Introduction
I am pleased to have the opportunity to address this House on preparations for Ireland’s Presidency of the Council of the European Union. I will also update members on the outcome of last week’s European Council meeting.
With 67 days left until the 1st of January, work is intensifying at all levels. We are now getting a much clearer sense of the issues on the agenda of the Council in the first half of next year which we can aim to advance.
At the beginning of the month, the Government travelled to Brussels for discussions with the College of Commissioners on our Presidency. We were pleased with the outcome of the meeting which confirmed that there is broad agreement between the Government and the Commission on the main priorities and objectives that we have identified.
The Taoiseach also had the opportunity while in Brussels to meet the President of the European Council, Herman Van Rompuy.
The President of the European Parliament, Martin Schulz, also visited Dublin at the beginning of this month for discussions with the Taoiseach and the Tánaiste and was invited to address the Dáil.
I have just returned from my latest visit to the European Parliament in Strasbourg and discussed the main issues that are now emerging as priorities in the Irish Presidency programme.
I also discussed the particularly intensive period of engagement with the European Parliament over the coming weeks, which I know will involve members of this House. Between now and the end of the year five committees from the Parliament will visit Dublin, as well as the three main political groups in the Parliament.
At the end of November President Schulz will return to Dublin with the Conference of Presidents, that is the leaders of the political groups in the European Parliament.
I very much welcome this engagement by the European Parliament in advance of the Presidency and I particularly welcome the involvement of the Oireachtas in this process.
It is vital that as the European Union takes steps towards closer integration in response to the crisis that both the European Parliament and national parliaments play their respective roles in ensuring democratic accountability for our actions.
Work is continuing on the development of the Irish Presidency programme which will be published at the end of the year. This is informed by the discussions that have been taking place at political level.
It will also take into account the Commission’s work plan for 2013 which was adopted on Tuesday. At the same time the Permanent Representation in Brussels will also draw up with the Commission and the Council Secretariat the agendas of the Council meetings that will be held during the first half of next year and which will structure debate at Council during our Presidency.
I am pleased to update you on work that has been underway on the Presidency since I last addressed this House in May.
Firstly, allow me to highlight some of the main priorities that now look set to dominate Ireland’s Presidency programme.
Presidency priorities: jobs and growth
The Presidency’s main overarching focus across all policy formations will be identifying and advancing legislation that can contribute to creating the conditions for sustainable economic growth in Europe and job creation.
The agreement at the June European Council on a Compact for Jobs and Growth was important and we will now work closely with our EU partners to make this commitment a concrete reality.
We have identified policy and legislative issues across several Council formations that we consider can contribute to longer-term growth and job creation.
Many of these issues are linked to the Single Market which has delivered so many benefits and opportunities for our export sector and for consumers over the past 20 years.
Ireland will seek to make progress on draft legislation outstanding under the current Single Market Act such as the Professional Qualifications Directive. We also want to ensure that business and consumers reap the benefits of an evolving Single Market and eCommerce.
The Single Market Act II was published on 3 October by the European Commission and Ireland strongly supports the focus in the Act on making progress in areas such as integrated energy, transport networks and the digital economy.
During our Presidency we will also seek to spur growth in the digital economy and the Digital Single Market by working to advance agreement on issues including Intellectual Property Rights, Cyber security, e-Identification, Data Protection, and high-speed broadband rollout.
In a rapidly changing global economy, we also need to ensure that Ireland and the EU are equipped to play a full role in the research, development and innovation sectors. This is why we are placing a strong emphasis on advancing the Horizon 2020 framework funding programme which can play an important role in supporting research and innovation across the EU and creating smart jobs and sustainable growth.
Completion of the European Research Area (ERA) and the future development of the European Institute for Innovation and Technology will also be priorities for the Irish Presidency given their potential for job creation and sharpening the Union’s competitiveness.
This House also knows the value that the Government attaches to new markets for Irish exporters. In addition to the work prioritised in the internal Single Market, Ireland also plans to place a strong emphasis on the external trade agenda.
The Minister for Jobs, Enterprise and Innovation will host a Ministerial meeting in Dublin next April which will focus on strengthening EU-US trade relations. The Presidency will also work on moving Free Trade Agreement negotiations ahead with other strategic partners including Japan and India.
Ireland, as Presidency, will also work to strengthen the EU economy over the coming decades by making progress on the Entrepreneurship Action Plan. To support the next generation of entrepreneurs, and to better serve citizens, Europe also needs to invest strategically in its infrastructure to support economic development and maintain its global competitiveness.
The Presidency will prioritise work on the Connecting Europe Facility to underpin development in the Union’s transport, telecoms and energy infrastructures.
As Presidency, Ireland will also work to promote greater equality, social cohesion and inclusion in Europe. Elements of the Europe 2020 Strategy including improving training, skills and access to education will play a critical role in equipping citizens, particularly young people, to find work and in attracting investment into the EU.
The issue of skills is central to fighting unemployment and will be a focus at the February Education Council (in the context of discussions on the European Semester and Europe 2020). Following the publication of the Youth Transitions package, the Presidency will focus on youth employment and mobility at the February Council (and at an EPSCO informal Ministerial chaired by Minister Burton in February) with a view to agreeing a Council Recommendation on a Youth Guarantee.
Time does not permit me today to go into detail on all of the dossiers that we are planning to advance to fight the crisis, to reinvigorate Europe’s economy and to create jobs. But four years into the crisis, our citizens demand and deserve action and this is why jobs and growth will remain our central focus.
Presidency Priorities: Budget
To underpin Europe’s economic recovery and to ensure coherence in the Union’s policies, agreement needs to be reached on the EU budget from 2014 to 2020.
Many of the issues that I have outlined above are dependent on the budget including issues of critical national importance to Ireland such as Horizon 2020 and CAP and CFP reform. Securing agreement on the EU’s future financing is a key priority for the current Cyprus Presidency.
Ireland stands ready to assume whatever tasks remain at the start of its Presidency including making progress on the approximately 70 pieces of implementing legislation related to the MFF.
European Council
Turning to last week’s European Council, I accompanied the Taoiseach to this Summit meeting in Brussels on 18-19 October. European leaders had a number of substantive issues on their agenda last Thursday and Friday, including in the economic sphere; a reflection on the possible future shape of Economic and Monetary Union, which underpins our shared currency; as well as taking stock of implementation of the Compact for Growth and Jobs.
Beyond those economic issues, Heads of State or Government (HoSGs) also had a good exchange on our relationship with the Union’s strategic partners, most notably with China; and they adopted a comprehensive set of conclusions on the developing situations in Syria, Iran and in Mali.
The central focus of deliberations last week was on the means of strengthening Economic and Monetary Union and most particularly on progressing towards so-called ‘banking union’.
The framework for these discussions was provided by President Van Rompuy’s interim report, ‘Towards a Genuine Economic and Monetary Union (EMU)’ which he
presented to leaders.
His interim report was well received and leaders agreed a comprehensive set of conclusions based on the four essential building blocks necessary for a strengthened EMU which President Van Rompuy identified previously, those being:
an integrated financial framework, or so-called ‘banking union’;
an integrated budgetary framework;
an integrated economic policy framework; and critically
democratic legitimacy and accountability.
It was agreed that President Van Rompuy will continue his consultations with Member States and others before bringing forward his final report to the December European Council. That report will set out a specific and time-bound roadmap for strengthening EMU, including recommendations for concrete steps to be taken.
Importantly last week leaders reaffirmed their commitment from June to break the vicious circle between banking and sovereign debt. Heads of State or Government also clearly reaffirmed the commitment to provide for the recapitalisation of euro area banks by the European Stability Mechanism (ESM).
With regard to the Single Supervisory Mechanism – which is a critical step in the creation of a banking union – leaders have now agreed and clear timeframe for its entry into operation as a matter of priority, with its legislative framework concluded by the end of this year. While work on the operational implementation of the single supervisor is to happen during the course of 2013.
The European Council has also tasked the Eurogroup (of Finance Ministers, including Minister Noonan for Ireland) to draw up the exact operational criteria that will guide direct bank recapitalisation by the ESM, “in full respect of” the June decisions. This too is a positive outcome.
As the House will be aware in the aftermath of last week’s meeting, the Taoiseach had a telephone conversation with Chancellor Merkel on Sunday afternoon last. On foot of that discussion a joint communiqué was issued by the two leaders.
Chancellor Merkel expressed a genuine appreciation of the steps the Irish people are taking to turn our economic situation around, and her full support for our efforts to get back to the markets.
The joint statement makes it clear that the commitments made to Ireland at the end of June stand, and that the vital work involved in examining the situation of the Irish financial sector will be taken forward by Minister Noonan and his colleagues in the Eurogroup (of Finance Ministers), with a view to further improving the sustainability of our Programme.
Chancellor Merkel also acknowledged that Ireland’s is a special case and that this would be taken into account during the discussions ahead.
Significantly, President Hollande added his voice, when the Taoiseach met with him in Paris, in appreciating the special situation which Ireland faces and in acknowledging that these circumstances will need to be taken into account as the Eurogroup now takes this work forward.
These statements are a most welcome reaffirmation by key European leaders that the 29 June agreement to address Ireland’s situation will be honoured.
I want to reassure this House that the Government will continue to work painstakingly to secure the best possible deal for the people of Ireland. We have already had considerable success and I am confident that our approach will lead to a positive outcome.
This work will be detailed and technical and may take some time, but the Government has always said that it is better to get the best possible deal, rather than a quick deal.
Before concluding on last week’s European Council meeting, I should note that leaders also adopted a comprehensive sit of conclusions on the implementation of various aspects of the Compact for Growth and Jobs. This was a most welcome return by HoSGs to assess implementation of the Compact that they adopted as recently as June last.
While progress has been made in beginning to implement the various elements of the Compact, what is evident is that more needs to be done. So that, just as in the case of EMU and banking union, implementation is key.
Taking forward the various aspects of the Compact at EU level –whether concerning for example, the Single Market, youth unemployment or expanding opportunities for external trade – will form an important aspect of the our work as Presidency next year.
Presidency Priorities: Economic Governance
Related to the ongoing work at European Council level, a final key overriding priority for the Irish Presidency will be to ensure stability and restore trust in the Euro area for business, investors and consumers.
For this reason, Ireland will work to ensure the effective implementation of governance measures through the EU’s new system of economic and budgetary coordination. Trust also needs to be urgently restored in other sectors that are critical to the functioning of a modern economy and this is why we are placing an emphasis on making progress on the Banking Union proposals.
Presidency: general concluding remarks
Allow me to outline some of the other fundamentals that will guide the Irish Presidency in 2013. Firstly we are committed to maintain the reputation earned in our six previous Presidencies for acting as a fair and impartial office-holder.
We also believe that the EU is at its most effective when it moves forward together to deliver results for Europe’s citizens. Finally, as I stressed to you last May, the Government is committed to delivering a very cost-effective Presidency.
The Presidency is a massive task for any administration, but particularly for a smaller state like Ireland. Since I last spoke to you in May I have met with many of my counterparts from the European Parliament, other Member States and the Oireachtas.
I have also met and briefed NGOs and civil society on our Presidency and have worked to factor their views and concerns into our Presidency programme. 2013 is the European Year of Citizens and one of my aims during the Presidency will be to promote much stronger levels of direct public discussion and engagement in EU affairs.
Ireland has had a very interesting journey during its first 40 years of EU membership. The Presidency will demonstrate once again the positive role that Ireland can play in Europe. But it can also serve as a useful point of public discussion on how we envisage Ireland’s future role in an enlarged Union.
I would like to thank you for inviting me here again today to speak and for your views and contributions on the Presidency programme.