merrion street

Taoiseach Enda Kenny today briefed the Dáil on the outcome of last Mondays Informal Meeting of the European Council, noting progress on the key issues of jobs, growth and the ‘Fiscal Compact’ treaty.

Since this Government took office our absolute priority has been to secure Ireland’s economic recovery and to ensure employment for our people.

I believe there is now a real appreciation at the highest European level of the urgent need to focus fully on growth-generating policies, not just as a counter-balance to discipline and austerity, but as an essential element of any sustainable programme of recovery.

President Van Rompuy focused the meeting on the key areas of unemployment, the Single Market and SMEs.

I pointed to two key concerns - ensuring access to finance and reducing red tape - that must be addressed if SMEs, the engines of economic recovery, are to be able to fulfil their potential.

I highlighted some of the key steps we are taking in Ireland, including our forthcoming Jobs Action Plan; the Partial Guarantee Scheme and Micro-Financing Loan fund; and the Strategic Investment Fund. These will all help to supplement bank lending.

I also pointed to our encouragement of new and innovative companies, including through ensuring that SMEs can access R&D funding and providing a sales and marketing tax credit to companies exporting to new markets in emerging economies.“

The Taoiseach noted the importance of reaching an agreement on the new treaty, now called ‘The Treaty on Stability, Coordination and Governance in the Economic and Monetary Union’.

While much, if not most, of the Treaty is already provided for in the EU Treaties and existing EU law … setting it out in a new Treaty takes it onto a new level in ensuring that everyone will play by the rules and be held to account if they don’t.

As a small Member State of the Union, this is very much in Ireland’s interests. We have seen occasions in the past when it has been easier for large Member States in particular to evade their responsibilities. Under the new Treaty, this will no longer be possible.”

The Taoiseach highlighted a specific preamble of the treaty:

The new Treaty opens with a long set of preambles. I would highlight the twentieth, which makes it clear that:

“…none of the provisions of this Treaty is to be interpreted as altering in any way the economic policy conditions under which financial assistance has been granted to a Contracting Party in a stabilisation programme”

“This is an important provision which ensures that for Ireland and other Programme countries, the terms of our EU/IMF Programme will prevail, and that the new agreement will only apply once we have exited from the Programme.

The Taoiseach also brought attention to include Article 2, which aims to ensure full consistency with EU Treaties.

The statement that the Treaty is to be applied and interpreted “in conformity with the Treaties on which the European Union is founded” is most welcome – and indeed something Ireland actively sought – as is the assertion that “they shall not encroach on the competences of the Union to act in the area of economic union”.

Article 14 of the Treaty provides that the Treaty will enter into force on the 1st January 2013, providing it has been ratified by 12 euro area Member States. Member States will then have a further year to transpose its contents into their national law.

At our meeting yesterday, the Government agreed that the Tánaiste, as Minister for Foreign Affairs, should write to the Attorney General seeking her formal views in the matter. This is the norm when we are looking at an International Treaty.

There is no formal deadline – the Attorney General must be given the time she needs to undertake this detailed and important work.

But as I have said before, the Government will not shirk its duties. It will take whatever steps are necessary to ensure that Ireland is in a position to ratify the Treaty, including a referendum if necessary.

I will keep the House fully briefed and involved in this important work.”