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   The European Council heard a statement by Mr Klepsch, President of  the
   European  Parliament,  on the main questions under  discussion  by  the
   European Council.

   The Maastricht Treaty

   The European Council reviewed progress on ratification of the Treaty on
   European  Union signed on 7 February and reaffirmed the  importance  of
   concluding  the  process  as soon as possible,  without  reopening  the
   present  text, on the timing foreseen in article R of  the  Treaty.  It
   agreed that the Community must develop together as Twelve, on the basis
   of  the  Maastricht Treaty, while respecting, as the Treaty  does,  the
   identity and diversity of Member States.

   After  a  full  discussion  on bringing the  Community  closer  to  its
   citizens,  the European Council agreed the attached Declaration  (Annex
   I).  It  noted   the  Danish  White  Paper  and  welcomed  the   Danish
   Government's  intention to present within the next few weeks  ideas  on
   the way forward.  It asked Foreign Ministers to examine these ideas and
   to  report  on them to the Edinburgh European Council, with a  view  to
   agreement  there on the framework for a solution. The European  Council
   heard a presentation from the President of the Commission and asked him
   to elaborate the proposals he made, and to present a report thereon  to
   the Edinburgh European Council.

   Economic and Monetary Cooperation

   Heads  of  State and Government agreed that Member States  face  common
   economic challenges, and were concerned at lower growth and  increasing
   unemployment.  Strong coordination at the Community level will help  to
   ensure  that  the economy of each Member State is strengthened  by  the
   success  of other Member States.  It is important for Member States  to
   continue policies to reduce inflation; to carry through programmes  for
   controlling  budget  deficits; and to improve the efficiency  of  their
   economies   through   open   market   policies.  Firm   and   sustained
   implementation  of these policies establishes the basis  for  recovery,
   for  social and economic cohesion, and for the creation of the new  and
   lasting jobs that are needed.

   The  European  Council  underlined the importance in  this  context  of
   reinforcing the convergence process among the Member States' economies,
   which  is crucial for maintaining monetary stability and  for  creating
   the  framework  for sustainable growth and  rising  employment.  Strict
   adherence to the principles of sound economic management, as set out in
   convergence programmes, formulated by Member States so as to fulfil the
   criteria  set  out  in the Maastricht Treaty in order  to  realise  the
   movement  towards  economic  and  monetary union  ,  would  enable  the
   Community  to  meet  its  objective  of  proceeding  together  in   its
   development.  The European Council reiterated too its commitment to the
   European  Monetary  System as a key factor of  economic  stability  and
   prosperity in Europe.

   The  European  Council  endorsed  the  view  of  Economic  and  Finance
   Ministers that the recent financial turbulence calls for reflection and
   analysis  in  the light of developments in capital markets and  in  the
   European and World Monetary Systems.  They invited Economic and

   Finance  Ministers,  assisted  by  the  Monetary  Committee,  with  the
   involvement  of  the Commission to carry this work  forward,  with  the
   Central Bank Governors.  It should cover recent economic and  financial
   developments within Europe and in the major industrialised countries as
   well  as  the  implications  of changes in  the  general  economic  and
   financial  environment  in  recent years, notably  the  impact  of  the
   increasing  size  and sophistication of financial markets  and  greater
   capital liberalisation.


   The European Council reaffirms the importance of a fair and  successful
   GATT  agreement for strengthening the multilateral trading systems  and
   increasing  trade flows.  This would give a non-inflationary  boost  to
   the  world  economy  and would benefit  industrialised  and  developing

   The  European  Council heard a report by Vice President  Andriessen  on
   current  EC/US  talks,  indicating  that,  while  gaps  remained,  real
   progress  had been made.  It invited the Commission to work within  its
   existing  mandate  for  an  early,  comprehensive  and  balanced   GATT
   agreement by the end of the year, in the interests of the Community and
   of the world economy, as well as for an early settlement on oilseeds.

   Yugoslavia and Somalia

   The European Council adopted the declarations in Annexes II and III  of
   this document.

                                                                   ANNEX I

                     BIRMINGHAM DECLARATION

   A Community close to its Citizens

   1.  We  reaffirm  our commitment to the Maastricht Treaty: We  need  to
       ratify it to make progress towards European Union if the  Community
       is  to  remain an anchor of stability and prosperity in  a  rapidly
       changing  continent, building on its success over the last  quarter
       of a century.

   2.  As  a community of democracies, we can only move forward  with  the
       support  of  our  citizens. We are determined  to  respond  to  the
       concerns raised in the recent public debate. We must:

       -  demonstrate  to our citizens the benefits of the  Community  and
          the Maastricht Treaty;

       -  make the Community more open, to ensure a better informed public
          debate on its activities;

       -  respect  the  history,  culture  and  traditions  of  individual
          nations,  with  a clearer understanding of  what  Member  States
          should do and what needs to be done by the Community;

       -  make  clear  that citizenship of the Union brings  our  citizens
          additional  rights and protection without in any way taking  the
          place of their national citizenship.

   3.  Foreign Ministers will suggest ways, before the Edinburgh  European
       Council,  of opening up the work of the  Community's  institutions,
       including  the  possibility of some open Council discussion  -  for
       example  on  future work programmes. We  welcome  the  Commission's
       offer  to  consult more widely before proposing  legislation  which
       could  include consultation with all the Member States and  a  more
       systematic use of consultation documents (Green Papers). We ask the
       Commission  to  complete by early next year its work  on  improving
       public  access  to  the information available to it  and  to  other
       Community  institutions.  We want Community legislation  to  become
       simpler and clearer.

   4.  We   stress  the  European  Parliament's  important  role  in   the
       democratic  life  of  the  Community and  we  welcome  the  growing
       contacts between national parliaments and the European  Parliament.
       We  reaffirm  that  national parliaments  should  be  more  closely
       involved in the Community's activities. We shall discuss this  with
       our  Parliaments. We welcome the Commission's readiness to  respond
       positively  to requests from national parliaments for  explanations
       of  its  proposals. We underline the importance we  attach  to  the
       Conference of Parliaments and to the Committee of the Regions.

   5.  We reaffirm that decisions must be taken as closely as possible  to
       the  citizen.  Greater  unity can  be  achieved  without  excessive
       centralisation.  It  is  for each Member State to  decide  how  its
       powers should be exercised domestically. The Community can only act
       where  Member  States  have  given it the power to  do  so  in  the
       treaties.  Action  at the Community level should happen  only  when
       proper  and  necessary: the Maastricht Treaty  provides  the  right
       framework and objectives for this. Bringing to life this  principle
       -"subsidiarity",  or "nearness" - is essential if the Community  is
       to  develop  with the support of its citizens. We look  forward  to
       decisions at Edinburgh on the basis of reports on:

       -  adapting  the  Council's  procedures  and  practices  -  as  the
          Commission for its part has already done - so that the principle
          becomes an integral part of the Community's decision-making,  as
          the Maastricht Treaty requires;

       -  guidelines for applying the principle in practice, for  instance
          by using the lightest possible form of legislation, with maximum
          freedom  for Member States on how best to achieve the  objective
          in  question.  Community  legislation must  be  implemented  and
          enforced  effectively, and without interfering unnecessarily  in
          the daily life of our citizens;

       We  shall also have a look at the first fruits of the  Commission's
       review of past Community legislation with examples.

   6.  Making the principle of subsidiarity work should be a priority  for
       all  the  Community  institutions, without  affecting  the  balance
       between  them.  We  will  seek an agreement  about  this  with  the
       European Parliament.

   7.  The  Maastricht  Treaty will bring direct  benefits  to  individual
       citizens. All of us - Council, Commission and Parliament - must  do
       more to make this clear.

   8.  The European Council in conformity with the responsibilities  given
       to it by the Treaty will ensure that the fundamental principles  of
       the European Union will be fully observed.

                                                                  ANNEX II


   The  European  Council agreed that immediate and  decisive  action  was
   needed  in  the  face of the impending major human  tragedy  in  former
   Yugoslavia  as  winter  approached. It  underlined  the  importance  of
   providing  winter  shelter  and zones of safety for  refugees,  and  of
   ensuring  the  delivery  of  relief supplies,  as  highlighted  in  the
   Commission's action plan. It decided that:

   -   the  Community will speed up EC assistance, for which 213  mecu  is
       ready  for  immediate disbursement, including  on  120,000 tons  of
       foodstuffs, and on medicines, shelter and 40 trucks;

   -   Member States will immediately provide further staff and resources,
       practical and financial, to strengthen UNHCR's capacity;

   -   the  Community and its Member States will immediately  establish  a
       task  force  to  support  the  efforts  of  the  UNHCR  to  deliver
       humanitarian aid to the former Yugoslave republics;

   -   in  order  to  increase  the  effectiveness  of  such  humanitarian
       assistance, the European Council called on the UNHCR to set up:

       -  next  week, a meeting of technical experts on emergency  aid  to
          ensure the practical provision of immediate assistance;

          next   month,   a  stock-taking  conference,   to   assess   the
          effectiveness of the operation, and recommend further measures.

   Each   member  of  the  European  Council  will  appoint   a   personal
   representative to supervise this work.

   The  European  Council called on other international donors to  make  a
   commensurate  effort  to support the UNHCR appeal and to speed  up  the
   delivery of assistance under existing pledges.

   The  European Council condemned the continuing widespread violence  and
   cruelty  and the savage breaches of international humanitarian  law  in
   the  former Yugoslavia which have caused this human suffering  and  are
   now the main constraint on the delivery of essential aid. It noted  the
   unacceptable  fact that commitments made at the London  Conference  had
   not  been  put  into effect. The European Council  expressed  its  full
   support for the unremitting efforts of Lord Owen and Mr. Vance to bring
   about an end to hostilities and a peaceful settlement and to secure the
   implementation of the agreements already reached.

   The  European Council strongly endorsed the recent UN Security  Council
   resolutions on the Prevlaka Peninsula, war crimes and a no-fly zone. It
   underlined  the importance of the rapid deployment of forces now  under
   way  under  UNPROFOR  II,  to which a  number  of  Member  States  were
   contributing,  for  humanitarian convoy protection and  the  escort  of
   detainees  from  camps. It reaffirmed that sanctions measures  and  the
   arms embargo should be maintained.

   The  European Council discussed the dangerous situation in  Kosovo  and
   urged  all  parties  concerned  to  exercise  restraint  and  negotiate
   constructively in the current discussions. It endorsed the work of  the
   International  Conference and the long term CSCE mission of  Ambassador

   In  the  light of the deteriorating economic situation  in  the  former
   Yugoslav republic of Macedonia, the European Council stressed the  need
   for  appropriate  measures to prevent this republic  from  bearing  the
   unintended consequences of UN sanctions.

   The European Council noted the recent undertaking by the Bosnian  Serbs
   to  remove their military aircraft into Serbia and agreed that in  case
   of  violations  of  UN Security Council  resolution  781  the  Security
   Council  should  be  asked to consider urgently  the  further  measures
   necessary to enforce the ban on military flights.


                                                                 ANNEX III
                     DECLARATION ON SOMALIA

   The  European  Council expressed its deep concern  over  the  appalling
   situation  in  Somalia and the continuing  deaths  and  starvation.  It
   condemned  the renewed fighting and called on the parties  involved  to
   observe  an immediate ceasefire to allow the rapid distribution of  aid
   to the people in desperate need.

   It expressed its full support for the efforts of Ambassador Sahnoun  on
   behalf  of the United Nations to achieve a national  reconciliation  as
   the  basis for a peaceful solution and for the Belgian contribution  to
   the  UN force.  It welcomed the outcome of the UN Conference in  Geneva
   on  12-13 October, and the creation of a 100-day programme  to  deliver
   aid  to  the  worst affected areas.  The  European  Council  notes  the
   contribution  being provided by the Community and its Member States  to
   relieve  the crisis: in addition to other aid, over 100,000  tonnes  of
   food  aid  has already been delivered and a similar quantity  is  being
   sent.  Member States are also contributing some 100 mecu bilaterally.

   The  European Council called for the rapid deployment of UN  troops  to
   the  areas where they are needed.  It asked the Presidency  to  consult
   the   UN  Secretary-General  on  ways  and  means  to  expedite   these


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