 2012 Milk Package*, such as clearer rules on written contracts but more importantly increased bargaining power for producer organisations.

There is also a role for Interbranch Organisations in the dairy sector. These may carry out a series of activities, including improving knowledge and transparency on production and the market; helping coordinate better the way products are placed on the market, in particular by means of research and market studies; promoting consumption; carrying out the necessary research to adjust production in favour of products more suited to market requirements, in particular with regard to product quality; and promoting innovation, etc.

Before the expiry of the Milk Package provisions in 2020, the Commission is committed to present a Report to the European Parliament and the Council before the end of 2018 on the development of the dairy market situation.

 

Aren’t we running the risk of over-producing again?

No, there is not a risk of the same sort of structural surpluses as in the past. The guaranteed price for butter and skimmed milk powder now merely serves as a safety net – such as during the 2009 dairy crisis, where it put a floor in the market. This means that producers are looking at the market when they decide how much to produce. Increased focus on added-value products (such as cheese and yoghurts) as well as on ingredients for nutritional, sports and dietary products have a strong potential in terms of growth and jobs for the EU.

What are the forecasts in terms of production at Member States and EU level?

While some Member States perceive the end of milk quotas as a source of concern, others welcome the opportunities provided by it.

The Commission’s medium-term market outlook last December forecast continued growth in exports, especially for cheese, skimmed milk powder and whey. See page 35 for more detailed prospects per Member State.

 

How has the sector evolved over the years in terms of producers and production?

As in most agricultural sectors – and most sectors of the economy – there has been a gradual decline in the number of dairy farmers around the EU in the past 30 years (-6% a year on average). Average herd sizes have tended to increase, and improvements in genetics and feed efficiency have helped increase the average yield per cow. However, the situation widely varies from Member State to Member State: milk specialised farms in the EU-15* have a milk yield of some 7 300 kg/cow for an average herd of 54 cows, while in the EU-10** the average yield is 5 700 kg/cow for an average herd of 19 cows and in the EU-2*** the average yield is 3 400 kg/cow for an average herd of 5 cows. (This compares with average herd sizes of 115 cows in the USA, 258 cows in Australia and 413 cows in New Zealand.) In addition to this consolidation, we have seen dairy farmers working more closely together through cooperatives. The overall level of production has remained relatively stable, limited by the quota regime. However, the greater market orientation has seen a greater shift towards more added-value products, especially for exports. For example, EU cheese production from 2003 to 2013 increased by 26%, while the volume of exports rose by 69%. The share of ingredients is also significantly increasing notably targeting new nutritional needs linked to modern living habits and evolving demography.

One of the other crucial elements has been the additional investments provided by EU Rural Development funding, in particular for individual farm modernisation projects, but also on other investments. Figures for the 2007-2013, show that EU funding for farm modernisation amounted to 1.8 billion EUR, which was matched by 1.4bn EUR of national/regional public funds, and nearly 7.4 bn EUR of private investment – such that a total of more than 10.6bn EUR was spent on dairy modernisation over the period.

* Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom.

** Czech Republic, Estonia, Cyprus, Latvia,Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia

*** Bulgaria, Romania

Will it create greater price volatility for milk?

Volatility is a normal characteristic of agricultural markets. The European dairy sector is now following a market-orientated policy, which means that, following the ending of milk quotas, production should be based on market needs and opportunities. Where possible, supply and demand should be adjusted to meet those needs and opportunities.

The EU is the most important milk producer in the world and a major player which, with or without quotas, is connected with the dynamics world market. So while experience show quotas cannot prevent crisis, they certainly do impede our farmers to follow market signals and take advantage of market opportunities.

The role for the public authorities is limited to safety net measures. Public intervention remains available if prices drop below a reference level.

Underlying demand growth has not been affected by the latest market downturn – population growth, rising incomes and changing dietary preferences are all positive demand drivers. So, there is good reason to be optimistic about the future

Will this mean that consumer prices get cheaper?

Past experience shows that there is not always a correlation between what the farmer gets paid and what the consumer pays. For example, the significant increase in the farm gate price during the first half of 2014 (+13% for the EU) was generally transmitted to consumer prices for both milk and cheese, but with significant differences between Member States – Germany +8.4%, France +0.8%. By contrast, the generalised decrease in producer prices in the second half of 2014 did not prevent a further increase in consumer prices in most Member States, although to a small extent.

Changes in producer & consumer prices, 2014 relative to the same period of 2013 (in %)

Producer Prices

 

Consumer Prices

Jan-Jun 2014

Jul-Dec 2014

Jan-Jun 2014

Jul-Dec 2014

EU

+12.6%

-7.7%

+3.2%

+1.5%

Germany

+15.3%

-11.7%

+8.4%

+4.0%

France

+12.1%

-0.6%

+0.8%

+0.6%

Poland

+14.9%

-9.6%

+3.4%

+1.1%

UK

+13.2%

-2.4%

+1.6%

-0.5%

Source: DG AGRI Short-term market outlook

Cornerstones of the new EU Energy Union

Vice-President Šefčovič speech at EUFORES 15th Inter-Parliamentary Meeting on Renewable Energy and Energy Efficiency

Vienna

Ladies and gentlemen,

Two weeks ago, the European Commission adopted the Energy Union Strategy. I then called it the most ambitious energy project since the European Coal and Steel Community of the 1950s, because what we want to achieve, is nothing less than a fundamental transition of our energy system. We want to set our economy on a new, sustainable trajectory. As one Member of the European Parliament summarized it in a single image: we want to move from a Community of Coal and Steel to a Union of Sun and Wind.

Such an overarching strategy can only succeed if we work together across institutions and stakeholders at all levels: European, regional, national and local. Just like we worked together within the Commission, across portfolios, bringing together 14 Commissioners and 16 DGs. I am therefore very grateful for the opportunity to discuss the Energy Union directly with you – parliamentarians from across Europe, civil society, and businesses. Your contribution will be crucial to achieve the goals of this forward-looking energy and climate change policy.

Ladies and gentlemen, the Energy Union is a big step towards an energy market that is economically sustainable, environmentally friendly, and socially inclusive. An energy market that is integrated, interconnected, resilient and secure. It is a ‘triple win’ strategy, because it will benefit citizens, businesses, and the environment.

For that, we set out a series of concrete actions – both legislative and non-legislative – in the five dimensions that I presented to the European Parliament in my hearing and that, next week, the European Council will hopefully confirm:

  • First, securing our supply. Member States, and citizens, should know that they can rely on neighbouring countries when faced with possible energy supply disruptions. That is what the word ‘solidarity’ means in the energy field; that is how we can build more trust between Member States. We are therefore working on a series of measures to diversify our energy resources and supply routes. Next week, for instance, I will attend the groundbreaking ceremony of the Trans Anatolian Natural Gas Pipeline (TANAP), in Kars, Turkey; a project that will bring gas from Azerbaijan’s Shah Deniz II field through Turkey, into Europe. It is this kind of projects we need. But security of supply means much more than only gas, however important gas will remain for years to come. Security of supply means – and I would even say: it means first and foremost – becoming more energy efficient, knowing that for every 1% improvement in energy efficiency, EU gas imports fall by 2.6%.
  • Energy security also means: building a single energy market will allow energy to flow freely across EU countries as a fifth European freedom. This internal market is the second dimension of the Energy Union Strategy.By removing technical and regulatory barriers of cross-border energy flows, consumers will enjoy the fruits of a increased competition – lower prices and better service!
  • The third, fourth and fifth dimensions go hand in hand with the first two and go to the core of today’s conference and the work you do at EUFORES, namely: increasing energy efficiency, decarbonising our economy and investing in innovative renewable sources of energy.

This covers a very broad range of issues, which will require the full involvement of many commissioners. Let me just mention three issues, amongst many other issues, that I intend to give a serious push in the weeks and months ahead.

First, to tap the full potential of energy efficiency of buildings. The figures clearly show why more action is needed in this field: currently, 75% of Europe’s building stock is not energy efficient; buildings are responsible for 40% of energy consumption and 36% of CO2 emissions in the EU. About 35% of our buildings are over 50 years old. They eat energy! While older buildings consume about 25 litres of heating oil per square meter per year on average (some even up to 60 litres!), new buildings only need three to five litres on average. So we can – and should – do better.

Second, as the importance of the local level increases, we should pay more attention to initiatives at the local level, of course in full respect of the principle of subsidiarity. Smart Cities are an excellent example of how the municipal level can play a major role in the transformation of the energy market that we’re looking for. Last week I met an impressive delegation of mayors who shared several good examples of successful initiatives from all over Europe:

  • the German city of Heidelberg created an entire neighbourhood with only passive buildings, (in the city quarter of Bahnstadt. The neighbourhood is powered by district heating, primarily sourced from renewables with smart energy consumption meters, creating local jobs and a passive housing knowledge cluster for future projects.
  • Helsinki is a leader in heating and efficiency standards. 90% of the city is serviced by the district heating system with over 90% efficiency.
  • in the north of France, the city of Loos-en-Gohelle transformed its coal mine into a regional research centre of sustainable development. Visitors now face the surreal image of solar panels in front of the mine’s spoil tips.
  • and I could go on…

These examples showcase the various local initiatives which should be replicated across Europe, and I would add: with a particular emphasis on Central and Eastern Europe.

And third, we have to develop an energy and climate-related technology and innovation strategy to maintain Europe’s global leadership and competitiveness in low carbon technologies. Europe has all the necessary elements to become a global hub and a world leader in renewable technologies. It is in this field – in the field of low-carbon renewable energy sources, in the field of energy efficiency, in the field of smart appliances and smart grids – that Europe can regain its competitive edge! Smart grids are the European shale.

We must better focus our research and innovation policies, we must create synergies between energy and ICT (very appealing to young people), and between research and industry. New industries will emerge that will strengthen our economy and further support job creation across Europe.

It is in this context that I would also like to underline the importance of ecodesign and energy labelling. Not only because this framework will deliver by 2020 energy savings that are roughly the equivalent of annual primary energy consumption of Italy, not only because consumers can save several hundreds of euros per household per year, but also because there is a clear business case. If countries such as Brazil, China, Korea, South Africa and others adopt equipment energy labelling schemes similar to ours, it creates a market for our companies. Let us be the first mover and set the standards!

Ladies and gentlemen, the Strategy is written, the principles have been established, the real work starts now. We will start up a series of specific actions, such as:

  • developing a ‘Smart Financing for Smart Buildings’ initiative to facilitate access to existing funding instruments;
  • we will propose a strategy for heating and cooling; it’s an important hook, because as many of you told me: the energy crisis is first and foremost a heating crisis;
  • we will dedicate a significant share of the European Fund for Strategic Investments to energy efficiency and renewable energy;
  • we will review the Energy Efficiency Directive, as well as the Directive on Energy Performance of Buildings;
  • we should bring together potential investors and solid projects. There are investors willing to invest, and there is a need for smart investments, so let us connect the dots and remove obstacles
  • and we will develop, without delay, the robust governance framework that the Energy Union needs in order to deliver on its promises, including to make sure that we reach the targets set by the October European Council.

Through these and other measures, we will make sure that the principles we endorsed – such as the ‘energy efficiency first-principle – are transformed into reality and become operational.

Ladies and gentlemen,

The first reactions to the Energy Union Strategy have been positive and supportive, in the European Parliament, the Environment and Energy Council, amongst mayors, consumers, business associations, think tanks, and academia. Do not underestimate the importance of such reactions: they really help to create the positive dynamics needed to seize the current momentum and to implement what is on the table.

I therefore hope that throughout this process, I can continue to count on your support, whether you are a parliamentarian, entrepreneur, researcher, civil society activist or a citizen, and I am looking forward to your comments and ideas in today’s discussion and over the five years to come.

Thank you.

Speeches: Combatting Terrorism: Looking Over the Horizon

Thank you, Ruth. It is great to be here at SAIS – a place that has always emphasized an interdisciplinary approach to international affairs and a place well suited for this discussion about the need to address underlying causes of violent extremism in order to support current efforts to defeat terrorist networks.

From Copenhagen to Cairo, from Paris to Peshawar, in Nigeria, Libya, and China, violent extremists have perpetrated bombings, kidnappings, and shootings this year. Violent extremism is spreading geographically and numerically, and every corner of the globe is at risk. No country or community is immune. Intelligence officials argue that terrorism trend lines are worse than at any other time in modern history; despite the tactical successes of our intelligence gathering, military force, and law enforcement efforts, terror networks are spreading and new threats are emerging around the world. Accordingly, the United States and its allies in the fight against terrorism must strengthen our comprehensive strategy to address the underlying drivers that fuel the appeal and spread of violent extremism. That is precisely why President Obama recently hosted the White House Summit to Counter Violent Extremism. Joining with leaders of foreign governments, international organizations, the private sector and civil society, President Obama and Secretary Kerry launched a global effort to address the enablers of violent extremism in order to prevent the emergence of new terror threats.

It is worth putting this pivotal moment in historical context.

As we look back on the terrorist challenge of past decades, several broad phases are discernible. We saw terrorism in the 1970s, 80s, and even 90s largely in the context of political movements, nationalists and separatists, regarding terror as a tactic used most often for political gains. Our national and international organizations dedicated to addressing these movements were modest, and our response paired political, criminal justice and law enforcement efforts.

In the 1990s, however, terror attacks against U.S. targets at home against the World Trade Center and abroad against the U.S. Embassies started to shift our thinking about and approach toward terrorism. It was no longer seen only as a foreign political challenge. Of course, after the 9/11 attacks against the United States, the U.S. mobilized anew, developing extraordinary military and intelligence capabilities focused on better understanding, tracking, and where necessary, attacking terrorists and terror networks. Working closely with a small number of partners, we also developed intelligence networks and refined military operations to detect terrorists and foil their plots, and we enhanced border security, law enforcement, and other tools to protect the homeland. With the killing of Osama Bin Laden in 2011 and of countless other terror leaders, al-Qa’ida’s core was beaten back.

Yet despite the world’s devotion of enormous military and intelligence resources – as well as human treasure – the threat of violent extremism persists. Over the past 13 years, violent extremist movements have diffused and proliferated. Increasingly, they have sprung from within conflicts worldwide. And they have exploited grievances and divided societies in order to further their own aims. Weak, illegitimate, and repressive governments inadvertently created opportunities for terrorists to capitalize on popular resentment of governments make common cause with local insurgents, the discontented, and criminal networks, and operate in poorly governed territory. Additionally, terrorist methods and goals have diversified. They now control large territories in several regions of the world.

Let me offer specific illustrations of these dynamics: Tehrik-e-Taliban has long exploited local grievances in the tribal belt along the Afghanistan-Pakistan border in order to sustain itself. Members of Al-Qa’ida’s network in East Africa blended with militants from the Council of Islamic Courts to create al-Shabaab. In the loosely governed expanses of the Sahel, extremists including AQIM associated with disenfranchised Tuareg tribes to expand its power base. In Libya, Ansar al-Sharia exploited post-Gaddafi factional violence to cement itself in the Libyan landscape. And the Islamic State of Iraq and the Levant, or Daesh today, dramatically expanded its reach and power by capitalizing on Sunni political disenfranchisement in Iraq. The rise of Daesh is on all of our minds, but it is only one manifestation of a trend that we have witnessed over the last decade. Violent extremist groups have been expanding their control and resonance in South Asia, the Sahel, the Maghreb, Nigeria, Somalia, and in the Arabian Peninsula.

Of course, the U.S. approach and that of our partners in the fight against violent extremism has been adapting as well. We continued to pursue military force to go after terrorist leaders plotting to attack the U.S. or its interests and continued to refine our intelligence capabilities. We proved adept at taking key terrorists off of the battlefield. We also adopted more comprehensive approaches toward terrorism and violent extremism, adapting to the evolving threats we faced. For example, we placed greater emphasis on building the capacity – including military, intelligence, and civilian – of our partners to address threats within their own borders and region, as well as expanding efforts to reduce the radicalization that was leading individuals to join terrorist groups. We strengthened the international counterterrorism architecture by working with our Western allies and Muslim-majority partners to launch the Global Counterterrorism Forum in 2011. This platform allows experts from around the world to share good practices and devise innovative civilian-focused approaches to addressing the terrorist and violent extremist threats freed from the politics and process of traditional multilateral bodies. That same year, the U.S. inter-agency Center for Strategic Counterterrorism Communication was created to more effectively counter the violent extremist narrative. And the U.S. sought to place greater emphasis on the role of law enforcement and the wider criminal justice system in preventing terrorism and bringing terrorists to justice within a rule of law framework, thereby strengthening the international cooperation that is so essential to addressing the threat. More broadly, from his first day in office, President Obama has made clear that to be successful, all of our efforts to counter terrorism and root out the violent ideology that underpins it, must be done consistent with American values and be rooted in respect for human rights.

Still, the threat of violent extremism continues to metastasize in different dimensions. A new variant of terrorist threat is foremost on our minds today. Some of the most violent extremist groups, such as Daesh or Boko Haram, differ from Al Qaeda, because they are not similarly devoted to dogmatic treatise, militant hierarchy, or simply destroying existing state authority. Many of these new actors they seize land, resources, and population to consolidate geographic control and advance their apocalyptic visions. They violate human rights in the most egregious ways imaginable, exacerbate communal differences, and lure foreign fighters to incite violence around the world. These groups destabilize entire regions and inspire, if not actively plot, attacks on the US homeland and against our allies. They violate and undermine every aspect of the progressive norms and order that the international community painstakingly built from the ruins of World War II. They pose very real threats to U.S. interests and to international stability as they propagate and violently pursue their nihilistic goals.

The international community has responded accordingly. ISIL’s sudden and dramatic rise has animated a robust military coalition to defeat it, which the coalition will most certainly do. But physically dislodging terrorist safe havens requires a comprehensive and costly military effort, and removing violent extremists from the political landscape of failed states or failing communities is a long-term process. The most effective and useful way to address the metastasizing threat of violent extremism is to prevent its spread through less costly and destabilizing methods, to better enable the success of the our military efforts to defeat terrorism where it already has rooted. The long game lies in building an international coalition to prevent the rise of the next ISIL.

This requires a clear-eyed view of why these groups have been successful. It is not solely because of their extremist ideology, as important as it is to counteract the vitriolic incitement. These groups are more opportunistic and cynical. For example, Boko Haram exploits unrelated local grievances and decades of neglect of the Muslim north. Daesh, a successor to the former al-Qa’ida in Iraq, emerged from the inferno of Syria’s civil war and capitalized on Iraq’s political difficulties. Al Shabaab drew its strength from Somalia’s state failure, rampant corruption, and inter-clan rivalry for resources, and these conditions allow the group to continue governing rural parts of Somalia. As the group was militarily dislodged from city centers, it began seeking common cause with aggrieved minorities along Kenya’s coast, using attacks to stoke ethnic and religious tensions.

The adaptation of terror organizations highlights the need for us to continue adapting our approach to violent extremism. These realities demand thinking about violent extremism not simply in terms of individual radicalization but also in the context of dynamics that make entire communities vulnerable to radicalization, co-optation, or exploitation.

How can we most effectively do this? We know there are many forces that drive individuals to violence. Current research, including interviews with former violent extremists or rehabilitated terrorists consistently reveals that there is no single driver of violent extremism. Rather, there are a number of common ones including: boredom, intergenerational tensions, the search for greater meaning in life, perceived adventure, attempts to impress the local community, a desire for increased credibility, to belong or gain peer acceptance, and revenge.

Similarly, there is no one driver of community-wide radicalization. Participants in last month’s White House Summit to Counter Violent Extremism cited social rejection, political disenfranchisement, and economic exclusion as underlying conditions conducive to the spread of violent extremism. Yet the phenomenon of political, economic, and social marginalization as a driver of violent extremism is not new, nor is it synonymous with any one region, religious tradition, or culture. Marginalization is a strong “push factor” for many individuals and groups, and it creates a vulnerability to ideological and charismatic “pull factors.” Extremist narratives therefore become more intellectually and emotionally attractive to these marginalized communities.

Support for violent extremism does not take hold only under illiberal, authoritarian regimes; it festers anywhere liberty is denied. Even in societies with legal frameworks that guarantee respect for human rights, extremists have found resonance by exploiting real or perceived social and economic discrimination. While we may not know the precise reasons why the Charlie Hebdo attackers Saïd and Chérif Kouachi resorted to terrorism, we can see how violent extremists seek to exploit discontentment. In the low-income housing projects outside of Paris where the brothers grew up, the youth unemployment rate stands at more than 25 percent, and residents often complain of unresponsive law enforcement in the face of soaring crime and blatant hiring discrimination.

Although not the sole driver of violent extremism, marginalized and alienated groups provide “seams of vulnerability” for terrorists to exploit in their efforts to recruit and seek support. Simply put, people who think that they have nothing to lose and that playing by the rules of the system provides no avenue to opportunity or success become more susceptible to being drawn to violent radical actions to upend the status quo. We must therefore anticipate and monitor, if not ideally stitch up, these seams of vulnerability. This is the concept of preventing the rise of violent extremism before it becomes a terrorist threat. To execute this prevention strategy wisely, we need to refine how we think about policies and programming to enhance our understanding of what makes communities vulnerable to radicalization, co-optation, or exploitation by violent extremists, and we need a strategy to prioritize the allocation and alignment of resources to address first those seams most vulnerable to terrorist exploitation.

This preventive approach requires policymakers and experts to expand their focus beyond today’s dangerous threats. They must look to include communities that have not yet become terror safe havens or active conflict zones but that show susceptibility either to ideological radicalization or simply to making common cause with foreign terrorist organizations. Effective prevention requires us to work not in violent extremism “hot spots,” safe havens, or in active conflict but at the periphery – the places that terror networks will seek to penetrate as they expand their spheres of influence or as they are displaced from their current safe havens.

Prevention through addressing vulnerabilities on the periphery of terror networks broadens available interventions to include diplomatic, political, and economic tools. These approaches are possible in non-crisis environments, where bilateral cooperation is stable, development professionals have access to target populations, civil society organizations exist, youth can attend school, and adults devote their energies to economic activity, not fighting – all necessary conditions for development assistance and related interventions to take root and lead to improvements in governance and long-term economic growth.

A focus on broader interventions to address underlying factors on the periphery creates new opportunities for success in the struggle against violent extremism. Not every potential partner can participate in a military coalition, and many states are committed to international assistance programs that can be tailored to this particular challenge. A prevention approach further enlarges the coalition of effective interveners to include civil society and the private sector, who find it challenging to work in crisis zones. Civil society organizations, especially local voices, actors, and networks are essential, since they have intimate knowledge and authentic credibility to mediate disputes and misunderstandings, among communities or with state actors. Civil society organizations are especially well-suited to partner with women and youth, two groups critical for successful community resilience. For example, during last month’s White House Summit, a civil society leader from a West African country described the long, difficult process she undertook to earn the trust of a group of local imams in order to start a book club program to teach critical thinking and reasoning skills at several madrassas. Only a local actor could have won the imams’ trust, underscoring why one of non-state actors are so critical for prevention work.

The private sector can also play a role on the periphery. Building alliances with the private sector strengthens community resilience, by providing more economic opportunity to citizens and showcasing new innovation, growth, and connectivity. More private sector growth can offer another way to dampen the appeal of extremism and stabilize communities.

President Obama hosted the Summit to draw more attention to the importance of addressing the broad enablers of this extremism and to highlight the role of local communities and civil society in this effort. The President defined the Summit goal as “preventing [violent extremist] groups from radicalizing, recruiting or inspiring others to violence in the first place,” and he challenged the international community, to come up with a positive, affirmative antidote to the nihilism that terrorists peddle: “If we’re going to prevent people from being susceptible to the false promises of extremism,” he said, “then the international community has to offer something better.” The event may well prove to be a pivotal moment in the global struggle against violent extremism, opening the way to a more comprehensive, affirmative, and far-reaching effort to prevent the spread of terrorist networks.

The meeting convened an unprecedented diversity of stakeholders from more than 65 governments, civil society leaders from more than 50 countries, and two dozen private sector institutions, who engaged in an honest, straight-forward discussion about the broader enablers of violent extremism and its effects on their communities. “We know that poisonous ideologies do not emerge from thin air,” United Nations Security General Ban Ki-moon declared, as he pointed to “oppression, corruption, and injustice” as drivers of violent extremism. He cautioned that “all too often counterterrorism strategies lack basic elements of due process and respect for the rule of law.” Dr. Peter Neumann of the International Center for the Study of Radicalization cited evidence that social and political marginalization render people receptive to violent extremism. Jordan’s Minister of Foreign Affairs Nasser Judeh addressed the role of Islam and called for an interfaith unity. “Religious authorities representing all religions on the face of this earth,” he said, “must unite on a narrative that discredits extremist ideology, dispels its foundations, and preaches moderation and interfaith harmony.”

The delegates outlined an ambitious, affirmative action agenda to address violent extremism. Governments, civil society, the private sector, and multilateral bodies committed to take action, both collectively and independently, in eight broad areas:

  • Encouraging local research and information-sharing;
  • Expanding the role of civil society, especially the role women and youth;
  • Strengthening community-police and community-security force relations;
  • Promoting the counter-narrative and weakening the legitimacy of violent extremist messaging;
  • Employing educational approaches and amplifying mainstream religious voices to build resilience;
  • Preventing radicalization in prisons and rehabilitating and reintegrating violent extremists;
  • Identifying political and economic opportunities for communities vulnerable to radicalization and recruitment;
  • Providing development assistance and stabilization efforts.

Several delegations have already pledged commitments in support of this comprehensive agenda. The United Nations will convene a special event this year to bring faith leaders from around the world together to promote mutual understanding and reconciliation. Japan announced a $15.5 million contribution to build capacity in the Middle East and North Africa to counter terrorism and violent extremism, including by strengthening community resilience. The European Union will create a Round of Eminent Persons from Europe and the Islamic world to encourage intellectual exchanges and promote dialogue on the cost and ramification of terrorism in our societies and to launch additional programs on how to link education and countering violent extremism. Norway will significantly expand its support for education training programs targeting populations at risk of radicalization and contribute $600,000 to the Global Community Engagement and Resilience Fund, and the Republic of Korea will engage IT companies to develop new initiatives to counter violent extremism.

Several delegations pledged support for counter-messaging initiatives. With European Union support, Belgium is establishing the Syria Strategic Communications Advisory Team to develop a communications strategy to provide subtle counter-narratives. The African Union has pledged to work through the Network of African Journalists for Peace to launch a continent-wide, counter-violent extremism messaging campaign, and through its Against Violent Extremism Network, Google Ideas is challenging the terrorist narrative, by leveraging and trumpeting the testimonials of more than 500 rehabilitated former extremists from 40 countries.

In addition, many countries and organizations, including Albania, Algeria, the African Union, Australia, Denmark, Djibouti, Kazakhstan, Kenya, Norway, and the Organization for Security and Co-operation in Europe, are already planning to host follow-on regional or thematic summits in an effort to involve more countries, civil society organizations, and companies in this process.

The Summit’s commitment to preventing violent extremism widens the aperture on the problem and invites deployment of development and broader foreign assistance programs to those communities particularly vulnerable to radicalization to violence.

The United States’ is committed to this multilateral action agenda. The U.S. is already working through the Global Counterterrorism Forum to support community-oriented policing in South Asia, the Horn of Africa, the Sahel, and elsewhere; nurturing entrepreneurship and strengthening innovation in emerging markets through our Global Entrepreneurship Summits and the Global Innovation through Science and Technology program; and rallying our partners across a broad array of sectors—including heads of the entertainment and technology industries, philanthropists, and policy makers—to expand economic opportunities for vulnerable and marginalized communities. In addition to the $188 million in programs that the State Department and USAID are already dedicating to implementation, President Obama has requested nearly $400 million in additional resources in the 2016 budget for the State Department to support a wider range of counterterrorism partnerships, including programs to address violent extremism.

Stay tuned for progress on this effort. President Obama invited Summit participants to reconvene at a leaders’ summit on the margins of the United Nations General Assembly in September, when heads of governments, organizations, and corporations will announce the programs and policies they have undertaken to address the drivers of violent extremism and implement the action agenda. The Summit agenda ultimately promises to identify areas of greatest risk to violent extremism and help prioritize the deployment of resources and expertise to prevent terrorism from taking hold.

Several Summit participants called the meeting a milestone in the global effort against violent extremism and a turning point for the U.S. in moving toward a holistic approach that embraces Muslim and marginalized communities, as well as the role of civil society and the private sector. The challenge now is to build on this momentum so that it produces practical and tangible outcomes. It is an opportunity to supplement, expand, and innovate for the next generation. We can complement a counterterrorism strategy that has had success in addressing immediate threats with a more comprehensive approach to prevent the emergence of new threats. This preventive approach is affirmative: by employing a broad range of tools, including diplomatic, political, development, and communications levers, it seeks to empower individuals and their communities to resist extremism without the risk of further alienating them. This approach may also prove more sustainable in employing a wider array of actors and interventions to prevent terrorist threats from expanding or emerging in the first place.

Although preventing violent extremism entails harnessing a broader toolkit than intelligence gathering, military force, and law enforcement has built to date, it does not mean that development assistance or strategic communications will replace security interventions in countering terrorism. The United States government will continue to defend the American people and its interests abroad by targeting and eliminating current terrorist threats. The President’s commitment to comprehensively preventing violent extremism will advance new tools to complement and enhance, not replace, current counterterrorism efforts.

The White House Summit already has spurred new investments and innovative programs to address the underlying drivers of violent extremism. Yet realizing this approach will not happen overnight, even here in the United States. It is, by definition, a generational effort. But the United States and our partners have embraced the need to look over the horizon, to get ahead of the next violent extremism challenge.

At the Summit, Secretary Kerry announced: “We can send a clear signal to the next generation that its future will not be defined by the agenda of the terrorists and the violent ideology that sustains them; we will not cower, and we will prevail by working together….Our collective security depends on our collective response.” When world leaders reconvene on the margins of the United Nations General Assembly in New York this September, they will have a historic opportunity to consolidate this more comprehensive approach to counterterrorism.

The road to 5G

Speech by Commissioner Oettinger at the Mobile World Congress

Good morning Ladies and Gentlemen

It is a great pleasure to be with you on the occasion of this plenary panel on “the road to 5G”. It is my first time at Mobile World Congress and I am really impressed by what is on display here. Just one thing: I thought the show was about phones, not about cars!

This is precisely the point: everything is turning digital, from cars to cities to services to machines. The digital economy is simply becoming THE economy.

And the future network infrastructure, 5G, will become THE infrastructure. Everybody and everything will use 5G. Anywhere, at any time, and on the move, always best connected with almost zero delay and a perceived limitless capacity. Today, we can celebrate that Europe is back in front to continue the journey towards this bright 5G future.

5G

So let’s start with it. This afternoon, the 5G-Public Private Partnership, which was launched here in Barcelona last year, will present our 5G vision, and I can already tell you that it is very exciting.

The digitisation of our economy and society is accelerating. It is unstoppable. With the Internet of Things, we see a new era of connectivity where billions of devices exchange data and instil intelligence in our everyday life. From watches to shoes. From fridges to heating. From hospitals to factories. Any industry will need to adjust to this new reality. But this requires a new generation of communication networks.

5G is expected to be the connectivity infrastructure that will foster this industrial and societal transformation. It is not “only” about more of the same: more capacity, more content, more speed. This is needed, but not good enough. It is about a network infrastructure that is as easy and pervasive as the air we breathe, one that can be used for all sorts of different and personalised usages.

A second key aspect is related to innovation. 5G should become an innovation platform. And with softwarisation and network virtualisation, open networks platforms will lower market entry barriers for service developers, and stimulate a market of third party providers. The same as with cloud computing. Today, we have millions of apps that work on different smart phones platforms. Tomorrow with 5G, the network itself could become a development platform!

5G represents an opportunity for the telecom sector to reinvent itself. With 5G, telecom operators should be able to provide specialised network services to a series of new industry partners: from the automotive, to rail, health or energy sectors. To guarantee that connected cars will be able to react in less than 1 millisecond and avoid collisions. Or that tele-medicine will save lives and not be stuck in traffic. This is why we need the right kind of rules for Net Neutrality. To guarantee an open Internet. But also to allow such specialised services to flourish.

In a nutshell, the advanced 5G infrastructure is expected to become the nervous system of the Digital Society and Digital Economy.

The EU industry has a major role to play in the context of global 5G. It has a strong influence on the competitiveness and innovation of other sectors. Beyond economic matters, it is also about security and technological sovereignty for Europe.

What has been done

These reasons led us to launch a 5G Public Private Partnership. With 700 million euro eamarked under the Horizon 2020 Research and innovation programme to get 5G up and running, while industry partners have committed to leverage the EU funding by up to five times. In one year of existence, this partnership has delivered very convincing results.

First, research is under way. The EU is pioneering 5G research with a set of projects already reaching completion. You can see some dedicated demonstrations here today, at the EC booth and on the corporate stands of key industrial players who participate in these research projects. I invite you to visit projects like METIS, or 5G NOW, to quote but a few.

More is under way, as we will soon award the research grants for 125 million euro to 20 projects to deliver the key building blocks for 5G. They cover novel network architectures, new radio technologies, new service platforms, and innovative utilisation of spectrum. They will place European actors in very good position to contribute towards the future standardisation and spectrum milestones ahead of 5G.

Second, we have progressed on the international front. The European Commission and the Republic of Korea signed a joint declaration on 5G. It is our intention to sign similar agreements with other key regions of the world, notably Japan, China, and the US. We target a single global 5G standard and global spectrum harmonisation. This will maximise global interoperability, and economies of scale.

Last but not least: the 5G vision will be delivered this afternoon. It is a global vision made in Europe and we hope that the whole world will embrace it.

So, what lies ahead?

5G is becoming a concerted global effort in which Europe is playing a leading role. Early 5G deployment is targeted beyond 2020. By then, we need to collectively address a number of challenges beyond research:

– First, we must identify new spectrum for high-performance 5G wireless broadband with a global footprint.

Spectrum – as the essential resource for the wireless connectivity of which 5G will be the main driver – stands at the centre of the digital transformation and is crucial for the completion of the Digital Single Market.

Early identification of a “5G spectrum bands” will contribute to Europe becoming a global hub for 5G development and investments. In the past, European position may have been fragmented, but we cannot afford it in the 5G race. We must build together a European approach in the international spectrum debates with other global actors. The International Telecommunication Union‘s World Radio Conference 2015 is a key milestone, to prepare for the in depth debates that should take place at the next conference in 2019.

But there can be no successful 5G deployment in Europe without enhanced coordination of spectrum assignments between Member States. A call for spectrum reform that European leaders set out in October 2013.

The Commission “Connected Continent” package was a first step in this direction. I welcome the progress in Council, now focussing on net neutrality and roaming. However I will continue to work with them and the European Parliament to achieve a political compromise on some other elements of the package that are vital to a wirelessly connected society and economy.

It contains important measures to facilitate small cell deployment and Wi-Fi which are at the heart of 5G success. Removing administrative barriers for their rapid deployment is the forward-looking policy of today to enable 5G tomorrow.

– Second, the development of standards. 5G standardisation is expected to start in 2016. Research results need to be leveraged early enough so that industrial actors can have very clear positions to defend it in standardisation fora. From the public side, we need to make sure that European and citizens’ interests are safeguarded, notably in terms of global interoperability and openness. Also reforms of the standardisation process, notably on intellectual property, must not discourage investments in research;

– Finally, the 5G full potential can only be realised if close partnership with “vertical” industries are implemented. We need to learn how to more systematically work across industrial siloes and to create cross sector added value. Also adjusting regulations, as they are not always compatible across different sectors. Connected cars are a typical example for which I have already launched an exploratory initiative.

The more immediate future

5G is about tomorrow, yet we need to solve a number of obstacles already today:

4G deployments. 5G will not supersede 4G but build on it. Being a 5G lead adopter requires to be a 4G leader. But Europe is still lagging behind on 4G deployments. There are however encouraging signs, and planned industrial investments on 4G are ramping up. Even more encouraging, Western Europe is leading deployment on latest Long-Term Evolution (LTE) generation, LTE Advanced, with about 50% of networks deployed in Europe. But Europe must do more.

The Juncker package of 315 billion euro is a huge opportunity in that respect. Investment in digital infrastructures is clearly part of this Commission priorities. We are taking steps towards adoption of the Commission proposal on European Fund for Strategic Investments as swiftly as possible so that new investments can start flowing later this year. We have also worked with Member States to define a pipeline of possible projects. Member States have already identified almost five hundred proposals for ICT and broadband projects representing a total investment sum of 151.7 billion euro in the next 3 years. The interest is there, and I encourage the sector actors to support the relevant Member States proposals;

Access and connectivity are core issues for the Digital Single Market strategy announced by President Juncker. In May the Commission will present this Strategy, feeding into the June European Council. But for me, it is clear that a Telecom Single Market is a cornerstone to the Digital Single Market.

To conclude:

With 5G, Europe has a great opportunity to reinvent its telecom industrial landscape. But 5G is much more complex than earlier generations, and it requires committed partnerships not only with the traditional telecom actors but more generally with the vertical usage sectors. It also requires new ecosystems of software developers. 5G is also a bold opportunity to spearhead the digital industrial transformation of Europe, and to support the Digital Single Market.

We are now at the cross road of exciting developments. I expect that the EU industry at large will set the path towards an ambitious 5G technology development and deployment roadmap. And the Commission is providing undivided support to the roll-out of these promising new technologies, at single market and global scale.

Thank you for your attention

 

STATE OF THE NATION ADDRESS BY HIS EXCELLENCY LT. GEN. SERETSE KHAMA IAN KHAMA,

STATE OF THE NATION ADDRESS BY HIS EXCELLENCY LT. GEN. SERET…

13/11/14

1. Madam Speaker, before we begin may I request that we observe a moment of silence for those of our citizens who have departed from us during the past year. Thank you. 2. Honourable Members, it is my pleasure to once more present an updated assessment of how Government intends to move Botswana forward by seizing opportunities to secure our future. 3. As this is the first session of the 11th Parliament, let me preface my remarks by welcoming the newly elected members of this Assembly. Let me further congratulate you Madam Speaker on your own election.

STATE OF THE NATION ADDRESS BY HIS EXCELLENCY LT. GEN. SERETSE KHAMA IAN KHAMA, PRESIDENT OF THE REPUBLIC OF BOTSWANA, TO THE FIRST SESSION OF THE ELEVENTH PARLIAMENT – “MOVING BOTSWANA FORWARD”

 

INTRODUCTION

 

1. Madam Speaker, before we begin may I request that we observe a moment of silence for those of our citizens who have departed from us during the past year. Thank you.

 

2. Honourable Members, it is my pleasure to once more present an updated assessment of how Government intends to move Botswana forward by seizing opportunities to secure our future.

 

3. As this is the first session of the 11th Parliament, let me preface my remarks by welcoming the newly elected members of this Assembly.  Let me further congratulate you Madam Speaker on your own election.

 

4. Today’s gathering is an outcome of our 11th consecutive general election. As is our tradition, the ballot was conducted in a peaceful, free and fair manner. For this we can once more thank Batswana in general, as well as the Independent Electoral Commission (IEC) and other individuals and organisations that helped to ensure the poll’s success.

 

5. In any democracy elections are the means to the greater end of forming a Government capable of translating the popular will into public service delivery. We who have the honour of sitting in this House are accountable to the hundreds of thousands who entrusted us with their votes. Although divided in their choices, the voters were united by a shared desire for a better future. It is, therefore, our responsibility to ensure that together we deliver that future by at all times putting the national interest before our own.

 

6. Last month my party, the Botswana Democratic Party, was re‐elected on the basis of a detailed manifesto that promised to secure our common future by building on our past achievements. Today, before this House I reaffirm our commitment to honour that pledge.

 

7. In as much as we recognise that a government of and by the people is not an event but a process; this administration shall continue to engage Batswana across the country about their concerns through various fora and media, from the venerable realm of dikgotla to the digital world of interactive online communication. It was as a result of wide-ranging consultation that our manifesto was predicated on what we understood to be our citizens’ core aspirations. These include achieving:

 

• Job creation for sustainable livelihoods and income generation;

• Food security through continued agricultural renewal;

• Expanded access to land and housing ownership;

• Access to world-class quality education that caters to current and future needs;

• Citizen, including youth, economic empowerment;

• Dignity for all through the eradication of poverty;

• Zero tolerance for corruption in all of its manifestations;

• Elimination of mother-to-child transmission of HIV; and

• Government reform that leverages on the application of new technologies. 

 

8. Each of these commitments is based on realistic analysis of where our country is and needs to go in order to meet the reasonable expectations of its people, while improving our global standing in an ever more competitive world. Taken together they are consistent with our broader vision of achieving inclusive sustainable development that upholds the dignity of all.

 

ECONOMIC OUTLOOK

 

9. Madam Speaker, owing to the prudent economic and financial management by my Government, the country was able to survive the 2008/09 global financial crisis and economic recession with minimum impact on the domestic economy. We were able to save jobs in both the public service and private sector, as well as continued to provide essential public services to our people.

 

10. Having successfully weathered the storm of the economic downturn, we can look forward to better days ahead, with economic growth buttressed by reduced inflation. These positive trends should allow us to revive some of our postponed projects, along with outstanding issues affecting the conditions of service among public employees. Our optimism is in part based on forecasts of continued, albeit still fragile, global economic recovery, with worldwide output projected to grow by 3.3% in 2014 and 3.8% in 2015.

 

11. Turning to the domestic economy, the gross domestic product (GDP) at current prices stood at P124 billion in 2013 and it is projected to expand to P136.5 billion in 2014. In real terms, the GDP grew by 5.8% in 2013, and is projected to grow by 5.2% in the current year, driven by both the mining and non-mining sectors.   Within the non-mining sector, retail and hospitality industries, as well as agriculture are experiencing growth.

 

12. Average national inflation continued to decline from 8.5% in 2011 to 7.5% in 2012 to 5.9% in 2013 and further to 4.5% in September 2014, which is well within the Bank of Botswana objective range of 3 to 6%. This positive trend gives us confidence in our ability to maintain a low inflation environment, which is necessary for domestic enterprises to compete in the global market.

 

13. In terms of our fiscal management, Government succeeded in restoring a balanced budget during 2012/13 financial year, after four years of budget deficits. For the 2013/14 financial year we were able to collect P 48.9 billion, up from the P 41.7 billion received in 2012/13, while total expenditures and net lending for 2013/14 amounted to P 41.73 billion. This resulted in a budget surplus of P7.2 billion, largely due to the good performance of the mineral sector. For 2014/15 a budget surplus of P1.3 billion is currently projected. These savings will allow us to reduce our debt burden and rebuild our financial reserves.

 

14. To sustain a positive balance sheet will, however, require expanded revenues. Here I can report that we were able to collect P48.9 billion in the 2013-14 financial year, up from the P41.7 billion received in 2012-13. The 2013/14 outturn for expenditure and net lending was P41.7 billion.

 

EMPLOYMENT

 

15.  Madam Speaker, to be meaningful to Batswana, economic growth has to be accompanied by expanded employment, which is why our manifesto listed job creation at the top of our aspirations. To reiterate what I said in my own message to the voters, of all our campaign promises tackling unemployment is the most important one. While there has been some progress in recent years, current estimates put unemployment among those 18 and above at just over 17%. Although this reflects a modest reduction since 2007, it has been insufficient to absorb all those seeking employment, especially among our talented youth. We can and shall do more.

 

16. Our Economic Diversification Drive (EDD) is a key instrument for job creation. Since its 2010 inception, EDD has been facilitating employment generating business opportunities by promoting the consumption of local products. While our immediate focus has been leveraging public procurement in support of domestic industries, as we move forward our emphasis will shift to developing greater internal capacity for export-led growth, while continuing to value local goods and services.

 

17.  So far a total of P13.3 billion worth of goods and services were recorded since the inception of the initiative. Out of this figure, the value of local manufacturers and service providers (EDD purchases) amounted to P590.5 million for 2010/2011, P1.8 billion for 2011/2012 and 2012/2013 and P2.3 billion for 2013/2014. Over one thousand enterprises have so far been registered under the EDD Programme, which has contributed to the employment of 28,000 Batswana.

 

18. We have already begun implementing our EDD Medium to Long Term Strategy, to develop sustainable sectors for economic growth and diversification. A leading example is the Leather Sub-sector Strategy, which is focused on the establishment of a Leather Park in Lobatse at a total cost of about P225 million. Government has agreed to finance the park’s primary infrastructure, a Common Effluent Treatment Plant, estimated to cost P102 million, while other components of the project will be financed through private sector investment.

 

19. Government had also budgeted over P20 million to provide temporary assistance for over 12 months to support 34 textile companies, employing 2,912 workers.

 

20. While the nurturing of SMMEs, support for existing industries and value addition remain critical in our achievement of job creation, we further anticipate that over the next few years local formal sector employment will be generated with the emergence of new economic opportunities through the synergies generated by the development growth nodes or clusters across the country.

 

21. In the Chobe region, for example, we anticipate an expansion of opportunities in tourism, construction, transport services and agriculture resulting from the construction of the road and rail bridge at Kazangula and phase one of the water pipeline to Pandamatenga, along with associated infrastructure. It is estimated that when completed these two mega-projects will create over 9000 permanent jobs.

 

22. Additional emerging labour intensive opportunities are already being generated in our urban areas, as reflected in Selebi-Phikwe’s development as a metallurgical hub, the continued growth of Gaborone as a global diamond as well as regional technical services centre, and Francistown’s growth as a nexus for trade and transport. We further anticipate additional jobs through synergies generated by new mining activities, the continued expansion of commercial agriculture and the development of Trans-Kgalagadi road and potential rail corridor.

 

COMPETITIVENESS    

 

23. A key to unlocking these job creation opportunities will be increasing our global competitiveness. To improve our competitiveness ranking in the area of goods market efficiency we have tightened our market monitoring for greater efficiency in the provision of goods and services, while the Competition Authority is reviewing mergers and potential cartel activity involving both local and foreign companies.

 

24. Madam Speaker, job creation is inevitably linked to investment. In this respect the latest FDI Intelligence report indicates that Global Greenfield FDI showed signs of recovery, increasing by an estimated 11% from 2012 to 2013. The increase in local investment has been even greater, with UNCTAD’s 2014 World Investment report showing Botswana having grown by 27% in 2013.

 

25.  The Botswana International Trade Centre (BITC) continues to promote our country as a competitive location for investment, making business contacts and generating leads. During the 2013-2014 financial year, BITC helped realise a total combined investment capital of just over 1 billion pula, of which P 642 million was from foreign direct investment (FDI) and P449 million came from new domestic investments. In 2012/13, BITC further recorded P1.9 billion worth of goods and services exported into the region and beyond, of which P738 million was attributable to financial and international business services by the financial services cluster.

 

26. Botswana was ranked number one in the 2014 Baseline Profitability Index, surpassing Hong Kong as a location for medium to long term returns on investment. In essence the Index suggests that investors can expect to do well here once they have established themselves in our market.

 

27. Government is, furthermore, working to limit the number of licenses and permits, while allowing mixed land use zoning, adopting risk based approach for Environmental Impact Assessments and Management Plans, and decentralising the management of electricity connections.

 

28.  Government has also embarked on a National Work Ethic programme to promote productivity. So far, 254 facilitators have been assessed to implement the programme, which commenced in May 2014.

 

29. The drafting of a Bill which will provide the legal framework for the establishment of Special Economic Zones and the Special Economic Zone Authority is being finalized.

 

30. The Rural Development Council (RDC) has been upgraded as the national consultative body to promote and coordinate the implementation of rural development policies and programmes. As a result community based projects such as the Zutshwa Salt Project and the Mogobane Irrigation Scheme, to mention some, have been resuscitated.

 

CITIZEN EMPOWERMENT

 

31. Madam Speaker, it is pleasing to note that to date, CEDA has funded 5,462 enterprises with a total value of nearly P8.55 billion, in the process creating over 48,935 thousand jobs.  During the 2013/14 financial year, CEDA assisted 151 new enterprises with a total monetary value of P152 million, collectively generating 1042 new jobs.

 

32. Since its inception, LEA has also facilitated the creation of 4995 new jobs, including 568 in the ongoing financial year. The Authority has further trained a total of 9,317 entrepreneurs. In an effort to inculcate an entrepreneurial culture, LEA embarked upon the Entrepreneurship Awareness Workshops among secondary school leavers, vocational trainees and prison inmates; over 26,000 of whom have been trained.

 

33. Madam Speaker, through the Botswana Bureau of Standards (BOBS), we have encouraged our small and medium enterprises to implement quality assurance activities within their businesses. Progress has been made in certification of goods especially in the building and construction industry. To further ensure that prescribed goods entering our borders comply with domestic standards, a BOBS office has been opened at the Tlokweng Border.

 

RULE OF LAW

 

34. Madam Speaker, adherence to the rule of law remains a cornerstone to our national development. It is thus encouraging that independent comparative surveys, as well as domestic polling, consistently place us among the best in the world as well as first in Africa in terms of our upholding the rule of law while ensuring the safety and security of all our citizens. These surveys include:

 

• 2014 Ibrahim Index of African Governance, where we ranked first in the category of safety and security;

• World Justice Project’s 2014 Rule of Law Index, where we were ranked 25th in the world as well as first in Africa;

• 2014 Global Peace Index where we were at 36th place, ranking above half of European countries surveyed;

• 2014 Legatum Index for Governance and Rule of Law, where we were ranked 28th in the world; and

• 2013 Global Democracy Index, where besides ranking 35 out of 167 countries we achieved a near perfect score in the area of civil liberties.

 

35.  In light of such reputable findings it is unfortunate to say the least that some individuals, working through foreign as well as domestic media, including rumour mongering on social media, have attempted to instil the perception of Batswana living in fear. This is in an apparent effort to undermine this country’s longstanding and shared record of peace, order and good Government.

 

36. While the mass circulation of false and malicious reports intended to incite undue alarm may be aimed at promoting the political agenda of some, it is at the collective cost of tarnishing the image of the country as a whole. It is also a threat to the economy we all must depend upon for our livelihoods. Such disinformation should therefore be rejected with contempt by all peace-loving Batswana. All citizens, residents and potential visitors to Botswana can be confident that this Government will continue to both abide and uphold the rule of law without fear or favour.

 

37. Let me, nonetheless, also observe that we have not, and shall not, allow past achievements or international accolades to breed complacency as we recognise that, here as elsewhere, criminal activity is constantly evolving and increasingly sophisticated. We therefore remain determined to pursue a zero tolerance approach to all forms of criminal activity, including corruption.

 

38. To counter emerging domestic and trans-national challenges the Police Service has deployed integrated law enforcement strategies to combat all forms of criminality and anti-social behaviour. This has involved an ongoing redirection of resources to deal with violent and intrusive, cross border and cyber based criminal activities.

 

39. Whilst total recorded crime excluding road traffic violations rose by 4.7% during the year 2013, significant reductions were, however, registered in respect of violent and intrusive crimes.  Offences in this category, which included burglary, store breaking, robbery, house breaking, threats to kill, murder, rape, motor vehicle and stock theft, declined by 15.4%.

 

40. Road traffic management poses an additional policing challenge. Analysis of road accidents shows a youth bias, expressed in reckless driving, often aggravated by the influence of alcohol. As a result of the increase in the intensity of road policing initiatives, the number of detected road traffic offences rose by 32.4%, while there was a corresponding decrease in the number of fatal road accidents by 2.6%.

 

41. Madam Speaker, the Department of Prisons and Rehabilitation continues to improve security in the prisons and rehabilitation of offenders. While overcrowding has been a problem in some of the Prison institutions, there has been substantial reduction in congestion since 2008. In June 2014 there were 3824 offenders held in prisons, which was 13% below the authorised holding capacity.

 

42. Madam Speaker, the internal and external challenges of today’s constantly changing security landscape, call for a structurally aligned, strategically focused and adequately resourced, as well as highly trained and motivated, defence force. The BDF will thus continue to evolve its structures and strategies to defend the nation, while continuing to provide assistance to other law enforcement agencies in combating crime, including poaching.

 

ACCESS TO JUSTICE

 

43. Madam Speaker, as was most recently demonstrated in the Judgments of the High Court and the Court of Appeal upholding the constitutionality of the Standing Orders of this very House, our Judiciary continues to independently and effectively deliver on its constitutional mandate of settling disputes, both large and small, without fear or favour.  This Government will, as always, respect decisions of the Courts and expects all citizens to do the same.  Equally, we must all display tolerance and recognize everyone’s right to approach the Courts for the resolution of any legal issue no matter how strongly we may disagree.

 

44. To improve everyday access to justice several special court projects like the stock theft, maintenance, traffic, small claims and most recently corruption court have been put in place so as to speed up and improve the case disposal rates, while promoting greater access to justice by simplifying court rules and processes to make them more user friendly.  In addition a Court Annexed Mediation will be in place by the end of the current financial year.  This f

Press Briefing by Press Secretary Josh Earnest, Deputy National Security Advisor for Strategic Communications Ben Rhodes and U.S. Trade Representative Michael Froman

The White House

Office of the Press Secretary

For Immediate Release

November 11, 2014

Intercontinental Hotel
Beijing, China

10:56 A.M. CST

MR. EARNEST:  Good morning, everybody.  It’s nice to see you all.  You don’t look nearly as bleary-eyed as I expected.  I’m joined today by Ben Rhodes, the President’s Deputy National Security Advisor, and Ambassador Mike Froman, who is the United States Trade Representative.

Ambassador Froman has, as you would expect, primarily focused on the aspects of the President’s trip that’s focused on the economy and strengthening the American economy and expanding economic opportunity for Americans back home.  That is, as you would expect, a core component of the President’s agenda while he out here so Mike has got a couple of things to talk to you about.

Then we’ll turn it over to Ben, who will do a review of some of the other aspects of the agenda that the President has been discussing in the context of these APEC meetings but also what we’ll be focused on in the context of the President’s bilateral meetings with President Xi that will begin later on this evening.

And then after that, the three of us will be up here to take questions you have on any topic.  We’ll do this for 45 minutes or so.  All right, Ambassador Froman, would you like to start us off?

AMBASSADOR FROMAN:  Well, thanks, Josh, and I’d like to start with an announcement on an important breakthrough we had in our negotiations with China on the Information Technology Agreement, or ITA, and that’s news that the President just shared with his other APEC leaders at the leaders summit.

Last night, we reached a breakthrough in our ongoing efforts to expand the Information Technology Agreement.  This is a WTO agreement that eliminates tariffs on high-tech products among 54 economies, including the U.S. and China.  And to give you some idea of the importance of this agreement, the last time the WTO agreed to eliminate tariffs on IT products was in 1996 when most of the GPS technology, much of the medical equipment software, high-tech gadgetry that we rely on in our daily lives didn’t even exist.  In fact, since that time, global trade in these types of high-tech products have reached $4 trillion annually.  And despite the explosion of trade, the coverage of the ITA of products has never been expanded.

And so that’s why for the last two years, we’ve been working to –- very intensively –- with our global partners to expand the Information Technology Agreement.  But unfortunately, during the summer of 2013, those talks broke down due to disagreements over the scope of coverage -– what list of products would be covered by the agreement, with most countries, led by the U.S., working to achieve an ambitious outcome.

Since that time, the United States and China have been working to close our differences but without a breakthrough sufficient to resume the plurilateral negotiations in Geneva.  And that finally changed here last night with an agreement between the U.S. and China that we expect will pave the way for the resumption of ITA negotiations in Geneva and their swift conclusion.  And that will be the first major tariff-cutting agreement in the WTO in 17 years.  At a time when there have been a lot of FTAs and other regional arrangements, the WTO hasn’t actually cut tariffs in 17 years and the ITA presents the first opportunity to do that.

This is encouraging news for the U.S.-China relationship.  It shows how the U.S. and China work together to both advance our bilateral economic agenda but also to support the multilateral trading system.  And it also underscores the importance of institutions like APEC — regional organizations — APEC actually gave birth to the ITA back in 1996.  It’s always been a key part of the ITA –- APEC leaders have always called for swift conclusion of the ITA so this is another indication of the utility of forums like this.

Industry estimates have concluded that successfully concluding the ITA would eliminate tariffs on roughly $1 trillion of global sales of IT products.  It would contribute to global GDP $190 billion and would support up to 60,000 additional U.S. jobs in technology and manufacturing.  And by also boosting productivity around the world and particularly in developing countries.

So we’re going to take what’s been achieved here in Beijing back to the Geneva and work with our WTO partners.  And while we don’t take anything for granted, we’re hopeful that we’ll be able to work quickly to bring ITA to a successful conclusion, and that will help support good-paying jobs in the United States, where we lead the world in creating and selling made-in-America high-tech products that the world is hungry to buy.

Let me conclude just about — a word perhaps about TPP, which has obviously been another area of major focus while we’re here.  As you all know, President Obama convened the TPP leaders yesterday.  They had a very productive conversation.  It was a good opportunity to take stock of where we were in the negotiations, to provide political impetus and guidance in terms of resolving the remaining issues.  All the leaders made clear in that joint statement that we’ve narrowed many of the gaps.

There’s still work to be done, but the end of these important negotiations is coming into focus, and that’s awfully important to the United States from a number of perspectives — it’s with 40 percent of the global economy covered by TPP, some of the fastest-growing markets in the world successfully concluding TPP will help support jobs, promote growth, strengthen the middle class in the United States.  It’s a key part of our rebalancing strategy, it underscores how the U.S. is embedded in this region and how the economic wellbeing of this region is integrally related to the wellbeing of the economy in the United States.

And with that, I’ll turn it over to Ben.

MR. RHODES:  Great, I’ll just give a brief preview of the President’s upcoming meetings here in China, and then we can take your questions on Mike’s issues or any other issues in foreign or domestic policy.

With respect to the bilateral visit here to China, the two issues that we’ve highlighted over the course of the last two days I think are the key priorities that we were able to get down and closed out around this bilateral visit:  That is the visa announcement that was made yesterday, and then the bilateral understanding on ITA that was reached today.

I think what speaks to the significance and dynamism of the U.S. economic — U.S.-China economic relationship.  Today at APEC that is clearly going to be broadened out into a discussion in regional issues related to trade and economic cooperation, as well as a number of other areas.

But as you know, tonight the President will have a dinner with President Xi Jinping of China to kick off the state visit portion of our time here in Beijing.  And then tomorrow, the two leaders will have bilateral meetings, as well.

In addition to discussing and marking the progress that’s been made on these bilateral economic issues, they’ll also discuss a range of other bilateral and global issues that are of mutual interest to the United States and China.

Specifically I’d expect there to be a discussion around our cooperation on clean energy and climate change as our two countries prepare for the ongoing international climate negotiations heading into next year.

We’ll have a discussion of a number of regional security issues, among them our shared commitment to denuclearization on the Korean Peninsula, as well as the security environment in the broader Asia Pacific region, including our interest in maritime security and the situation in the South and East China Sea.  We’ll discuss our military-to-military relationship and what we can do to develop greater dialogue and cooperation and confidence-building measures working together.

There will certainly be a discussion of the ongoing talk in Iran with Iran over its nuclear program.  And Secretary Kerry will be joining the President from Oman, where he’s been in a trilateral dialogue with the Foreign Minister of Iran and Cathy Ashton from the European Union.

Cybersecurity, of course, will be an important focus for the President given some of our concerns related to cybersecurity and the theft of intellectual property.  Afghanistan is an area where we are looking to cooperate with China.  We very much welcomed President Ghani visit here to Beijing earlier in the year and believe that China can be a partner in promoting development and stability in Afghanistan going forward.

Global issues like Ebola and ISIL will certainly be a part of the discussion.  And we’ve worked with China to enlist them in the effort to fight the outbreak of Ebola in West Africa.  And then, of course, as is always the case when we meet with China we’ll have a discussion around areas where we have differences — not just cybersecurity, but issues related to human rights and universal values.

So there will be a very broad agenda.  I think we’ve already had very good progress on our leader economic priorities heading into the visit with the ITA and visa understandings that were reached.  I think that shows an ability to identify areas of practical cooperation with China even as we’re, of course, going to have differences on a range of other political, economic and security issues.

And so tomorrow we’ll have those believe meetings.  And then the President will be hosted at a lunch here.  He’ll have a chance to meet with a range of Chinese officials before leaving for the EAS and ASEAN summits in Naypyidaw.

So with that, we’ll move to questions.

MR. EARNEST:  Let’s get started.  Julie, do you want to take us up?

Q       I have one two for Mike and one for Ben also.  Mike, can you say exactly what the U.S. and China agreed to that led to the breakthrough?  And, Ben, with the Obama and Xi bilat starting, the President has invested a lot of personal time in trying to build a relationship with Xi.  At the same time, China continues to be provocative on cyber and maritime issues.  How do you see their personal relationship at this point?  And how does that affect their conversations over the next two days?

AMBASSADOR FROMAN:  Sure, so the ITA is basically a list of tariff lines that are to be covered by tariff elimination.  And we now have agreed to more than 200 tariff lines representing about a trillion dollars of trade to be covered by the ITA.  And some of the — for the last six months we’ve been focused not just on the quantity of the lines, but the quality of the lines.  And the lines that have the greatest potential, for example, for U.S. exports, where the U.S. plays a leading role, areas of expected future growth.  So things like high-end semiconductors where there are tariffs up to 25 percent currently.  We already export over $2 billion of high-tech, high-end semiconductors even with 25 percent tariffs.  Eliminating those tariffs will obviously expand that trade significantly.  It’s an area where we have a comparative advantage, and where we can support a lot of good well-paying American jobs.

Same thing on medical equipment, MRIs, CAT scans.  We export more than $2 billion of those products a year, and they face high tariffs around the region — 8 percent in some places, as well as tariffs elsewhere.  This will eliminate those tariffs and allow us to expand our exports.

Same is true on some of the high-tech instruments that have become components in advanced manufacturing that we’re very much involved in.  So those were some of the issues that we had a breakthrough on that will allow the negotiations now to move forward in Geneva.

MR. RHODES:  Sure, Julie, on your second question, the President has invested a good deal of time and energy in his relationship with President Xi.  I think if you look at the breadth of the agenda, it’s clearly, as Secretary Kerry said, the most consequential bilateral relationship in the world.  And what they were able to do at Sunnylands is cover this whole spectrum of issues.  And, in fact, actually the ITA came up at Sunnylands so this was an area of focus on our trade agenda.

And I think what the President was able to do is convey in that meeting his thinking on all these issues, both strategically and at a tactical level, and he was able to hear the same from President Xi.  Again, Xi Jinping has clearly established himself as a strong and assertive leader here in China.  And the way we look at the relationship is there, at any given time, are going to be areas where we can identify ways to make progress and then there are going to be areas where we’re going to have differences.

And I think we’ve been opportunistic in saying, okay, where do we have an agreement that we can drive the relationship forward on something like visas or ITA.  But on, frankly, the global security issues like Iran and North Korea, the Chinese have been constructive partners.  In the Iran negotiations, they have played a constructive role in being unified with the P5-plus-1, in pressing Iran to take this opportunity to demonstrate that their program is peaceful.  In North Korea, they’ve taken a very strong line to support the notion that denuclearization has to be the goal of any discussions with North Korea.

When we look at the global issues, we’ve encouraged China to play a more assertive role on things like Ebola.  We want them to be stepping up to the plate and kicking in more resources so we welcome the desire from China that is clearly on display here at this summit to play a role in the international community commensurate to its economic and political standing, and its standing as the world’s most populous nation.

At the same time, we’re going to be very clear when we believe that China’s actions are actually pushing outside the boundaries of what we believe to be the necessary international norms that govern the relations between nations and the ways in which we resolve disputes.  And so when we see things on cyber security where we have Chinese actions that disadvantage U.S. businesses or steal intellectual property, we’re going to be very candid about that.

On maritime security, what we’ve said is we’re not a claimant, but there cannot be a situation where a bigger nation is simply allowed to bully smaller nations.  There has to be a means of resolving disputes through international law and international cooperation through discussion between China, for instance, and ASEAN countries on the South China Sea, dialogue between China and Japan on issues related to the Senkakus.  And to that end, actually, we welcomed the meeting yesterday between President Xi and Prime Minister Abe as an opportunity to reduce the tensions between those two countries.

So I think the benefit of the personal relationship is that they know where they’re coming from.  There’s no mystery in our position on these issues, there’s no mystery on the Chinese position.  What we need to do is find when there’s an opening, we take it, and we run through that opening, we work together.  And when there’s a difference, we’re just going to keep raising it repeatedly with China, raising it in international forums like this and try to find ways to encourage China to work within an international system that ultimately is going to be the best way of delivering stability, prosperity, security to this part of the world and also dealing with global challenges.

Q       One for Ambassador Froman and one for Ben.  Ambassador, what are the remaining sticking points when it comes to TPP?  And you say the end of negotiations are coming into focus –- what specifically does that mean?  Do you have a timeline in your head for when there might be an actual deal?  And, Ben, can you talk a little bit about what, if any, specific asks President Obama will have on Ebola and ISIS when he meets with President XI?

MR. EARNEST:  Okay, so just to repeat –- I’ll try to repeat the questions just so everybody can hear them.  So the question about TPP –- final sticking points and timeline for completion, and then any requests that President Obama will make related to ISIS -– ISIL and Ebola.  So, Mike, do you want to go first?

AMBASSADOR FROMAN:  Well, with TPP, it’s a two-track negotiation.  There’s market access and then there are the rules.  In market access, we’ve made very significant progress with most countries, including Japan, on agriculture and on autos we’ve made progress.  We’re not done yet, there are still outstanding issues, but we have made quite good progress there in recent weeks.

On the rules issues, we’re working to close out issues and narrow differences on the remaining.  I’d say areas that there are still issues we need to work through include intellectual property rights, state-owned enterprises, the environment –- those are three examples of areas where we’re paying particular attention to, to try and further narrow the differences and find appropriate landing zones.

In terms of the end coming into focus, these negotiations are an ongoing reiterative process.  And at every stage, we close out issues, we narrow differences, we try and find landing zones, and then we try and build consensus around them.  And I think it’s becoming clearer and clearer what the final landing zones might look like, but we still have some work to do, both to define them and then build support for them.

Q       But can you put any type of timeline —

AMBASSADOR FROMAN:  We’re going to complete it as soon as we achieve the ambitious, comprehensive high standards we set out for ourselves and we’re all working very hard to do that.  There’s a lot of momentum, all the countries are very focused on doing that, but we want to make sure that we get it right.

MR. RHODES:  Kristen, I think on Ebola we’ve encouraged the Chinese and they have made commitments, both financial commitments in the provision of health care workers and support for health care infrastructure in West Africa.  So I think we’ve welcomed those commitments.  We are always encouraging nations to consider ways to do more, but also to galvanize international action — as we head into the G20, for instance.  So I think at the G20 this will be a topic among the countries in Brisbane.  And China obviously has a key role to play there.  So I don’t want to suggest that it’s kind of the lead item on the agenda but I think given the focus that we have on Ebola right now, we want to make sure we’re understanding what the Chinese contributions are, and then how we can work together on a collaborative basis heading into the G20 to get the international community to continue to step up and provide resources.

On ISIL, with respect to China, we obviously wouldn’t anticipate them playing a role in the military coalition.  I think all the countries here in the Asia Pacific region share the concern about foreign fighters going to and from Iraq and Syria, so we can have a discussion around those issues.  I think regionally, too, of course we’ve made clear that any lasting solution is going to have to deal with the political situation inside of Syria.  So it’s an opportunity to exchange views about how to bring about the type of transition that could ultimately end the civil war in Syria.

So I think more likely that they’re going to spend a lot of their time on some of the other issues that I mentioned –- Iran, North Korea, cyber, mil-mil relations, Asia Pacific –- but we want to make sure China is invested on the global agenda that we’re focused on and I think Ebola and ISIL clearly plays into that, particularly on the Ebola front where they can kick in significant resources.

And Ebola is an area where what we said to the Chinese is, there’s both the commitments you can kick in here on Ebola with respect to money and health care workers and infrastructure but also how we’re thinking about infectious disease going forward, and how we have the Global Health Security Initiative where nations are anticipating what’s going to be needed if there are additional outbreaks of different diseases.  And we’ve seen airborne diseases here in the Asia Pacific region.  So I think we want to make sure that when we talk about China playing a bigger role ono the world stage, it’s exactly those types of issues where they can bring resources and expertise to bear in fighting not just Ebola but future infectious disease.

Q       Ambassador Froman, please.  What about the TISA, the Trade in Services Agreement?  There was hope that maybe some steps ahead could have been done also on that subject within the WTO.  Also do you think that you could every close quickly the TPP without a TPA?  And thirdly, what about the development bank for investment in infrastructure that China is building up?  Is the U.S. now open to have it and maybe to participate in it?

MR. EARNEST:  I’ll just repeat the questions.  The Trade in Services Agreement in the context of the broader trade negotiations.  A question about TPA and — what was the last one?  The development bank.

AMBASSADOR FROMAN:  Well, we’ve had quite good progress over the course of this year on the Trade In Services Agreement negotiations.  Several rounds and countries putting on the table offers.  And we have a robust work program going into next year as well.  So there is a lot of work being done on that.  But I would just put in the context of today’s announcement.  I think that the ITA announcement is a significant step in terms of showing the vitality of these plurilateral agreements where countries – likeminded countries can come together and make progress in trade liberalization, whether it’s in Geneva, the WTO, or elsewhere.  So ITA, we took a major step forward today.  TISA is well on its way, the Trade In Services Agreement.  And we have a very good work program ahead.  And earlier this year, we launched the Environmental Goods Agreement negotiation, which also includes China and we hope to work well with China and the other parties in the Environmental Goods Agreement to make progress on that in the coming year or so as well.

On TPP and TPA, our view has always been that the President has made clear that of course he would like to get a Trade Promotion Authority, he’d like to finish TPP consistent with it being an ambitious, comprehensive, high-standard agreement as soon as possible.  And we are working in parallel tracks on that, that ultimately the only guarantee that a trade agreement earns the support of Congress is that we bring back a good agreement.  And our focus is on bringing back an agreement that meets those standards.

On the infrastructure front, obviously the U.S. is very active in the G20 and a variety of other forums, including here at APEC, in talking about the importance of infrastructure and financing for infrastructure.  We have been a strong supporter of the World Bank and the Asian Development Bank.  And we think it’s important that whatever mechanisms are put in place, they live up to the high standards of the multilateral development banks in terms of procurement practices, environmental practices; that they have the very highest standards that exist for international lending.

Q       For Ben.  Ben, before you left on the trip, I think you met with NGOs that were doing work on human rights and democracy in Burma.  What message were they giving to you?  And how do you respond to them when they say, as they maybe have to journalists, it’s not a bump in the road on the reforms when you have the violence going on in some parts of the country.  I think the violence — you have to do more to stand up to — how did you talk to them about that?  And also, how do you carry that message forward in Burma?  What notes will you strike so that the United States doesn’t look like they’re maybe lecturing but rather trying to encourage further —

MR. EARNEST:  Just to repeat the question for everybody else in the room.  Question about how you respond to concerns that have been raised by human rights advocates about the slow pace of progress in Burma, and how does that impact the message that you’ll deliver to Burmese officials when the President is there later this week.

Q       (Inaudible.)

MR. RHODES:  Well, David, I did meet with a number of NGOs, human rights advocates, a number of Burmese separately from that as well who are engaged in civil society there.  I also talked to a lot of the congressional staff that is focused on these issues, given Congress’s interest.  And I think our message is – let me just step back here.  On the one hand, what we’ve seen in the last five years in Burma is transformational.  The opening of a country that had been completely closed off for decades, the opening of some political space, the release of Aung San Suu Kyi, the release of political prisoners, and the initiation, really, of a kind of politics in Burma that just didn’t exist several years ago.  But it’s a country with enormous challenges and enormous needs.  It has a lot to do.

And you don’t complete those types of transitions quickly or easily.  This is going to take years to work through all the different issues that have to be addressed inside of Burma.  However, I think we need to be practical about the timelines associated with those transitions.  When we look at, for instance, Indonesia, the President met with the newly elected President of Indonesia yesterday.  It took many years for them to work through elections and constitutional reforms and dealing with different ethnic groups in the country.  So we’re taking a view here in Burma that this is enormous opportunity for the people inside the country, enormous opportunity for democratization.  However, I think that we are concerned about areas where we do not see progress and where we see significant challenges.  And I think there are really three broad categories that we’re going to be focused on heading into this visit.  One is the ongoing process of political reform in the country.

And, again, what I said to the people I met with is that we share the same objective here –- we share the objective of there being a credible election next year in the parliamentary elections in which the Burmese people can choose their leadership but we also share the objective of supporting the process of constitutional reform inside of Burma.  One election isn’t going to fix all the problems.  There needs to be constitutional reform that enables there to be a fuller transition from military to civilian rule, that enables Burma to choose their own leaders.  And the President will definitely be discussing the progress in planning for those elections but also the progress on, and the need for constitutional reform.  And that’s something that he’ll talk to Thein Sein and Aung San Suu Kyi about.

Secondly, there is the issue in Rakhine State.  And here I think is we’ve seen the most troubling difficulties with the humanitarian situation deteriorating in Rakhine State.  A very specific issue having to do with the treatment of the Rohingya population there.  And there, too, I think we share the same objective of the human rights community.  We want to see better humanitarian access to the Rohingya, to help alleviate the humanitarian situation.  We would like to see a long-term plan, an action plan that does not rely on camps but rather allows people to settle in communities and pursue development within the country.  And we would like to see a process where the Rohingya can become citizens of Burma without having to self-identify as something other than who they are, which is citizens of –- prospective citizens of Burma.

So We’ve been working very hard in the country, working with other countries to try to bring a focus on the situation in Rakhine State, and it will certainly be front and center in the President’s discussions.

Then the third area is the ethnic insurgencies and the ceasefires that have been reached.  Here, I think the government has made a good deal of progress.  They have reached individual ceasefires with many of the different ethnic group.  The Kachin is one that we’ve been particularly focused on of late.  But they’re working to translate that into a nationwide ceasefire that can lead into a process of reconciliation that addresses the underlying issues of ethnic political participation, of economic development in the ethnic areas, and the role of the military as well.

And we believe that there’s a real opportunity here for the government to move forward with this plan.  But again, it has to be one that doesn’t just put a lid on things, but addresses the underlying challenges and works towards the type of federal union that I think has been contemplated in many of the discussions with the ethnic groups.

So we’re coming at a time where a lot of these are in flux.  But the fact of the matter is they can be dealt with through politics — and that’s new in Burma.  That doesn’t mean it’s perfect, but it means that people are going to get around the table; there’s going to be a process for reviewing the constitutional amendments.  There’s going to be elections.  There are going to be talks ongoing with the ethnic groups.  And so we want this opening to continue to move forward.  We want the trajectory to continue to be one of progress.

And the United States can best — I think to sum up my message, the United States can best move that forward by engagement.  If we disengage, frankly I think that there’s a vacuum that could potentially be filled by bad actors.  But when we’re at the table, when we’re pressing these issues, we’re bringing more attention to the situation in Rakhine State.  We are working to bring the parties together in the political process.  We can help facilitate and support through development assistance the implementation of the nationwide ceasefire.

So I covered a lot of ground there, but the bottom line here is I think that we share the same objectives with the advocacy community here.  We are pursuing those objectives through engagement, and we’re clear-eyed about where there’s been progress and where there needs to be more.  And we believe we can best move that along by the President raising this with Thein Sein, with Aung San Suu Kyi.  But you’ll notice he’s also meeting with civil society, he’s meeting with young people.  We’re sending the message that we’re engaging very broadly in this country because we care deeply about its future and we see a real opportunity, but that opportunity can only be seized if they continue moving in the right direction and don’t let some of the recent very significant challenges through the reform off course.

MR. EARNEST:  Carol.

Q       I have one for each of you actually.  On the ITA, can you explain what the difference this one is going to make to the tech industry given that — and how it will impact consumers, and if China got any concessions in this breakthrough?  And then, Ben, you mentioned that Obama and Xi are going to talk about military-to-military cooperation.  Can you guys talk on those building measures?  And have you guys reached agreements on notifying each other about military activities and on a code of conduct for encounters in sea and air?

Josh, on the net neutrality announcement, can you talk about why you guys did that now and what you’re trying to accomplish, and what sort of pushback can you expect from the new Congress?  And whether or not the President has talked to Comcast about it?

MR. EARNEST:  Mike, I’ll let you go first.  Do you want to repeat the question for — I think I lost track by the end.

AMBASSADOR FROMAN:  The benefits of ITA.

Q       Right.  (Off mic) and how it’s going to affect consumers.

AMBASSADOR FROMAN:  Well, in these tariff reduction agreements, it obviously benefits both the producers who can now sell more of their product, but also the consumers — because they’ll see access to products more easily.  And when you’re talking about medical devices, for example — medical equipment, like MRIs and CAT scans, and a whole variety of implantable devices — that means better health care for people all over the world.

The tariffs range as high as 25 percent for some of the next generation semi-conductors; 30 percent for loud speakers; 30 percent for certain software media; 30 percent for video game consoles.  So some of the tariffs are in the 5 to 8 percent range, some are in the 25 to 30 percent range.  And right now the trade in these cover lines is about $1 trillion, and we’d expect it to grow significantly for the benefit of consumers and the benefits of producers, including a lot of products made in the United States.  We export over a billion dollars of these products right now, even with these barriers in place, and that will help support more jobs in the United States.

Q       (Inaudible)

AMBASSADOR FROMAN:  In trade negotiations there’s always issues of how the obligations are phased in over time, and that will be part of what’s discussed in Geneva.

MR. RHODES:  Sure, on the specific nature of the confidence-building measures with the Chinese and mil-mil ties.  I don’t want to get ahead of the discussions, but we’ve certainly been focused on both just simply the lines of communication with China, but also how to address some of the challenges we’ve seen recently, for instance, with respect to circumstances where we certainly came a little too close for comfort between the United States and Chinese military assets.  And so we’re looking at what practical things can be done to build confidence and have more transparency.  So we’ll keep you updated on that.  I don’t want to get ahead of the leaders.

But the bottom-line principle is, first of all, it’s incredibly important that we avoid inadvertent escalation and that we don’t find ourselves having an accidental circumstance lead into something that could precipitate conflict.  So there’s enormous value in that type of dialogue.

And the second point I think is it’s good for the region if the United States and China are able to have greater transparency between our militaries.  I think that will ultimately promote stability.  And we’ve encouraged that type of transparency across the region — whether it’s an ASEAN code of conduct or whether it’s the type of dialogue that President Xi and Prime Minister Abe had yesterday.  This is something that we’ve been encouraging all of our partners to do — to be more transparent, to build confidence, develop practical means to avoid an inadvertent escalation.

So it will be an important topic of their meeting, and we’ll keep you updated on it.

Q       So just the two things that —

MR. RHODES:  I mean, there are those and then there’s just the broader nature of our military-to-military relationship and how we interact, how we have exchanges.  So I think we’ll have more to say on this, but I don’t want to get ahead of the leaders.

MR. EARNEST:  And then before we move on to — just on the net neutrality question that you raised earlier, Carol — I know that there are members of Congress on both sides of this issue who have made their views known.  The White House has been in touch with the business community on a variety of issues, as we always are.  And I know that this is something that, again, on both sides of this issue they are very strongly held views.

The position that the President articulated in the statement that was released today is consistent with the President’s previously expressed strongly held views about the important of an open Internet; that the Internet has been the source of innovation, that it’s been good for the economy, in particular in the United States.  And putting in place a regulatory regime that does not allow some of those companies to sort of extend some preferential treatment to some content is an important way that we can protect the freedom and openness that’s associated with the Internet that will ensure that it continues to be a space that’s open to innovation and progress.

But again, this is something that has been — has engendered strongly held views on both sides, so I would anticipate this will continue to be a pretty robust debate in the political sphere back home in the United States.

I will say that in terms of the timing of this announcement, it is not related to this specific trip; that there are some regulatory decisions that are due.  And the President felt like this was an appropriate time to, again, reiterate his views about the important principle that’s at stake here.

Ed.

Q       Ben, I had a question about Putin in terms of — I know it was just a brief conversation so far.  But can you say anything that happened there?  But also more importantly moving forward what you hope to accomplish, what message you hope to send to Putin because we’ve heard again and again that sanctions are working against Russia.  And certainly we’ve seen the ruble in the last couple days — there’s been an economic impact.  But the administration put out a statement a day or two ago saying that heavy artillery and tanks are being sent to the front line basically by Russia.  And that’s your own assessment.  So doesn’t that suggest that the sanctions are not stopping them from this heavy influence inside Ukraine?

MR. EARNEST:  The question is about the exchange between the President — President Obama and President Putin yesterday and the impact of sanctions on influencing Russia’s actions in Ukraine.  Ben, you want to take that.

MR. RHODES:  Sure.  Well, first of all, their interaction, as I think we said last night, it was very brief.  The leaders greeted each other as the President greeted many leaders.  They did not have the substantive exchange that they do today on the margins of APEC, where I think there’s a lot more time.  We’ll certainly let you know.

But, Ed, I think — first on the message and then on the situation in Ukraine specifically, on Ukraine, we continue to be deeply troubled by Russia’s activities.  And I guess to take your question head-on, the sanctions are clearly succeeding and having an impact on the Russian economy.  There’s no question that if you look at every metric from the status of the ruble, to their projections for growth, that the Russian economic picture is grim and getting grimmer because of the sanctions.

The sanctions have yet to sufficiently affect Russia’s calculus as it relates to Ukraine.  That’s why we continue to impose them.  That’s why we continue to be very clear about where we need to see better Russian action, specifically, as you said, we’ve seen the continued provision of support to the separatists, including heavy weapons that are in complete violation of the spirit of the Minsk agreement.  And what our message is to Russia is there’s an agreement that you reached with the government in Kyiv, and you just abide by that agreement.  The separatists must abide by that agreement.  And escalating the situation by providing these types of weapons into Ukraine is clearly not in service of that process.

And what Russia will find is, if they continue to do that, it’s a recipe for isolation from a broad swath of the international community.  It’s a recipe for the type of economic disruption they’ve seen from the sanctions going forward.

So our message is one of resolve in insisting upon the sovereignty and territorial integrity of Ukraine.  It’s a message that there is a road map here through the Minsk agreement that should be followed.  And the President will certainly I think express that view publicly and privately in the coming days and weeks.

I think more broadly with Russia, I think at the same time we’ve had differences with them on Ukraine, we’re working to pursue an Iran agreement.  We’re working in a range of areas where we can make progress together.  But clearly what we’ve seen is a troubling focus from President Putin on the situation in Ukraine that is going to demand a response from the international community going forward, just as it has the last several months.  And the United States is going to be committed to leading that response.

MR. EARNEST:  Mark.

Q       Thank you.  Just a question for Mike and then a question either for Mike or Ben — if more appropriate.

On the trade talks, Mike, I’m paraphrasing, but you said earlier the best way to get Congress to pass a TPP deal is to bring them a very good agreement.  And some trade analysts say that that sort of has it backwards, that you sort of need to get the TPA authority first because that allows you to obtain concessions from trading partners.

I’m wondering sort of whether you think you can get those concessions without the President having TPA, and whether foreign leaders have pressed the President in the wake of the elections to try to get that authority from Congress.

And then secondly on cyber, the working group that Secretary Kerry set up on the cybersecurity issues obviously stopped working after the charges were brought against the Chinese military officers for hacking.  Will President Obama in his talks with President Xi encourage him, ask him to resume the dialogue of that working group?

MR. EARNEST:  So just to restate the two issues on the microphone, the second question was about the cybersecurity working group and the relationship between the U.S. and China and how the President will raise that with President Xi when they discuss it tomorrow.

And then the first question was related to does the Ambassador feel as if he can reach a good agreement with other countries without having TPA authority first, right?  Okay.

Ambassador Froman.

AMBASSADOR FROMAN:  Well, our approach has always been to pursue both in parallel and to make clear that ultimately, again, as I said the only guarantee that agreement gets the support of Congress is that it is a good agreement and meets that ambitious, comprehensive, high-standard outcome that we have sought to achieve.

I think — we have an ongoing discussion with our trading partners.  They follow our political system very closely, and we have made clear — and I think they understand — that every country has its domestic processes to go through on trade agreements.  And we’re responsible for ours, and they’re responsible for theirs.  And as the President has made clear that he wants to work with leaders in Congress, Republican and Democratic leaders in Congress, to advance the trade agenda, that has allowed our negotiations to continue.  So we’re continuing to work in parallel to close out the TPP negotiations consistent with the high standard that we’ve set for ourselves.  And we’re continuing to work with Congress to achieve trade promotion authority with as broad bipartisan support as possible.

MR. EARNEST:  Ben, do you want to do the cyber?

MR. RHODES:  Yes, Mark, it’s certainly the case that after those charges were brought we did see a chill in the cyber dialogue.  I think the fact that we pursued those cases demonstrates that we’re not going to simply stand idly by.  If we see activity that we don’t like, that we can call out, we’re going to do that.

At the same time, though, we do believe that it’s better if there’s a mechanism for a dialogue where we can raise concerns directly with one another.  So I think President Obama will highlight the importance of having a means to have a cyber-dialogue so that our governments can share information.  We can be direct about areas of concern.  We can try to find ways to build confidence in that space, as well.

So it is something where we’ve been very firm in our position.  We did see a Chinese reaction to those charges.  Again, we’re going to continue to call out behavior as we see it.  But I think the message in the bilat today, and has it has been going forward, is better for us to have a means to have a dialogue, just as we do on a whole host of other issues through the Strategic and Economic Dialogue, so that we can be more transparent.

MR. EARNEST:  Major.

Q       Ben, on Ukraine, I’m just trying to get a sense, if the President wants to use this venue for the G-20 as an opportunity to engage Putin directly and say, what’s happening in Ukraine right now?  Which seems to be an escalation after several months of relative calm, to protest in a very specific way, and to convey that message to him directly.

Secondarily, can you in any way shape or form provide any clarity on the status al-Baghdadi?

MR. EARNEST:  So just to repeat the two questions.  The first is does the President plan to raise directly with President Putin the concerns that the United States has about their actions on Ukraine either while we’re here at APEC or in the context of the G-20 meetings.

And then an update on the latest assessment about the strike against ISIL that may have had impact on al-Baghdadi.

Ben, do you want to —

MR. RHODES:  Well, Major, I think our position on Ukraine is well known, and it’s manifested in our sanctions and our policy.  So I don’t think we’re necessarily looking to focus to make this a — to go out of our way to try to make the focus of these multilateral Ukraine in the way that we did when we were in Europe, when it was obviously a more natural venue.

That said, I think if the President has the opportunity to talk President Putin, I know he’ll be expressing the need to highlight and get back to the Minsk agreement and express concern over these latest reports.

I also know that other leaders share those concerns, as well.  And yesterday, for instance, with Prime Minister Abbott, we discussed the situation in Ukraine.  He’s obviously very focused on the MH17 investigation and the need for there to be justice for Australian families.  So it’s not simply the United States.  You have a number of leaders — Chancellor Merkel, Prime Minister Abbott, a number of other European leaders — Prime Minister Cameron — who share our concerns.

And so this is not just simply a U.S. view.  I think it’s probably held among many of our friends and allies.  And so I can’t predict exactly what will happen except to say that I know where different nations stand, and I know that that’s what they’ve been saying to the Russians.

Q       Is it fair to interpret, Ben, then that you don’t consider what’s happening right now to be particularly alarming?

MR. RHODES:  We do consider it to be particularly alarming.  That’s why we’ve spoken out about it.  I guess what I’m saying is our position is very clear on this, and the pathway out of this is very clear.  It’s to get back to the Minsk agreement.  And the pattern of imposing consequences on Russia when we see an escalation is also established, as well.

So again, I could anticipate knowing how these meetings go that as the President has an opportunity to engage with leaders like Chancellor Merkel, for instance, on the margins of the G-20, this will certainly come up.  And again, I was just highlighting that President Putin knows full well where we stand.  And we’ve made that clear through not just our words, but our policies, our sanctions.  And that’s go to continue to be our approach here.

On Baghdadi, we cannot confirm his status at this point.  As you know, we did take a strike that successfully hit a number of ISIL vehicles that we assessed was associated with ISIL leadership.  We obviously take time to do due diligence to get an understanding of what the impact was.

The message I think is very clear, though, which is that we’re not going to allow for a safe haven for ISIL and its leadership and its fighters in Iraq or Syria.  And they had for months.  They were able to operate freely.  And I think what they’re finding now — whether it’s outside of Kobani, whether it’s in Anbar province, whether it’s in northern Iraq, whether it was that strike outside of Mosul — that if they move, we’re going to hit them.

Q       Just to clarify — you’re saying you don’t —

MR. RHODES:  I don’t have an update on his status.  No.

MR. EARNEST:  Josh.

Q       Two for Ben.  The first one on Indonesia and the second one in China.  At the meetings yesterday, were there any — meeting yesterday between the President and President Widodo, was there any discussion of Hambali, the terrorist suspect that’s been locked up at Guantanamo for more than 10 years.  I think President Bush at one point promised to return him to Indonesia for trial.  Regardless of whether it came up, what’s going to happen to that individual?  Is there any plan to do anything with him or just keep him at Guantanamo indefinitely?

And then on the Chinese front, given the concerns about press freedom in China, can you explain the President’s decision to do a written interview with the Xinhua Agency, since the Chinese leaders have been criticized in the past for insisting on sort of canned interviews with American news outlets?

MR. EARNEST:  The two questions.  Did the President discuss with the Indonesian leader the status of an Indonesian terror suspect that’s being held at Guantanamo?  And the decision-making behind the President’s decision to do a written interview with Xinhua.

Ben, do you want to take those?

MR. RHODES:  Yes.  Well, on the first question, it did not come up in the discussion.  Counterterrorism did, ISIL did.  We discussed ways to share information.  And we have a good relationship with Indonesia on information sharing related to counterterrorism.  And so those issues were addressed.

But on his specific status, I’ll have to check, Josh, on exactly what the status of his case is.  As you know, we’ve reviewed each one and have a very rigorous process to determine who is cleared for transfer, who is not.  So we can get back to you on that.

On the second question, look, it’s very — when we go on trips, this is something we do everywhere.  As you know from covering us, we tend to do written interviews with outlets when we arrive in a country.

Our view is on the one hand, we need to engage.  And the more the President’s voice can be heard in a country the better because people understand where we come from.  So we do engage Chinese media.  We engage CCTV in the Briefing Room every day.  We engage Xinhua.

At the same time, we’ll raise issues of press freedom.  And the President has raised it directly with President Xi in their believe meetings.  We’ve raised our concerns about the status of some U.S. media organizations and the treatment — the adjudication of their visas.  We’ve raised, again, our concern on having more free access to information here — not just as it relates to the news media, but as it relates to Internet.

So these are things that we will consistently raise, but again, I think better for the President’s voice to get out and to be heard in a country.  We use those interviews as important venues to address different issues.  But in no way does that diminish the fact that we have concerns about the press freedom here in China, just as we do in a range of other countries that we’ve visited who have — who are on a spectrum of how they treat the press.

MR. EARNEST:  Mr. Acosta.

Q       Yes, just to follow up on that with Ben.  What does the President see as his legacy with China?  Is it more engaging with China, but not changing China’s behavior?  Because I was struck by something the President said yesterday with Prime Minister Abbott that press freedoms he likes, that those are U.S. values.  But he does not expect China to have those traditions, to follow those traditions.  Why not?  Why not publicly with Xi push the Chinese to adopt a more American value system on press freedoms and human rights?

MR. EARNEST:  To repeat the question again.  Jim’s question is about who aggressively the President pushes the Chinese on some of the human rights concerns that the President himself has spoken about pretty publicly.

Q       And how that fits into his legacy?

MR. EARNEST:  Yes, and how that fits into his legacy, with that relationship.

MR. RHODES:  Yes, so I’ll start with the human rights piece.  Jim, the President doesn’t just see these as American values.  There are certain things that are universal values.  They’re embedded in the Universal Declaration of Human Rights at the United Nations.  And they should be able to take root in any society.  When you talk about freedom of speech, freedom of association, again, America has championed those values, but we believe that they are universal.

I think what the President is speaking about is the fact that China is at a different stage of development.  Obviously, it has different traditions.  But we do raise these issues.  And we do believe that certain things are universal, the right to, again, speak your mind, access information, to freedom of assembly.  And so it’s something that we’re going to press.  It’s something that comes up in every meeting.  It’s something that we raise publicly, as well.  And at the end of the day, again, I think the people of China are going to determine the future of their country.  But we want to make sure that just as we want China to live up to the rules of the road, we want them to live up to the rules of the road on universal values.

In a place like Hong Kong, that involves respect for freedom of assembly.  It also involves the people of Hong Kong being able to select their own leaders, as was agreed to, to choose their own leadership, again, which was the one county, two systems notion.

In terms of the President’s legacy, I think there’s — what did we get done with China.  On a bilateral basis to, again, improve the American economy, to save the global economy — and coordinated action with China was critical to that — to take the steps we’ve taken on this trip that will promote U.S. exports, promote more tourism and investment in the United States.  All that will have a positive economic impact for America and the American people.

Then I think, however, we want to look at where do we enlist China in regional and global efforts.  Because, again, we want them to play a bigger role.  We want them to be a part of international climate negotiations because you can’t deal with climate change unless China is coming to the table in a serious way.

We want them to be a part of settling disputes and resolving disputes around maritime security in the region.  We want them to be part of pursuing an agreement with Iran over its nuclear program.  So China kind of fits into the type of international order we’re trying to build in which nations are invested in solving problems.

And that very much speaks to rebalance, the signature Asia Pacific policy of the President’s.  We want to see this region more prosperous, more cooperative; again, a place of robust American engagement in ways that support our economy; support the security of our allies and the civility of the region; support the values we care about in a place like Burma where we have an ongoing transition.  And that mitigates the risk of conflict that could derail the extraordinary progress we see here.

So again, when we look at his legacy, it’s going to be where do we move the ball forward bilaterally in ways that benefit the American people?  How do we embed China, working with them, in an international system that can solve problems like climate change and maritime security?  And how is this region a more stable, prosperous and secure place which has robust American engagement.  They’re critical to all those things.  And human rights in our view is a part of the international norms that we uphold.

So just as we care about maritime security and cybersecurity, we care about universal values.  And that’s going to be a part of how we judge the status of the relationship.

Q       You mentioned Iran a couple of times.  If I could just follow up on that.  November 24th is coming up very quickly.  Do you foresee a scenario where that deadline might be put back a little bit?  And you’ve seen Netanyahu’s comments, where he seems to be pretty upset about Khamenei tweeting about the (inaudible) and what do you make of that?

MR. EARNEST:  Can you repeat the question?

MR. RHODES:  Yes, so the question.  Was the states of the Iran negotiations heading to the 24th and the Israeli Prime Minister’s comments on the Supreme Leader’s tweet.

On the first question, what we’ve been focused on is driving towards what progress can we make towards an agreement for the 24th.  We have not focused on discussions with Iran on extending those discussions because we want to keep the focus on closing gaps.

Secretary Kerry was meeting into the night in Oman.  He’s currently on a plane, set to arrive in Beijing.  He will give the President an update on where things stand and what progress he made, so President Obama will hear directly from him about the status of the talks.

And then there are negotiations scheduled in Vienna where we’ll see where we can get by the 24th, and we’ll keep people posted on where things stand.

With respect to the — first of all, the sentiments expressed by the Supreme Leader’s office in that tweet.  They’re obviously outrageous.  It’s the type of rhetoric we’ve seen from the Iranian leadership for years.  We completely reject it, of course.

The fact of the matter is what we’ve always said is even as we pursue this effort around diplomacy on the Iranian nuclear program, that’s about addressing a security concern of the United States and Israel and the international community.  If we can prevent Iran from obtaining a nuclear weapon, that’s in all of our interests.

At the same time, it doesn’t lessen our concern over other Iranian behaviors, including the virulent anti-Israeli rhetoric that has been a part of their political tradition.  So we’ll continue to speak out against that.

With respect to the agreement itself, though, what we would say is, again, if we can verifiably discern that Iran is not building a nuclear weapon, that it’s program is for peaceful purposes, that’s a good thing.  That’s far better than an outcome where Iran is back to trying to accumulate more stockpile, enriching at a higher percent and getting more breakout capacity.  So we’ve already frozen their nuclear — the progress of their nuclear program.  We’ve rolled back the stockpile just during these negotiations.

If we can get a comprehensive agreement, we would say that would be in the interest of American national security and also the security of our friends and allies.

MR. EARNEST:  We’re nearing the one-hour mark here, so we’ll just do two more.  Ching-Yi and then Jim Avila, I’ll let you wrap up.  Go ahead.

Q       Thank you, thank you, Josh.  First question is to Ambassador Froman.  According to interview with Xinhua, President Obama say our summit will also be an opportunity to make progress toward ambitious bilateral investment treaty.  So what kind of progress?  What kind of breakthrough that we can expect about the VIT?

And also the second question is to Ben.  Other than ITA and the visa, what else deliverables that the U.S. is looking forward to reaching this time.  Thank you.

MR. EARNEST:  Repeat the question so everybody can hear.  Ambassador Froman, an update on progress related to the VIT negotiations.  And, Ben, what other deliverables do you anticipate out of the meetings between President Obama and President Xi.

Ambassador Froman?

AMBASSADOR FROMAN:  Well, as you may recall it was about a year and a half ago that China agreed to negotiate a bilateral investment treaty on the basis of what we call a negative list, which is to open up their economy but for specific carve-outs that they negotiate with us.  And that was a major step forward, as were some of the other provisions that we agreed to then.

Since that time we’ve had very good discussions in the bilateral investment treaty channel.  We’ve had a series of rounds to walk through our model of it and to talk about how it would be applied in the case of China.  We have further work to do.  Next year, early next year, China has agreed to give us their first version of their negative list.  And it will be very important if we’re to achieve early progress in these negotiations that that list be as short and as focused, as narrowly tailored as possible.  And we’re encouraging our Chinese counterparts, including while we’re here for this visit and around this summit to focus on making that list as narrow and as short as possible so that we can proceed with negotiations and make progress next year.

MR. RHODES:  I, of course, will let the leaders speak to the specific deliverables.  I think we certainly focused on the visa issue and ITA in these first couple of days because of the economic theme of APEC and the venue of the CEO forum.  So again, I think the President’s meeting will certainly address economic issues.  But I think we’ll also d

CALENDRIER du 13 au 19 octobre 2014

Commission européenne

Bruxelles, le 10 octobre 2014

CALENDRIER du 13 au 19 octobre 2014

(Susceptible de modifications en cours de semaine)

Déplacements et visites

Lundi 13 octobre

Eurogroup, Luxembourg

AGRIFISH Meeting of Agriculture and Fisheries Ministers, Luxembourg

Mr José Manuel Durão BARROSO and Mr Karel DE GUCHT receive Mr Nguyễn Tấn DŨNG, Prime Minister of Vietnam

Mr Siim KALLAS receives Mr Raymond BENJAMIN, Secretary General of the International Civil Aviation Organization (ICAO)

Mr Janez POTOČNIK in the Republic of Korea (13-17/10): participates in the 12th High-Level Meeting of the Conference of the parties to the Convention on Biological Diversity (Alpensia Convention Center, Pyeongchang)

Mr Andris PIEBALGS participates in the signing ceremony of the Multiannual Indicative Programme 2014-2020 for Vietnam with Mr Nguyễn Tấn DŨNG, Prime Minister of Vietnam

Ms Androulla VASSILIOU attends the opening and delivers a keynote speech at EU Youth conference organized under the Italian EU Presidency (Rome)

Mr Karel DE GUCHT receives the Minister of Industry and Trade of Vietnam, Mr Vu Huy HOANG

Ms Connie HEDEGAARD receives representatives of “Young Ideas for Europe”

Mr Štefan FÜLE visits Jordan

Mr László ANDOR in Budapest: attends and gives speech at conference “Nothing about us without us? – Roma participation in policy making and knowledge production” at Corvinus University of Budapest; speaks at conference of Hungarian trade unions on “Decent wages”; gives presentation on “Europe after the crisis” at Európa Klub

Mardi 14 octobre

AGRIFISH (Agriculture and Fisheries Council), Luxembourg

ECOFIN (Economic and Financial Council), Luxembourg

Mr José Manuel Durão BARROSO receives Mr Edmund STOIBER, chairman of the High-Level Group on Administrative Burdens

Mr José Manuel Durão BARROSO and Ms Androulla VASSILIOU receive Mr Michel PLATINI, President of the Union of the European Football Associations

Ms Catherine ASHTON leads meetings with Iranian Foreign Minister and US Secretary of State in framework of Iran Nuclear Talks, Vienna

Mr Joaquín ALMUNIA delivers a keynote speech at the 31st AmCham EU Competition Policy Conference, Brussels

Mr Andris PIEBALGS is in Rome: participates in a Conference on energy

Mr Karel DE GUCHT in Rome: delivers a speech at a dialogue on the TTIP; event organised by the Italian presidency with participation of the Italian Prime Minister Mr Matteo RENZI, the Italian Deputy Minister of Economic Development Mr Carlo CALENDA and U.S. Trade Representative Mr Michael FROMAN

Mr Johannes HAHN receives Mr Max HIEGELSBERGER, Regional Minister of Upper Austria; receives Mr Erwin PRÖLL, Governor of Lower Austria and attends with him the opening of the Exhibition Lower Austria; receives Mr Vidar HELGESEN, Minister at the Office of the Prime Minister

Ms Connie HEDEGAARD delivers a keynote speech at the Arctic Futures Symposium, organized by the International Polar Foundation (Residence Palace, Brussels)

Mr Štefan FÜLE visits Lebanon

Mr László ANDOR in Budapest: gives speech at a conference on Health & Safety organised by Napi.hu

Mr László ANDOR in Rome: gives opening speech at European Social Fund conference on Youth Guarantee, organised by the Italian Presidency of the Council of the EU; meets Mr Giuliano POLETTI, Minister of Labor and Social Policies of Italy; attends presentation of European Social Fund project “Torna subito”

Mercredi 15 octobre

FAC informal meeting of the 28 European Foreign Trade Ministers, Rome

Mr José Manuel Durão BARROSO in Milan (15-16/10)

Ms Catherine ASHTON leads meetings with Iranian Foreign Minister and US Secretary of State in framework of Iran Nuclear Talks, Vienna

Mr Joaquín ALMUNIA delivers a keynote speech and participates in the Award Ceremony of 2014 EARTO (European Association of Research and Technology Organisations) Innovation Prize, Brussels

Mr Ferdinando Nelli FEROCI, Mr Michel BARNIER and Mr Tonio BORG participate at the High Level Forum on the Food Chain, Brussels

M. Michel BARNIER participe à la conférence “L’homme face aux risques de l’argent”, organisée par l’Institut Catholique de Paris, Paris

Mr Andris PIEBALGS receives new President of CONCORD Mr Johannes TRIMMEL

Mr Andris PIEBALGS participates in the signing ceremony of the National Indicative Programme (NIP) with Cameroon

Jeudi 16 octobre

EPSCO (Employment, Social Policy, Health and Consumer Affairs Council), Luxembourg

Mr Siim KALLAS meets a delegation from the Estonian Chamber of Commerce and Industry, Brussels

Ms Androulla VASSILIOU delivers speech at the Conference: “A highly-qualified and well-trained work force: a key factor for European competitiveness” (Representation of the State of Rhineland-Palatinate, Brussels)

Ms Maria DAMANAKI meets with Mr Charalambos SIMANTONIS, President of the Hellenic Shortsea Shipowners Association (Athens)

Ms Kristalina GEORGIEVA receives the Disaster Risk Reduction Champion Prize from Ms Margareta WAHLSTROM, UN SRSG for Disaster Risk Reduction

Mr Johannes HAHN in Vienna: gives a speech at the Board meeting of the Fraunhofer Society; in Brussels: gives a closing statement at the “Mayors Adapt Signing Ceremony”

Ms Connie HEDEGAARD participates in the signatory ceremony of “Mayors Adapt”, the Covenant of Mayors Initiative on Adaptation to Climate Change (Berlaymont building, Brussels)

Ms Connie HEDEGAARD in Deauville (France) to participate in the Women’s Forum Global meeting for a dialogue “A Champion for Climate Action” (Centre International de Deauville, Les Planches)

Mr Štefan FÜLE receives the Turkish Minister for European Union Affairs Mr Volkan BOZKIR

Mr Dacian CIOLOŞ in Rome: participates in a panel discussion at the World Food Day – CFS (FAO Committee on World Food Security) Special Event: Innovation in Family Farming: Towards Ensuring Food Security and Nutrition; holds a series of meetings focussing on agriculture and food security issues.

Mr Neven MIMICA in Zagreb: visits a local school and meets with students who are using the ConsumerClassroom.eu educational platform

Vendredi 17 octobre

Mr José Manuel Durão BARROSO in Geneva

Mr Andris PIEBALGS participates in the signing ceremony of NIP with Tadjikistan

Mr Johannes HAHN in Piran: gives an opening speech to the “Rethinking Europe – Creative regions for a strong Europe” Seminar

Mr László ANDOR in Torino: attends conference on the European Social Charter organised by the Council of Europe and the Italian Presidency of the Council of the EU

Mr Tonio BORG visits food retailers concerning food waste

Mr Neven MIMICA in Zagreb: meets the Minister of Economy, Mr Ivan VRDOLJAK, launches a consumer rights information campaign, meets representatives of consumer organisations

Samedi 18 octobre

Mr José Manuel Durão BARROSO in London (18-20/10)

Mr Andris PIEBALGS is in Nepal

10:00 Mr Andris PIEBALGS participates in a visit to the Bagmati river

11:30 Mr Andris PIEBALGS participates in a project visit

Ms Máire GEOGHEGAN-QUINN is invited to the Royal College of Physicians where she receives an Honorary Fellowship, Dublin

Dimanche 19 octobre

Mr Andris PIEBALGS is in Nepal: meets President Dr Ram Baran YADAV; meets Prime Minister Mr Sushil KOIRALA; meets Foreign Minister Mr Mahendra Bahadur PANDE; meets the Secretary-General of the South Asian Association for Regional Cooperation Mr Arjun THAPA; meets Minister of Finance Dr Ram Sharan MAHAT

12:30 Mr Johannes HAHN in Piran: gives a closing speech on “Challenges of the Adriatic Ionian region” at the “Rethinking Europe” Seminar

Prévisions du mois d’octobre:

20/10 FAC (Foreign Affairs Council), Luxembourg

20-21/10 EYCS informal meeting of the 28 European Sports Ministers, Rome

20-23 European Parliament plenary session, Strasbourg

21/10 GAC (General Affairs Council), Luxembourg,

23-24/10 European Council, Brussels

28/10 ENVI (Environment Council), Luxembourg

30/10 Informal meeting of the EU Ministers of Tourism, Naples

Prévisions du mois de novembre:

06/11 Eurogroup, Brussels

07/11 ECOFIN (Economic and Financial Council), Brussels

08/11 Eurogroup

10-11/11 AGRIFISH (Agriculture and Fisheries Council), Brussels

12-13/11 European Parliament plenary session, Brussels

14/11 ECOFIN (Economic and Financial Council), Brussels

17-18/11 FAC (Foreign Affairs Council), Brussels

18-19/11 GAC (General Affairs Council)

21/11 FAC (Foreign Affairs Council), Brussels

24-27/11 European Parliament plenary session, Strasbourg

25/11 EYCS (Education, Youth, Culture and Sport Council)

27/11 TTE (Transport, Telecommunications and Energy)

Prévisions du mois de décembre:

01/12 EPSCO (Employment, Social Policy, Health and Consumer Affairs Council)

03/12 TTE (Transport, telecommunications and energy)

04-05/12 COMPET (Competitiveness Council)

04-05/12 JHA (Justice and Home Affairs Council)

09/12 ECOFIN (Economic and Financial Council)

09/12 TTE (Transport, telecommunications and energy)

11/12 EPSCO (Employment, Social Policy, Health and Consumer Affairs Council)

12/12 FAC (Foreign Affairs Council)

12/12 EYCS (Education, Youth, Culture and Sport Council)

15/12 FAC (Foreign Affairs Council), Brussels

15-16/12 AGRIFISH (Agriculture and Fisheries Council)

15-18/12 European Parliament plenary session, Strasbourg

16/12 GAC (General Affairs Council)

17/12 ENVI (Environment Council), Brussels

18-19/12 European Council (Brussels)

Permanence DG COMM le WE du 11 au 12 octobre:

Joe HENNON, +32 (0) 498 953 593

Permanence RAPID- GSM: +32 (0) 498 982 748

Service Audiovisuel, planning studio – tél. : +32 (0)2/295 21 23

Para uma União da Inovação mais forte, coesa e aberta – Working for a Strong, Cohesive and Open Innovation Union

Comissão europeia

[Só faz fé o texto proferido]

José Manuel Durão Barroso

Presidente da Comissão Europeia

Para uma União da Inovação mais forte, coesa e aberta – Working for a Strong, Cohesive and Open Innovation Union

O futuro da Europa é a ciência

Lisboa, 6 outubro 2014

Sua Excelência o Senhor Presidente da República,

Senhora Secretária de Estado,

Senhora Presidente do Conselho de Administração da Fundação Champalimaud, cara Dra. Leonor Beleza,

Senhora Comissária, Dear Máire Geoghegan-Quinn,

Senhor Comissário indigitado, meu caro Eng. Carlos Moedas,

Minhas Senhoras e meus Senhores,

Ilustres convidados,

Caros amigos,

Tenho muito prazer em estar aqui hoje convosco para vos falar do papel da ciência no futuro da Europa. Gostaria de começar por agradecer à Senhora Presidente da Fundação Champalimaud, Dra. Leonor Beleza, por nos acolher nesta impressionante sede de uma instituição que em relativamente pouco tempo já ganhou reconhecimento nacional e internacional pelo seu trabalho ao serviço da ciência. Quero de modo muito especial agradecer ao Senhor Presidente da República pela honra que nos dá ao ter dito sim quando o convidei para presidir à abertura desta conferência.

De fato, não poderíamos ter escolhido um sítio melhor do que Lisboa para realizar a conferência. A sensibilidade para a descoberta e para a abertura a novos horizontes faz parte do ADN de Portugal!

E as novas gerações têm honrado esse legado, como foi brilhantemente demonstrado pelos jovens João Pedro Estácio Gaspar Gonçalves de Araújo, Mariana de Pinho Garcia e Matilde Gonçalves Moreira da Silva, que há menos de duas semanas foram reconhecidos entre os melhores jovens cientistas da Europa por ocasião do 26.º Concurso da União Europeia para Jovens Cientistas realizado em Varsóvia.

E também não teria sido possível escolher melhor sítio que a Fundação Champalimaud, que não só é um centro de excelência em investigação sobre a saúde, como também uma instituição muito empenhada em divulgar a educação científica junto do público em Portugal. A atitude dos cidadãos em relação à ciência é, sem dúvida, um aspeto crucial que importa ter em consideração. O progresso científico deve ser devidamente explicado para poder ser bem recebido, em vez de ser encarado, com muitas vezes acontece, com injustiçadas dúvidas ou até perniciosas resistências.

Esta conferência não poderia ocorrer em melhor altura, pois é precisamente nesta semana que se procede a entrega dos Prémios Nobel, que se iniciou esta manhã com o Prémio Nobel da Medicina de 2014 – cujos vencedores, como já foi dito, foram John O’Keefe, May-Britt Moser e Edvard Moser, que felicito muito sinceramente. E é com grande orgulho que o faço, pois estes últimos dois neurocientistas, apesar de trabalharem na Noruega, foram ambos bolseiros do Conselho Europeu de Investigação (ERC).

Quero também agradecer muito a presença entre nós do Prémio Nobel da Física, Serge Haroche, que participará logo a seguir numa das mesas redondas, e a todos os outros eminentes cientistas, empresários e membros da sociedade civil que quiseram juntar-se a nós nestes dois dias de importantes reflexões.

A Comissão Europeia tem vindo a colocar a ciência, a investigação e a inovação no centro da agenda europeia. Para construir uma Europa forte, unida e aberta neste domínio, a Comissão tem desempenhado um importante papel procurando soluções para os problemas, estabelecendo pontes e promovendo os nossos princípios fundamentais.

A ciência, a investigação e a inovação são áreas a que tenho dedicado especial atenção desde o início do meu mandato de dez anos como Presidente da Comissão Europeia. Os alicerces foram criados ao longo dos anos: desde a criação do Instituto Europeu de Inovação e Tecnologia (EIT) e do altamente reputado Conselho Europeu de Investigação – European Research Council -, à participação da Europa em grandes projetos científicos como por exemplo – um dos maiores em curso no mundo – o Reator Termonuclear Experimental Internacional (ITER), cujos progressos constatei pessoalmente durante a visita que efetuei em julho a Cadarache, em França, na sede do projeto.

A razão pela qual dedico uma atenção especial a este setor está relacionada com a grande esperança na ciência, na grande confiança que tenho nas capacidades da mente humana e numa sociedade criativa para solucionar os seus problemas. O mundo está a mudar drasticamente, a uma velocidade nunca vista. Acredito que muitas das soluções, na Europa e fora dela, virão de novos estudos científicos e das novas tecnologias. Gostaria de ver a Europa a liderar esse esforço a nível global, o que será determinante para o futuro bem-estar e a prosperidade das nossas sociedades e para a influência europeia a nível global.

A verdade é que foi possível, mesmo em momentos de grandes dificuldades financeiras, colocar a investigação no centro da estratégia para o crescimento e para o emprego – a Estratégia Europa 2020: com o objetivo de criar condições favoráveis à inovação; promover o dinamismo da União da Inovação; lutar por um maior investimento na inovação, na tecnologia e no papel da ciência.

Gostaria de aproveitar esta oportunidade para enaltecer o trabalho incansável e muito competente da Comissária para a Investigação, a Inovação e a Ciência, Máire Geoghegan-Quinn, em prol da obtenção de resultados concretos num setor com tão grandes ambições. Muito a ela se deve, nomeadamente na luta de persuasão de alguns Governos no sentido de nos apoiarem em relação a um orçamento mais ambicioso para a investigação.

Acredito igualmente – e tive experiência direta disso durante estes anos – na importância da competência científica independente e consistente. De facto, a Comissão Europeia é muitas vezes chamada a tomar decisões que são extremamente complexas do ponto de vista técnico e que têm profundas repercussões do ponto de vista social, e até, muitas vezes, implicações de um ponto de vista ético. E penso que essas decisões devem ser sustentadas numa abordagem científica.

Foi por essa razão que decidi criar o cargo de conselheiro científico principal do Presidente da Comissão Europeia, exercido pela Professora Anne Glover, e também criamos o Conselho Consultivo para a Ciência e Tecnologia (STAC), que nos aconselha e apoia nos domínios da ciência e da tecnologia.

Dado que o progresso da ciência levanta por vezes questões éticas, a Comissão Europeia é também aconselhada pelo Grupo Europeu de Ética para as Ciências e as Novas Tecnologias, um organismo independente, pluralista e pluridisciplinar, cujo papel se encontra já bem consolidado.

Dado que há muito a fazer quando se aceita a ideia de que a mudança é uma oportunidade de melhorar; e que as novas formas de pensar e os novos dados podem obrigar-nos a abandonar visões por vezes antiquadas do mundo e a aceitar algo de novo, dei também o meu pleno apoio a várias iniciativas prospetivas no âmbito da Comissão Europeia, desde o projeto ESPAS (European Strategy and Policy Analysis System) à criação de uma rede interna em matéria de prospetiva, que cobre também o domínio científico.

Penso que estes exercícios prospetivos são realmente necessários pois, embora a incerteza faça sempre parte da decisão política, a falta de antecipação política adequada pode e deve ser evitada. Os decisores políticos precisam de dispor de alternativas de políticas públicas bem informadas que lhes permitam tomar decisões claras e estratégicas a médio e longo prazo.

Por isso solicitei, portanto, ao meu Conselho Consultivo para a Ciência e Tecnologia (STAC) que se debruçasse sobre estas questões e que elaborasse um relatório sob o lema «O futuro da Europa é a ciência». É precisamente disso que se trata: identificar os desafios e as oportunidades que a ciência, a tecnologia e a inovação colocam à Europa e formular uma série de recomendações em três domínios diferentes, todos eles de importância primordial para os cidadãos europeus: o futuro da sua saúde, o futuro do trabalho e o futuro do ambiente.

Queria aproveitar esta oportunidade para agradecer publicamente aos membros do STAC. Sempre trabalhámos juntos, de uma forma aberta e construtiva. Sempre valorizei o seu aconselhamento e congratulo-me com o relatório que é hoje mesmo publicado na ocasião da realização da conferência.

Gostaria agora de vos explicar sucintamente o que significa uma Europa forte, unida e aberta do ponto de vista da Comissão Europeia no que se refere à ciência e à investigação.

Excellencies,

Ladies and gentlemen,

Contradicting what I call an intellectual glamour of pessimism about Europe, which unfortunately happens to be rather fashionable in some circles, we have to recognize that, when it comes to research and innovation, Europe is strong. Much stronger than what sometimes is publicly acknowledged. Europe is one of the leaders in science in the world!

We are not short of world-class researchers and innovators with the skills and ideas to drive Europe forward. And today’s audience is a perfect illustration of this. We have twice the number of science and technology graduates than in the United States; with 7% of the world’s population, we still produce roughly a third not only of the world’s GDP, but also of patents and high impact scientific publications; and despite the crisis almost all our Member States have improved their innovation performance; and we have been able to halve the innovation gap that we still have with the United States and Japan. While in science we are, in many areas, the number one in the world, in innovation we are not always in the first places.

But we cannot afford to rest on these laurels. We live in a world where scientific and technological progress is accelerating at an unprecedented pace, and where South Korea is moving further ahead, with China quickly catching us up. So we need to capitalize on our strengths and to address also some of our weaknesses.

From a European Commission’s perspective, this basically means to act as a problem-solver in an environment of scarce resources and under very challenging circumstances. This is what we have been doing over these last years.

The best illustration of this is certainly the new research programme Horizon 2020. This is a large framework programme with wide-ranging objectives from supporting excellence in science – with the European Research Council now chaired by Professor Bourguignon – to developing industrial leadership and addressing key societal challenges, allowing us to focus on the big priorities relevant to our citizens.

That said, as we are all aware, money is the crux of the matter. But despite very difficult financial conditions, we have managed to get our Member States closer to our objectives for research, with an increase of 30% through the new Horizon 2020 programme – around € 80 billion for the next seven years – which makes it today one of the most important scientific funding programmes in the world.

I have to say, to be honest with our Member States, that while in some areas they were very negative when we discussed the Multiannual Financial Programme for the next seven years regarding some expenditure, when it came to science there was, generally speaking, very good opening from our Member States considering the ambitious proposals of the Commission. And this is certainly a very important progress, compared to the situation in the past.

And because entrepreneurs, researchers, innovators cannot afford to have their energy and time drained with red tape, with Horizon 2020 red tape was sensibly reduced. All phases of the innovation cycle are now funded under a single platform.

More private investment has also been secured to address major societal challenges. Public-private partnerships are one of the key elements of Horizon 2020. The private sector has committed to invest nearly € 10 billion in Joint Technology Initiatives stimulating innovation in areas such as medicines, transport and bio-based industries. Together with EU and Member States funding, this amounts to a € 22 billion boost for growth and jobs in Europe over the next 7 years.

Another example of the European Commission acting as a problem-solver is the Risk Sharing Finance Facility that we have set up jointly with the European Investment Bank.

As you know, one of the major obstacles to getting innovation to the market is the insufficient availability of finance for new and innovative projects, particularly for SMEs. The principle of this Risk Sharing Finance Facility is that for every billion euro of European budget money, the European Investment Bank has mobilised € 12 billion in loans and over € 30 billion in final research and innovation investment. Concretely, this has led to additional resources of up to € 40 billion since 2007 for research and innovation activities, which would otherwise be left unfunded. Besides, a very substantial share of Horizon 2020 will be devoted to funding innovative SMEs which, no need to recall, form the backbone of the European economy.

And I am happy and even proud to add that after 30 years of negotiation, – because the Member States were not able to agree on a common position on that matter – we finally agreed a European-wide patent, even if there are two Member States that are outside the final agreement. This is a major step forward in our effort to deliver a more innovative-friendly business environment in Europe. We estimate that once fully implemented, this will reduce the cost by up to 80% for small and medium size business and individual researchers to register their creative ideas.

But clearly the European Commission’s actions are not enough. They are necessary but not sufficient. Our countries must also act as problem-solvers and our governments make an equal effort in research. Budgetary consolidation is certainly an essential prerequisite for sound growth and competitiveness. But investment in growth and jobs of the future are also vital. And if you want to invest in the future, you should think science, research and innovation!

Ladies and gentlemen,

A stronger Europe is also a more united Europe. And for Europe to be more united in the field of science, research and innovation, we have to address existing fragmentations, notably between academic and business worlds, between public and private sectors.

From a European Commission’s perspective this means to act as a bridge-builder and make the knowledge triangle work better in favour of new socio-economic benefits. This is what we have been doing over these last years, notably through the European Institute of Innovation and Technology (EIT) which I took the initiative to create during my first mandate and which was launched in 2008.

The EIT, and I recently visited the headquarters of the EIT in Budapest, precisely brings together the three strands of the knowledge triangle – higher education, research and innovation – and businesses, in new types of partnership, the so-called Knowledge and Innovation Communities (KICs) operating so far in three areas, but we are going to enlarge them: sustainable energy, climate change and ICT; and with a strong emphasis on entrepreneurship. Until 2020, the EIT will be expanded to new areas and five new KICs will be created, as well as its outreach capacity that will be strengthened.

By 2020, the EIT is expected to train 10.000 Master students, 10.000 PhDs and create 600 new companies, and achieve systematic impact in the way universities, research centres and companies cooperate for innovation.

The Marie Skłodowska-Curie actions are also another good example of how to bridge gaps between sectors. Horizon 2020 will allow for the funding of 65.000 researchers under the new Marie Skłodowska-Curie actions which will combine research excellence with training on entrepreneurial skills; and encourage researchers to engage with industries and other employers during their fellowship.

A more united Europe depends also on an increased mobility of researchers and on the development of pan-European infrastructures. This is, as you know, the objective of the European Research Area: to have a real single market for knowledge, research and innovation. Good progress has been made. Most of the conditions for achieving a European Research Area are in place at the European level. The completion of this objective therefore now largely depends on national reforms and on national implementation. Member States are expected to present “European Research Area (ERA) roadmaps” by mid-2015, outlining their next steps towards the implementation of a true European single market for research.

And as it is just impossible to speak of a more cohesive Europe without referring to cohesion policy, I would like to mention that, to maximise territorial and social cohesion, Smart Specialisation Strategies are being developed with the support of the European Regional development Fund as well as other relevant funds, in order to make the most of the innovation potential of each region and each country across Europe. This is what we call the “Staircase to Excellence”, allowing all Member States to attain the best level in science with the support of European funding.

Finally, a stronger Europe is also an open Europe. When I had the great honour to deliver, together with my colleague, the President of the European Council, the acceptance speech of the 2012 Nobel Peace Prize awarded to the European Union in Oslo, I made a point about science and culture being at the core of our European project, precisely as a way of going beyond borders. I think it is very interesting that the idea of the European Union was, to some extent, to overcome borders and divisions and in science we know something about that. As Louis Pasteur said: “La science n’a pas de patrie.”

From a European Commission’s perspective this means to hold true to our Union founding values and principles by reaching out not only to our countries, but to all countries in the world. For example 15.000 out of the 65.000 researchers to be funded under the Marie Skłodowska-Curie actions will be non-EU researchers.

We are also promoting a dynamic science diplomacy. Horizon 2020, for example, is fully open to participation from international partner countries as shown by the agreement we recently signed with Israel. And I am happy that we have now found a solution to associate Switzerland to the Horizon 2020 programme that is one of the most important science and research funding programmes in the world.

We are also developing major dialogues on science and innovation with other world regions, notably with Africa. For instance, a year ago, we have agreed to start working towards a long-term jointly funded and co-owned research and innovation partnership with Africa, with a first focus on food and nutrition security and sustainable agriculture.

Another example is the decision taken with the United States and Canada, in May 2013, to join forces on Atlantic Ocean research, to better understand this Ocean and to promote the sustainable management of its resources.

That said, openness is not a one-way street. It has to be reciprocated. Our ongoing negotiations of Free Trade Agreements (FTAs) contribute to the establishment of a level playing field with our international partners, with the aim of ensuring, in particular, equivalent protection of intellectual property rights. We are clearly aiming at promoting win-win situations, so as to foster international research and innovation opportunities.

Ladies and gentlemen,

We have been through the worst financial, economic and social crisis since the start of European integration. This has clearly put our European model to the test. This was the biggest stress test ever in terms of European integration. Under these challenging circumstances, it was not easy to struggle to keep Europe united and open to the world, and to prepare Europe to emerge stronger and better prepared for the demands of globalisation, prepared to deal with demographic, technological and environmental challenges. A Europe ready to face the future.

In this process, the European Commission has always considered science and innovation as key strategic priorities for promoting a competitive European economy, but also a vibrant European society. We have been fully committed to create a more science and innovation-friendly environment. Because indeed “the future of Europe is science.”

And the discussions you will have later today and tomorrow on foresight will be an opportunity to highlight how much science and innovation are key to deliver on the issues which matter most for every European: health, jobs and therefore the society they live in and the economy. And there is no alternative: we have to deliver on these issues – crucially on jobs – to regain the trust of our citizens.

The reforms driven by the European Commission, and of course with our Member States, over the past five years are a solid foundation for that. Still a lot remains to be done. Science and innovation have to remain more than ever strategic priorities. But one thing I can tell you very sincerely after these ten years in the European Commission is that the European Union has demonstrated its great resilience. All those that were betting on the implosion of the euro or on the implosion of the European Union, were wrong. And one of the things that tie us together is, and should continue to be, science and the commitment to an open society where these ideas and this creativity can be kept and can be developed.

Let me conclude in Portuguese,

A título mais pessoal, quero manifestar hoje a minha satisfação por saber que a enorme responsabilidade de conduzir a ciência no futuro incumbirá ao meu compatriota e amigo, o Comissário português indigitado, Carlos Moedas. Gostaria de agradecer a sua presença hoje e estou confiante de que desenvolverá profundos esforços a favor da ciência, da investigação e da inovação. Desejo-lhe o melhor para as suas futuras funções. Para o futuro de Portugal e para o futuro da ciência na Europa!

E a todos vós desejo muito êxito nas discussões acerca do futuro da Europa e da ciência.

Muito obrigado pela vossa atenção.

President Barroso’s speech at the Euroscience Open Forum

European Commission

[Check Against Delivery]

José Manuel Durão Barroso

President of the European Commission

President Barroso’s speech at the Euroscience Open Forum

Science building bridges

Euroscience Open Forum

Copenhagen, 22 June 2014

Your Majesty,

Dear Minister [Sofie Carsten-Nielsen, Minister of Higher Education and Science]

Dear Chair of ESOF [ESOF2014 Champion Professor Klaus Bock]

Dear President [Euroscience President, Professor Lauritz Holm-Nielsen]

Distinguished Guests,

Ladies and Gentlemen,

It gives me great pleasure to be here with you today for the 2014 Euroscience Open Forum. I would like to thank you for inviting me to take part in this very important event.

In a country with over 400 islands, with three bridges over six kilometres long, what more appropriate theme could have been given to this Forum than “Science building bridges”.

A country world-known for its scientific leadership; for its expertise across a range of fields, from clean technology to biotechnology, from pharmaceuticals to telecommunications.

A country proud and confident about its knowledge-based society, renowned for its openness, and desire to cooperate internationally; a country whose bridge, the Oresund Bridge, links, not just two countries, i.e. Sweden and Denmark, but Europe’s regions, from Scandinavia to Western and Central Europe.

Your Majesty,

Ladies and Gentlemen,

[Europe 2020/Horizon 2020]

As we start to move out of the worst financial and economic crisis since the 1930s, now is the time to focus on building a strong, sustainable future.

On building a bridge between our past scientific traditions and a world where we share increasingly important global challenges and where we need innovative solutions.

That is precisely why, back in 2010, we put in place our new Europe 2020 strategy, designed to build a balanced, knowledge-based economy, with education, science, research and innovation at its very heart.

That is also why we have managed to make the seven year budget for our European research programme, Horizon 2020, 30% larger than its predecessor, despite the slight decrease in the European budget as a whole. It was not easy but we got it. We managed to convince Member States that at least the science and innovation budget should be increased. At 80 billion Euros over seven years, Horizon 2020 is one of if not the largest research and innovation programme in the world, designed to complement other sources of national and private financing.

We have therefore managed to match ambition with resources, giving you the researchers the stability and long term commitment that you need.

This goes to show, as we discuss the challenges facing us in the years ahead, that science does indeed matter for the future of Europe.

Not just to a large audience such as yours, but to everyone in our societies. Because I believe that our social and economic progress and many of the solutions to today’s problems will come from science. And I would even say that “The future of Europe is science”.

[Successes]

As our recent Communication on research and innovation as sources for growth has shown, we have a lot to be confident about.

Europe undoubtedly remains a world leader in science and has the capacity to innovate.

Our European Research Area remains the largest knowledge-production house in the world: we have twice the number of science and technology graduates in Europe than in the United States; and with 7% of the world’s population, we still produce roughly a third not only of the GDP, but also of patents and high impact scientific publications.

And despite the financial and economic crisis we have managed to halve the innovation gap that we still have with the United States and Japan.

[More to do]

But we cannot afford to stand still, in a world where scientific and technological progress is accelerating at an unprecedented pace, and where South Korea is moving further ahead, with China quickly catching us up.

So we must adapt to the new challenges and new ways of working in the 21st Century.

The role of digital technologies and the wealth of information and data that is being produced pose many questions about how science and research will be performed in the future. I know that Commissioner Geoghegan-Quinn, whom I would like to congratulate, for her commitment and passion on these issues during her term as Commissioner, will discuss this particular matter with you on Tuesday morning.

We must also adapt our culture so that women are better represented in research and science, another matter close to my heart: indeed, whilst women hold 45% of all PhDs in Europe, they only represent 30% of career researchers.

Last but not least, we must bring in our younger generation into science and innovation, reinforcing and tailoring our educational systems so that they more fully embrace creativity and risk.

This is key to Europe’s future.

Your Majesty,

Ladies and Gentlemen,

Allow me to highlight briefly five bridges that we have been building and that we must collectively continue to build.

First, we are building bridges between all the scientific disciplines. Our Innovation Union seeks to mainstream science and innovation across all sectors, and cross-fertilise your ideas to develop new technologies, products and services for the complex multi-disciplinary challenges in our societies. This is why Horizon 2020 champions a challenge-based approach and why the European Institute of Innovation and Technology, recently launched its Call for Proposals for the Knowledge and Innovation Communities.

Secondly, we are building bridges between researchers and the general public. Horizon 2020 is a large programme, with a broad set of objectives from excellence in science – with the European Research Council now chaired by Professor Bourguignon – to industrial leadership and a number of key societal challenges, allowing us to focus on the big priorities relevant to every European citizen. I am very proud of the ERC. But in order to ensure that the progress you make, for example on new vaccinations or nano-technology, is properly explained and embraced rather than feared, across society, we need a considerable communication effort from scientists themselves as well as from policy makers. There is an important role for the media here.

Thirdly, we are building bridges between the laboratory and the marketplace. After 30 years of negotiation, we finally agreed a European-wide patent. Once fully implemented, this will reduce the cost by up to 80% for small and medium sized businesses and individual researchers to register their creative ideas. This should encourage more private investment, because at 1.30% of GDP, we still lag behind the United States, Japan or South Korea, where private investment, venture capital and the culture of risk are more widely shared.

Fourthly, we are building bridges between Member States. With the European Research Area, we are encouraging reforms for a greater mobility of researchers and for pan-European research infrastructures.

But our countries must make an equal effort in research if we are to bridge the gap in investment across Europe, and if research opportunities are available across Europe. Collectively, we are missing our Europe 2020 target of 3% GDP in research and development, averaging just under 2%, with more regional disparity and ten Member States still averaging under 1%. We are doing fiscal consolidation but we need smart fiscal consolidation.

Finally, we are building bridges internationally, trying to reach out to all countries in the world. Only two weeks ago, I signed an agreement with Prime Minister Benjamin Netanyahu, granting Israel – a leading nation in science and innovation – access to our Horizon 2020 programme, as part of our science diplomacy. The principle behind this agreement, as well as with agreements we have with twenty other partners, is simple: it is that we can tackle together more smartly and efficiently the global challenges we face. And this is also why I am pleased to see so many international participants at today’s Forum.

[Conclusion]

Your Majesty,

Ladies and Gentlemen,

We cannot afford to rest.

And although Niels Bohr once said that prediction is very difficult, especially if it is about the future, I have nevertheless asked the Science and Technology Advisory Council and Professor Anne Glover, my Chief Scientific Adviser, to produce a report on foresight. Let me take this opportunity to thank them for their dedication to this work, which will be unveiled in the conference “The future of Europe is science”, to be held in Lisbon on 6th and 7th of October.

I look forward to a successful Euroscience Forum and to an ever increasing role of Europe in science and innovation, with a view to the next Forum in 2016, in Manchester.

Thank you.

CALENDRIER du 16 au 22 juin 2014

Commission européenne

Bruxelles, le 13 juin 2014

CALENDRIER du 16 au 22 juin 2014

(Susceptible de modifications en cours de semaine)

Déplacements et visites

Lundi 16 juin

M. José Manuel Durão BARROSO est en visite à Santander, Espagne

Ms Viviane REDING in Albufeira, Portugal: Attends working lunch with Ms Paula TEIXEIRA DA CRUZ, Minister for Justice of Portugal

Mr Siim KALLAS delivers keynote speech at the 10th ITS European Congress in Helsinki, Finland

Ms Neelie KROES visits South Korea and Australia (16-20/06)

Mr Maroš ŠEFČOVIČ opens the new Slovak Research Office in Brussels

Mr Janez POTOČNIK in London, United-Kingdom: gives a lecture on New Environmentalism and Circular Economy at University College London Institute for Sustainable Resources with Mr Dan ROGERSON, UK Parliamentary Under Secretary of State for water, forestry, rural affairs and resource management

Ms Maria DAMANAKI in Washington, USA: meets with Dr Kathryn Sullivan, Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator; speaks at the International Oceans Conference

Mr Günther H. OETTINGER in Bratislava, Slovakia: meets Mr Tomáš MALATINSKÝ, Minister of Economy of the Slovak Republic; participates in the European Nuclear Energy Forum (ENEF)

Mr Johannes HAHN in Thüringen, Germany: gives a keynote speech at the “Innovation 2020” Forum

Ms Connie HEDEGAARD on mission to Sofia, Bulgaria

Mr Štefan FÜLE visits Turkey

Mr László ANDOR delivers keynote speech at the conference “From active inclusion to social investment” organised by the European Economic and Social Committee and Eurofound

Mr László ANDOR delivers a speech on the social dimension of EMU in Athens, Greece

Ms Cecilia MALMSTRÖM attends a seminar on visa policy in Brussels; participates in the EU Radicalisation Awareness Network Annual Meeting

Mardi 17 juin

M. José Manuel Durão BARROSO est en déplacement au Portugal

Mr Janez POTOČNIK visits a Natura 2000 site, EU LIFE-funded Greater Thames Futurescapes project in Cliffe Pools, United-Kingdom

M. Michel BARNIER participe à un débat organisé par le Mouvement des entreprises de France (MEDEF) sur le thème “Quelle réforme structurelle de la dépense publique ?” à Paris, France

Ms Androulla VASSILIOU delivers opening speech at the Conference on a European Area of Skills and Qualifications; receives Mr Savvas VERGAS, Mayor of Paphos (Cyprus); meets Mr Olivier FISCH, Director general of Eurosport; attends a meeting of the Board of Trustees at the House of European History, followed by a visit of the Eastman building at the European Parliament

Mr Günther H. OETTINGER receives Mr Tom VILSACK, US Secretary of Agriculture

Mr Štefan FÜLE visits Turkey

Mr László ANDOR in Athens, Greece: delivers a keynote speech entitled “Rethinking the European Employment Strategy” at the Plenary Conference of the Committees on European Affairs; meets with Mr Makis VORIDIS, Minister of Health of Greece; delivers speech at the closing session of the European Conference on “Occupational safety and health (OSH) – OSH policy in the future”; meets with representatives of the organisations dealing with social psychiatry and mental health

Ms Cecilia MALMSTRÖM participates in a High Level Meeting on Radicalisation

Mr Dacian CIOLOŞ receives Mr Tom VILSACK, US Secretary of Agriculture

Mr Neven MIMICA delivers a keynote speech at the opening plenary session of International Consumer Product Health and Safety Organisation (ICPHSO) International symposium

Mercredi 18 juin

Mr Maroš ŠEFČOVIČ meets Mr Harlem DÉSIR, French Secretary of State for European Affairs in Paris, France

Mr Janez POTOČNIK receives Hon. Roderick GALDES MP, Parliamentary Secretary for Agriculture, Fisheries and Animal Rights of Malta

M. Michel BARNIER reçoit Adrian HASLER, Premier Ministre du Liechtenstein; reçoit Michel MADELAIN, Président et CEO de Moody’s Investors Service Limited; reçoit Ed DAVEY, Secrétaire d’Etat en charge de l’énergie et du changement climatique pour le Royaume-Uni

Mrs Máire GEOGHEGAN-QUINN meets with a group of Irish Secondary School Teachers

Mr Günther H. OETTINGER participates in the Customers Conference “Retail Energy Markets: from advocacy to action” of the Council of European Energy Regulators (CEER) in Brussels

Mr Johannes HAHN receives the Austrian MPs

Ms Connie HEDEGAARD on mission to Paris, France (18-19/6)

Mr Štefan FÜLE visits Ukraine

Mr László ANDOR takes part in the 3rd Social Europe High Level Group

Mr Dacian CIOLOŞ receives Mr receives Zhang MAO, Minister of the State Administration for Industry and Commerce, People’s Republic of China

Mr Tonio BORG gives a speech at the Conference “Putting Animal Welfare at the Heart of the EU: A plan to deliver a better future for all Animals in the EU”

Mr Neven MIMICA delivers a speech at the Annual Customer Conference of the Council of European Energy Regulators; receives Lucia PUTTRICH, Minister in charge of European Affairs in the German state of Hesse; receives Zhang MAO, Minister of the State Administration for Industry and Commerce, People’s Republic of China

Jeudi 19 juin

Mr Siim KALLAS on official mission to Moldova (19-20/6)

Mr Maroš ŠEFČOVIČ delivers a keynote speech at the European Voice Public Affairs Director Conference in Paris, France

Mr Janez POTOČNIK participates in “Land as a resource” Conference

Mr Andris PIEBALGS participates in the ACP-EU Joint Ministerial Council in Nairobi, Kenya

Mr Michel BARNIER delivers a speech at the High Level Round Table Consultation “How to stimulate innovation, growth and jobs”, organized by Norway House

Ms Androulla VASSILIOU delivers opening speech at the Stakeholders meeting on the economic impact of sport and sport-related industries; delivers speech at the opening event of the exhibition “Empowering Young People in Europe” hosted by Norwegian Minister of EEA & EU Affairs, Mr Vidar HELGESEN, in the presence of Iceland’s Minister of Education, Science and Culture, Mr Illugi GUNNARSSON and of H.E. the Ambassador of Liechtenstein to the EU, Mr Kurt JÄGER; participates in the signing ceremony of the Creative Europe participation agreement with Serbia in the presence of the Serbian Minister for Culture, Mr Ivan TASOVAC

Ms Kristalina GEORGIEVA receives Christoph STRASSER, German Federal Government Commissioner for Human Rights Policy and Humanitarian Aid

Mr Günther H. OETTINGER participates in the opening of the Erasmus Energy Forum at the Rotterdam School of Management in Rotterdam, The Netherlands

Mr Günther H. OETTINGER participates in the panel discussion “Energiedialog 2014, Wo stehen wir drei Jahre nach der Energiewende” in Berlin, Germany

Mr Johannes HAHN in Athens, Greece: meets with Mr Nikos DENDIAS, Greek Minister of Development

Ms Cecilia MALMSTRÖM in Barcelona, Spain: Meets Mr Daniel DE ALFONSO LASO, Director of Catalan Agency against fraud

Mr Štefan FÜLE visits Ukraine

Mr Tonio BORG meets representatives of the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ)

Mr Neven MIMICA meets US and Chinese delegations led by Elliot F. KAYE, Executive Director and Chairman-Designate of the Consumer Product Safety Commission; and Sun DAWEI, Vice-Minister of the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ)

Vendredi 20 juin

M. José Manuel Durão BARROSO reçoit M. Mehdi JOMÂA, Premier Ministre de Tunisie

Ms Viviane REDING delivers a keynote speech on the future of Justice at the Centre for European Policy Studies

Mr Janez POTOČNIK participates in a round table discussion on effective water management at Bled Film Festival in Slovenia

Mr Andris PIEBALGS participates in the ACP-EU Joint Ministerial Council in Nairobi, Kenya

Ms Androulla VASSILIOU presents the book ‘Fury of the Gods’ in London, UK

Ms Maria DAMANAKI speaks at the Raw Materials High Level Conference in Athens, Greece

Mr Günther H. OETTINGER participates in the annual conference of Eurogas in Venice, Italy

Ms Connie HEDEGAARD meets with members of C40 Network (Carbon Neutral Cities Network and Urban Sustainability Directors Network on Adaptation) in Copenhagen, Denmark

Mr Tonio BORG participates at the Signing Ceremony of the Joint Procurement Agreement on Medical Counter Measures in Luxembourg

Mr László ANDOR participates in the conference “Economic shock absorbers for the Eurozone”, organised by the Bertelsmann Stiftung

Ms Cecilia MALMSTRÖM in Barcelona, Spain: Participates in the Mayoral Forum on Mobility, Migration and Development: “Fostering Economic prosperity and the virtual cycle of development”

Samedi 21 juin

M. José Manuel Durão BARROSO est en visite en Estonie

Ms Kristalina GEORGIEVA in Budapest, Bulgaria: participates in the Open Society Award Ceremony; receives the 2014 Central European University – Open Society Prize

Dimanche 22 juin

M. José Manuel Durão BARROSO est en visite au Danemark

Prévisions du mois de juin:

16-17/6 Conseil “Agriculture et pêche” (AGRIPÊCHE)

19/6 Eurogroupe

19-20/6 Conseil “Emploi, politique sociale, santé et consommateurs” (EPSCO)

20/6 Conseil “Affaires économiques et financières” (ECOFIN)

23/6 Conseil des affaires étrangères

24/6 Conseil des affaires générales

26-27/6 Conseil européen

Permanence DG COMM le WE du 14 au 15 juin:

Simon O’CONNOR, +32(0) 460 767 359

Permanence RAPID- GSM: +32 (0) 498 982 748

Service Audiovisuel, planning studio – tél. : +32 (0)2/295 21 23