I attended the European Council in Brussels on 20 and 21 March last. I was accompanied by the Minister for Foreign Affairs, Deputy Cowen, the Minister for Finance, Deputy McCreevy, and the Minister of State for European affairs, Deputy Roche. The conclusions agreed by the European Council have been laid before both Houses of the Oireachtas.
The meeting was productive. We built on the work of the past three years of economic reform and re-committed all member states to achieving the European Union's ambitious ten-year Lisbon agenda.
The developments relating to Iraq are currently dominating the world agenda. In light of global political tensions, the European Council focused its attention on the issue of Iraq during the Council. I will be returning to this issue later in my statement.
We were all agreed that it is at such times as this that the economic and social reforms agreed at Lisbon in 2000 become vital. The current economic downturn makes it more essential to increase the capacities of our economies to grow and prosper. Moreover, an ability to tackle our common economic challenges together will buttress the public's confidence in the European Union's ability to act decisively and in a united fashion. This confidence has been shaken by the divisions within the EU on Iraq.
In advance, I wrote to Prime Minister Simitis outlining Ireland's priorities for the European Council. These included employment, regulatory reform, research and development, social cohesion and sustainable development. I also issued a joint letter and paper with Prime Minister Balkenende of the Netherlands, seeking greater action throughout Europe in relation to the internal market for commercial services. Furthermore, in a joint letter with Prime Minister Persson of Sweden I underlined the role and value of the SME sector in contributing to sustainable economic development.
The Council meeting commenced with an exchange of views with the President of the European Parliament, Mr. Pat Cox. Unfortunately, pressing parliamentary business at home prevented me from attending this part of the Council. I understand that Mr. Cox, with whom I had a brief meeting, confirmed that the European Parliament is fully playing its part in the Lisbon reform agenda. In particular, the Parliament remains on track in its legislative contribution and has pushed forward its own reform process.
The Lisbon agenda is not about making dramatic breakthroughs at European Council meetings. We are now into the fourth year of what is a ten-year project. The Lisbon agenda is the framework within which we in Ireland and European Union citizens everywhere will ensure our future prosperity and achieve a sustainable and fair quality of life for all. These are the bread and butter issues of the European Union. They are important for every citizen and every community here in Ireland and throughout the Union.
We reviewed progress on the Lisbon agenda, discussed the key issues and set priorities for future work. Since we agreed the Lisbon agenda three years ago, we have made significant progress. Five million new jobs have been created in the EU. Unemployment has also declined by two million. Other areas in which we have obtained results include opening up energy markets, creating a single European sky, putting in place an integrated Europe-wide financial market, agreeing a community patent and an agreement on the taxation of energy. However, the European Council recognised that much more still needs to be done. European leaders have renewed their commitment to pursue sound macro-economic policies to restore confidence and economic growth.
This year provides an opportunity to use the streamlined policy co-ordination instruments – the broad economic policy guidelines, the employment guidelines and the internal market strategy – and give them a new three-year perspective. By synchronising these instruments the European Council will be in a better position to review and adjust its policies as a whole. Improving the employment position is central to the Lisbon strategy. The new three-year employment guidelines, which are to be endorsed at the June European Council, will provide a basis for a simplified and more effective employment strategy. In addition, the European Council invited the Commission to establish a European employment task force, which will report in time for the 2004 spring European Council. I am confident this task force will give added momentum to the employment strategy by rapidly identifying practical measures to increase the European Union's employment levels. I welcome the nomination of Mr. Wim Kok to head this task force. I have known Wim, both as Minister and Prime Minister, for many years and I look forward to working with him again.
We agreed that competitiveness must once again be placed centre stage. In particular, we highlighted the horizontal role of the new Competitiveness Council in enhancing competitiveness and growth in an integrated way across all of its strands. The Council's work will complement the work done by the Economic and Financial Affairs Council to ensure that we deliver economic reform. The European Council meeting was also important for people engaged in small business, the backbone of our economic activity. In this context we invited the Commission to present a European entrepreneurship action plan before the 2004 spring European Council. This will pay special attention to making new business start-ups quicker and easier, as well as facilitating access to low-cost finance. One of the areas in which we called for special attention was that of regulatory reform. We need to reduce administrative burdens, have better consultation procedures and simplify existing regulations.
On the social agenda, the European Council underlined the importance of solidarity and social cohesion. We reiterated the importance of the interaction between employment, good economic performance, education and social protection policies. We welcomed the joint Council-Commission reports presented on pensions and on health care and care for the elderly. We called on member states to ensure the implementation of further reforms of pension systems, including increasing employment opportunities for older people. The European Council also invited member states, in their new national action plans for social inclusion – to be presented by July next – to set appropriate national targets for significantly reducing the number of people at risk of poverty and social exclusion.
In the research and development area, we stressed that the momentum behind the Euro pean area of research and innovation and the information society must be maintained. The European Council urged member states to take concrete action to promote increased business investment in research and development, moving towards the ambitious objective set at Barcelona last year of approaching 3% of GDP. We also called for organisations to avail of the full potential of the sixth research framework programme. In particular, the participation of SMEs in research and development must be enhanced.
The European Council renewed its commitment to stronger cohesion across the Union and its leadership in promoting sustainable development. The European Council invited member states to accelerate progress towards meeting the Kyoto protocol targets, including the reduction of greenhouse gas emissions and the increase in the share of renewable energy. It noted the important role of environmental technologies in delivering the twin environmental and competitiveness goals. The Council also considered maritime safety and called for a comprehensive response on maritime safety in the light of the Prestige accident. Unfortunately we were not able to agree a tax package due to difficulties in relation to milk quotas raised by Italy.
The European Council has agreed to meet shortly with President Giscard d'Estaing to discuss the ongoing work of the Convention on the Future of Europe. This meeting is likely to take place in Athens on 16 April next, to coincide with the signing of the treaties of accession. As I signalled at the start of this statement, international developments dominated much of the agenda at this European Council.
We are now faced with the beginning of military conflict in Iraq. Our shared hope was that the conflict would end with the minimum suffering and loss of human life. Rather than dwelling on the well-known differences of our partners, we agreed on a forward-looking approach. The EU is committed to the territorial integrity, sovereignty and political stability of Iraq. We respect the rights of the people of Iraq, including all persons belonging to minorities.
We are all agreed that the UN must continue to play a central role during and after the current crisis. We called on the Security Council to give the United Nations a strong mandate, particularly as regards co-ordinating assistance once the conflict in Iraq is over. The European Council has agreed that the EU will be actively involved in addressing the major humanitarian needs that will arise from the conflict. The EU supports UN Secretary General Kofi Annan's proposals to meet the humanitarian needs of the people of Iraq. The European Council invites the Commission and EU High Representative Javier Solana to explore the means by which the EU can help the people of Iraq to live in freedom, dignity and prosperity. An Iraq under a representative government, at peace with its neighbours, is our common objective.
We also discussed the implications of the current crisis for the Middle East region. The EU will actively support regional stability. We are calling on all countries in the region to refrain from actions that could lead to further instability. The importance of progress in the Middle East peace process was underlined. We agreed on the importance of the immediate publication and implementation of the Quartet road map, which has been prepared by the UN, the US, the EU and Russia. We reiterated the importance of dialogue and co-operation with the Arab and Islamic worlds to underline that this is not a clash of civilisations. We also agreed on the need to work for a comprehensive multilateral policy to prevent the proliferation of weapons of mass destruction. Ireland has a long tradition and expertise in this area, and we will actively contribute to this work in the period ahead.
The European Council gave particular attention to the continuing Israeli-Palestinian conflict and adopted conclusions on the matter. There is a consensus among European leaders that the crisis in Iraq makes it more than ever imperative that this long-standing problem be addressed. Europe remains committed to the vision of two states living side by side in peace and security on the basis of the 1967 borders. President Bush has announced that he wishes to see the Quartet road map for a Palestinian state presented to the parties after the confirmation of the new Palestinian Prime Minister, Mr. Mahmoud Abbas. This announcement was welcomed by the Council. I understand that the new Palestinian cabinet will be presented to the Palestinian legislative council in about three weeks. Implementation of the road map will not be easy and will require parallel progress in the political, economic and security fields. Israel's policy of illegal settlements in the West Bank and the Gaza Strip constitute a significant obstacle to peace. The Council emphasised this and called for a reversal of Israeli policy.
The European Council regretted the failure to reach agreement on a comprehensive settlement on the issue of Cyprus. It supported the continuation of the Secretary General's mission and negotiations on the basis of his proposals. It urged all parties concerned to work for a settlement of the Cyprus problem and in particular called on the Turkish Cypriot leadership to reconsider its position. The Republic of Cyprus will proceed to sign its treaty of accession to the European Union next month. I regret that this will not be with a view to the accession next year of a united Cyprus. The Council also discussed other items on the international agenda, including the western Balkans and Korea.
To conclude on an economic note, we made significant progress at the European Council in Brussels. The Lisbon agenda touches the lives of European citizens in a real and material way. The outcome of the Brussels Council clearly demonstrates the importance of pressing ahead, both at EU and at national level, with the reforms needed to restore confidence and stability in our economies. Especially at this time, when there is a clear concern that the process of economic reform in Europe may be losing momentum, it is even more urgent that we press on with the Lisbon goal. The Lisbon agenda will be central to our Presidency of the EU next year. I am determined to work to ensure that the reforms first set out at Lisbon are advanced.
I intend that our own objectives for next year's spring European Council will be drawn from a number of critically important areas – creating and sustaining increased employment, making Europe more competitive, fostering greater social cohesion, making progress on sustainable development and consolidating all of the experience and good practice by member states in applying the Lisbon strategy over the past four years.
While the recent divisions within the EU on the issue of Iraq have been most unwelcome, last week's European Council demonstrated that even at times of deep division on a particular issue, the European Union is both able and willing to address the broader agenda. It is at times like this that the real value of the European Union can be seen. The Union provides a space and a structure where national disagreements can be mediated and placed in perspective. It is a stabilising force in Europe and in the world. It is in all our interests that it continues to be successful, as it has been for the past half century.