I am always pleased to have the opportunity to address the House on the subject of the six-monthly reports. The reports we are debating today cover the period from the second half of 1992 to the first half of 1995. While we rarely get an opportunity to debate these reports in this House, the Foreign Affairs Committee and the European Affairs Committee have greatly improved our capacity to monitor developments in the Union and I would see our debate today as complementing their work. It is worth commenting at the outset that the title of the six-monthly reports has changed from "Developments in the European Communities" to "Developments in the European Union". While the European Communities are still there, the change of title reflects the birth of the European Union following the entry into force of the Treaty on European Union on 1 November 1993.
Deputies are of course familiar with the European Union's three distinct elements, referred to as "pillars". The first pillar comprises essentially the three pre-existing Communities, the European Community, the European Coal and Steel Community and the European Atomic Energy Community; the second pillar is concerned with the Common Foreign and Security Policy (CFSP) and the third pillar deals with Justice and Home Affairs (JHA). All of these facets are dealt with in the six-monthly reports.
The format of the six-monthly reports has been modernised so as to produce what I think Deputies will agree is a more concise and user-friendly publication. I am also glad to record that the reports are fully up-to-date, with the publication of the Forty-Sixth Report covering the first half of this year.
The European Union, and the Communities which came before it, have brought unparalleled peace and prosperity to a large part of the Continent of Europe. The benefits of the European Union in terms of stability and economic development extend well beyond its borders. The Union is a logical, practical, and imaginative response to the challenges which face the peoples of Europe. The success of the "European project" depends on harnessing the commitment and abilities of all of our citizens.
I should like to look at some of the principal developments mentioned in each of the reports under review. The Forty-First Report, covering the second half of 1992, reported on the Edinburgh European Council in December of that year which decided on the Community's financial arrangements to the end of the decade. It also reached a compromise dealing with Danish concerns about elements of the Maastricht Treaty — this compromise was widely seen as having put the Maastricht process back on track. The same period witnessed the currency crisis in September 1992 which led to the withdrawal from the ERM of Italy and the United Kingdom.
Arguably the most significant development during the first half of 1993, covered in the Forty-Second Report, was the positive outcome of the referendum on the Maastricht Treaty held in Denmark in June of that year. A year earlier the Danish electorate had ignored the advice of its Government and declined, albeit by a tiny margin, to ratify the Treaty. That result had caused a crisis of confidence, but happily the Danes voted "yes" the second time around.
The Forty-Third Report dealing with the second half of 1993 covered the period of the entry into force of the Maastricht Treaty on 1 November of that year. I have already mentioned that this necessitated a change in the title of the six-monthly reports. The Forty-Third Report also referred to the Commission's White Paper on Growth, Competitiveness and Employment which drew in large part on contributions from member states. The same report recorded the introduction of the Common Foreign and Security Policy in place of European Political Co-operation.
The Forty-Fourth Report stated that the first half of 1994 was a period of consolidation, with the Maastricht Treaty not long having entered into force. Nevertheless there were developments of importance. The enlargement negotiations with Austria, Sweden, Finland and Norway were concluded in March of that year. Elections for the European Parliament took place in June 1994 and the new Committee of the Regions held its inaugural meeting in March of that year. The people of Austria were the first to hold a referendum on EU membership and in June 1994 they voted by a two-to-one margin in favour of accession. The European Council at Corfu in June 1994 established a Reflection Group to prepare for the Intergovernmental Conference. I shall have more to say about this later.
The Forty-Fifth Report dealt with the second half of 1994, with Sweden and Finland following the example of Austrial by voting to join the Union. As we know, the people of Norway decided against. In July of last year Mr. Jacques Santer, the then Prime Minister of Luxembourg, was chosen to replace Mr. Jacques Delors as President of the European Commission. Relations with Central and Eastern Europe developed and strengthened in the same period and the Union continued to contribute substantially to the further development of democratic institutions, market economies and respect for human rights.
Finally, the Forty-Sixth Report brings us right up to the first half of this year. On 1 January 1995 Austria, Sweden and Finland acceded to the Union raising the total number of member states to fifteen. On 2 June I attended a conference at Messina to commemorate the fortieth anniversary of the original Messina Conference which launched the negotiations resulting in the Treaty of Rome. On the margins of that Conference the Reflection Group, which will prepare the agenda of the Intergovernmental Conference, held its first meeting.
In relation to the Single Market I will start my detailed review of developments by touching on the issue of Employment, Economic and Monetary Union, the financing of the Community, and on three of the most significant policy areas. Agriculture, Fisheries, and Social Policy.
A single market of 370 million people is now very largely in place. The market has brought great benefits to the European economy, especially to a small export-oriented economy like Ireland's. We export some two-thirds of what we produce, compared to an EU average of just over one-quarter. While Britain remains our largest market, our dependence on that market has declined significantly, from 54 per cent in 1973 to 27.5 per cent in 1994. We have a significant trade surplus with our European partners. Our economic well-being is intimately bound up with that of our partners.
The period under review encompassed both the depth of recession and the recovery from it. The recovery has been a vigorous one, but has been characterised across Europe generally by sluggishness in the creation of jobs and by persistently high unemployment. This is a matter of great concern to European citizens.
Deep concern about the apparent weakness of the European economy in job creation, compared to the US and Japanese economies, led to the Commission's White Paper on Growth, Competitiveness and Employment, presented in December 1993. On the basis of the White Paper, the European Council identified a number of key areas for intensive study, including training policies, the flexibility of work organisation, various forms of regional and local initiatives, non-labour wage costs, and special help for groups hard hit by unemployment, such as schoolleavers without qualification, the long-term unemployed, unemployed women and older people.
Member states were asked to submit multi-annual programmes to stimulate employment. The various studies will result in a first annual report on employment which will be submitted to the next European Council in Madrid in December. Employment will be a major theme at Madrid, which will mark the transition from reports to action.
Despite the set-back of 1992, Economic and Monetary Union remains the top priority for the Union and fundamental to the process of European integration. Successive meetings of the European Council during the period under review reaffirmed the commitment to Economic and Monetary Union. Governments have reaffirmed their commitments to the convergence criteria. Last May, the Commission presented its Green Paper on the Practical Arrangements for the Introduction of the Single Currency. The next meeting of the European Council, in Madrid next December, will have before it for approval the all-important reference scenario for movement to Economic and Monetary Union. This reference scenario will provide the blueprint for the third stage of Economic and Monetary Union: that is, for the locking of the participating currencies, the introduction of the single currency for transactions and, finally, the issuing of notes and coins which will replace the national currencies.
Looking back, we can see that agreement reached by the European Council at Edinburgh in December 1992 on the financing of the Community was a vital one. Despite recession and a certain amount of disillusion, it put the financing of the Community on a new basis, agreeing a financial package — the so-called Delors II package — for the seven years 1993-99 which made possible significant increases in Community expenditure in real terms. In doing so it restored faith in the process of European integration. Furthermore, the Edinburgh package made possible agreement, in 1993, on the arrangements governing the Structural Funds for the period 1994-99.
Over the period in review, the reform of the Common Agricultural Policy was put into effect. It is due to be completed in the current marketing year. This was an issue of crucial importance to Ireland. While taking more account of market realities, the reform has retained the essential principle that agriculture is a European policy. Although the emphasis on price support has been reduced, the income of farmers has been protected through an increased element of direct payments. The satisfactory conclusion of the CAP reform facilitated agreement on our part to the GATT Uruguay Round.
The review of the Common Fisheries Policy was completed at the end of 1992 and has since been fully implemented. The system of national quotas was retained. Of particular importance to Ireland, the restrictions on foreign vessels fishing in the 12-mile Irish coastal zone were extended for a further ten years. These provisions constitute an essential safeguard for Irish coastal fishing communities.
The social dimension of the Union has developed considerably in recent years. The Social Protocol annexed to the Maastricht Treaty now increases its capacity to act in the social field.
The Union has achieved much in recent years in areas such as social dialogue, women's rights and health and safety at work. I need hardly add that Ireland has gained considerably from the actions of the Social Fund in the development of human resources.
In promoting the quality of employment, the European Union has recently adopted a number of important measures such as organisation of working time, protection of young people at work and the right of employees in large-scale enterprises to information and consultation.
There is, of course, an increasing awareness that social legislation of the Union must take account of the impact it may have on competitiveness and employment. The Commission also recognises this. In its recent MediumTerm Social Action Programme it states that there is at present less scope or need for a wide-ranging programme of new legislative proposals in the social area.
A major innovation of the Maastricht Treaty was the placing on a Treaty basis of co-operation in the area of Justice and Home Affairs — the so-called third pillar. This commenced, in effect, with the meeting of the Council of Justice and Home Affairs Ministers of 29-30 November 1993. The treaty provides for the possibility of various forms of joint action, and the Council drew up a work programme in the area of police and customs co-operation, the fight against drugs and crime, especially organised crime, co-operation in civil matters as well as in the area of asylum and immigration.
There have been important achievements: the Europol Convention was signed in July last. This provides for the establishment of a European Police Office which will be a centre of police co-operation and exchange of information. This will be particularly useful in the fight against drug trafficking. Also signed in July was a Convention on the Protection of the Financial Interests of the Community. This convention, otherwise known as the Fraud Convention, provides for co-operation in preventing fraud against the Community and for uniformity in dealing with perpetrators of it. The Customs Information System Convention was also signed.
I should now like to turn to external policy, beginning with the CFSP. The entry into force of the Maastricht Treaty during the period under review has given the European Union a greater capacity for action in the area of foreign and security policy through the definition of common positions on international issues and the formulation of joint actions. Under the new arrangements, activity has been intensified, for example, a range of joint actions and common positions have been adopted on issues relating, inter alia, to the former Yugoslavia, the Middle East peace process, the Europan stability pact, Rwanda and Burundi. The following issues have been at the forefront of activity within the European Union over the past three years.
A tragedy of enormous proportion has unfolded in the former Yugoslavia.
Perhaps as many as 250,000 people have been killed in Bosnia — over 10,000 alone in Sarajevo. Nearly 2.7 million are receiving support as a result of the work of UNPROFOR and that of the UNHCR.
For more than three years of bloody conflict the international community has been appalled by the gross violations of human rights which were perpetrated in pursuit of territorial and political ambitions. However, there have been significant developments in recent weeks which give rise to hope. Last month the Foreign Ministers of Croatia, Bosnia-Herzegovina and the Federal Republic of Yugoslavia, which is also acting on behalf of the Bosnian-Serb leadership, agreed on a set of basic principles for a settlement of the conflict. Important and, I hope, decisive talks are to be held with the parties in Washington on 31 October. A ceasefire, which is generally holding in Bosnia-Herzegovina other than in the north-west, came into effect on 12 October.
I do not wish to underestimate the difficulties which must be overcome before a lasting settlement can be achieved in this troubled region. The negotiating process, which itself must contend with a range of very difficult issues, might yet be undermined by fighting on the ground as, unfortunately, happened so frequently in the past. But there is a real prospect of peace. We will be working with our European Union partners over the next crucial weeks to foster and consolidate the peace process. Should this succeed, the European Union intends to play an active role in the implementation of the civilian aspect of a peace settlement, particularly with regard to reconstruction in the region. This will help to promote peaceful co-existence and provide decent living conditions to those who have suffered so much on account of the tragic developments over the past three years in the former Yugoslavia.
The process of reform in Russia has been of fundamental importance in the past three years. A new constitution has been introduced and a constitutional court established to oversee its implementation. The parliamentary process is developing and political debate is open and lively. Free and fair democratic elections were held in December 1993, monitored by the European Union and other international organisations and preparations for a second round of parliamentary elections in December of this year are proceeding on schedule. However, although progress is undeniable serious problems remain.
In particular, the situation in Chechnya continues to give cause for concern. The level of conflict in the area has been substantially reduced following the important agreements reached by both sides in July of this year on a ceasefire, disarmament and exchange of prisoners, but a peaceful resolution of the situation has not yet been realised. Violations of the ceasefire by both sides have been reported and implementation of the July agreements was recently suspended by the parties following assassination attempts on representatives of the Russian Federation in Grozny. The European Union is working closely with the OSCE with a view to preventing any further deterioration in the situation on the ground and promoting the early resumption of discussions on the implementation of the July agreements, which are the first institutionalised steps towards a peaceful solution.
As regards the Middle East, the past three years have witnessed truly historic achievements. In September 1993 Israel and the Palestinians signed a Declaration of Principles. This led to two agreements in 1994 and 1995 which have given the Palestinians an important measure of autonomy in Gaza and the West Bank. Jordan and Israel signed a peace treaty in October 1994. Jordan thus became the second Arab state to negotiate peace with Israel since Egypt did in 1979. These major achievements will help make the Middle East peace process irreversible and thus hold out to the rest of the world the prospect of the removal of a conflict which has on numerous occasions in the past threatened a global confrontation.
The period under review has witnessed progress in the process of democratisation with elections held in several African countries and the remarkable transition of South Africa following the end of apartheid. There have been advances in substantive EU dialogue with the Southern African Development Community (SADC) following the Berlin Conference of September 1994. Dialogue between the EU and the Organisation of African Unity has also been developed, particularly in relation to the establishment of African conflict prevention and resolution mechanisms. However, the EU continues to be concerned about the human rights situation and the slowness of progress towards democracy in a number of African countries.
There have also been major crises resulting from human conflict and natural disasters in Africa during the period under review, among these the appalling genocide which took place in Rwanda in 1994 has and continues to provide the greatest challenge to the international community. More than a year after the massacres the situation in the Great Lakes region remains volatile with two million Rwandan refugees living in camps in neighbouring states and severe overcrowding in Rwandan prisons.
The safe and voluntary repatriation of refugees remains the major political and humanitarian issue. However, it is also essential that the necessary conditions for their return are created in Rwanda and that those responsible for atrocities are brought to justice. The anticipated hearing of cases by the International Criminal Tribunal for Rwanda will be an important contribution to the process of national reconciliation. On the ground the re-establishment of the justice system and other civil institutions is essential to the process of recovery and national reconciliation. The ongoing situation in Burundi, along with the presence of refugees in other neighbouring countries, necessitates effective regional and international engagement if a long-term solution is to be achieved.
President Robinson has visited Rwanda on two occasions, most recently from 9 to 13 October when she was accompanied by my colleague the Minister of State, Deputy Burton. That visit reflects the priority which we all believe should be afforded by the international community in resolving the tragic problems of Rwanda and the Great Lakes region.
The European Union's external economic relations relate to an area where there have been many significant developments during the periods covered by the reports. The Union continued to engage in dialogue with all of its major trading partners including the United States, Japan and Canada as well as with regional groupings such as ASEAN and with Latin America. The conclusion of the Uruguay Round of GATT negotiations and the coming into being of the World Trade Organisation were two of the major achievements during the period covered. I would like to mention three developments which are particularly important to Ireland. Austria, Finland and Sweden became full members of the Union on 1 January 1995. The positive response of the peoples of Austria, Finland and Sweden represented a great boost to the European Union. Ireland shares many common interests with the three new member states and their participation in Union decision-making will help us all to forge a Union which is fully responsive to the needs of all of its members. My only regret concerning the recent enlargement process was the decision by the Norwegian electorate not to join the Union at this stage.
In the area of multilateral trade, the World Trade Organisation came into existence on 1 January 1995 with Ireland as one of its founding members. The net result of the successful conclusion of the Uruguay Round and the establishment of the WTO will be to provide a secure and predictable international trading environment and a continuing process of trade liberalisation.
Ireland's policy in the negotiations was to support the conclusion of a global agreement, covering all countries and sectors in a manner consistent with the level of development of each country while seeking to minimise the negative effects that any agreement might have on specific sectors in Ireland such as agriculture. This objective was met and Ireland stands to benefit significantly from the resulting liberalisation of international trade.
Members of this House are no doubt aware of the importance placed by Ireland on its relations with the United States. In recognition of these ties Ireland during its last Presidency of the European Union played an important role in the negotiations leading to the conclusion of the Transatlantic Declaration which states the principles of US-EU partnership and sets out the institutional framework within which US-EU relations are pursued. Negotiations are currently taking place between the Union and the United States to deepen this relationship still further. It is expected that these negotiations will be concluded in time for the European Council in Madrid and that the Council will approve a joint EU-US action plan for the strengthening of transatlantic relations. During our Presidency of the European Union I intend to do all possible to build on the work already begun to foster and enhance that relationship.
Japan is the world's third largest economy after those of the European Union and the United States. In its communication to the Council of Ministers in March 1995, the European Commission emphasised the importance which the Union places on its relations with Japan. I share that view.
There have been a number of significant developments to the south. The Commission adopted positive opinions on the Cypriot and Maltese membership applications and it has been agreed that accession negotiations with these counties will begin six months after the completion of the Intergovernmental Conference and in the light of its outcome. We look forward to the eventual accession of these countries to the European Union.
With regard to Turkey, Customs Union is scheduled to enter into force on 1 January next year, subject to ratification by the European Parliament.
The Union has also continued the process of deepening and strengthening its relations with Mediterranean third country partners. The European Council at Essen in December 1994 emphasised the stategic importance of the Mediterranean for the European Union and reiterated its willingness to establish a Euro-Mediterranean partnership. In this context, a new series of broad-ranging Euro-Mediterranean Agreements are in various stages of negotiation with individual Mediterranean countries. Trade links with the region are to be further stengthened, leading to the progressive establishment of a Euro-Mediterranean free trade area by 2010. We welcome the prospect of a deepening of our relations to the south and I look forward in particular to the Euro-Mediterranean Conference which will take place in Barcelona on 27 and 28 November. The aim of this Conference is to enable the EU and its neighbours on the southern and eastern shores of the Mediterranean to reach agreement on the course of their future relations and co-operation over a wide range of areas until well into the next century.
In the course of the three-year period under review, significant progress was made in intensifying the European Union's relations with the countries of Central and Eastern Europe and in assisting these countries to prepare for eventual EU membership. Landmarks in the on-going process of pan-European integration include:
the coming into force of the Europe Association Agreements with Hungary, Poland, the Czech and Slovak Republics, Romania and Bulgaria, and the more recent signature of such agreements with Estonia, Latvia and Lithuania; the conclusions of the Copenhagen and Corfu European Councils in June 1993 and June 1994, respectively, which acknowledge and associated countries' ambitions to European Union membership and set down the conditions necessary for membership and the commencement of accession negotiations; the adoption by the European Council in Essen last December of a comprehensive pre-accession strategy designed to assist the associated countries on the road to European Union membership; the publication earlier this year by the Commission of a White Paper on the preparation of the associated countries for integration into the Single Market at the time of their accession. Their gradual alignment on Community policies for the construction of the Single Market will strengthen the competitiveness of their economies and increase the benefits of their econmic reforms.
I need hardly state that the eventual enlargement of the Union to include associated countries of Central and Eastern Europe will create significant challenges for the European Union and its member states, including Ireland. Nevertheless it is important for us always to bear in mind that the achievement by them of the conditions necessary for accession and the eventual successful conclusion of accession negotiations will enhance stability, confidence and prosperity throughout Europe.
Further east, the Union has negotiated Partnership and Co-operation Agreements — PCAs — with many of the countries of the former Soviet Union and it is its intention to conclude similar agreements with other such countries in the future. These agreements are wide-ranging, covering trade and economic co-operation, political dialogue and cultural relations and are an important means of facilitating European Union support and assistance to the economic and political transformation efforts of the countries concerned. As you know, conclusion of the Interim Agreement with Russia, designed to implement the trade and economic provisions of the EU-Russia PCA, was delayed because of Russian responses to the situation in Chechnya. But the European Council meeting in Cannes last June, noting that progress had been made with regard to this issue, decided in favour of signing the Interim Agreement. Signature has since taken place.
Europe took a significant step forward with the ratification of the Maastricht Treaty. The Treaty established the mechanisms necessary for further advancement in the process of European integration. It will soon be time to take another step in that process. The Maastricht Treaty itself provides that an Intergovernmental Conference shall be convened in 1996 to examine certain areas which were not fully resolved by the Maastricht Treaty. Those provisions include: the Common Foreign and Security Policy; the Union's legislative procedures and the decision-making powers of the European Parliament; and the possible insertion of new Titles on Civil Protection, Tourism and Energy into the Treaty.
Preparations for the 1996 Intergovernmental Conference are well under way. It is now clear that the Intergovernmental Conference will be far more than an exercise in tying up the loose ends of Maastricht. It will be required to set the stage for the enlargement of the Union to encompass well over 20 members.
The Corfu European Council in June 1994 decided to establish a Reflection Group to help to prepare the ground for the Intergovernmental Conference. In particular, the group was asked to elaborate options on certain institutional questions in the perspective of the future enlargement of the Union. In addition, the Brussels European Council of December 1993 specifically requested the 1996 Intergovernmental Conference to consider the questions relating to the number of members of the Commission and the weighting of the votes of the member states in the Council and also to consider any measures deemed necessary to facilitate the work of the institutions and guarantee their effective operation. At the Cannes European Council of June 1995 additional guidelines mentioning the third pillar — that is co-operation in Justice and Home Affairs — subsidiarity, employment and the environment, were set out for the Reflection Group.
The Reflection Group is made up of one member from each member state, a member of the Commission and two members of the European Parliament. As Deputies will be aware, Ireland's representative on the Reflection Group is the Minister of State, Deputy Gay Mitchell. The Reflection Group will play an important role in the preparation of the Intergovernmental Conference agenda, but, it must be stressed, is not a negotiating forum. Its task is rather to identify the issues that are likely to arise for discussion at the Intergovernmental Conference and to put forward options to the Intergovernmental Conference for addressing these issues. It has met nine times already and will continue to meet regularly between now and submitting its report to the European Council in Madrid in December.
As regards the timing of the Intergovernmental Conference, it is expected to open during the Italian Presidency in the first half of 1996, and will continue throughout the Irish Presidency during which we will be expected to oversee the management of its agenda and the progress of the negotiations. It will clearly be a major priority of the Irish Presidency and we will advance its work as expeditiously as possible.
The overall Irish approach to the negotiations is that our most fundamental interest is in the development of further integration and in a Union which has institutions which function effectively. We recognise the need to streamline and simplify the legislative procedures of the Union. Where substantive and practical progress can be made, we will support this. At the same time, we will aim to protect the overall balance between the member states within the institutions of the Union and to protect the overall balance between the institutions. We will in particular oppose any diminution of the role and competences of the Commission. We will support measures to bridge the gap that has developed between the citizen and the Union. It is vital that the relevance of the Union to its citizens be strengthened, and that the Union become more effective in tackling problems, such as unemployment, international crime and environmental pollution, which adversely affect the quality of its citizens' lives.
