EU leaders focused on Europe's 2 most important challenges: boosting investment, and the situation at its eastern borders.

It was the first European Council chaired by Donald Tusk as President and it followed a shorter format, a '1-day summit'. It allowed EU leaders to take clear decisions and set firmer orientations on:

Investing in Europe 

EU leaders looked at ways of improving the investment environment in Europe and said that this improvement was needed to reinforce structural reforms and fiscal consolidation carried out by member states.

European Fund for Strategic Investment (EFSI)

They backed the creation of the European Fund for Strategic Investment, a €315 billion scheme unveiled by the European Commission in November. 

EU leaders asked for fund to be up and running by June so that the first investment projects can be rolled out in mid-2015. They also came out in favour of creating an advisory ‘hub’ that would offer investors and public authorities guidance on investment projects. 

The fund will be built on a €16 billion guarantee from the EU budget and €5 billion from the European Investment Bank. 

Better investment climate in the EU 

EU leaders called for quick action to improve 'the regulatory environment for investment':
•better integration of capital markets
•better regulation, i.e. simpler laws, whose impact is carefully measured  
•better implementation and enforcement of EU laws, especially those related to the single market and investment 

In relation to the development of the single market, EU leaders asked the Commission to table a proposal for a European energy union to connect networks across borders, improve Europe’s energy security and cut its emissions. 

They also called for greater efforts to complete the internal market in products and services. 

EU leaders said they would review the progress of investment-related initiatives at the upcoming meetings in March and June 2015.

External relations: the eastern neighbourhood

Over dinner, the working session was dedicated to the situation on the eastern borders of Europe.

Support to Ukraine

EU leaders welcomed the new Ukrainian government and encouraged it to carry out much-needed political and economic reforms. They also discussed financial support to Ukraine's economy. 

A 'strategic discussion' on Russia

They shared their views on Russia's policy towards its neighbours and how the EU should respond to it. 

President Tusk said, "It is quite clear that we will not find a long-term solution for Ukraine without an adequate, consistent and united European strategy towards Russia. Equally, a modern, safe and independent Ukraine is the most important element of this strategy." 

Having an ambitious, EU common strategy towards Russia is important in view of the preparation of next year decisions and events:
•the review process of sanctions enforced in 2013
•the Riga Eastern Partnership summit in May
•the review of the EU's European Neighbourhood Policy 

Crimea and Sevastopol 

EU leaders welcomed the strengthening of the sanctions on investment, services and trade with Crimea and Sevastopol.