The March meeting of the European Council in Brussels is traditionally dedicated to economic issues. But this year Ukraine is, of course, top of the agenda. Angela Merkel stated quite clearly that the EU will not accept the illegal violation of Ukraine’s territorial integrity.

"Developments in Ukraine are demonstrating just how vulnerable Europe’s treasured peace and liberty is, even more than half a century after the Treaties of Rome were signed," said the Chancellor. "We had almost forgotten that the last war on the European continent, in the western Balkans, took place less than a generation ago."

Angela Merkel laid out the further action to be taken vis à vis Russia, and the next steps that will be taken to support Ukraine. The European Council will approve the second stage of sanctions. She also made it quite clear that the EU is ready to proceed to the third stage of sanctions.

The Chancellor also spoke about the G8 process. Until the political environment for a format as important as the G8 once again prevails, the G8 has effectively ceased to exist; both the G8 summit and the format per se.

Strengthening competitiveness

In the field of economic and financial policy the meeting in Brussels will look at ways of improving the competitiveness of Europe’s industries. The EU has emerged stronger from the sovereign debt crisis than it was before. In 2014 economic growth stands at 1.2 per cent. The Spanish, Irish and Portuguese economies are also growing. The Chancellor believes that greater competitiveness can only come from more growth and more jobs.

The economic and financial supervisory procedures in Europe have been improved. "We must, however, continue to improve economic-policy coordination and the architecture of the economic and monetary union," said Angela Merkel.

Making provision for the future

The Chancellor urged the European Commission to put in place the conditions for further structural reforms in the EU. "Everybody must do their bit."

The EU must continue to play a leading role in the global economy, but for this it will need a digital single market and improved general conditions for research and development. The Chancellor praised the efforts of the EU to cut red tape and of the Regulatory Fitness and Performance Programme (REFIT) to review European regulations.

She also welcomed the statement of the European Commission, which does not see Germany’s current account surplus as being damaging for the euro zone.

Strong signal from Europe for the UN Climate Change Conference

The European Council will also look at climate-related issues. The Chancellor sees this meeting as an important milestone on the way to the 2015 UN Climate Change Conference in Paris. Germany, she says, expected far-reaching demands to be put by the European Commission.

On the table are proposals to cut emissions of greenhouse gases by 40 per cent and to ensure that 27 per cent of the energy supply is generated from renewables. The conclusions of the European Council should send a strong signal from Europe for the Climate Change Conference, said the Chancellor.

Energy is another priority of the European Council. Angela Merkel sees secure energy supplies as a priority. She called for:

• The creation of a single energy market

• Greater diversification of energy sources
• Progress on boosting energy efficiency
• Swifter power network extension.
  

Energy in the USA costs only half what it costs in the EU. Angela Merkel thus pointed to the major challenges faced by European and German industry. "Companies need certainty before they will invest."

Free trade vitally important

The Transatlantic Free Trade Agreement between the EU and the USA ought to be feasible, in spite of the complex matter involved, said Angela Merkel. There are a whole series of reservations to this agreement, but it cannot be that the USA has free trade agreements with almost every region of the world except Europe.

The Chancellor pointed out in this context that Europe and the USA are responsible for half of the world’s production and that one third of global trade is transatlantic.

Europe’s responsibility for Africa

Another issue that will be on the agenda of the European Council meeting are preparations for the EU-Africa summit in April, which is to be attended by 80 heads of state and government. The Chancellor underlined Europe’s responsibility for Africa. The European Council will send a signal for cooperation with Africa.

Angela Merkel did, however, stress the ownership and responsibility of African states for taking charge of their own destiny. Germany will continue to work for "help towards self-help" including advisory services, training, and equipment.