PM: Thank you very much, and to our friends from the media, I'm sorry to have kept you waiting, our discussions ran over time. Can I start by saying a very big welcome to Australia to President Barroso, who leads the European Commission. This is his first visit to Australia and you are very welcome here.
It's also the first visit of a President of the European Commission in 30 years, so long overdue and we are very pleased to see you here. Of course, His Excellency will proceed from Australia to participate in the Pacific Island Forum in New Zealand, which is also a good opportunity to further co-operation between us, the European Commission and Pacific Island nations.
Today we've had comprehensive discussions across a wide range of areas, I have had the opportunity to speak to His Excellency informally last night, more formally today and we've also had a discussion with a number of Cabinet ministers.
All of this underscores the importance of the bilateral relationship between us, which is built on many pillars of shared history and values, our great people-to-people links and our strategic and economic interests.
We are working through a framework agreement, a treaty-level agreement between us. We believe that is appropriate given the strength of the partnership between us and we seek to build on that partnership, and we've talked today about expediting those discussions for that treaty-level agreement.
We've also talked extensively about challenges facing the global economy and the need for co-ordinated efforts, particularly as we move towards the G20 meeting later this year, where we will be seeking to strengthen the global framework for balanced growth and economic resilience in the global economy.
These have been testing times in Europe. Australia certainly welcomes the important steps European authorities have taken to address sovereign debt problems and to press on with reform. We know and understand these are difficult decisions, but we know the tough decisions are needed to stabilise financial markets.
We share a recognition that free trade is essential if the global economy is to be restored to health, that we do need to resist protectionist moves and that we do have an aspiration for further trade liberalisation and I thank your Excellency for your personal leadership on these questions.
We've discussed climate change and we've noted the significant action that has been taken and continues to be taken around the world. We've reaffirmed out commitment to tackle climate change in the most cost-effective way. Both Australia and the EU recognise that carbon markets are the most cost-effective way of reducing greenhouse gasses and creating clean energy jobs for the future.
Europe, of course, has been a pioneer in global efforts to reduce carbon, putting in place an emissions trading scheme six years ago. Given our mutual interest in developing carbon markets to drive efficiencies, the President and I have agreed today to establish senior officials talks to discuss economy-to-economy measures we can jointly undertake to link our emissions trading schemes at the appropriate time in the future, and working together on international action to develop carbon markets.
We've also discussed the partnership we have between us and the shared goals on development assistance. We want to make sure that we are working together in providing development assistance around the world, and we will be working together on an innovative arrangement where we will assist the EU in the provision of development assistance in the Pacific and look to their assistance for the provisions of development assistance in Africa.
We've also today renewed the nuclear safeguards agreement between Australia and the European Atomic Energy Community that's been in force since 1982. The new agreement strengthens existing safeguards and reinforces our commitment to the Nuclear Non-Proliferation Treaty.
So, we've had comprehensive discussions today. I very much enjoyed them. Let me conclude by once again thanking the President for making this visit and I'll turn now to him for some comments.
Thank you.
PRESIDENT BARROSO: Thank you very much, Prime Minister.
I'm indeed very happy to be in Australia. Australia is one Europe's most like-minded partners - we share a common heritage, core interests, core values, democracy and human rights, but also openness, tolerance and global responsibility, and in an integrated world that is not a small feat.
The excellent discussion today with the Prime Minister and with an important number of Cabinet ministers reflects the rich and dynamic nature of the European and Australian partnership and our shared interests. I hope that my visit will contribute to a further strengthening of our vibrant co-operation, both bilaterally and in multilateral institutions.
The joint statement that we have just issued illustrates the depths and breadths of our increasing co-operation. On a bilateral level, we agreed last year to upgrade our partnership by means of a framework agreement that will put our relationship on a new footing.
Your visit, Prime Minister, to Brussels was very much appreciated and that's when we decided to start this process to have a framework, treaty-like agreement between Australia and the European Union. Therefore the European Commission has sought a mandate from our 27 member states to negotiate such a new, ambitious agreement and I hope this mandate can be approved next month. We could start talks with Australia right after that.
This agreement will serve as an umbrella for the many areas of our thriving co-operation, from the field of nuclear safety, Prime Minister and I signed a new agreement on this today, to the exchange of passenger name records, which is crucial for the security of our travellers and we'll also expect to sign a new agreement by the end of the year.
On the point of climate change, we spoke about our shared commitment to tackle this challenge. Australia's decision to put a price on carbon emissions is, in our view, an important step both environmentally and economically, because it is in our European experience the most cost-efficient way to reduce emissions and also a great green business opportunity. We'll not continue our joint work for a global climate regime and also on a bilateral basis we will see what we can do together, as Prime Minister Gillard just mentioned.
We also discussed our co-operation in the Pacific Region, where the European Union is the second biggest donor, after Australia. We share the same strategic objectives of (inaudible) democracy and promoting prosperity. I will have the opportunity later this week to meet in New Zealand the Pacific Forum.
Ladies and gentlemen, we did of course also speak about the global economic situation. We exchanged views on the G20 summit, November in Cannes, France, which should focus on rebalancing global growth, international monetary reform, financial regulation and tackling the volatility in commodity prices. We also share a commitment to open trade, which is obviously crucial in the current crisis and I'm very happy to see that Australia and the European Union are working together to resist any kind of protectionism and do everything we can to indeed deepen the liberalisation of trade.
I also briefed the Prime Minister and her Government on the economic situation in Europe and (inaudible) measures that the European Union and your area are implementing to address the sovereign debt crisis.
I want to be very clear here - the European Union and the euro are strong and resilient and we are doing all it takes, from tackling the underlying budget problems to strengthen the governance of the euro zones from tied to financial regulation to improving our overall competitiveness.
Ladies and gentlemen, as you can see relations between Australia and the European Union are becoming more substantial day by day. There is still great potential and I'm confident that my visit is a further step to using these opportunities together, because in our global world you don't have to be a neighbour to become a good friend.
PM: Thank you. Very happy to take some questions.
JOURNALIST: President Barroso, Rob Taylor from Reuters. I just wanted to quickly ask you, there were reports from the Greek Government and international donors last week that Greece is failing to meet its budget deficit target and the asset sale plan was in doubt. I'm just wondering, do you have a comment on whether Greece has done enough to keep the EU and IMF bailout on track? And secondly, recent data showing the EU growth is at a standstill, are you concerned? What chance of a recession in Europe at the moment? Do you think that current monetary and fiscal policy is too contractionary?
PRESIDENT BARROSO: First regarding Greece, as you know we are making a mission to Greece, so together the European Commission, together European Central Bank and IMF and we are now in the process of analysing what Greece has been doing, so it's premature now to make an assessment about exactly the efforts of the Greek Government. But we are in contact with the Greek Government and just now they have made some important remarks, saying they will comply with their commitments and this is certainly very important for Greece and also important for the area.
Regarding the second question, we don't anticipate a recession in Europe. The latest forecasts by the European Commission show that there will be growth, modest growth it's true and even across the European Union, but in fact growth - that's our analysis and our assessment.
PM: Yes, here.
JOURNALIST: Yes, just in regards to the carbon pricing, what do you think - President Barroso and Prime Minister - what do you think of the prospects of a global carbon market within say the next decade or so, particularly given what Australia's just about to do?
PRESIDENT BARROSO: I think it's very important to enlarge this carbon market. In Europe, as the Prime Minister just mentioned, we started it some time ago and we believe it is important and positive. We have been reducing emissions, that is the reality, but also we believe that this kind of regulation and this kind of market is the most cost-efficient way of promoting innovation and to promote new business in terms of green growth.
Of course, in the current economic situation, probably people did not pay enough attention to this, because we are in a difficult economic situation also in Europe, to be honest. But in fact our assessment is that it has been very positive - the regulations that we took in Europe to deal with climate change and the fact that we have this market.
So, we welcome the decisions taken by the Government of Australia and certainly with other partners we will do everything to enlarge this market. I cannot at this stage make a kind of forecast about when we will have a global market, but certainly the fact that many parts of the world are now wishing to go on this road, gives us better anticipation of what we believe is the right way to deal with a global problem. Is it a global problem, climate change, and it has to be dealt globally, so the more likeminded partners work in this direction the better.
PM: And those perspectives are shared. We will start our carbon pricing regime on the 1 July next year. It will then move to a market-based system and it's in that period of being a market based system, a cap-and-trade system, that we will be looking for these linkages, which is why it makes sense to have officials working on it now and we will be raising our voice in the same way that the President has described for the enlarging of global carbon markets and for action on climate change.
But I think what the President has said reinforces the depth of the actions that have happened around the world and continue to happen around the world, and as I've consistently said to the Australian people, the risk for us, with our very carbon intensive economy, is we get left behind as the clean jobs, green jobs of the future are created.
Yes, Phil?
JOURNALIST: Prime Minister, could I ask you on asylum seekers, are you prepared to contemplate the offer by Tony Abbott to pass any legislation you may deem necessary to keep offshore processing alive?
PM: Look, I've seen Mr Abbot's comments today and what I'd say in relation to them is as follows.
First, I believe it's very important that Mr Abbott and his team come to grips with the legal advice that's been provided to Government and now is available publically. What that legal advice means is that we do need legislation to put beyond doubt offshore processing arrangements.
It is not correct to say, based on that advice, that for example Nauru, which is Mr Abbott's plan, could be proceeded with without legal risk and the Solicitor-General points to that legal risk.
The legal advice also goes to the circumstances of unaccompanied minors and what it makes crystal clear - absolutely crystal clear - is that in order for unaccompanied minors to be sent to a location outside Australia you would need legislative change. Without that legislative change the risk you would run is that you would send a signal to people smugglers to fill boats with children, and no-one wants to see that.
So, first step for Mr Abbott and his team to come to grips with the legal advice that Government's been provided with and which we've released publically.
Second, I believe if Mr Abbott is sincere about this offer, then he needs to make it very clear that he is talking about working with the Government on offshore processing generally, not on his narrow solution.
JOURNALIST: Prime Minister, on that same issue, given that the High Court has effectively ruled that Section 198A of the Migration Act is an embodiment of Australia's commitments under the refugee's convention, then wouldn't you as a Labor Party getting in cahoots with the Coalition to amend or axe that Section, be in contravention on 57 years' worth of commitment by Australia to the refugee convention?
PM: Absolutely not and we won't do things that are in breach of the refugee convention - of course we wouldn't - but there isn't one way to acquit our obligations under the refugee convention. We will always acquit those obligations.
JOURNALIST: In light of your previous answer where, you said Mr Abbott couldn't just negotiate on his terms, would you envisaging that such legislation cover not only Pacific recipients but also Malaysia? Would that be your condition?
PM: Michelle, I've given my answer and we are at a stage where first and foremost Opposition needs to come to grips with the legal advice. That's a foundation stone. We need everybody to understand the legal advice that has been provided to Government.
Second, I do clearly want Mr Abbott to clarify whether he is talking about a sincere desire to work with Government on offshore processing broadly, or whether he's talking about his narrow plan.
JOURNALIST: Mr President, could I ask you on the same issue of asylum seekers, given Europe's experience in this regard, what do you make of the debate in Australia and how important and effective are strong messages of deterrence?
PRESIDENT BARROSO: I'm not familiar with the discussion in Australia. I was just listening to you and thinking about, it's complex, the rule of law, and in Europe we have now a very important debates also on the issue of migration, and in fact we are working together now. The member states recognise that it makes no sense to have different national regimes, for instance in terms of refugees, because we have an integrated space in Europe so we can travel freely from one country to the other, namely on the signatory countries, so it's not even needed to show a passport, so what makes sense is to have as much as possible an integrated area of freedom of movement, and for that we need of course to have, with balance, what you believe it's common borders, external borders, managed as much as possible in a cooperative way and of course in full respect of the principles of freedom of circulation in European Union.
But I understand the situation is different, very much different, so I don't want to make any comment that may relate to your internal discussions. I very much respect your democracy. What I want to tell you is in fact this is a matter of the highest priority in the internal debate in Europe and our line in Europe has been one of trying to combine our tradition of freedom and our commitment to the values of non-discrimination at the same time with proper security in terms of proper management of the external borders.
PM: OK, Laura?
JOURNALIST: Prime Minister, could I just clarify - are you as a preference looking for a solution offshore on offshore processing rather than onshore, and if I could just also ask while I've got the opportunity, what the implications of putting the footing of the relationship with the EU on a treaty basis, on a more formal treaty basis?
PM: Well, look I've taken that matter as far as I'm prepared to take it today in relation to your first question.
In relation to your second question, I formed the view as Prime Minister and when we first met we had this discussion, that is was appropriate to formalise the partnership between us and to look for further areas of cooperation. Today we have discussed some of those further areas of cooperation - the aid cooperation where we partner and become cooperative agencies for each other in different regions of the world. We are here able to do the work we do in the Pacific and to assist the EU with its aid provision into the Pacific. The EU does so much work in Africa, they are obviously well positioned to assist us there, so aid cooperation.
We've talked today about scientific and research cooperation. There already is a pattern of strong links on these questions but we believe that they can be furthered in the future, including around the research that needs to go with the clean energy future and clean energy jobs.
Third, you've seen the practical examples of cooperation today. There will be further practical examples that we need in the future to facilitate trade, investment links, people-to-people links and the like.
And then fourth, climate change and carbon markets poses a very big area of cooperation for us. We share a strategic outlook. We share an economic outlook: as the President has said today, an economic outlook about strengthening global growth, about trade liberalisation, about making sure that the world doesn't take a step backwards towards protectionist measures which ultimately destroy jobs. So, I believe it's important for us to step up to a new level of formality in the relationship, and that's what the framework agreement at treaty level is about.
JOURNALIST: (inaudible) both leaders-
PM: -And we'll make this the last one.
JOURNALIST: Just regarding the G20, can you go into some of the discussion you had and did you discuss the financial transactions tax which is one of the concrete things that particularly Europe wants to see out of the G20?
PM: Well, we did discuss the G20 and of course our perspectives about doing what is necessary to enhance global growth and global economic resilience, so we talked across the range of issues likely to come before the G20.
On the financial transactions tax, we are not on the same page and think that was known before our discussions yesterday and today and we continue to be not on the same page but this is an issue that will be pursued by the President so I'll turn to him for comments on it.
PRESIDENT BARROSO: Yes we have been very active in our cooperation in G20 because Australia and European Union share the same analysis of the situation, and we are promoting actively an agenda for global governance, with commitment to resist protectionism, to the need to have to improve financial regulation to promote growth in a sustained manner all over in the world.
And I think one of the- Australia was in fact very lucky. Australia was the only developed country that has escaped recession. That's reality. I think you should be proud of it in Australia, but in fact one of the lessons of the crisis is we are very much interdependent today.
What you have been seeing with the financial markets is a crisis in one country, sometimes a very small country can affect a whole continent and that can be felt across continents - when there is a downgrade of one country is can also have consequences. So it makes sense more than ever to cooperate globally and the G20's an appropriate forum for that because we can take decisions at the same time there is a real willingness of all the major partners to do it. So, that's why basically Australia and European Union are on the same line.
It's true on the financial transaction tax that in Europe there is a very special sensitivity about this, because of what happened in the financial sector. We believe the financial industry should give a more important contribution to the community. The European taxpayers, after what happened in the financial sector, believe it's not fair in terms of the burden sharing so all sectors of the activity pay, for instance, the VAT, but not financial sector. That's why we are going to start with some moves in Europe. The Commission is going to propose a financial transaction tax for the European Union and we are ready, of course, to engage in discussions about this with our partners, recognising that there are different sensitivities.
But the point I want to underline is that the very good cooperation that we are having in the G20 and that we certainly want to keep and reinforce in the future.
PM: Thank you very much.