The first Cyprus Presidency of the Council of the European Union comes at very challenging times, President of the European Council Herman Van Rompuy has told the Cyprus News Agency. 

In statements to CNA in Brussels, Van Rompuy said that the decisions taken at the June European Council will have an important impact on the Cyprus Presidency.

Asked which will be the main issues the Cyprus EU Presidency will have to address during its six months term, he noted that the first Cyprus Presidency of the Council of the European Union comes at very challenging times when Europe takes additional steps to create growth and jobs.

“This discussion is not new – we already share a growth strategy and it has been a constant concern. However, it has been overshadowed by our efforts to ensure financial stability in the Eurozone”, he pointed out.

Nonetheless, Van Rompuy assured that the EU is determined to continue to do everything necessary to come back on the track of growth and regain competitiveness, thanks to fiscal consolidation, structural reform and targeted investment.

Referring to the European Council of 28-29 June, he said that it confirmed this determination.

“The decisions taken in the last European Council will have an important impact on the Cyprus Presidency. The Compact for Growth and Jobs needs to be implemented quickly”, he stressed.

The EU President noted that legislative proposals which it mentions, e.g. the outstanding elements of the Single Market Act or the second Single Market Act to be proposed in autumn, will require priority treatment in this half of 2012.

In addition, he said that in the same European Council, the leaders discussed the EU future Multiannual Financial Framework 2014-2020 for the very first time at the summit level.

“This discussion set the stage for the high-level negotiations which will continue during the Cyprus Presidency”, he told CNA.

Replying to questions, Van Rompuy said that the EU goal is to conclude them by the end of this year to equip the EU with a growth and job-enhancing tool, which will support – both directly and indirectly – thousands of investments in different areas, from research and development, to enterprises, to transport or energy infrastructure, as well as people seeking jobs or upgrading qualifications.

Moreover, he noted that the second half of 2012 will also see the continuation of work on the report concerning the Economic and Monetary Union.

As he said, for the June European Council, he prepared, in close cooperation with the Presidents of the Commission, the Eurogroup and the ECB, its first version which identified building blocks and proposed a working method to strengthen the EMU.

In the months to come, Van Rompuy told CNA, «we will be developing it further while associating the governments in the process. My aim is to submit an interim report to the European Council in October, and finalise it for the summit in December ».

Asked about other priorities which should feature high on the Presidency agenda later this year, he mentioned the Asylum package, proposals related to Schengen governance and enlargement.

« Also, international trade needs to be used better as engine for growth – several major trade agreements are under way”, he went on to add.

As regards Turkey`s stance towards the rotating presidency and Ankara`s refusal to cooperate with the Presidency during Cyprus` term, Van Rompuy told CNA that the presidency must be fully respected by all.

“I recall the strong support which the European Council already provided in December 2011 to the upcoming Cyprus Presidency. The Presidency is a fundamental feature of our Union, based on the EU Treaty, and must be fully respected by all”, he stressed.

Van Rompuy said that although Cyprus is going through a difficult period, “I feel confident it is ready to assume the role of the Presidency”.

He recalled that during his visit to Nicosia on 28 May this year, he discussed the state of preparations with President of Cyprus Demetris Christofias, Minister for Foreign Affairs, Erato Kozakou-Marcoullis, Minister of Finance, Vassos Shiarly and Deputy Minister for European Affairs, Andreas Mavroyannis.

“I noted that the Cypriot authorities have a good grasp of the key files, they are ready to deploy sufficient resources to handle them adequately and to invest in relations with other institutions”, he told CNA.