merrion street

Taoiseach Enda Kenny today addressed the Dáil on the outcome of the recent EU Council meeting and Euro Summit, which he attended in Brussels on the 28th and 29th June.

The Taoiseach said...

It was a significant meeting with significant results of particular consequence for Ireland.

Having had extensive discussions involving all 27 Heads of State and Government on the crisis facing Europe and the steps necessary to return Europe to growth and job creation, those leaders representing the 17 Euro area Member States continued their discussions on the immediate steps to restore stability to the currency.

The backdrop to our meeting was a difficult and complex one, and the issues facing us were sensitive and potentially divisive. Our discussion was long and frank.

...we made a clear statement that breaking the vicious circle between banks and sovereign is “imperative”. This is a significant shift in position, the importance of which should not be underestimated.

I particularly welcome the fact that the principal that the ESM should be enabled to directly recapitalise banks has been agreed.

...For Ireland, this vital step represents an important breakthrough that can help us to recover and to return to the markets.

 The Taoiseach continued...

Where new possibilities were being offered to others, Ireland had to stand to benefit also. Equality is a key principle.

This was reflected in the text which was adopted and which contains a concrete undertaking to “examine the situation of the Irish financial sector with the view of further improving the sustainability” of our Programme. In working this through, it is made clear that “similar cases will be treated equally”.

The Government will be working intensively to ensure the best possible outcome for Ireland, delivered as quickly as possible.

The Taoiseach spoke of a stimulus programme for growth and jobs...

...the Government has long argued the need for a growth agenda for Europe.  The Compact adopted by the European Council last week contains an ambitious programme of work to be taken forward at European and national level.

It will deliver an immediate stimulus, with a €120 billion investment package, or 1% of Europe’s income, mobilised for fast-acting growth measures.

It was agreed that we should increase the EIB’s paid-in capital by €10 billion with the aim of strengthening its capital base as well as increasing its overall lending capacity by €60 billion, unlocking up to €180 billion of additional investment.

It was also agreed that the Project Bond pilot should be launched immediately, bringing investment of up to €4.5 billion for pilot projects, and following evaluation, that the volume of such financial instruments could be developed further in the future.

The importance of the Single Market was also discussed...

The Commission will bring forward its further growth-enhancing proposals under the Single Market Act in the autumn. These will not only be an important input, they will also help to shape the agenda for the Irish Presidency in the first half of next year...

There was also a shared view on the importance of external trade as a driver of growth. Free Trade Agreements with Singapore and Canada are to be finalised by the end of the year; and momentum is to be injected into negotiations with India. We also agreed that work should continue towards deepening our trading relationship with Japan.

The EU-US High-Level Working Group on Jobs and Growth will bring forward its recommendations later this year and made a commitment to working towards launching negotiations on a comprehensive transatlantic trade and investment agreement in 2013. This is something that I will be pressing strongly during the Irish Presidency.

Tackling unemployment and addressing the social consequences of the crisis was also a key focus of the Summit, the Taoiseach said:

We agreed to step up, in particular, efforts to increase youth employment, with the objective that within a few months of leaving school, young people should receive a good quality offer of employment, continued education, an apprenticeship, or a traineeship, which can be supported by the ESF.

Ensuring that Member States have more ambitious and precise National Job Plans –like that adopted by the Government – will be an important element of next year’s European Semester process. Again, this is something that Ireland will drive forward during its Presidency.

The Taoiseach concluded...

...this was an important meeting for Ireland and for Europe at which decisions of particular significance were taken. The task of implementing them in good faith now lies ahead. I can assure the House that the Government will leave no stone unturned in seeking advantage and the best possible deal for Ireland.

Adoption of the Compact for Growth and Jobs was also very welcome, but we now need to see it give effect. This will be an important priority for the Irish Presidency, now less than six months away.

We have shown many times in the past that Ireland can make a difference and make its mark at European level, in a way that reflects well on this country and its people.

That will continue to be our goal in the important work ahead.