Vol. 397 No. 5
1 Mr. Spring asked the Taoiseach if he will be discussing with Chancellor Kohl the impact of the enlargement of the EC through the unification of Germany on structural funding for existing less developed regions; and if he will make a statement on the matter.
2 Mr. J. O'Keeffe asked the Taoiseach the agenda prepared for the Special European Council meeting in Dublin on 28 April 1990.
3 Mr. Spring asked the Taoiseach if he will outline the arrangements for the special EC summit meeting in April 1990.
I propose to take Questions Nos. 1, 2 and 3 together. An informal EC summit will be held in Dublin on 28 April.
As I informed the House on 20 February, the main purpose of the meeting will be to enable EC leaders to take a collective view of the evolving situation in Central and Eastern Europe and its implications for the European Community, with particular reference to the progress towards German unification. My discussion with Chancellor Kohl on 28 March and with other Heads of State and Government subsequently will be in preparation for the summit meeting in Dublin on 28 April.
I would refer the Taoiseach specifically to Question No. 1 and ask if he will be discussing with Chancellor Kohl the likely implications for Structural Funds for the less developed countries and regions, including ourselves, and if this will be specifically on the agenda. Does the Taoiseach consider this matter should be discussed and that we should be worried at the obvious consequences of German unity on the limitations of funds to be spent by Germany on the rest of the Community?
The Deputy will understand that I am in a little difficulty. It is not the custom to say in advance what specifically will be on the agenda of one of these meetings. The whole impact of German reunification and its implications for the Community will certainly be discussed at the meeting in Dublin. My own assessment of the situation at the moment is that there would not be any particular fall-out as far as the Structural Funds are concerned.
Have the Irish Government on behalf of the Presidency and/or the European Commission requested that the intergovernmental conference on economic and monetary union be brought forward from December? If so, what is the reaction to this request and will that matter be discussed at the April Summit? I gather that the European Commission are studying the implications at the integration of East Germany into the Community. Has any separate assessment been undertaken by the Irish Government on behalf of the Presidency or on their own behalf on the possible repercussions of German economic and monetary union, particularly in relation to the possible effects of an increase in lending rates, increased inflation and a possible realignment within the EMS? If so, what are the results of such a study?
The Deputy has raised a number of matters. There were some suggestions that the date for the intergovernmental conference should be brought forward but there was not agreement on that. It is not likely that it will be brought forward to any extent. The view would be that it is better that it should do its work quickly when convened rather than that it should be brought forward. On the question of the impact of German reunification, that is primarily a matter for the Commission and they are preparing a paper on the implications.
Are we not studying the implications?
We have done our own assessment from a national point of view.
Could the Taoiseach give an indication of the results of that assessment with regard to inflation, lending rates, possible realignment with the EMS and the whole question of monetary stability?
This is quite an extension of the question.
It would be better if the Deputy would wait. It is a very complex situation. The Commission paper is not yet ready. Before giving any view about it, I would rather wait to have that Commission paper. Members might agree that in a way we are fortunate that this situation has happened to West Germany because of all the member states West Germany is certainly best equipped from the point of view of financial and economic resources to undertake the task of absorbing East Germany. All our experience of the German financial authorities is that they will make every effort to ensure that the operation will be carried through with the minimum fall out for the rest of Europe.
I am concerned about the knock-on effects as far as we are concerned.
Given the enormous implications of German reunification in economic and fiscal matters, does the Taoiseach feel that this will slow down the completion of the Internal Market, a fear which has already been voiced by the President of the Commission, Jacques Delors? Does the Taoiseach share that fear and will he take steps to ensure there is no slow down, irrespective of what is happening in regard to German unification, in the completion of the Internal Market?
That worry has been expressed but I can assure the Deputy that there is a fairly widespread determination that it will not have any such effect. The opposite will be the case. Most member states would be of the view that whatever about the unification of Germany, certainly the developments in Eastern Europe would indicate that the whole process of Community integration and unification should be speeded up rather than the reverse. The Community will have such an important role to play in future in regard to Eastern Europe that it is essential that its own coherence and integration be expedited rather than the reverse.
In view of the fact that the topic for the meeting at the end of April will be the unification of Germany, does the Taoiseach, as President of the Council, propose to consult with the special committee of the European Parliament who have been established to consider that matter as well? If not in that form, does he propose to consult with the European Parliament in any form prior to that meeting?
Yes, there has been quite an amount of discussion with different groups in the European Parliament and I am at the moment considering some other initiatives in that regard so that the full view of the Parliament can be had in advance of the meeting in Dublin.
Is the Taoiseach aware that the European Parliament itself has asked for a pre-conference consultation on these issues between the Parliament, the Commission and the Council? Will he as President of the Council ensure that this takes place?
The European Parliament is seeking by way of pre-conference conference, so to speak, to deal not with the Dublin Summit and German unification; it is seeking that pre-conference in advance of the inter-governmental conference on economic and monetary union. It is very likely that something along those lines will be worked out.
I want to come to deal with other questions. A brief and final question from Deputy Dick Spring.
Having regard to the widely held view that the timetable for the completion of the internal market has already slipped quite severely given the events in Europe in the last number of months, is the Taoiseach concerned about this and is he taking any steps to avoid any further slippage in the timetable?
I am not so sure that developments in Eastern Europe in particular are holding up the completion of arrangements for the single market. I would like to assure the Deputy that in so far as the Irish Presidency is concerned, we are making every possible effort in all the different areas right across the agenda to expedite the work and to achieve as much progress as possible. We have been able to advance the preparations fairly considerably. Of course, it will be up to the Italians who follow us and the other Presidencies to keep up the momentum. In so far as we are concerned we are keeping up the momentum and making every effort to ensure that the different dossiers, directives and so on are dealt with.
