The European Council, which convened in Brussels on 19 and 20 June, considered the situation after the outcome of the referendum in Ireland. In the referendum held on 12 June, Irish people rejected the Treaty of Lisbon which reforms the European Union’s structures. The EU leaders agreed that more time was needed to analyse the situation and that the European Council will come back to this issue at its meeting of 15 October 2008. The ratification process continues in other countries.

Prime Minister Matti Vahanen emphasised that the EU countries must now seek joint responses to the situation. With regard to future work, it was important that Ireland presented an overview of the situation to the European Council.

The EU leaders held a thorough discussion on the implications of the rising prices of food and oil. The recent surge in commodity prices raises concerns especially for low-income households and developing countries. The EU Heads of State or Government reaffirmed the Union’s commitment to the UN Millennium Goals with the aim of responding to the global development challenge. To curb the rising prices there is a need for efforts to improve the efficiency of the Common Agricultural Policy, to support food production in developing countries and to provide humanitarian assistance to alleviate acute food crisis. In this context, cooperation with the UN and other international organisations is of central importance.

The European Council invited the incoming Presidency in cooperation with the Commission to examine measures with which to smooth the social and economic effects of oil price increases

The EU leaders underlined the importance of sustainable bio-fuels production. The focus must be placed on second generation bio-fuels the production of which does not compete with food production.

The measures steering and improving the efficiency of agricultural production should accord with the principles of sustainable development and free trade efforts. Food production in less favourable areas must also be fully utilised.

The European Council also reaffirmed its support to the European perspective of the Western Balkans. The European Union remains committed to making EULEX Kosovo operational and playing a leading role in ensuring the stability of Kosovo.

The European Council remains deeply concerned by the situation in Zimbabwe. The European Council reiterated its readiness to take additional measures against those responsible for violence. The European Council is deeply concerned about the situation in Sudan and follows closely the Sudanese authorities’ cooperation with the International Criminal Court.