merrion street

A Ceann Comhairle,

I am pleased to have this opportunity again to brief the House ahead of the forthcoming meeting of the European Council in Brussels on Thursday and Friday of this week, 1 – 2 March.

The meeting will begin on Thursday evening, with the customary exchange with the President of the European Parliament followed by a first working session and a discussion over dinner. On Friday morning, we will sign the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union. This will be followed by a further working session.

As we will have a debate on the question of the Government’s decision to hold a referendum on the new Treaty in a short while, I intend to focus here on the important issues which the European Council will consider.

The spring European Council is traditionally the annual set piece review of economic policy in the EU. But this is no time for business as usual. The main task for our meeting will be to review implementation of the European Union’s economic strategy, to ensure that it is fit for purpose in this volatile environment. We are now embarked on a strategy which seeks to pursue both fiscal consolidation along side effective steps to boost sustainable economic growth and job creation. This is a good, and a balanced approach. We need to ensure that efforts in fiscal consolidation lay the groundwork for creating jobs and boosting confidence and in investment in our economies – Ireland has long been a strong and vocal advocate of such approach.

In addition to concluding the first phase of the European Semester process, this week’s meeting of the European Council will see leaders agree important EU priorities for a range of international summit meetings forthcoming over the coming months, including the G8 and G20 Summits and the “Rio +20” Summit meeting.

On the foreign policy front, we will address ourselves to the Union’s relationship with our Southern Neighbourhood, one year on from the Arab Spring. We will also consider the unfolding events in Syria.

It is also expected that the European Council will take a decision this week on granting candidate status to Serbia

As the House will be aware, ahead of this European Summit, the Government has again been highly active in engaging with partners, so as to effectively lay the groundwork for a productive European Council meeting.

Last Thursday, I travelled to Berlin and had a dinner meeting with Chancellor Merkel and Prime Minister Petr Necas of the Czech Republic and Prime Minister Valdis Dombrovskis of Latvia. This small informal meeting proved to be a particularly useful opportunity for free-flowing exchange – on longer term issues for the Union – as well as an opportunity to hear what the economic perspectives are in our respective countries.

The following day I met with Prime Minister Mario Monti in Rome. This served as an extremely positive meeting during which we addressed a wide range of issues across our agenda in Europe at the moment. We have a very strong common accord in our approach to many issues – the pressing need for growth to complement consolidation; the importance of completing the Single Market; and our common and unswerving support for the ‘Community Method’ in our engagement at European level. We also both agreed that the trade agenda for the EU is an important element of future business. We need to step up our ability to trade with strategic partners and to continue to grow our economies including through developing our export markets.

I was struck by the fact that the last bilateral meeting at Prime Ministerial level between Italy and Ireland took place as far back as 2004, that was too long ago. Italy was, is and will continue to be a major EU Member State, with whom we have a great deal in common across the entire EU agenda.

My colleagues in Government have been very active too in advancing Irish positions ahead of this week’s meeting. The Tánaiste and Minister for Foreign Affairs and Trade, Eamon Gilmore T.D. attended the Foreign Affairs Council meeting in Brussels on Monday last, which laid the groundwork for the Summit meeting’s discussions on foreign policy issues, most particularly on Syria.

The Tánaiste also represented Ireland at an international conference on Syria, held last Friday in the Tunisian capital, Tunis. He was one of more than 60 Foreign Ministers in attendance, illustrating the engagement and solidarity of a broad swathe of the international community on the evolving situation in Syria.

Similarly, the Minister of State for European Affairs, Lucinda Creighton T.D. was in Brussels yesterday representing us at the General Affairs Council, which is tasked with preparing the work of European Council meetings.

As a critical element in our ongoing engagement within the Union, I have joined with eleven of my European Council colleagues – from a broad cross-section of partners, large and small and from North and South – in addressing a letter to European Council President Van Rompuy and European Commission President Barroso, which sets out eight priority areas on which action can be taken to strengthen growth in Europe. I warmly welcome the fact that President Barroso has already responded to our letter. I am confident that this meeting of the European Council is now well placed to address economic policy issues, particularly the growth and jobs agenda in a most thorough manner. I will return to this initiative later in my intervention.

Tomorrow’s European Council has a specific role in terms of the European Semester process. It must consider the Annual Growth Survey, produced last November by the Commission. This has now been examined by the Member States and the different Council formations, especially ECOFIN and EPSCO.

The Danish Presidency has produced a Synthesis Report pulling together the views expressed across these different Council discussions. Tomorrow’s European Council is expected to endorse the Annual Growth Survey. The priorities it sets out are consistent with the Europe 2020 Strategy for growth that is smart, sustainable, and inclusive. They align well also with the national priorities established by our own Programme for Government. We support them.

The European Council will also reiterate its support for Europe 2020, Europe’s growth strategy, and to urge Member States to redouble efforts to meet its targets. It will call on Member States to reflect these priorities through concrete commitments in their National Reform Programmes and Stability or Convergence Programme updates, which are due in mid-April. Nationally, we will in April provide a comprehensive review of progress towards achieving our Europe 2020 targets.

I must note - with some satisfaction - that at European level, renewed attention is now being paid to the growth agenda. We have been calling for this for some time. It is an appropriate balance to the established and necessary focus on fiscal consolidation and budgetary discipline. There is consensus in the EU now that we need this two-pronged approach. While much of the European Semester process looks at the longer-term structural reforms, needed to avoid a repeat of the current crisis, the European Council tomorrow will be looking also at measures which will have a short-term effect for growth and jobs.

This approach was endorsed by EU leaders at the informal January meeting of the European Council. In order to maintain momentum and ensure that our growth priorities continue to be reflected, last week I joined with the Prime Ministers of eleven other EU Member States in co-signing a further letter ahead of next month’s meeting. We called for progress in eight specific areas:

the Single Market agenda, and raising implementation standards;

a truly digital single market by 2015;

a genuine, efficient and effective internal market in energy by 2014;

commitment to the European Research Area and to providing the best environment for innovation and entrepreneurship;

Stronger trade links, including with fast-growing emerging markets;

reducing the administrative burdens from EU legislation;

Better functioning of labour markets; and

a financial services sector that serves the interests of citizens and business.

Earlier this week President Barroso wrote back to the 12 authors of this letter, confirming the Commission’s commitment to these areas, and listing in detail the action taken or planned by the Commission in each of the eight areas. Other inputs to tomorrow’s European Council have been a letter from the Finnish Prime Minister on the Digital Single Market, and a joint Franco-German paper on growth enhancing measures.

Our concerns and interests have been reflected in the draft European Council conclusions discussed at the General Affairs Council yesterday, and we are continuing our efforts to ensure these issues remain prominent in our discussions and outputs.

These are not just points of academic interest. The close attention being paid to the Single Market fits with our own emphasis on the growth and export potential of Irish SMEs and start-ups. A better functioning Single Market is a better environment for Irish exports, including by removing bottlenecks in key growth areas. We are in the process of rebalancing our economy towards sustainable, export-led growth, and see significant potential in unlocking the full potential of Europe's dynamic market of 500 million consumers.

It is by creating the right conditions for enterprise that we create the right conditions for jobs. Last week saw the launch of the Pathways to Work initiative designed to help tackle the problem of long-term unemployment by getting people job-ready. This initiative complements the Action Plan for Jobs launched earlier in the month which concentrates on economic reforms needed to accelerate the growth of jobs. Both of these national efforts fit well with the renewed growth emphasis at European level.

We must, on the one hand, continue to create the right conditions for job creation and entrepreneurship in an increasingly knowledge-intensive and interconnected global economy. And on the other, we must improve participation and employment rates with sensible and job-friendly labour market policies. That is the emphasis of the Europe 2020 Strategy. And we believe it is the right emphasis.

The European Council will agree priorities for G8 and the G20 Summits in Mexico in May and June respectively. It will also consider key principles to guide the EU’s preparations for the UN Rio +20 conference on 20-22 June 2012.

The European Council will also consider a number of foreign policy issues, including developments in the Southern Neighbourhood, a year on from the start of the Arab Spring. Although a substantive discussion is not envisaged on this occasion, EU leaders will take stock of the latest developments in the region and assess the implementation of the EU’s supports to date. Ireland fully backs the approach that the EU has taken in its response to the momentous events of last spring. We see developments in the Southern Neighbourhood as a catalyst for change and an opportunity for economic and social development in the region. We welcome the strong EU focus on promoting an open civil society, with its emphasis on democracy-building, equality and the promotion of the rights of women and minorities.

A key feature of the EU’s support to countries in the region is the strong commitment to offer more assistance to those partners who make greater progress towards democratic reform ('more for more'). Those countries that are moving ahead on democratic reforms and good governance are being offered more funding for projects which aim to improve economic growth and boost job creation.

Progress has also been made on the negotiation of Deep and Comprehensive Free Trade Agreements with countries in the region. The European Council will call for rapid progress in ongoing trade negotiations so as to open up the way for the region’s companies and businesses to enjoy greater access to EU markets for their goods and services.

The situation in Syria is one of the utmost gravity which has attracted the almost universal condemnation of the international community. In chilling detail, the Independent International Commission of Enquiry report released last week documents patterns of summary executions, arbitrary arrests, torture, enforce disappearances, violations of children’s rights. In the past month, the Syrian Army has escalated its violent attacks, including indiscriminate and relentless bombings, particularly against civilian areas in the city of Homs and the northern province of Idlib. There are thousands of trapped civilians, under merciless assault from their own government, who urgently require protection and humanitarian assistance.

Ireland has been working intensively with the EU, the UN, the Arab League and other partners in the international community to compel the Syrian regime, through a series of robust economic, political and diplomatic measures, to cease its appalling attacks on the Syrian people. The European Council will strongly endorse the decision of the EU Foreign Affairs Council on 27 February to enforce additional sanctions, including against the Central Bank of Syria, on top of the extensive existing EU sanctions against Syria which already includes a ban on oil imports.

I expect the Council conclusions will also voice strong support for the leadership displayed by the Arab League to date, including its peace plan outlined last November and which still provides the best basis for achieving a resolution.

The conclusions must also call for a strongly-worded Security Council Resolution, which would be a uniquely powerful and resonant demonstration of concern on the part of the international community and would add significantly to the pressure on the Assad regime.

The Foreign Affairs Council and the General Affairs Council both considered the issue of granting EU candidate status to Serbia earlier this week. The European Council considered this issue in December but deferred taking a decision until further progress was shown in the Dialogue between Belgrade and Pristina. I am pleased to report that sufficient progress has been shown in the Dialogue, with a number of agreements reached last week which will contribute towards the normalisation of relations between Serbia and Kosovo. The General Affairs Council has therefore recommended that the European Council grant Serbia candidate status. Ireland supports this decision and I would expect to see the Council confirm candidate status on Friday.

I would like to take this opportunity to commend the governments of both Serbia and Kosovo on the courageous steps they have taken in recent months. I also welcome the decision to launch a feasibility study for a Stabilisation and Association Agreement with Kosovo. Ireland remains committed to the European perspective of all the countries of the Western Balkans countries.

We may also address the issue of the accession of Bulgaria and Romania to Schengen. We would support the Presidency compromise proposal in order to see a resolution of this matter which has now been outstanding for some time.

Another piece of business which this meeting of the European Council will undertake is the election of the President of the European Council for a two and a half year term from the middle of this year. The European Council has had the benefit of the deft and highly effective stewardship of Herman Van Rompuy since his election to the post at the end of 2009, and I look forward to his continued very able guidance for a further term. Similarly, I expect that he will also be appointed to the position of President of the Euro Summit meetings which will from now on take place at least twice a year. I support this step also.

On Thursday morning I will take part in the Tripartite Social Summit for Growth and Employment. The Tripartite Social Summit is a forum for dialogue between the EU Institutions and the main European employers’ and trade union organisations, and it takes place just ahead of the March and October European Councils. The theme for this meeting is “Social Dialogue as a key instrument for restoring growth and jobs”.

The meeting will be co-chaired by President Van Rompuy, President Barroso and Prime Minister Thorning-Smith of Denmark. The heads of government of the two upcoming Presidencies are also invited. This will be the first such Summit I have attended. Representatives of IBEC and the ICTU will take part.

Tomorrow’s Summit will be a useful preparation for our 2013 Presidency, as I will co-chair this Summit before the March European Council next year.

In the margins of this meeting of the European Council on Friday morning, the new Treaty on Stability, Coordination and Governance in the Economic and Monetary Union will be signed. I will sign, subject to ratification, for Ireland. Ratification procedures will then begin in each of the 25 Contracting Parties, according to their respective national requirements.

As I announced in this House yesterday, in light of the advice of the Attorney General, the Government has decided to hold a referendum on this issue in which our people will be asked to authorise the ratification of this Treaty.

I have every confidence that, armed with appropriate information concerning the contents and implications of this new Treaty, the Irish people will endorse it emphatically by voting Yes to continued and sustained economic recovery and stability, and to our continued commitment to the success of the euro.

I genuinely look forward to the debate ahead.

I will naturally brief my colleagues during the forthcoming European Council meeting on the Government’s decision to hold a referendum on the new Treaty.

Ceann Comhairle, I am satisfied that at this meeting of the European Council, we will be undertaking our business in a considered and workmanlike way. Do not misunderstand me, Europe and the euro area continue to face momentous challenges. As the Members of this House and as the people of our country know only too well, this crisis is not yet behind us, but critically, we are now moving in the right direction. Each time we meet, we are building another stage on the path to recovery.

Our new Intergovernmental Treaty will be signed this Friday; the new Programme for Greece has been agreed; the financial markets have calmed; bond spreads have narrowed; and growth and jobs are front and centre. Yes, there is more that needs to be done, but we are getting there – step by step.

We are taking the tough decisions necessary in terms of consolidation, but we are now taking a balanced approach, by also focusing on the growth and job creation, which we need to get us out of the place we have been.

Approaching this European Council meeting in a non-crisis mode is a welcome development and the outcome will, I hope, be all the better for it.

I will, of course, report back to the House after the meeting.