I join colleagues in congratulating Deputy Hannigan on his election as Chairman of the committee. He has a mighty task ahead and I look forward to working with him and, not least, to seeing him every month at the pre-General Affairs Council meetings and other discussions.
Senator Reilly referred to the IMF report and the danger austerity presents to the eurozone. We are very aware of this. While the Government and I strongly hold the view that it is essential that governments around the eurozone and the Union as a whole strive to balance budgets as quickly as is humanly possible to meet the agreed targets set out at EU level, we have learned our lesson domestically. We failed to consolidate public finances in the 1980s and paid the price for quite some time. Until we had a Government that was prepared to take the steps necessary to consolidate the public finances, the recession deepened and unemployment worsened. People suffered as a consequence.
The challenge we face in Ireland and across the eurozone is to achieve a balance between the so-called austerity consolidation and the need to stimulate growth and have innovative means of job creation. The objective of consolidating public finances, as set out in the fiscal treaty, does not fly in the face of our stated agenda on job creation. The two can go hand in hand.
I mentioned in my introductory remarks the ongoing discussions on the multi-annual financial framework. This involves an enormous EU budget for the period 2014 to 2020. The negotiation will be difficult but it is very important to us that we ensure sectors in our economy that are already doing well, such as the agriculture and food sectors, continue to thrive. There is already provision for stimulus within the Union, one element of which is the multi-annual financial framework. The other element, which I mentioned, is the Single Market agenda. The Single Market Act is essentially a 12-point plan, most of which we embrace wholeheartedly. Ireland, along with some other member states, is pursuing the fast-tracking of many of the measures therein. These include progressing the digital single market, financing venture capital for small businesses and start-up companies, and facilitating access to markets, particularly in the services sector.
All of these factors are very important, present massive opportunities for growth within the eurozone and, arguably, will provide much greater stimulus than would be provided if the Government were simply to pump money into the system. Most analysts would agree that Governments do not and cannot create jobs but that they can create the conditions for growth. This is our outlook and why we are so supportive of President Van Rompuy's initiative at the forthcoming informal Council to progress that agenda. That is why we have taken a lead. This leads me to Senator Mooney's point on why Ireland has taken a lead along with Finland, Sweden, the United Kingdom and other member states in pushing the agenda, which is crucial for growth and job creation.
With regard to increased access to Structural Funds, an easing up of the co-financing requirements has been agreed. It is of particular benefit to countries that already benefit greatly from Structural Funds and Cohesion Funds. We do not. Our greatest source of funding is through the Common Agricultural Policy. As I stated, we are very anxious that this continue under the new multi-annual financial framework. We do not benefit from Structural Funds in the same way as some of the southern and eastern European countries. We once did, as members are well aware, but our economy has become more sophisticated and has grown. Ireland is now one of the wealthier nations within the Union and, therefore, we do not qualify for significant Structural Funds, and have not done for quite some time.
There are other initiatives to bear in mind. We had a Cabinet sub-committee meeting last week at which we discussed the opportunities in regard to project bonds. A number of Departments are charged with exploring options in regard to how we can avail of and maximise opportunities for Ireland through certain schemes.
With regard to the microfinance facility, various Departments, especially the Department of Jobs, Enterprise and Innovation, have been charged with seeking ways in which we can assist companies, particularly SMEs, in adopting the best possible measures to ensure we can avail of European Investment Bank funding opportunities That work is ongoing. It may not be aired enough because every debate we have in the Dáil now is centred on the more prominent developments at EU level, such as the intergovernmental treaty and the associated issues. It would be worthwhile having a debate, perhaps in the Dáil in plenary session, on some of these issues and the opportunities for Ireland. We are very open to hearing suggestions from Opposition parties. I would never contend that the Government parties are the only ones with solutions and creative, innovative ideas. We must be willing to listen to all sides. While some points the Opposition makes are very good, it should not underestimate the amount of work that is taking place through interdepartmental co-ordination to maximise opportunities and ensure we benefit from that.
Let me address Senator Mooney's extraordinary view that Ireland was somehow a leader in Europe over the past 15 years and that it somehow dropped the ball in recent months. On the basis of my having meetings all the time at ministerial level and countless bilateral meetings with partners from all over the European Union and beyond, I note that is not the view that is held. The view is that the previous Government clearly dropped the ball in terms of engagement with the European institutions and member states. On first taking up this position I went from institution to institution and from member state to member state holding meetings. It was clear to me that Ireland essentially had disengaged for a considerable number of years before that. The Government has been working hard to rebuild such engagement and to cultivate stronger and better relations with all the European institutions. Ms Phil Prendergast, MEP, is present and could tell members about the week I spent meeting key players in the European Parliament at a plenary session in Strasbourg last November. I have had countless meetings with all the Irish MEPs. This is just one example but almost all Cabinet Ministers have had meetings in the European Parliament by now. In addition, they have had multiple meetings with the European Commission, as well as meetings with the Council secretariat and bilateral meetings with like-minded member states, depending on the sector. Naturally, our allies on the question of agriculture are very different from our allies on the question of taxation. The Government is picking its arguments, has identified clearly strategic priorities and is building alliances around those priorities. This is happening continually and is not a process limited to the Taoiseach or to the Minister of State with responsibility for European affairs, as this is taking place right across the Government.
A new committee has been established on foot of a Government decision just before Christmas. It decided to create a new interdepartmental committee on co-ordination that I will chair. Its remit will be much broader than the range of the pre-existing committee chaired by my predecessor, which only considered the implementation of European Union regulations and directives that already had been agreed. This committee will be much more strategic, will have a much wider remit and will have a formal role in assessing and monitoring the performance of all Ministers in all Departments in respect of their European Union engagement. While I am doing this anyway, the process will be formalised and the committee's first meeting will take place within the next ten days. Consequently, the suggestion that the present Administration somehow has dropped the ball when, quite clearly, the reverse is the case is a contention I reject.
