I attended the European Council in Cologne on 3 and 4 June, together with the Minister for Foreign Affairs, Deputy Andrews, and the Minister for Finance, Deputy McCreevy. This was the fourth time that EU Leaders had met during the German Presidency. Following the conclusion of the Agenda 2000 negotiations in Berlin in March, this meeting afforded leaders the opportunity to concentrate on issues of future concern to the Union. In that respect we reached agreement on a number of matters which I am confident will have far-reaching benefits for the Union. Clearly, however, in addition to these issues the Summit concentrated on the resolution of the situation in Kosovo.
I would like to begin by outlining the format of the Council. It began on 3 June, with a meeting with the President of the European Parliament, Mr. Gils Robles, where there was a useful exchange of views on the important role which the European Parliament will now be playing given its extended powers under the Amsterdam Treaty. A detailed discussion on European Security and Defence Policy formed the bulk of the first working session which followed. The Common Strategy for Russia, Reform of the Commission, East Timor and relations with Turkey and Ukraine were also discussed.
Issues such as the European Employment Pact, Institutional Reform and the next Intergovernmental Conference and the proposed Charter of Fundamental Rights were examined on Thursday afternoon. The Council was joined that evening by the Finnish President Athisaari following his peace talks, along with Mr. Chernomyrdin, with President Milosevic in Belgrade. Discussion then focused on Kosovo and the Balkan region. On Friday morning, as is usual, leaders focused on the draft Council conclusions.
As expected, a major part of discussion at the European Council focused on the situation in Kosovo, in particular, the progress which was taking place while the summit was in session towards agreement by the Yugoslav authorities of the latest peace plan. Throughout this continuing crisis, the EU has played a very important and crucial role in the search for peace. This is reflected in the Declaration on Kosovo agreed by the leaders at Cologne. The Declaration endorsed the details of the peace plan and reinforced the need for a verifiable withdrawal of all Yugoslav forces from Kosovo as the first stage to achieving a political settlement. In addition, the Declaration highlighted the urgent need for the adoption of a UN Security Council resolution on this matter. This is the approach which had been advocated by Ireland and which has now successfully been put into place with the adoption by the Security Council of its resolution last Thursday. This could not have been achieved without the co-operation of Russia and China. Of course, continued co-operation from all concerned on the ground will be essential for the achievement of long-term peace. It is particularly heartening to reflect however that a small country, such as Finland, which is not a member of an alliance, made such a valuablev contribution to this process; and it is a pointer to the continuing role that such countries can play in the Union's Common Foreign and Security Policy. It underlines the very positive contribution to European peace and stability which neutral and non-allied states can make.
In addition, while the search for a peaceful resolution to the conflict in Kosovo was and remains of paramount importance, the Council also considered the equally important issues of the position of the Kosovar refugees and the reconstruction of Kosovo and the wider Balkans region. In this respect, the meeting reaffirmed the willingness of the European Union to continue to do its utmost to support the countries of the Western Balkan region and humanitarian aid organisations in fulfilling their important humanitarian mission. As far as Ireland is concerned, we will make a full contribution, both to the longer-term peace-keeping that may be required and to reconstruction.
As regards the reconstruction of Kosovo, I view as a very positive step, the Council's indication of the European Union's willingness to head any transitional administration that will need to be established in the framework of the political solution. In particular, on the issue of reconstruction assistance, the Council invited the European Commission to bring forward proposals before the end of this month aimed at creating an agency to be charged with implementation of community reconstruction programmes. It is hoped that the agency can become operational before the end of the summer. I believe this is the very latest date that the agency should be operational and we will push for its earliest possible establishment.
On the issue of the reconstruction of the wider region, the European Council endorsed the progress made towards the Stability Pact for south-eastern Europe. The text of the pact was agreed by all participants at the special ministerial conference last Thursday. The aim of the Stability Pact will be to enhance peace, stability and prosperity in the countries of the region, and perhaps more importantly, co-operation between those countries and peoples. The first step in this process will be the organisation of a donors conference for south-eastern Europe.
The participation of the Federal Republic of Yugoslavia in the pact will be possible following the political settlement of the conflict in Kosovo and taking into account the need for respect by all participants for the principles and objectives of the pact. The European Council also made a very significant gesture towards the countries of the region by indicating that they would be offered the prospect of full integration into the structures of the European Union perhaps through some new form of association, provided they meet the accession criteria.
An issue, as the House will be aware, that was current while the Council was taking place was the question of Ireland's European Championship football qualification match with Yugoslavia.
I was disappointed that UEFA refused to withdraw sanction for the match and ultimately placed the Government in a position whereby the withdrawal of visas for players was the only option available to us. I was very encouraged that the German Chancellor, Herr Schröder, telephoned UEFA to confirm the EU position in connection with sports events with Yugoslavia on the evening prior to the summit. The approach adopted by Ireland towards this match was further endorsed by the European Council. The Council confirmed the position of the European Union in connection with sports events with the Federal Republic of Yugoslavia and undertook to re-examine this matter after a UN security resolution was adopted.
The conflict in Kosovo has once again demonstrated the political imperative for the development of closer ties between the European Union and its neighbours. In this respect, an important development at the Council was the adoption of the Common Strategy for Russia, the first such common strategy to be adopted under the Amsterdam Treaty. A shared concern amongst many partners was the need for the common strategy to represent real added value to existing Union instruments with regard to Russia. Accordingly, the areas of action of the common strategy will include measures to consolidate democracy and strengthen the rule of law and public institutions in Russia; the integration of Russia into the European and world economy; co-operation to strengthen stability and security in Europe; and, importantly, co-operation concerning energy, nuclear safety, environment, health and the fight against crime and drugs.
The adoption of the common strategy is timely, as it enables the EU to play its part in supporting the forces of democracy and economic reform at this politically fragile time in Russia. I also make the point that, in spite of the recent political upheaval in Russia, it is most significant that the changes were achieved entirely within the constitutional process. This reflects a developing politi cal maturity and a consolidation of democracy, although clearly significant problems remain. As regards Ukraine, I support very strongly the need to do everything possible to effect the decommissioning of the Chernobyl nuclear power plant next year.
I know from my contacts with them that some of the enlargement countries are concerned that the Union's concentration on their accession efforts has been lessened due to the Agenda 2000 negotiations in the earlier part of the year and the subsequent situation in Kosovo. In this respect, it was important that the European Council took the opportunity to reflect on the accession negotiations with the candidate countries. What was required by these countries was a reiteration by the Council that the European Union remains positively committed to the enlargement process. In the event, a positive message was sent to these countries. While the Council noted that negotiations were continuing to progress well with Poland, Hungary, the Czech Republic, Slovenia, Estonia and Cyprus, it was significant that a commitment was given to open negotiations in all remaining areas covered by the aquis as early as possible next year.
The Helsinki European Council in December will examine the progress made by the accession candidates. It is crucial that the momentum towards enlargement be maintained for stability in Europe. In this respect, it is important not to discourage the other applicants: Latvia, Lithuania, Slovakia, Romania, Bulgaria and Malta with whom formal negotiations are not yet under way but who are engaged in the screening process. I was encouraged that the Council asked that the next progress report from the Commission outline the prospects for opening negotiations with these countries. I hope that developments in the interim will make it possible to adopt a more positive approach towards Turkey at that time.
An issue of key interest to Ireland at the Council was the Declaration on Strengthening the Common European Policy on Security and Defence. This is a matter to which the Minister Deputy Andrews will return in more detail in his concluding remarks.
I take this opportunity to compliment the Minister on his very active involvement in this issue at the General Affairs Council – ensuring that the outcome was acceptable to Ireland and our fellow neutral partners.
The declaration agreed at Cologne reflects a common analysis among EU member states of the objectives we seek on the basis of the Amsterdam Treaty and how best to achieve these. The Finnish Presidency was invited by the European Council to take the matter forward and submit a progress report to the Helsinki European Council.
The Irish position on this matter has been and will continue to be that the European Union must be able to work for peace, stability and security in Europe. The key to this is peacekeeping and crisis management within the context of the Petersberg Tasks. All 15 member states can play an active role which is in keeping with their own traditions and capabilities. The declaration on this issue takes account of the views and positions of all four non-NATO EU member states. Indeed, we maintained very close contact with the other non-NATO member states during the drafting of the declaration to ensure that our views would be reflected.
It is agreed within the EU that individual countries have the right to participate or not participate in a particular mission. There is not a commitment to mutual defence in the Cologne conclusions, and this is consistent with Ireland's traditional approach.
In view of these developments, which were anticipated, it is important that we should now proceed with participation in Partnership for Peace, which has been debated in the run-up to the European elections, so we are on an equal footing with the other non-NATO countries within the Union. Participation in Partnership for Peace will ensure that we can be fully involved in European peacekeeping tasks, including their preparation and planning, where NATO has been given the leading role.
The summit also approved Mr. Javier Solana for the new post of Secretary General of the Council and High Representative for CFSP. Mr. Pierre de Boissieu was appointed as Deputy Secretary General.
The summit discussed the scope, preparations and timetable for the next Intergovernmental Conference – Intergovernmental Conference. In this context, the Council agreed to convene an Intergovernmental Conference early in 2000 to resolve the institutional issues left over from Amsterdam that need to be settled before enlargement begins. The process is scheduled to conclude by the end of next year. It was agreed that it would cover the following issues: the size and composition of the Commission; the weighting of votes in the Council; the possible extension of qualified majority voting – QMV – in the Council; and other closely related issues could also be discussed.
To take this matter forward, the Finnish Presidency will now draw up a report for the Helsinki Summit setting out options in regard to the issues that might be addressed in the next Intergovernmental Conference. Our preference has been and still is that the Intergovernmental Conference should not be too ambitious. We do not support any broad examination of extending QMV. However, the overall agreement reached on the approach to the Intergovernmental Conference is broadly acceptable to us.
I pointed out during our discussion of this item, that while QMV might aid efficiency, it did not guarantee equity as demonstrated by the proposals before the Fisheries Council last week which, as things stood, could have commanded a qualified majority for approval.
I am pleased to note, however, that, due to tough negotiating by the Minister for the Marine and Natural Resources, Deputy Woods, the proposals finally adopted allow Ireland a catch of 24,000 tonnes per annum. I record my thanks to the Minister.
A particular issue on which the German Presidency has placed a strong emphasis is the proposed EU Charter of Fundamental Rights. The aim of the charter is to highlight the importance of protecting the fundamental rights of the Union's citizens. The European Council agreed to take this issue forward by establishing a body of representatives of the Heads of State and Governments, the President of the Commission, and also members of the European Parliament and national parliaments to examine this matter. The proposed approach to progress will be outlined at the extraordinary meeting of the European Council in Tampere on 15 and 16 October this year. The overall aim is to present a charter for adoption at the European Council in December 2000 during the French Presidency of the Union. As regards the status of the charter, once it is finalised, I believe that in the medium term it should be a political declaration enabling the Union to re-affirm its human rights obligations to its citizens. The charter should not, for the foreseeable future, be integrated into the Treaties of the Union, given the very many other institutional issues which need to be addressed before enlargement and the many protections which the Treaties and UN and other conventions bestow on the Union's citizens.
I will attend a special meeting of the European Council on 15 and 16 October in Tampere, Finland. The Council will evaluate progress achieved and give further direction to the actions of the EU in the areas of justice and home affairs. The special meeting will provide an opportunity to show citizens that EU co-operation can addresses issues of real day to day concern to them, such as the fight against crime and drugs. I hope to see progress at the special European Council on EU co-operation in combating organised crime. The Council will also provide an important opportunity to take stock of the situation following the significant institutional changes introduced by the Treaty of Amsterdam in the areas of justice and home affairs.
The summit was also attended by Commission President-Designate Prodi, who discussed with the HOSG the future work and required reforms of the Commission. Mr. Prodi outlined his views on Commissioners and portfolios; on an increased role for the President's spokesperson; and on reform of the Commission services. As regards the composition of the Commission portfolios, he indicated that each portfolio in the new Commission will carry with it a significant area of work. As the House will generally be aware, Mr. Prodi hopes to finalise his list of future Commissioners by mid-July. He plans to finalise portfolios first and then to offer each Commissioner a specific portfolio. Mr. Prodi has proposed that each member of the future Commission will be asked to accept that they will resign should the President feel obliged to ask them to do so. Through this undertaking, the individual accountability of each Commissioner will be guaranteed, while at the same time maintaining the collective responsibility of the Commission college.
On the specific issue of reform of the Commission Services, Mr. Prodi intends to clarify the roles of Cabinets and Commission Services. In this way he hopes to facilitate a better balance between the Cabinets and the services. In order to achieve an enhanced interface, Commissioners and their Cabinets will in future be housed in the same building as the relevant Commission Services. In addition, Mr. Prodi intends to allow for greater internal mobility of senior officials in the Commission in the future.
Ireland strongly supports the reforms necessary for the modernisation and improvement of the Commission's organisation, management and financial control. However, the Commission is and must remain the engine of the Union. It must be properly resourced for those tasks it has already been assigned and for any new tasks it is asked to undertake. The Commission's central role in balancing the interests of member states, especially large and small member states, should not be diminished.
The promotion of economic growth and the creation of jobs at EU level remains a particular priority for all member states. In this context, the summit agreed on the European Employment Pact. The pact is concerned with developing a new macro-economic dialogue between the social partners, fiscal and employment policy makers, and monetary policy makers. In order to achieve this goal, the pact provides for twice yearly meetings between the relevant Ministers – Finance and Social Affairs – the social partners, and the European Central Bank.
The pact takes account of three objectives in order to promote a strong non-inflationary and job creating growth: greater co-ordination between wage developments, fiscal policy and monetary policy; enhanced implementation of the employment strategy agreed at Luxembourg; and improvements in the competitiveness and functioning of the markets for goods, services and capital in accordance with the Cardiff process.
While the European Council Conclusions do not of themselves create jobs, the pact is to be welcomed from an Irish point of view. Indeed, most of the goals which it sets are already underpinning the ongoing economic and social policy objectives pursued in this country, especially in the context of social partnership. I am very supportive of the more important role outlined for social partners at EU level. This should ensure maximum consensus about what needs to be done and how we should go about doing it.
In terms of job creation at an EU level, there is a continuing need to examine the approaches adopted by those countries with which the Union competes. In this respect, the EU needs to ensure a job creation structure that is flexible and avoids excessive regulation.
I was pleased the meeting took the opportunity to recognise that the jobs of the future will be created by innovation and active involvement in the information society. In particular, leaders called for all schools to be given access to the lnternet as soon as possible and for improved policy co-ordination to ensure the creation of a favourable environment to develop Europe's leading position in e-commerce. This approach is to be welcomed and I am confident that we in Ireland will continue to make progress towards achieving these aims. I took the opportunity at the summit to highlight the gap between Europe and the United States, especially in terms of preparedness for the information society.
I look forward to participating in the Special European Council on Employment, Economic Reform, and Social Cohesion which is taking place in Lisbon next March. The European Council also considered the broad guidelines for economic policies in the member states and recommended their adoption to ECOFIN. The guidelines identify a co-ordinated mix of macroeconomic policies in the context of the stability and growth pact, and wide-ranging liberalisation of product, capital and labour markets as key elements to boost competitiveness so as to increase economic and employment growth.
The Council also noted the second report from ECOFIN on tax policy co-operation, which sets out progress on tax issues such as the code of conduct on business tax and invited a third report bringing the discussions on these tax issues to a conclusion for Helsinki. Energy tax is one of the issues covered in the ECOFIN report. Ireland has not been supporting Commission proposals for higher taxes on energy because of the possible effects on competitiveness and price stability. We will, however, need to consider what measures are required in order to achieve the commitments on emissions which we undertook at Kyoto.
The issue of the continuation of the current duty free regime beyond the end of June was again discussed by leaders at the summit. Unfortunately, the outcome was very disappointing, despite the support of the larger EU countries. Once again I took the opportunity to strongly support the extension of the duty free regime and drew attention to the difficulties which would be caused by the decision to bring it to an end. I joined with France, Germany and the UK in this regard. However, our efforts to secure an extension of the current regime met with resistance from other member states, especially Denmark. As the House will be aware, a decision to reverse abolition would have required unanimity.
I met with Prime Minister Blair on the evening of Wednesday, 2 June in Cologne. In addition to matters related to Northern Ireland, we discussed many of the issues on the agenda for the Council, including aspects of the Kosovo situation and duty free.
In preparation for the Cologne Council and to co-ordinate EU business more generally, I established a Cabinet committee which I also chair. Its core members are the Tánaiste, the Minister for Finance and the Minister for Foreign Affairs. In addition, the Attorney General and other Ministers attend, as appropriate, on particular issues. This forum will allow for the required focus to be given to the important issues which are arising on the EU agenda. Its first meeting took place in preparation for the summit. A preparatory meeting of officials, chaired by my Department, was also held in advance of the Cabinet committee's meeting. My Department maintains close contact with all relevant Departments on key EU related matters. I also met with officials to pursue particular issues on the Cologne agenda in detail.
I would like to once again commend the German Presidency for hosting a very successful summit and more generally on the success of its Presidency. The past six months have seen advances on many key items on the EU's agenda such as agreement on the Agenda 2000 package and also on the next Intergovernmental Conference.
In advance of the German Presidency some commentators had questioned the ability of what was at the time a relatively new administration, and in addition one which had no direct experience of handling a Presidency, to advance and reach agreement on the issues on the EU agenda. The progress which we have seen across the range of issues has certainly refuted those suggestions. In particular, the Kosovo crisis called for an immediate response from the Union and the German Presidency successfully guided the Union's contribution while maintaining a consensus on the approach among all partners, a not inconsiderable task. The role of Finnish President Ahtisaari and the incoming Presidency were also highly commendable.