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Statement by the Taoiseach on the Outcome of the Meeting of the European Council

A Cheann Comhairle,

Is mór agam an deis chun an Teach a chur ar an eolas faoi na torthaí ar chruinniú na Comhairle Eorpaí sa Bhruiséil Déardaoin agus Dé hAoine an tseachtain seo caite, an 1 – 2 Márta.

Ar an mbeartas eacnamaíochta a bhíothas ag díriú go príomha ag cruinniú seo an earraigh den Chomhairle Eorpach. Ach, murab ionann is cuid mhaith dár gcruinnithe sa Bhruiséil le déanaí, bhí an ceann seo suaimhneach go maith.

Ní raibh aon chúlra géarchéime ann, tar éis aontú ar an gcomhaontú nua don Ghréig ag deireadh Eanáir; aontú ar an gconradh nua; agus ról gníomhach an ECB (BCE/an Bhainc Cheannais Eorpaigh) agus airgead á chur ar fáil do bhainc aige anois. Mar sin féin, cruinniú an-tábhachtach a bhí ann, don Aontas agus dá chuid Ballstát araon.

Bhí an t-am againn le haghaidh plé mionsonraithe ar bheartas eacnamaíochta an AE (Aontais Eorpaigh), go háirithe faoin mbealach le cothromaíocht a chinntiú idir leanúint leis an gcomhdhlúthú agus gníomhú chun treisiú le poist agus le fás; d'atogh muid an tUachtarán Van Rompuy, a leanfaidh ina chathaoirleach ar an gComhairle Eorpach go deireadh na Samhna 2014; bhreathnaigh muid ar aghaidh ar roinnt cruinnithe mullaigh idirnáisiúnta atá romhainn; agus rinne muid roinnt ceisteanna tábhachtacha idirnáisiúnta a mheas, go háirithe staid na Siria. D'aontaigh muid freisin ar stádas iarrthóra a thabhairt don tSeirbia.

Ar imeall na Comhairle Eorpaí bhí mé i láthair ag an gCruinniú Mullaigh Sóisialta Tríthaobhach agus shínigh mé ar son na hÉireann an Conradh nua ar Chobhsaíocht, ar Chomhordú agus ar Rialachas san Aontas Eacnamaíoch agus Airgeadaíochta, faoi réir a dhaingnithe ag muintir na hÉireann sa reifreann atá romhainn.

Economic Policy Matters

Discussion on economic matters began when we first met on Thursday evening and continued over dinner. The format facilitated a free-flowing exchange among leaders.

I am pleased to be able to tell the House that there is now a shared view around the European Council table that to enhance prospects for economic recovery in Europe, we also need to give real momentum to the drive to create jobs and growth.

These are the issues that matter most to the people of Europe.

I have consistently argued in favour of a balanced approach and am pleased that this has now become a real focus for our work. We are also considering how best to step-up implementation – so that all the commitments entered into are delivered – and I expect this is something to which we will return at our next meeting.

As I informed the House last week, ahead of the meeting together with eleven of my colleagues, I wrote to Presidents Van Rompuy and Barroso setting out eight priority areas on which action needs to be taken to drive growth in Europe. Our letter, which was subsequently endorsed by several additional Member States, formed one of the crucial inputs into our discussions on a balanced economic strategy and to our eventual conclusions on this issue.

President Van Rompuy’s issues paper was another important input. Looking across a range of important economic indicators, it highlighted the extent and range of shared challenges which we continue to face in Europe. Setting existing performance out in tabular form, it made it easy to see where each Member State is doing well, and where further improvement is required.

This underscored the fact that there can be no one-size-fits-all approach to reform and recovery. We need a targeted and differentiated approach.

At the meeting itself, I highlighted the extent of our adjustment over the last three-to-four years. I recalled that these have been painful adjustments for the Irish people, but they have not been in vain and are now beginning to deliver real results, particularly with our return to growth last year, our strong export performance and our continuing ability to attract and retain investment from around the world.

I highlighted the importance of our very well-educated workforce, in which we have invested as a people. Our significantly improved competitiveness position – with falls in unit labour costs and property prices – combined with a general pro-enterprise approach, places us in a good position to avail of growth in our main markets.

But we are not doing as well as we should be in a number of areas – apart from the overarching need to urgently get people back to work – we also need to do more in terms of the availability of venture capital and investment in research and development and innovation. This highlights the critical importance of speedily resolving the outstanding issues surrounding the European patent of which we are a strong supporter.

The meeting was an important staging-post in the European Semester process. We endorsed the five priorities for 2012 set out in the Commission’s Annual Growth Survey – which include growth-friendly consolidation, restoring normal lending, promoting growth and competitiveness; and tackling unemployment.

These priorities will be reflected in the National Reform Programmes to be submitted by Member States in April under the Europe 2020 Strategy.

As we are a ‘Programme’ country, we are not obliged to submit a full National Reform Programme – meeting our Programme targets remains our goal – but we will in any case provide a progress report.

We also discussed preliminary findings and best practices relating to the 2011 country-specific recommendations under the Semester process and commitments under the Euro Plus Pact.

We agreed that, while important measures have been taken by all Member States, reforms in certain areas are lagging behind and implementation is uneven. Furthermore, we noted that the Commission’s recently published Alert Mechanism Report points to certain challenges and potential risks of macro-economic imbalances, and we urged the Council, Commission and Member States to act to address these issues swiftly.

We also acknowledged that resolute action is required on unemployment, particularly youth unemployment. We called on Member States to increase efforts to make it easier and more attractive for employers to hire people; to remove barriers to the creation of new jobs; and to implement active labour market policies, particularly to strengthen the participation of young people, women and older workers in the labour market.

The Commission will shortly publish an “Employment Package” which will focus on strengthening growth through mobilising Europe’s workforce, promoting job creation in key sectors; and improving management of skills needs. Removing barriers to professional mobility will be a welcome focus.

This is another example of how the vital work we are doing at national level in Ireland through the Jobs Action Plan can be complemented and reinforced through action at European level. Again, this is the type of focus we need.

Improving Implementation

Through its meetings at the end of January and last week, the European Council has now mapped out an extensive programme of work for the period ahead, completing the Single Market, including in the digital area, and supporting our SMEs so that more jobs can be created.

We have identified our priorities – those areas with the greatest potential to contribute to growth – many of which will be right at the top of the agenda during Ireland’s Presidency in the first half of next year.

We will be looking to make progress on issues that are of great concern to our businesses and our people, whether it be reducing the costs of high-speed broadband infrastructure or making it easier for people with professional qualifications to move and work across Europe.

We will be looking to make life easier for businesses, including in cutting the red-tape burden and in advancing measures to support micro-enterprises.

There is now a better fit between this renewed emphasis on the growth agenda at EU level and our own national emphasis through the Programme for Government. Later today, the Tanáiste and I will publish a progress report on the implementation of this Programme for Government.

What we now need is to ensure implementation, both at national and European level. The House can be assured that I will be keeping the pressure up on this.

I therefore welcome agreement at the meeting that we can do more to ensure ownership and responsibility at the level of the European Council for driving this work forward – more effective peer pressure has a role to play.

We have therefore asked the Commission to provide scoreboards of how we are all performing; and we have asked President Van Rompuy to ensure that progress on single market issues is regularly monitored by the European Council. This is something I have argued for, and it is very welcome.

Meetings of the European Council should be productive, producing real outcomes and real results.

International Summits

The European Council also set the EU's priorities for the forthcoming G20 meeting on 18-19 June, with a particular emphasis on growth-enhancing measures and reforms.

We were also informed of preparations for the G8 Summit on 19-20 May.

The European Council underlined its strong support for an ambitious outcome at the Rio+20 UN Conference on Sustainable Development which will take place in Brazil from 20-22 June. We stressed the need for strong participation from the private sector and civil society at the Conference, and set out some key principles to guide the EU preparations.

These include advancing the global transition towards a green economy; contributing to a strengthened global institutional framework for sustainable development; and advancing the work on global and coherent post-2015 goals for sustainable development.

Foreign Policy

Southern Neighbourhood

The European Council also considered a number of foreign policy issues, including developments in the Southern Neighbourhood. We made a clear statement of support for the on-going democratic transformation which is sweeping across the Union’s southern boundaries, across North Africa and the Middle East and Gulf region

Syria

We also took stock of international developments, particularly the situation in Syria.

While there was not time for an in-depth discussion, the European Council agreed strong conclusions which demand that the Syrian authorities immediately stop the massive violence and human rights abuses being inflicted on the civilian population. These actions against the people of Syria are outrageous and reprehensible. We asked the Foreign Affairs Council to prepare further targeted sanctions against the regime in order to increase pressure on it, and stated our determination to ensure those responsible for the atrocities are held accountable.

I fully support the conclusions, including the call for President Assad to step aside and the insistence that international humanitarian agencies be given access. The EU has already mobilised humanitarian funding and stands ready to step it up as soon as conditions on the ground allow. For its part, the Government on Monday announced that it will make up to €500,000 available to Irish Aid’s partner humanitarian agencies who are working on the ground. The funds will be made available to the Red Cross and UN agencies operating in Syria as well as in neighbouring countries such as Jordan, Turkey and Lebanon.

The European Council will continue to support international efforts to end the violence and to meet the considerable humanitarian needs in Syria, including by the Arab League, by former UN Secretary General Kofi Annan as the Joint Special Envoy of the UN and Arab League and by the Group of the Friends of the Syrian People which held its first meeting on 24 February 2012 in Tunis and where Ireland was represented by the Tánaiste and Minister for Foreign Affairs and Trade.

Belarus

The Council also noted with concern the deteriorating situation of human rights in Belarus. We welcomed the decision by the January Foreign Affairs Council to extend the list of those subject to EU sanctions, including a visa ban and asset freeze, not only to those responsible for the repression of civil society and the democratic opposition, but to those supporting or benefiting from their association with the Lukaschenko regime. The European Council invited the FAC to proceed with its work on further measures and underlined its support for the democratic aspirations of the Belarus people.

Other Issues

Serbia

Following on from consideration by the Foreign Affairs Council and the General Affairs Council earlier in the week, the European Council agreed to grant the status of candidate country to Serbia. I very much welcome this step as recognition of the work that has been done.

In December we set three conditions, focussing on moving forward in the Belgrade-Pristina Dialogue which attempts to normalise relations between the two parties. I am pleased to report that sufficient progress was made to satisfy Member States of the bona fides of the Serbian government and its engagement with Kosovo.

Candidate status is, of course, just the first step on the road to EU membership. A further decision by the Council will be required to actually open accession negotiations. With parliamentary elections due in Serbia in May, I don’t expect much more movement on this issue until after the summer.

Nevertheless, this decision is a concrete assurance to the Serb people of their future within the EU. After a decade of conflict followed by a decade of recovery and stalemate, we are now seeing a serious commitment on the part of Serbia to a future in Europe.

Ireland will continue to support Serbia’s European perspective, as we do for all the countries of the Western Balkans.

President of the European Council

I was delighted to join with my colleagues in re-electing Herman Van Rompuy to serve as President of the European Council for a further two and a half years. We have been very fortunate to have had President Van Rompuy at the helm during these very difficult past two years, and his continued leadership is to be warmly welcomed. Those of us in the euro area, also agreed that he should be the first President of the Euro Summit.

Tripartite Social Summit

While in Brussels, I also attended the Tripartite Social Summit which was held on Thursday morning last, ahead of the European Council. The attendance included representatives of both ICTU and IBEC.

This was an important opportunity to engage with EU social partners and our discussions focussed on Social Dialogue as a key instrument for restoring growth and jobs. This was Ireland’s first formal obligation as Presidency in waiting of the Council in 2013.

The Stability Treaty

As I announced in the Dáil, I also took part in the ceremony last Friday morning in which the new Stability Treaty was signed. Signature is, of course, a separate matter from ratification which will, as the Government announced last week, require the consent of the people in a referendum.

I took the opportunity during the meeting last Thursday night to inform my European Council colleagues of the Government’s decision. They appreciated my briefing, but were very clear that, while they wish to see Ireland ratify, this is a matter for Ireland and the Irish people.

I look forward to the campaign ahead and to putting the strong case for ratification to the Irish people. I signed this Treaty last Friday because I fundamentally believe that it is in Ireland’s national interest to do so because it will represent another important step on the road towards recovery. It will also build on the steady progress the country has made int he past year.

Progress that has seen international and investor confidence in Ireland rising, leading to many new investments - investments that will create new jobs for our people. I want that flow of investment to continue and expand.

Within a currency union – such as the euro area – it is manifestly in the interests of all that each member pursues responsible budgetary policies. This crisis has brought home to all that the action – or indeed the inactions – of one member can have highly significant and detrimental consequences for the rest of the currency union.

As the House is well aware, the Government is already deeply committed to getting Ireland’s finances back on track and to reducing our debt to more sustainable levels. This is work that we would be doing in the interests of the Irish people with or without the new Treaty. It is the only responsible way forward.

We are determined to restore our economic sovereignty and to return to borrowing on the open markets. We do not want to be subject to a Programme for a second longer than is necessary.

A stable and secure situation is the best way to achieve this and the Treaty will make an important contribution in that regard. Not least, it will ensure that those who choose to ratify will have access to the ESM.

As I have said in the clearest possible terms, it is my intention to lead Ireland out of our Programme. Having an insurance policy in place – ensuring continuing access to a stream of funding - will increase the confidence investors and lenders will have in doing business with Ireland. This can only contribute to our recovery.

I look forward to making the strong case for ratification to the Irish people – and to ensuring that this time, people will be provided with adequate information so that they can make an informed decision when they vote.

This is an opportunity for Ireland to send a strong message about where it is going and where it wants to be – about a strong, confident Ireland, backed by a stable and secure currency.

Ratifying the Treaty will be another important step forward.

Ceann Comhairle,

There will be ample time in the period ahead to argue the merits of the Treaty.

I can however point to one key distinction that marks this Treaty out as different from the EU Treaties we have ratified in the past. On this occasion, only twelve ratifications are required for the Treaty to enter into force. That means, in very simple terms, that our decision is one for ourselves alone.

A decision to participate will, without question, be welcomed by our partners. But if we decide not to do so, they will move ahead without us.

The choice is ours and ours alone. It will have significant implications for our future position and role at the heart of Europe.

Conclusion

Ceann Comhairle, I very much welcome the focus and outcome of last week’s meeting of the European Council.

Our conclusions represent important progress across a broad range of issues - from jobs and growth and conclusion of the first phase of this year’s European Semester, to preparations for a range of forthcoming international Summits and pressing foreign policy concerns.

We have set out an ambitious programme of work. Delivery and implementation is key. After recent meetings, I am more confident that we now have the right focus and direction.

Go raibh maith agaibh.