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Seanad Éireann debate -
Wednesday, 4 Dec 1991

Vol. 130 No. 13

Development in the European Community: Motion.

I move:

That Seanad Éireann, convinced that the welfare and prosperity of the Irish people can best be advanced through Ireland's membership of the European Community,

satisfied that full and balanced integration of the Community will lead to greater economic growth, social progress and increased employment,

believing that the Community should have an enhanced voice in international affairs, to which Ireland can contribute,

persuaded of the need for the work of the Intergovernmental Conferences on Political and Economic and Monetary Union to be brought to a successful conclusion at the European Council in Maastricht in December,

fully supports the Government in their determined and constructive efforts to ensure that the new Union is firmly grounded in economic and social cohesion and solidarity between the member States and that all will share fully in the fruits of its economic and social development.

This is an opportune time to discuss the Maastricht Summit. I suppose that on a day when the British Prime Minister is having discussions with the Taoiseach it is also appropriate that we should discuss this matter. However, the priorities for this House are not exactly what happens at Maastricht but the repercussions that will follow those discussions when we have to make decisions. Thankfully the people will have to make decisions in the light of the results of the Maastricht meeting and thankfully we have a written Constitution which ensures that before changes take place in our Constitution the people must decide.

We must have as a result of this summit positive Treaty provisions for economic and social cohesion so as to strengthen the Structural Funds because there is no country in Europe more in need of a balanced allocation of the Structural Funds than Ireland. We are the peripheral nation in Europe at present even though the British suggest that they also are peripheral to Europe.

I wish to take this opportunity to welcome Deputy O'Donoghue, Minister of State at the Department of Finance, to the House.

The House would, I am sure, like to join with the Leader in welcoming Deputy O'Donoghue to the House.

Can we all join in and say a few words on that?

That would not be appropriate.

I did not think it appropriate for Senator Lanigan to be interrupted either but if the Chair tells me when——

Senator Lanigan had the floor but Senator Fallon sought to interject and I must allow the Leader of the House to do so if he wishes. Senator Lanigan gave way. They acted with the greatest of courtesy to each other and I cannot fault them for that.

Could I as one Kerryman to another Kerryman welcome the new Minister to the House?

We have gone not just an inch but a mile at this stage.

I was addressing the Chair when the Minister came into the House. I did not see him come into the House. Of course, he is very welcome. I do not think anyone meant to interrupt me but the interruption that took place was——

A beautiful interruption.

——in the best possible taste. The priority for Ireland at the European Summit will be to have positive Treaty provisions for economic and social cohesion in order to strengthen our Structural Funds allocation because as a peripheral nation we are more in need of such funds than any other nation. The British think they are peripheral but over the next few years they will have the new channel tunnel and we will be the only island nation. Therefore we must ensure at the Maastricht Summit and at any meetings that take place after it, that our peripherality is acknowledged by all the other States. There must be scope for a considerable broadening of the cohesion concept in the future to cover a wide range of policies dealing with the dimension of human resources in health, education and training at every level, and because of our peripherality the education and training concept will have to be acknowledged and strengthened over the next few days.

Flexibility in regard to the transfer and administration of Community funds will have to take into account the fact that because of our peripherality our budgetary situation is difficult. We have to export to live and, as a result, must ensure that we can draw in from Europe industries, new technology and research and development projects.

Members of the House should realise that there are noises which are outside of our control. If it is interfering with the business of the House——

So you are asking the people outside the House to tolerate——

No, I am asking the people inside if they are prepared to tolerate the people outside, or if they want to adjourn temporarily.

The people outside are showing great tolerance to the people inside so we should show them tolerance.

We must not become confused.

The decisions made at Maastricht will have to envisage the possibility at a future date of introducing automatic financial equalisations for peripheral and less well off regions through budget and physical mechanisms at Community level. At present in Ireland 19 per cent of our people are unemployed and this is not something we can live with. There is no point in suggesting that in an integrated Europe we can sustain that unemployment rate. That is not acceptable and I do not think that it should be acceptable to anybody in this House or to anybody who talks about an integrated Europe.

Economic and monetary union is entwined with political union. We must look for Community policies which will be beneficial to Ireland and these will only happen if there is close integration within the union itself. The union should generate its own investment momentum but the immediate advantages of a single currency for a trading country such as Ireland will be to reverse the exchange rate costs and restrictions which are harmful to commercial transactions at present, and so save exporters hundreds of millions of pounds annually.

A report in The Sunday Times last Sunday suggested that if one had £100, and travelled throughout Europe changing it into the various currencies, one would lose 65 per cent of one's currency. So £100 suddenly becomes £35. If we have an integrated Europe with the one currency we should be able to travel throughout Europe and maintain the value of our money. This is an area where monetary integration is most desirable.

If one transports £100 worth of goods from here into each of the European states, the value of the goods is diminished as a result of paperwork, customs regulations and everything else that goes with trans-border transactions. We should be concerned to have the European union generating its own investment momentum purely and simply by eliminating cross-border and trans-border transactions.

There are problems related to security and defence. Many people are concerned that when we are in an integrated Europe we will become members of NATO or get away from our neutrality stance. There is a definite line that has to be taken between security and defence. Security is of major importance and countries will have to adopt an agreed strategy on European security but there is a difference between security and defence problems. I support the neutrality stance taken by Ireland in the past and I sincerely hope that we will not lose it. It has been suggested that because of the problem in Yugoslavia and because of the possibility of further national problems arising throughout Europe, we should set up our own peacekeeping force in Europe. This would not be feasible. The United Nations have had great success in their peacekeeping role and countries like Ireland have played a major part in that in every country in the world. The blue berets of the UN are accepted everywhere. A multinational force went into Lebanon at one stage and it was a disaster both for Lebanon and for the force.

There was a pseudo United Nations approach to the problem in the Gulf and it created more problems than it solved. If the United Nations had sent in a United Nations force into the Gulf they would have succeeded in containing the problem but the multinational force, under the aegis of an American General, made decisions that will have disastrous consequences for many years to come. The United Nations as a peacekeeping force should not be diminished by the suggestion that we may set up a European peacekeeping force for operation within Europe.

We do not know where Europe is going at present, and we do not know where the problem in Yugoslavia will lead. The day that Foreign Minister Shevardnadze left his position in the USSR I suggested at a meeting in Paris that there would be changes and that the only people who would gain in the long term would be generals in the USSR army. The generals will take over because they lost so much power. They still have the biggest army in the world irrespective of what anybody thinks.

We have always been supporters of a comprehensive, co-operative approach towards security matters and since the Helsinki agreement of 1975 we have adopted, as I have said, a role of positive neutrality within the framework of security co-operation in Europe. The barrier between East and West Europe and between NATO and the Warsaw Pact country has disappeared on paper and there is a new emphasis on the CSCE process and what a comprehensive security policy can mean for the 36 nations involved in CSCE. A security arrangement of this kind needs to be put in place from the Atlantic to the Urals of the old Europe, now that the old defence arrangements are superfluous to the requirements of the new Europe and we do not know what the new Europe will encompass.

If we have a common foreign and security policy in this new Europe, we have to take into account that, as a small nation, we have had our own foreign policy. We have fought for the principles of equality and for the principles that the people of Ireland have wanted but if we have a common foreign policy for Europe it could happen that the wishes of the Irish would be subsumed into the wishes of the larger European nations. This is something that I would not particularly like but that having been said, if as a result of a common democratic vote we have a common foreign policy I would go along with it but I would not be happy. I am very happy with Irish foreign policy as enunciated by the Government and our Ministers for Foreign Affairs as well as the personnel in that Department at all international conferences over the last number of years. If a common foreign policy is one of the minuses agreed when at the Summit and the Irish people agree with it, I will go along with it but I will not be totally happy.

As regards the control and reduction of armaments on a phased basis Ireland has no part to play in that objective because we do not supply arms to anybody. Every other country in Europe is a supplier of arms to every belligerent nation in the world. The problems in Iraq could not have arisen were it not for 99 per cent of the countries of Europe supplying Saddam Hussein with arms. The Israelis would not have their arms unless the USA supplied them and Syria would not have their arms unless Russia supplied them. There is no country in Europe, except for ourselves, that has not been a supplier of arms. Now it is suggested in the EC that weapons of mass destruction should not be supplied to the Middle East. What is a weapon of mass destruction? Every weapon that can kill somebody is a weapon of mass destruction because one can shoot once or twice or place a bomb or whatever and kill everybody at one remove. The suggestion that we are going to reduce the supply of armaments is rubbish because it will not be adhered to by the big nations. They will continue to sell arms but we must include it in the Maastricht proposals because at least it gives the impression that we are united in trying to stop it.

Confidence-building measures within the European framework and the strengthening of security co-operation on the European continent within CSCE is very important. That is the sort of common European foreign and security policy to which Ireland should adhere and give support. The CSCE group of countries recently mandated to the European Community took action in regard to the conflict in Yugoslavia and that was a disaster if ever there was a disaster in peace-keeping terms. Lord Carrington went out and secured agreement on one side and on another side. They both agreed to disagree and the war went on and now the United Nations have sent in a representative.

I am delighted to see that Mr. Boutros Ghali is the new Secretary General of the United Nations. He is a person who has regard for peace in the world. He will not be hindered by the supposed support of any group of countries, whether they be from the east, west, north or south. The troika sponsored by the CSCE have intervened to try to restore peace. The real problem that we face in Europe is how to co-ordinate publicly in relation to conflicts such as that which has arisen in Yugoslavia, which is a federal state. The people of the USSR, which is also a federal state seem to want to break up into their original form. The conflicts that are taking place can only be met by a vigorous European Community with a common security policy and the intervention of a United Nations peace-keeping force. We can resolve the problems via a European Community which represents solidarity and authority. I question the collapse of the Marxist system because I have a funny feeling that beneath all the changes there is still the old regime and they will come back into any conflict that might arise in the near future.

The Senator's time is now up.

I beg the Chair's indulgence for one minute. There must be co-operation between all the member states in regard to legal and judicial matters, access, visas and asylum arrangements, immigration and drug trafficking. We must take joint action against terrorism and organised crime which is growing at an enormous rate in the Community. We extend best wishes to the leaders of the EC at Maastricht, but Maastricht is just the beginning of the debate on European Union. There is a job to be done out there. The Taoiseach will be working extremely well for us but once he comes back the debate will really start.

I welcome the Minister, Deputy O'Donoghue, to the House on this his first visit, and wish him many years of successful and satisfactory work in his new position.

On the Opposition benches.

Preferably. I move amendment No. 2:

After "development" to add to the motion the following:

"conscious of the positive contribution the creation of a Europe without internal barriers can make to the creation of additional employment, calls on the Government to adopt the following negotiating position at the summit in Maastricht:

1. to fully support moves towards a single European currency in conjunction with support for the Spanish insistence that a new Treaty contain a legally enforceable guarantee of adequate continuing financial support for poorer regions and states along the lines that already apply within the Federal German Constitution;

2. to support the democratisation of the European Community by giving extra powers to the European Parliament including the appointment of the President and membership of the Commission, and the introduction of a directly elected Upper House of that parliament with equal representation of all Community states along the lines of the United States Senate;

3. to support proposals for the extension of majority voting in the Council of Ministers in order to speed up the Community decision-making;

4. to simplify the proposals for co-decision making between Parliament and Council, which are so complicated in their present form as to constitute a potential barrier to progress;

5. to insist on a commitment by Heads of Government at Maastricht to revise the current proposals to reform the Common Agricultural Policy so as to guarantee continued support for those forms of agriculture which, by using locally produced raw materials, guarantee the security of European food supplies in all contingencies;

6. to support the development of a security and defence competence within the Community Treaty, so as to ensure that all states in Europe have a say in matters affecting their future and the preservation from external threat of the political union that is to be created;

7. to support the vigorous development of the Council of Europe as a means of allowing all European states, including those not yet ready for full Community membership, to participate in the building of a ‘Common European Home';

8. to demand that the European Treaty contain a commitment to the goal of full employment and a commitment to provide the means of achieving it; and

9. to support devolution and regionalisation within member states of the Community, including Ireland with involvement of elected representatives."

We are dealing with guaranteeing Treaty based funds for peripheral regions such as Ireland, a revision of the MacSharry Common Agricultural Policy reform proposals to maintain long term European self-sufficiency in food, a European commitment to the creation of full employment and support for Irish devolution and general regionalisation so that the benefits of European development will spread through the whole country and not be confined to the east coast. That is a summary of our extensive amendment which I take it my colleagues have read and digested in detail.

This debate is extremely welcome. It is welcome in itself to tease out the issues that will be before the various leaders in Maastricht next week. It is particularly important to try to inform public opinion of the importance of the meeting in Maastricht. Maastricht is the single most important meeting since the establishment of the EEC back in 1973, as we knew it then. The lack of public debate and popular discussion has been a major cause of concern for myself and, indeed, many Members on all sides of this House.

Interestingly, the two day debate in the Dáil last week went over the heads of 90 per cent of the population. It was laced with Eurospeak, and we all fall prey to that tendency because it is very hard to explain some of the concepts without using the terminology with which we have become familiar in these Houses. The only point made by all the speakers that was quoted to me at the weekend — and it was made regularly — was the explanation for the importance of a European single currency or an ECU. Deputy John Bruton's analogy was that if you took £100, did not spend any of it, travelled throughout the Twelve member states and arrived home, having changed your money in and out of all the European currencies, you would end up with £26. That simple explanation of the importance of a European currency, which is only one part of what Maastricht is all about, hit home in the language the people understood. We have converted large numbers to the concept of a single European currency with that one example and all the words that we have expended trying to explain this issue has really gone above people's heads, or fallen on deaf ears.

Thanks are due to the Irish Council of the European Movement and the Institute of European Affairs for their tremendous efforts to try and inform public opinion and to stimulate debate. At Maastricht we are looking at a European Community constitution in the making. In this country we should understand the difficulties in any written constitution which, effectively, the Treaties are for the Community. To amend them is fraught with difficulties and to add Articles to them is equally fraught with difficulties. We, above all, have tremendous sympathies for the enormous job that must be done in this area.

In the last decade we have seen very sluggish growth in the development of European concepts and the development of the European Community, with the exception of the last couple of years when there was a tremendous spurt of enthusiasm. Issues have taken off and gathered a momentum of their own that back in the mid-eighties none of us would have expected. The Intergovernmental Conferences have stimulated debate. However, this should not be taken in isolation because it was development on the international scene that polarised opinion and made us look more closely at exactly where the European Community is, was and should be going within international dimensions. It has been said over the last two years that there has been an international political revolution. I do not think those words are too strong. When we look back we see the whole 1945 post-war settlement and all it stood for, the framework and the balances of power that existed since then are all gone, some may say a certain stability has gone. There has been a down side to the post-war situation and thankfully, that too has gone.

The collapse of Communism in Eastern Europe, German unification and the demise of the Warsaw Pact, alluded to by Senator Lanigan, have all served to polarise and concentrate our minds on the concept of political union particularly. We were drifting along with the various issues on economic and monetary union, more or less looking to see what this nation could get out of it rather than having as our No. 1 priority what we could contribute to Europe. It is understandable why we took that line but I think the day for the mendicant mentality is over.

It is more in Central Europe's interest than in our interests that we have cohesion and that there are no peripheral areas with great disparity from the centre. It is how we request support, how we look for cohesion, how we look for the removal of the disparity that we recognise exists in the periphery at the moment, and how we treat our colleagues in Spain, Greece, Portugal and elsewhere, that will make the difference now rather than holding the cup begging from the European table, almost threatening them with the veto or whatever if they did not give us what we wanted.

There have been major changes in attitude. I welcome very much the revised view of where Europe, as a bloc, is now going. There is an added importance and urgency to the debate and to stimulating public discussion on all the issues with the referendum looming in a few months time. Going back a few years, there was enough difficulty trying to sell the Single European Act through the referendum, and only about 44 per cent of our people turned out to vote on that occasion; that issue was not as enormous as those we will be putting to them. We must stimulate interest among the people and ensure a good turn out so that there is a strong mandate for the Government — whatever Government that may be — to carry through in the political union area of Europe.

It is only now after a lot of talk that most of us are beginning to see the fog lift on the different aspects of economic and monetary union. We have been members of the EMS for some time now. We are fully committed to the next stage, the establishment of a European Central Bank, which I believe will be preceded by a European monetary institute, if I get the terminology correctly, and, once the European Central Bank is firmly in place, by 1998, we will be heading towards a single currency in Europe.

The Taoiseach made an interesting comment recently on his tour of certain Heads of State about the dilemma we find ourselves in in relation to having our macro-economic credentials in line for the establishment of a single currency and at the same time trying to ensure that the disparities that exist in the social and economic areas are removed through greater cohesion and support through new funding as well as an increase in the Structural Funds. We are expecting £600 million from the Structural Funds from 1992. For us to make maximum use and have maximum draw down of what we will be eligibile for in the budget and in the Book of Estimates, the Government will have to find the matching funds to comply on the additionality principle. Given our constrained financial position, the Government will have to look at increased taxation, which we all agree would be unacceptable, or increased borrowings which would be equally unacceptable. There is a dilemma there which is recognised, and the Taoiseach recently highlighted it in that to avail of the Structural Funds so as to remove the social and economic disparities which we all want to do there would have to be an increase in the budget deficit or increased borrowings. I am not sure how one squares that circle or how that equation is revolved, but the Taioseach's request that the principle of additionality be met by allowing private sector funding to be used to match the Structural Funds here, must be looked at again very carefully, providing what we are asking the private sector to do is realistic. They can only run so fast. They must walk before they run and there is only so much the private sector can absorb in any one year, because there has to be sustainable development which will build brick on brick to a point where they will be in a position to draw maximum funds down. How it will be switched from the public sector additionality to private sector additionality solely overnight I am not quite sure and would welcome an explanation. There is a dilemma and an explanation is needed from Brussels at this stage as to how we can comply with the requirements in relation to meeting the criteria for European Monetary Union, particularly the single currency criteria, and at the same time not increase the pressures on our existing budgetary deficit.

Basically, the fog has been lifting on European Monetary Union and at least we know where we are going. We have fairly defined criteria; we may not understand fully the impact but it is laid out and the procedures are laid out over X number of years. When one turns to political union we are in a minefield and certainly the fog is still thick and heavy all around on the various concepts and proposals in this area. If you talk to any one of us in this House let alone outside you would get a different version as to what their understanding of European political union may be about. I presume the most contentious area would in fact be the whole common foreign and security policy even though there are other areas that will cause problems, home affairs, judicial co-operation and the whole social area, but it might be easier to reach agreement and clarity in those areas than on the common foreign and security area.

We must accept that once our political indentity is established it will have to be defended and it will have to have its own common defence entity running parallel with it. It is this area that perhaps exercises most of the minds of people in the public houses, on the floors of different Chambers and in the workplace today. What do we mean by neutrality? All of us in this House have a different understanding of exactly the philosophical position on the definition of neutrality. Where do we take this whole debate from here? In Fine Gael we want European defence to be controlled by the European Community. We underline that and emphasise that very clearly. We do not accept that any decisions which will affect the lives of Irish people, whether they wish them or not, should be taken by outside bodies of which Ireland is not a member and over which the European Community has no control.

How far down the road of flirting with the Western European Union we can go is open to discussion. I have certain reservations in that area. Whether it is the CSCE path we should follow in terms of developing the defence entity is another option. The whole complicated problem of NATO and NATO's involvement with some of our partners in the European Community at the moment also has to be resolved. At the moment we stand aside from all of these issues. We have been in observer status only at recent Western European Union conferences and discussions particularly on the Yugoslav issue. That was laudable and I welcome that. However, there is a vexed area in as much as there is a lot of misunderstanding as to where we are going in this particular area. I would welcome resolution in the form of informed debate as soon as possible.

Maastricht will not come up with any final decisions. It is putting down a marker that the next phase will involve decisions in this area. We should take up that point and open a debate that will not stop tomorrow evening in these Houses but be an ongoing informed debate of the implications of the new agenda that is before us.

An interesting aspect has arisen in recent days in relation to the Finance Ministers meeting in Europe and the optout clause in relation to the single currency that has been allowed to the UK. There is no surprise in that. We all felt that some formula to accommodate them would be arrived at. If in fact that remains the final position in the latter part of this decade, when a single currency becomes a reality, Ireland will have the only land frontier in Europe between here and the North. That will cause quite a lot of difficulties in the type of Europe we envisage at that time. I hope the UK will certainly revise their position or that they can be accommodated within the overall European policy in this area in such a way that that land frontier will not still be necessary in terms of a barrier to trade and a fiscal barrier, as it will be and as it is perceived now.

The whole issue as to whether Ireland should be treated as an island in terms of cohesion and convergence funding — I understand it will have to be treated as an island in the new recently mooted convergence fund — whether it will be treated as an island in relation to Common Agricultural Policy reform and agricultural policy generally, which would make a great deal of sense given that it is a single geographical entity, needs greater detailed discussion. We all need to try to understand better the implications of this. We have seen a tremendous increase in cross-Border co-operation in recent times and I can see this area only improving, whether it will be officially or unofficially, but I would like it specifically discussed so that we can have an open policy with our colleagues across the Border. It is my understanding that that would coincide with the view of the Nationalist and Unionist community in the North.

In this country we need a radical revision of our attitude to Europe which, to date, has been rather conventional. I would like to refer to the comments of Professor Patrick Keating on his paper The Foreign Relations of the Union in which he states specifically:

The East-West conflict has hitherto been a constant element in the history of West European integration and a major force in the shaping of the EEC's system. It helped to term the community's territorial scope and political values and provided a stability which, in spite of negative characteristics, allowed West European States to overcome their destructive historical antagonisms.

He goes on to say:

It was not surprising, therefore, that the end of this stability has given rise to apprehension as well as celebration and now the European Community itself has to serve as a major centre of stability in the new European system, hence the pressing need to redefine its relations with the rest of the world.

Professor Keating summarises there the reasons that political union has so quickly become an item on the agenda of all Community meetings in recent times. As I said earlier, the events on the international political scene have catapulted the whole debate on political union to the top of agendas whereas up to this it was really a PS and an area which there was nervousness inbroching generally.

I would like to see the debate on the whole Community defence entity being considered and developed in a way that Europe would not be viewed as a military power bloc in the future. Given the change in shape of European territories at this time, we could be talking about a Europe of 24 or indeed 30 countries. I would like to see this enlarged Europe developed as a major civilian bloc, and the defence entity that is finally agreed would be party to that civilian bloc. There is a lot of nervousness in debating the whole concept of the defence of Europe. We think of defence only in military and super power concepts because that is really the only experience most of us have. I look forward to developments along those lines.

Many other issues will be on the agenda in Maastricht such as the majority decision, which has major implications for this country and is an area of which we should not be nervous, but encourage warmly. It will allow smaller nations to have a say in areas that, up to this, could be vetoed by the larger nations. The whole concept of co-decision and the toing and froing between the Council of Ministers and the European Parliament is far from clear and needs very careful viewing. Other issues are the democratic deficit and how we should resolve it, whether our new revamped European Affairs Committee will become the reality we would all like; the Irish position on the enhancement of the powers and numbers in the European Parliament; and — a point supported very strongly by Fine Gael — the creation of a European Senate where there would be equal representations from the different nations in Europe, be it a Europe of 12 or 30 members.

All these areas need to be teased out very carefully and developed. Above all I believe reciprocity will be demanded of us in the future and in dealing with our colleagues and as long as we want the support for cohesion I believe convergence will be forthcoming; we will have to reciprocate in the political area which may cause more difficulty, but it is much in our interest in the long run as in that of any of our colleagues in Europe.

An Leas-Chathaoirleach

I welcome the Minister for Foreign Affairs and call on him to address the House.

The Government's decision to open a debate in this House within days of a very full and constructive debate in Dáil Éireann, is a clear indication of the importance which they attach both to the opinion of the Members of this House and to the successful outcome to the Maastricht European Council and to the issue of European Union.

I am aware of the close interest which this House takes in all aspects of European Affairs. It is, therefore, fitting that on the eve of a meeting of such fundamental importance for the future of the European Community and for Ireland that there should be full and open debate on all the main issues which so directly affect the interests of our people. I look forward to hearing the views that will be put forward in the course of the debate and of learning of the particular concerns of Senators on the various aspects of the negotiations.

It is important that the contributions which will be made here in the course of the next two days should be seen as part of a broader and fuller debate throughout the country, so necessary for public understanding of the issues at stake at Maastricht. As this House will be aware, the Government intend to put the outcome of the two intergovernmental conferences on economics and monetary union and political union to the people in a referendum some time next year. Only one other member state, Denmark, is due to do the same.

Debates in the Oireachtas make a positive contribution to informing people who do not have to deal with the European Community on a day to day basis but who, nevertheless, have strong views about what they feel the Community can and should contribute to the quality of their lives and about what in turn we in Ireland should contribute to the Community. The Government will publish, in the new year, a White Paper which will explain the background content and implications of the provisions of the new union Treaty. In this connection, I would hope that these debates, the White Paper, and public comment and analysis will assist the electorate in making an informed judgment in the forthcoming referendum.

Before addressing the issues which will be discussed at Maastricht and outlining the approach which the Government have taken since the beginning of the negotiations, I should like to refer to the view which always seems to be present in any discussion of Ireland's approach to Community membership. It is the perception that our commitment to membership and our belief in the necessity of further European integration is determined solely by the level of financial transfers that can be won from Brussels.

I am especially dismayed that the expression "begging bowl approach" has been used by commentators to refer to Ireland's attitude to Europe. I heard it again this morning on the "Morning Ireland" programme. It is an expression that is as inaccurate as it is derogatory. In my experience the view which our Community partners have of Ireland and our contribution to the development of the Community and to the role and influence which it plays in the world, is overwhelmingly positive.

We are a small member state, we are one of the less prosperous regions of the Community and we have a number of economic and social problems — unacceptably high unemployment, emigration, location on the periphery of the industrialised populous centre and an underdeveloped infrastructure. These compel us quite rightly to look to the instruments of Community policy for the kinds of assistance which they were designed to provide.

Our approach is not unique. It is shared by all the other members of the Community who, in defending their interests, seek the best response from the Community and its member states to their particular concerns. It is so often forgotten that the cement which binds the Community structure together is a shared solidarity and a common objective. An example of this was the Community's contribution to the process of German unification.

Our approach to the present stage of European integration is the same as it was since we joined the Community. In applying for membership to the Community in 1961, the then Irish Government saw and understood what our European partners were about. Even at that relatively early stage, Ireland wanted to be part of it. We wanted to join in building on common values and a shared culture. There has been an underlying continuity of approach to the Community. This is nowhere better reflected than in the manner in which the Government have set about presenting their case and defending their interests in the present negotiations.

When we embarked, almost a year ago, on the process of further European integration by agreeing, along with our partners, to convene two intergovernmental conferences on economic, monetary and political union, we set ourselves four basic objectives: first, to contribute to the negotiations on the basis of a coherent and constructive set of principles which would draw on our experience of the Community over the past 18 years, reflect our concerns about the scope and impact of policies operating in the Community today, and signal our aspirations for the future of the Community at a time of great change in Europe; second, to protect the institutional balance of the Community by agreeing to changes in the structures and roles of the key institutions of the Community which would enhance the effectiveness, transparency and operation of the Community; third, to ensure that the substance of the innovations and modifications being made to the Treaty had at their core the interests and well being of the citizens of the Community; and fourth, to argue for a reinforcement of the commitment of the Community towards the economic and social development of its less prosperous regions, through the strengthening of specific instruments and through the operation of all Community policies.

On the eve of the Maastricht European Council, the Government have reviewed the state of the negotiations and measured, against the background of the objectives which I have just described, the extent to which the concerns which we articulated throughout the negotiations have been accommodated.

Our conclusion is positive. Certainly in some areas we might have wished for more, while in others we could have lived with less. Nevertheless, and taking into account the very different approaches of some of our partners, I believe that it should be possible to reach an outcome acceptable to all.

Senators will have seen the text of the new union Treaty. The overall shape of the Treaty, made up of three separate but linked pillars, reflects the evolving nature of the union and is one which we can accept. It will be a disappointment to some of our partners and to the European Commission in that the Treaty does not go further in putting shape and form on the federal vocation of which it talks.

Nevertheless, the three pillar approach is a sensible and logical compromise. The central pillar corresponds to the existing Community procedures as enshrined in the Treaty of Rome. The other two pillars represent the two areas where co-operation will remain for the moment intergovernmental in nature, common foreign and security policy on the one hand and home affairs and judicial co-operation on the other. When the time is right it should be possible to bring all three pillars together in one integral Community structure operating according to accepted Community procedures which have served the Community and Ireland well. Before examining the substance of the changes which are being proposed, I wish to say something about the principle of subsidiarity. This is a principle which will be at the heart of Community development in the years ahead. It can be defined thus. The Community will only act to carry out tasks which can be undertaken more effectively by the member states acting together than separately.

From the early stage of the negotiations some of our partners sought to enshrine the principle of subsidiarity in the Treaty. We recognised that there were areas where it would be in our interest to have the principle apply — social policy and the environment, for example. However, we argued that the application of the principle should be subject to two basic imperatives: avoidance of anything calling into question the Community's achievements and of anything detracting from the degree of integration brought about by the Community; and maintenance of the effectiveness of the Community decision making process. These two concerns constitute the basis of our approach to the incorporation of subsidiarity into the Treaty. In effect, our concerns were that the inclusion of the principle of subsidiarity in the Treaty should not impede the dynamic development of the Community. I am satisfied that as it now stands the article in the Treaty fully meets our concerns.

I wish to refer next to the provisions which have been included in the new Treaty concerning European citizenship, which I know will be of particular interest to the Members of this House. The concept of European citizenship in political union has been introduced and provides for rights of movement and residence; rights to vote (and to stand) in local and European elections; arrangements for mutual assistance or Community citizens in third countries; formalisation of the existing arrangements for petition to the European Parliament and the establishment of a Community ombudsman.

In addition, a development clause has been agreed whereby additional rights may be added to those provided for in the new Treaty. This will be done by the Council acting by unanimity on the basis of a proposal from the Commission. Decisions taken in this area would then be recommended to the member states for "adoption in accordance with their constitutional rules".

The establishment of rights provisions in the Treaty represents a major qualitative change in the basic law of the Community. Ireland welcomes this step which will have considerable implications for the future development of the union.

I wish to turn now to some of the key elements of the union Treaty and to outline their significance for the Community, for the member states, and for this country. The scope of Community action and the areas of policy where it will operate are being both deepened and expanded.

I will mention three areas which I know will be of particular interest to Senators — education, culture and the provisions relating to social policy. Ireland proposed a chapter on education. We received broad support from other delegations. This is, after all, an area where the Community should have an interest in developing its activities further. Education is fundamental to its economic and social development.

In the field of Community education, Community action, among other things, will be aimed at developing the European dimension in education. It will concentrate particularly on the teaching and dissemination of languages; the encouragement of student and teacher mobility and — this is of central importance — the encouragement of the mutual academic recognition of diplomas and periods of study. Youth exchanges and co-operation between educational establishments as well as the development of distance education will be areas where co-operation within the Community could be enhanced for the benefit of all.

The provisions in the Treaty relating to vocational training have also been considerably expanded. This, of course, is an area where the Community has already developed a fairly advanced policy. The elements which will be of particular importance for Ireland will be those providing for continuous training in order to facilitate vocation integration and reintegration into the labour market.

The rich tapestry of Europe, the diversity of its peoples, languages and traditions, is nowhere better encapsulated than in its cultures. The protection of national and regional cultures is now accepted as a basic ingredient of European Union. Ireland has a strong and vibrant culture. It is mixed and generous, spanning all fields. When, together with the European Commission, we put forward a draft article on culture there was considerable support for our text. We selected four areas where we felt co-operation could be stimulated — knowledge and dissemination of the culture and history of the European peoples; conservation and safeguarding of the cultural heritage of Europe; cultural exchanges and artistic and literary creation, including in the audiovisual sector. The more we understand and appreciate the history and cultures of our neighbours the easier we will find it to work and live together.

Social policy is one of the key issues in the negotiations. We argued strongly, and with success, that policy formulation in his area must be consistent with the overriding need to strengthen economic and social cohesion and to promote employment. We also felt that aspects of social policy should be closely tailored to the distinctive circumstances of individual member states. Wherever possible, the Community should avoid intervening in social matters that can more appropriately be dealt with at national or local level, or through the collective bargaining process.

We attach great importance to the development of the social dimension, which we regard as an integral part of the move to complete the Internal Market. We were, therefore, prepared to consider, on their merits, appropriate proposls to amend the Treaty, including changes to the decision making arrangements, in order to facilitate this process.

We argued, however, that employment should be specified in its own right as a major social policy objective of the Community. In our view this would be in line with the stipulation previously agreed in the Community that employment development and creation must be given top priority. As a result of our efforts there is now a reference to the promotion of employment at the very beginning of the chapter on social policy.

I have chosen to highlight these three areas as an illustration of the ways in which it has been possible to use the intergovernmental conference to improve the substance of the provisions that already exist in the Treaties.

A new chapter on development co-operation has also been introduced. This is an area where the Community plays a leading role on the world stage through the operation of the Lomé Convention and its extensive food aid and humanitarian assistance programmes. The new provisions of the Treaty on development co-operation will have among their stated objectives that of fostering the lasting economic and social development of the developing countries and most especially the disadvantaged among them; the smooth integration of the developing countries into the world economy, and the campaign against poverty in the developing countries.

I know of the interest and concern which many Members of this House have shown in relation to the Third World. I would consider the chapter on development co-operation a major advance in the level of commitment which the Community and its member states have made to assisting the developing countries.

At the heart of the changes which are being introduced in the areas of competence is the move to greater use of majority voting. The speed at which the legislative programme for the Single Market has been adopted has encouraged us to look more seriously at the way in which the Community functions and to assess whether there was not scope for a radical improvement in the decision-taking process. We concluded that it would be impossible to make political union work properly unless the operation of the Community and its institutions was improved and the decisions taken were made more effective. We began, therefore, by looking at the way in which decisions were taken.

The success of the Single European Act owes much to the fact that the vast majority of decisions have been taken by qualified majority vote. The acceptance of the greater use of majority voting is now seen as a necessity without which important decisions would be delayed indefinitely or possibly not taken at all. This, everyone agrees, would have serious consequences for the viability and evolution of the Community.

There will remain, nonetheless, areas where it would be imprudent to abandon altogether the principle of unanimity in areas of particular sensitivity. Such areas include taxation, certain aspects of social and environment policy, as well as the adoption of common positions or joint action in the fields of foreign policy and judicial co-operation.

The role of the institutions in the day-to-day operation of the Community has been an important part of the negotiations. The efficiency and effectiveness of the Community and its institutions were among the main questions to be considered under this heading. There was broad agreement on the need to make the institutions of the Community respond adequately to the new challenges which will arise following the implementation of the internal market, the attainment of economic and monetary union and the expansion of the Community into new areas.

The European Commission, the guardian of the Treaties, will be nominated by the member states under the new Treaty. The Commission will be confirmed as a body, by the European Parliament. The President of the Commission and individual Commissioners will still be nominated by the governments of the member states.

There is also a proposal that the number of Commissioners should be reduced to one per member state from the present seventeen members. This proposal has received considerable support. As the Community grows with the accession of new member states, it would be unwieldy and less effective to have an over-large Commission.

If I might now turn to the European Parliament, the democratic legitimacy of the Community is one of the most important aspects of the negotiations and concerns the need to ensure the democratic accountability of the Community institutions. For the majority of delegations this implies an increased involvement of the European Parliament in the legislative process and in the field of external relations. The reasons for enhancing the Parliament's role as part of the present process might be summarised as follows: the inconsistency of the Parliament's present limited powers with its status as a directly-elected and representative Community forum; the possible imbalance brought about by a situation in which Parliament feels itself unable to exercise adequate control over the decision-making powers of the Council of Ministers, particularly where this will have significantly widened and deepened its areas of activity and powers; the consideration that the absence of a greater role for the Parliament will continue to give rise to a sense of frustration which could ultimately undermine the decision-making effectiveness of the Community; and a continuing awareness that the role of the Parliament will need to be enhanced if electorates are to take the Parliament seriously and vote in significant numbers at future European elections.

A number of member states, including Ireland, were reticent about increasing the power of the Parliament at this stage of the development of the Community. Their arguments were: the consideration that member states — and this applies particularly in the case of the smaller member States — cannot exercise through the participation of their representatives in the work of the European Parliament the power and influence which it is open to them to exercise through their participation in the work of the Council of Ministers; the decisions taken by the Council of Ministers generally result from a genuine negotiation involving an effort to accommodate the interests of each member state. In the European Parliament, on the other hand, the political complexion of the Parliament will help determine the nature of the positions taken by Parliament; and the decision-making procedures of the Community are already cumbersome and any movement towards co-decision between Council and Parliament must be so structured as not to introduce significant delay into the decision-making process.

The negotiations on this central issue have been among the most difficult of all. However, there is growing agreement on the mechanism which will allow Parliament to have the right to reject the Council's position on Community legislation. This will involve, in essence, at the end of the procedure, the establishment of a conciliation committee made up of equal representatives from the Council and the Parliament who would meet to try to find solutions to any disagreements on draft legislation.

Decisions would be taken by qualified majority on the part of the Council and simple majority on the part of the members of Parliament. The outcome would be referred back to the plenary of both Parliament and the Council. Parliament would have the right to reject the legislation by a majority of its members if it continued to be dissatisfied with the degree to which Council had accepted or rejected its amendments.

It has always seemed to be that one can regard the European Parliament as having some of the characteristics of a Senate, for example the limited right of rejection of legislation. The consultative function of our Senate, which is the primary reason for its complex electoral system, is also mirrored by the right of the European Parliament to comment on Commission proposals and to suggest amendments.

I welcome these provisions which will mean a greater involvement of the Parliament in the Community decision-taking process.

The role of national parliaments in the scrutiny and consideration of Community legislation and developments generally must be reinforced. There is a proposal put forward by France to establish a regular meeting of representatives from the European Parliament and national parliaments which would hear reports on the State of the Union from the Presidents of the European Council and the European Commission and would consider major issues affecting the Union.

If this proposal is agreed, next Monday or Tuesday, the influence of national parliaments taken together with the important work already carried out by the respective parliamentary committees of the member states — including our own Joint Committee on the Secondary Legislation of the European Communities — will be significant. I do not fear, therefore, that the voice and contribution of national parliaments to the construction of the Union will be diminished or lost.

I wish to turn now to the question of economic and social cohesion. This is an issue which is central to our relationship with the Community and was the one on which we have devoted very considerble effort and energy. I would recall that in its influential report on Ireland in the European Community, the National Economic and Social Council stated:

...if Ireland is to argue that regional convergence is a shared Community objective and responsibility, and to advocate that Community policies to achieve it be adopted on a realistic scale, then Ireland itself must be capable of making a leading contribution to the formulation of those policies. Both the objective and the policies to achieve it must be advocated by argument of the highest quality.

This is precisely what we have done since the negotiations began. We were the first member State to table proposals on cohesion. We placed it among the central issues of the conference.

This is an approach Ireland must take given the importance of cohesion to our economic development. We have benefited from the operation of the funds and they have been put to good use here. Cohesion is a Community principle based on the concept of solidarity between the member states. We make no apologies for pursuing Ireland's interests in the area as part, of course, of a coherent overall policy on the Community.

Our fundamental strategy in presenting the case for cohesion has been to broaden the debate beyond the size of the Structural Funds, by emphasising the need for the principle to be at the very heart of all the policies of the Community. We have also emphasised the link which exists between the Community's clear commitment to European Monetary Union with its inherent implications for national control over central economic and financial policy areas and the dangers of an ever widening of the disparities between regions and member states.

We maintain that proper policies to encourage positive integration must be put in place together with appropriate levels of fundings to allow the less prosperous regions to cope with the financial impact of implementing Community policies as well as meeting the stringent conditions of economic and monetary union.

We have emphasised that, in addition to Treaty language, we will require commitments on increased resources for cohesion and flexibility in the operation of the funds. We have also supported a Spanish proposal that there should be a greater element of progressivity in the operation of the Community's own resources system.

In parallel with discussions on political union the member states have also been considering the provisions on economic and monetary union. At Maastricht we will consider the outcome of both IGCs. This will set in place an overall framework for European Union.

European Monetary Union will proceed in three stages. Stage one began on 1 July 1990. This first stage involves increased co-ordination of economic and monetary policies. Stage 2 will begin on 1 January 1994. It will be marked by the setting up of the European Monetary Institute, the forerunner of the European Central Bank. The framework for the co-ordination of economic policies will be strengthened with special provisions against monetary financing and excessive budget deficits. Before the end of 1996 the member states will consider the date for the beginning of stage 3.

This decision will be based on an assessment of the degree to which member states have fulfilled the conditions for transition to the third stage, which is the final step towards economic and monetary union. Some member states might be given a derogation, that is to say, they might postpone their entry to the third stage, if it is considered that they have not yet fulfilled the conditions on, for example, inflation. Ireland intends to be among those who join this stage from the beginning.

Economic and monetary union will involve close co-ordination of economic policies. In the final stage it will involve the establishment of a single monetary policy which will be administered by the European system of Central Banks, and a single currency, the ECU.

European Monetary Union is a challenge, but it is a challenge we are in a position to meet. For the last four years we have been successfully applying the kind of economic and budgetary disciplines required in economic and monetary union. European Monetary Union will bring benefits to the Community as a whole, and to Ireland as a small open economy, in removing barriers to trade in goods and services within the Community and in reducing transaction costs for businesses and individuals.

I have described the gradual — but confident and committed — approach to European union favoured by Ireland. Such an approach is especially appropriate in the field of foreign policy. The original six member states appreciated that there were many sensitivities in this area arising from differences in traditional interests and priorities — in a word, from history. It is no accident, therefore, that the founding fathers of the Community those first to forge economic interests in common and to allow foreign policy co-operation to grow naturally from this.

European political co-operation, as a process of regular consultation and co-ordination, began only in 1969, 12 years after the signature of the Treaty of Rome. EPC was formalised, and brought within the range of member states' Treaty obligations, by the Single European Act.

Over the 20 year period since 1969, considerable experience has been gained. Before describing the arrangements which will be under discussion at Maastricht, I would like to reflect a little on that experience, if I may.

A growing economic integration, of itself, encourages closer co-operation on foreign policy. As the Community develops, the member states come to have an increasing number of interests in common. The more cohesive and integrated our Community, the more natural it will be to turn a common profile to the outside world.

In addition to the natural influence of economic integration, it is, of course, relevant that many aspects of the member states' external relations fall directly under the Treaty of Rome, for example, external trade policy, economic assistance and development policy. I mentioned a few moments ago the greater definition which the new Treaty will give to the Community's development policy. Other Community arrangements, such as association and co-operation agreements, and the new, so-called "Europe" agreements with Poland, Hungary and Czechoslovakia, form part of an overall pattern of co-operation with our neighbours and with the wider international community.

This factor is more relevant than ever as Central and Eastern Europe, often in circumstances of some turmoil, come to terms with the task of building viable democracies and engaging in the difficult transition to market-oriented economies. Simply by achieving a deepening of the Community and the greater stability that this will bring, we will already have made a contribution to the welfare of our neighbours. They will be able to rely on the Community as a prosperous, forward moving entity on the European stage. Any suggestion that the Community was having difficulty in sustaining its own development would have the contrary effect.

A second lesson from the experience of European political co-operation is that a gradual approach, based on constant give-and-take, the development of shared ideas, the undertaking of common inititive, has served EPC well. Differences have narrowed, an instinct for co-operation has grown, but perhaps the most remarkable feature of the Community's efforts to develop a common foreign policy is that, quite apart from any intentions of our own, other countries look to the Community to assume greater responsibilities on the international stage.

There are many examples of this. When EPC began, one of the most important ventures on the political horizon was the CSCE. It took some three years to negotiate the 1975 Helsinki Final Act, which in its time was a high-watermark of co-operation and mutual understanding on this continent, and influenced, in its own perisistent way, the dramatic changes we have since witnessed in Eastern Europe. Co-operation within the CSCE was one of the first priorities of EPC. Our experience there showed that united action by the Community — a strong sense of our Community identity — did not distance us from our neighbours but, on the contrary, worked to the advantage of rapprochement throughout Europe.

In the aftermath of the changes of recent years, as the traditional confrontation between East and West has disappeared, there has been something of a political vacuum in CSCE which has been filled to a considerable degree by the Community's leadership. As Members of this House know, the Community played a major part in drafting the Charter of Paris adopted a little over a year ago — in November 1990. When the Taoiseach went to Washington during Ireland's Presidency of the EC he reached agreement with President Bush on a new procedure for political consultations between the European Community and the United States. The significance of this was that a country as important in the international scene as the United States saw the Community as a dialogue partner on political as well as economic subjects. The pattern has been repeated in many other cases — with Canada, Japan, the South American countries and so on.

An example of the political role of the Community on the international stage is the part which it is being asked to play in the Middle East Conference co-sponsored by the United States and the Soviet Union. One of the pillars on which this remarkable peace effort is built is the awareness that the constructive involvement of outsiders can be of great assistance to the parties more immediately concerned in the conflict. The Community is determined to maximise its contribution to this peace effort by speaking with one voice.

Other examples of the efficacy of the Community in international life are easily found. Since the middle of the eighties we have played a facilitating role in Central America. The regular visits of European Ministers to the region and the equivalent meetings in Europe — most recently here in Dublin in 1990 — have been an occasion for bringing all sides in that troubled region together and fostering solutions based on political dialogue and respect for human rights. Once again the economic model provided by the Community has had its part to play.

Nothing more clearly illustrates the qualitative and quantitative leap in the Community's involvement in foreign policy issues than the efforts we have been making to bring peace to Yugoslavia. Our instruments of action have been more varied than ever before — an active diplomacy, a peace conference, EC monitors. The Community's role in Yugoslavia has had the support of both the CSCE and the UN SEcurity Council.

It is reasonable to see our attempts in the Community to speak with a single voice on international issues as a leading example of something which is happening in different parts of the world — a tendency for countries of medium or small size to aggregate their influence so as to take part more effectively in dialogue at the global level.

Regional co-operation is one way in which small countries as well as large can play their part in broader international developments. Such co-operation in particular areas of the world — be it the Community, South East Asia, North Africa, or South America — can be a building block in efforts to undertake effective action at the level of the United Nations, which I think all of us agree should be one of the principal objectives of the international community in the nineties. The absence of a co-operation among European countries or in other parts of the world, or even the resumption of historic rivalries, would prejudice the hopes which are now being expressed in all quarters that the United Nations can fulfil its original objectives — to become the vehicle for a more rational world order more responsive to considerations of justice.

I have gone into some detail in describing the practice of European political co-operation because it is against the background of practical experience of this kind that the foreign policy provisions of the Treaty are being negotiated.

Against this background — which is one of success, and a success welcomed by other countries with whom we deal — Ireland has no difficulty with the broad objective of replacing the EPC provisions of the Single European Act with a more ambitious arrangement for foreign policy co-operation, the common foreign and security policy or CFSP which has been taking shape in the conclusions of successive European Councils and in detailed negotiations with the Intergovernmental Conference.

The CFSP is best understood as building on or enlarging the arrangements that already exist. It will be based on stated objectives which are very much in line with our own approach to international relations. It will involve a strengthening of institutional arrangements in the foreign policy field. The separation between the Council and EPC ministerial meetings, which we started to overcome during the Irish Presidency by convening meetings which brought a more coherent approach to the Community's external relations, will finally disappear. The Commission will acquire a right of initiative alongside the member states. Other administrative changes will follow. While CFSP will remain one of the pillars to which I referred earlier, it will be closer to the Community pillar than were the EPC provisions of the Single European Act.

The draft Treaty envisages that the objectives of the CFSP will be pursued in two ways: one of these will be by establishing more systematic co-operation between member states. Broadly speaking, this is a continuation of present practice in EPC. Several partners have been urging that an explicit reference be made to the responsibilities of EC member states which are also members of the UN Security Council. In addition to systematic co-operation, the draft Treaty envisages the gradual introduction of what is now to be described as "joint action" in the conduct of areas of foreign policy where member states have essential interests in common.

The essential quality of joint action is that it would commit member states in the positions they adopt and in the conduct of their activity. Whenever the Council, on the basis of general guidelines from the European Council, decides on the principles of joint action, it will lay down the specific scope of joint action, the union's general and specific objectives in carrying out such action, is duration, and the means, procedures and conditions for its implementation. That is to say joint actions will have a carefully defined scope which can be reviewed as the action proceeds. We have sought to ensure that in agreeing to joint action in any area the Council should have specific criteria to guide it in its decisions, including in particular a requirement to define the scope of the action. This was accepted at the ministerial meeting this week and I am confident it will form part of the final Treaty.

On decision making we have taken the view that for joint action, which is being introduced into the Treaty for the first time, all decisions on matters of policy should be by consensus. We have contemplated the possibility of majority voting for limited implementing matters provided adequate safeguards can be built into the Treaty. Several of our partners would like to go further and provide for majority voting in a wider range of cases. We consider it essential that at this stage of the Community's development, any compromise formula should ensure that substantive decisions, where matters of principle may be at stake, should be taken by unanimity.

The Intergovernmental Conference is also considering the question of security and defence. Some of the most complex issues in the negotiations arise in this field, so much so that even after the two day meeting of Foreign Ministers on Monday and Tuesday, a number of questions remain unresolved.

The background to the discussion is clear. Today all European countries are trying to come to terms with the new landscape which the fall of the Berlin Wall and other momentous changes have felt in their wake. The Warsaw Treaty Organisation has disappeared. The Atlantic Alliance has reviewed its policies and strategy and adopted a wider view of security that encompasses political, economic, social and environmental aspects. A new institutional relationship of consultation and co-operation has been established between NATO and the Soviet Union, the Eastern European countries and the Baltic States which envisages regular meetings between NATO bodies and these countries on security and defence matters.

What is also clear is the very strong tendency towards the view that the political union which we are bringing about can only play its appropriate part in European developments if it develops its own perspective on security questions and, in the longer term, considers the formulation of a common defence policy.

Looking to the future, and in the light of our profound commitment to the Community, we have accepted this idea on the understanding that the other provisions of the security chapter of the draft Treaty are settled to our satisfaction.

We accept, therefore, that the issue of a common defence policy can be taken up in new intergovernmental conference negotiations in five or six years' time with a view to a new Treaty or amendments to the existing Treaty. This would leave the nature and content of a common defence policy to a future negotiation and would be in accordance with our long standing commitment to partners that if the Community were to develop its own defence arrangement for its security we would consider participating in these arrangements. The outcome of any future Intergovernmental Conference on this issue would, like the present IGC, require unanimous agreement among the member states.

In the meantime, the security role of the union should be considerably broadened. It could include areas such as arms control and disarmament, arms transfers, peace-keeping and non-proliferation of chemical and nuclear technologies. The limitation imposed by the Single European Act that co-ordination should take place only on the political and economic aspects of security could be removed.

It follows therefore that I see merit in agreeing that security considerations in the widest sense could be taken into account in the discussions under the co-operation provisions of the Treaty agreed in Maastricht. This would permit the Twleve to develop their identity in those many policy areas — some of which I have just mentioned — which fall into the category of preventative diplomacy. It would also permit the Twelve to assess the potential implications for their security of situations such as the Yugoslav crisis.

It may be that certain of the policies defined under the CFSP will have operational consequences which could usefully be taken up by the Western European Union. This is why the Intergovernmental Conference is considering whether a link with the Western European Union might provide a way of establishing a framework within which a defence role for the Community might be developed.

There are differences of approach among our partners as to the manner in which the Western European Union link should be defined. Some partners see the Western European Union as an integral part of European union with organic links to the union. Others would prefer it to stand in an autonomous relationship but taking guidance from the Union. Some have concerns about the implications of all this for NATO. I believe that these differences will be resolved in a manner satisfactory to us.

The steps I have just described would represent a substantial advance in the way the Community deals with security issues. It is a step which we are glad to support in the interests of a coherent, well-rounded approach to the whole field of external relations.

I would point out to the House that the draft Treaty under negotiation would not involve Ireland in a mutual defence commitment. Nor would it oblige us to become a member of a military alliance. Moreover the draft on the table recognises our traditional position with regard to the military alliances, as agreed at the second Rome Summit in December of last year.

From Ireland's point of view, we intend to bring to the discussions in the union those values based on our tradition and experience that we have always brought to the international conference table. We will emphasise that security requires many different kinds of action, including action to address such causes of instability on the arms race and underdevelopment. We are convinced that here in Europe, which has seen so much suffering and destruction in war, military considerations will disappear more and more from the foreground of political action.

It was partly with this very objective in mind that the Community was founded. And as we develop our common foreign and security policy, we are called on to remember that men like Jean Monnet aimed not only to end conflict among the member states of the Community but also to be open to other European countries and to ensure that the Community would be an example and an influence for those far beyond our borders.

The next decade will mark a major advance in the march towards European union. The Community will see the accession of new members and will develop its policies and institutions in order to allow it play the role which is expected of it by its citizens and by the rest of the international community. The objective of European union to which Ireland is fully committed remains to be elaborated in all its detail, but the policies which are now being formulated and the complex network of international agreements which the Community is concluding will constitute a firm and stable foundation for the final construction.

Ireland will continue to play a full and active part in the elaboration of those policies and ensure that they serve not only the interests of the Irish people but the people of Europe as a whole. Our commitment to European construction and the ideal of an ever closer union among the peoples of Europe is, and always has been, enthusiastic and wholehearted. We will put the same dedication to the task of designing and constructing the new Europe to which all the people of Europe — both East and West — now aspire and to which they have a right.

An Leas-Chathaoirleach

Is Senator O'Toole, as leader of the group, taking 20 minutes?

I intend taking 15 minutes and giving five minutes to Senator Norris.

An Leas-Chathaoirleach

Is that agreed? Agreed.

I compliment the Minister on such a full and comprehensive outline of the European scene and the discussions although I disagree with him on a number of points. I will deal with the area of foreign policy if I have time.

I have a fundamental problem with the beginning of the Treaty which may be one of articulation or translation. At the beginning there is a commitment by the high contracting parties to establish a union and then it goes on to tell us that there is a commitment to establish a European Community. Therefore, we are immediately faced with two different titles. From my reading of the draft Treaty which is to be discussed next week, we are actually moving into a federation in the sense that it has all the aspects of a federation: it has a complete constitution and the authority at central level to impact on the lives of the citizens of each country in the union. Will the Minister not agree that we are moving into a federation? That point needs to be clarified.

Many aspects of this draft Treaty would be of great interest to a number of people throughout the country. I was astonished to hear the Minister say, in passing, that Members of the House should be aware of various matters in the Treaty. I have an abiding interest in this Treaty and I spent the last two years doing little else except trying to follow up the debate at all levels. However, I have had a continuing problem getting my hands on the various drafts as they were published. It took me a month to get the Luxembourg draft last year and I only got the Maastricht draft a number of weeks ago. Earlier we talked about the fact that 90 per cent of our citizens do not have a great deal of information on what is happening in Maastricht; I would go further and say that 90 per cent of Oireachtas Members have no idea of what is being discussed. I do not believe it has been widely circulated. I have a copy of the Treaty but that is because I looked for it.

The document the Senator is referring to has been in the Library for a considerable period of time.

I stand corrected.

Approximately one week.

The Senator must not visit the Library very often.

On a recent visit to Brussels I pleaded with two Commissioners for a copy of the Treaty and I failed to get it from either of them. They both told me it was a confidential document.

Again, in the interest of being genuinely helpful may I explain that part of the difficulty was that the documentation before us for consideration changed as the negotiations proceeded? We have had many different papers at various times. There was a difficulty not only for Senator O'Toole but even for us at times, to try to keep in touch with all the issues. Proposals were being put forward nearly every 15 seconds by member states on various issues. Even last night ten or 15 proposals were put forward at the last minute and the Senator knows the difficulties which can arise from proposals being put forward at the concluding stages of negotiations.

I certainly do. I know the tricks of negotiations and I understand the mushroom policy better than most. The mushroom policy of keeping people in the dark and covering them with whatever makes them grow best has proved effective on many occasions. I know how it works and that is why I am so interested in this whole idea — I live by that particular sword myself.

I firmly support the Government's commitment to education. The fact that the most important and fundamental area of social policy, namely education, was excluded from the 1957 Treaty of Rome has been a source of great annoyance to me for many years and I have no doubt it was excluded for all the wrong reasons. The great conservative forces of Church and State at the time ensured that there would be no interference with education. On at least two occasions in this House last year I asked that Articles 117, 118, 128 etc. of that Treaty be amended. I also wrote to the Government and the Taoiseach and I have spoken publicly on a number of occasions about this. I want to put on the record my sense of gratitude to the Government for pushing this point and, more than anything, I welcome the statement by the Minister that Ireland proposed a chapter on education, which I know to be the case. That shows the progressive nature Ireland adopted in many areas of those negotiations. It is important that that should be noted having regard to the number of discussions which have taken place on per-ipherality, which I do not propose to deal with here.

The proposals in relation to education aimed at developing a European dimension, particularly through the teaching and dissemination of the language in member states, encouraging the mobility of students, promoting co-operation and the organisation of exchanges are welcome. This will allow us to participate in a more progressive and positive manner in discussions with our European partners.

It is important to realise that a sharing of sovereignty is not a diminution of sovereignty. I have great difficulty with the whole mish-mash of contradictions to which I have listened on this subject, many of them from people with whom I share close political views. There is a total lack of understanding of where we are going in European terms and abuse and misuse of terminology in relation to sovereignty. Words like pacifism, neutrality and sovereignty mean the same thing to different people and this has created a lack of understanding of where Europe is going.

Over the last year we have seen a process of disintegration in the East and of integration in the West; and this is a model of the sort of contradictions that are taking place in national debate here. We were remiss in giving the people of Ireland a full and accurate presentation of the development of negotiations during the Irish Presidency and the Luxembourg, Italian and Dutch Presidencies, in particular, and, as a result, we have a serious problem to address.

I do not understand what is meant by "joint action". I have read and re-read that part of the Minister's speech and it is cloaked in an ambience of Civil Service terms and the language of diplomacy which defy any serious interpretation. I have no doubt it was intentionally written in that way and if I were to write it, I am sure I would to likewise but some time in the future it will have to be explained. The Minister said it is Ireland's view that this should work on the basis of consensus but I note that he did not say it would work on the basis of consensus. That point should be clarified.

The matter of joint action will have to be agreed by unanimity and then the question of how it will be carried through. Procedural or tactical efforts may be by qualified majority voting. We still have to wait until the Maastricht meeting because others want qualified majority voting on all aspects of it; some of us want to be careful and cautious because we do not want to find ourselves sidelined on any particular matter.

I appreciate that clarification. It is important that, as a neutral country, we know where we are going and that we understand what we mean by being neutral. There should be a debate among the Irish community on neutrality and we should start that debate by asking what our neutrality means. Is it active or passive? I do not know how we will explain to our children and grandchildren, or how the teachers of another generation will explain to their pupils, that although we were neutral, we stood idly by while Stalin and Hitler killed millions. I do not believe the people who favoured neutrality meant it to be like that.

We are part of the United Nations and through our peace-keeping role we have made an impact in the area of active neutrality, but this is where I sound a note of caution. I would prefer to see any agreement on joint action being taken under the aegis of the UN because I am totally opposed to the replacement of NATO by any other European police or army. That is not what is intended by our own Constitution and it should not be included in the constitution of this Treaty. Incidentally, will it still be called the Treaty of Rome or will it be called the Treaty of Maastricht? Whatever it is called, I urge the Government to take that line.

I do not know any model of a neutral country. Switzerland and Sweden, who are often referred to in debates on neutrality, are not neutral countries. We should never have any aspirations to be like Switzerland, to launder the ill gotten gains of various criminal activities or Governments with whom we do not agree. Neither should we model ourselves on Sweden which, in a sense, has grown rich and wealthy supplying arms to both sides in various wars. Those countries are not models of neutrality. A model of neutrality must be one on which we can assert our sovereignty, on which we can make our sovereignty work for world peace, and it is clear that peace will not come by words alone. As a community we must be prepared to commit ourselves in the interest of peace.

I am worried about the level of debate and discussion which has taken place on the entry to the European monetary system. The Minister ourlined various steps that will be taken this year, in 1993, in 1994, in 1995 and so on. However, two fundamental principles have been established for entry to the European monetary system; the first deals with the Exchequer borrowing requirement and the second with the debt-GNP ratio. It is stated that the Exchequer borrowing requirement should not exceed 4 per cent. Our present Exchequer borrowing requirement is less than 2 per cent, will rise to approximately 3 per cent by 1993 and will hover around that figure. We will have no difficulty in that area because we have good control. However, when it comes to the debt-GNP ratio the picture is different.

The demand by Europe that our debt-GNP ratio be reduced to 60 per cent before entry to the European monetary system is unachievable. In earlier drafts and negotiations, it was stated that countries with a debt-GNP ratio of 60 er cent or lower or countries that are making progress towards achieving that rate, may enter the European monetary system. Our debt-GNP ratio was approximately 140 per cent in 1986-87 and is down to approximately 110 per cent at present. Despite our poor financial situation this year — and the stockbroker economists do not tell us — it will also reduce this year albeit marginally. It will be further reduced next year and under the Pro-gramme for Economic and Social Progress should be around 100 per cent by 1993; I believe we will achieve this objective by 1994. The market forecasters — although they have never been right — claim that our debt-GNP ratio will be towards 100 per cent in 1993 will be lower than 100 per cent by 1994-95 and will be down to the low nineties by 1996. There is no reason to believe that that is not achieveable, but we would want to make sure that the entré is retained for us in that area of negotiations.

I indicated to the Cathaoirleach that I intended giving my last five minutes to Senator Norris, so I have one minute left. I will give a quick resumé of what is important, and what is important is education. I want to conclude with education, where I began, and to say that as I see it the fact that the Government have taken on board what I and my union, which I think is a lone voice in this country, have been pressing for during the last two or three years and that I have discussed with various European Commissioners is a success story — the fact that by the end of this week we will bring education into the Treaty. That can only be good for Ireland in the future.

I certainly see it as the opening of the floodgates to allow a greater funding for our educational system. It will allow us to invest in the infrastructure. May I say to those people who will argue against this — and I can assure Members of the House that there will be arguments at local level — that the important words in the proposal are that the Communities should contribute to the development of quality education by encouraging co-operation, by supporting and supplementing the action of member states while fully respecting the responsibility of the member states for the content of teaching and the organisation of the educational system. In other words, this is not a question of Brussels determining what is going to be taught in our schools; it is not a question of Brussels determining how our schools are going to operate. It is simply Brussels giving an indication in that word "supplementing", which, incidentally, has only been changed in the last two weeks; previously it was "complementing" and I think the change is for the better. It is now supplementing the position of the member states and that is to be welcomed.

Recognition of the qualifications of different countries was mentioned by the Minister. That is in fact the subject of a European Directive already and it is a Directive which has not been implemented. To give an example of how ridiculous it can be, I came across in the last couple of weeks no more than 20 miles from the Minister's own house — this may indeed be a constituent of his — the case of a teacher who was trained in Coleraine with a degree in primary education which included professional Irish — that means Irish to a degree standard — and that teachers' qualification has not been recognised by the Department of Education here, though we, who put a much sterner ruling on it, see that it is absolutely correct that it should be recognised. That is the kind of difficulty moving from high principle to the implementation at local level. I would say to the Minister that these are the kind of things we must ensure to have implemented.

Overall I welcome this debate. I am sure we will have many differences of opinion. I want to put on the record my support for and also my appreciation of the line that the Government have taken on the education area. They really will go down in history for having successfully pressed for the inclusion of education in the European Treaty.

I would remind Senator Norris that he has three minutes.

Thank you. I am grateful. It is a short amount of time, but since I am going to Australia tomorrow to promote Dublin and Ireland for a few days I would not have the opportunity otherwise. Time being so limited, I would like to draw the attention to the House to two very useful booklets that have recently been published: Implications for Ireland: Political Union by Paul Gillespie and Rodney Rice and published by the Institute of European Affairs and Economic and Monetary Union from the same source. It is important that we have an informed debate. This debate in Seanad Éireann comes a little bit late in the day for one of its primary purposes, which is to inform the Irish people about the central issues. There are so many Eurospeak abbreviations — Common Agricultural Policy, CFCSP CSCE, EBRD and so on — that many people find it very difficult to penetrate this and if a debate like this can help to illuminate these areas then it will do a very good job.

There are problematic areas. There is, for example, the balance between the Council of Ministers, the Commission and the European Parliament. I have to say straight out, I am all for democratic accountability. I am all for the strengthening of the European Parliament. They are, after all, our elected representatives. I know there is a problem for a small country such as Ireland, but that only really exists in the mind if we continue to regard ourselves as an isolated element. If we believe in some kind of ideology, be it of the Left or the Right, then the people of each country, as Europeans, voting as Europeans, will vote people who reflect those general views into the European Parliament, and I for one am prepared to trust them.

I would like to indicate what some of the main areas are, as suggested in this book. Because of the limited time it is no harm for me just to do this. Eight issues have been isolated. The first one is: it is likely that Ireland's stance on the most advantageous balance between federal and intergovernmental decision-making will become increasingly incoherent as more powers are transferred to the Community. Is there a contradiction here that needs to be resolved?

Secondly, there is the question of cohesion which, as the authors rightly point out, goes to the heart of what is at stake. Here again I urge the Government to take the strongest possible line. We do not want a two-tier Europe. I do not have any apologetic feelings about what is regarded as the begging bowl approach. We are part of Europe; we have entitlements. One of the reasons given to us for going in was this element of cohesion: that the outlying areas, the disadvantaged areas, would all be brought up, that it was a moral, political and financial responsibility of the entire Community. We cannot have individual economies retaining their absent dominance and not caring about the rest of the Community.

Acting Chairman

You have one minute, Senator.

In regard to the new chapter on development co-operation, I hope Ireland will try to put some teeth into this because I believe that the consolidation of the European market will in fact substantially and adversely alter the balance of benefit for the developing world. The Minister has indicated that his position will be to try to redress this. I would encourage him to do that because I do not think we can have a smug, self-satisfied Europe in isolation. We must address the global position, the North-South divide and so on. In terms of foreign policy and neutrality, why not let us be neutral? Why not let us maintain this position? I do not want to be part of NATO. As far as defence policy coherence is concerned, and foreign policy, look at the fiasco of the attempted European intervention in Yugoslavia.

Acting Chairman

I am sorry. You will have to conclude, Senator.

If they are serious about intervening, instead of sending these unfortunate stooges over to interpose themselves on the ground, why do they not run some kind of naval intervention to prevent the gunboats destroying the city of Dubrovnik? I regret that I did not have longer but I am grateful for the opportunity of putting even these fragmentary remarks on the record, and I commend the two studies which I mentioned to the further study of the House.

Acting Chairman

I am grateful to the Senator for his understanding of the situation. May I take this opportunity of wishing you bon voyage.

First of all, I welcome the fact that the Seanad has been given the opportunity to consider this important matter. I always have had the view that the Seanad should be a prime mover in terms of our activity on a European scale and I believe that as part of our discussion on reforms there is ample scope for the Seanad to refocus on that area. However, that debate is for another day.

I liked the overall tone of the Minister's speech this afternoon. It is long overdue that we become much more positive about our participation in Europe. For far too long we have had, whether it has been engendered by politicians, by the media or whoever, a less than enthusiastic attitude which always seemed to be on one track: that somehow our role was simply to hope we could get some benefit, no matter where it came from, no matter how little it was, and that this would somehow or other satisfy our needs in a whole range of areas. I do not believe that that has ever been the case, but certainly it has been portrayed on far too many occasions as being the view of Ireland's participation in Europe. I have always had the view that because of our position, and now our length of time in Europe as an equal partner with many other European countries, it is time that Ireland took a very forward-looking view with regard to the continuing developments within Europe. This is particularly important now with the change in Eastern Europe and the new agreements with the EFTA countries. The whole question of what Europe is and what it can be is changing. Ireland can play a leading role in that context. I would hope that over the Maastricht Summit and beyond our position in terms of what our obvious needs are, will not alone be cemented but we will begin to move into areas of finally formalising our views as to what we mean by neutrality, defence and all those questions. In a general sense, if our participation is to be worthy I never felt that would pose a threat to our Irishness or to our identity. I always felt that using our own cultural and national identity in a very positive sense emphasises and enhances what our Irishness means. It is by finding ourselves in a defensive role in that context that we lessen or diminish in some way what we as a people have to offer. I have always regretted that. I hope that sort of negative defensive attitude is at an end. It is very important for us as a people that it be so.

We have one of the largest and youngest populations in Europe. We owe it to them to instill in them the confidence they should have, in terms of the standards of education now being attained in this country, to go forth in Europe with a hell of a degree of confidence about where they are coming from. It is up to the leaders in this country, not just the political leadership but right across the board, to ensure that that confidence percolates through the system so that young people in particular will have no fears about their participation in Europe. If we can achieve that, or begin to move in that direction, there will be tremendous benefits for this country both in terms of the opportunities for our people to gain experience Europe wide and for peoples of other European cultures to come to this country. When we consider what has been achieved historically throughout the world over the last 100 years, and even before that, we find that Ireland, a very small country, left a very identifiable stamp of what it stands for, and I believe its people and its contributions on so many levels can be part of a new dawn, particularly in the context of a developing Europe. The benefits that will flow to us as a people and right throughout our economy on many levels, will be clear for all to see.

One of the big questions being debated is European monetary union. Ireland is part of the EMS and we can see that the benefit of that involvement is already having positive effects. Whether we will move to a single currency remains to be seen. I think the Irish attitude is the correct one. If we really believe in what Europe is going to be in the future, then the less complicated the structures are for dealing with each other, and the more simplified they become, the better for all of us. I am not particularly hung up on whether it is a union or a federation. As somebody said, all these terms have different interpretations for different people. What I am concerned about is our role and the benefits to us as a people because of our direct involvement in Europe. However, because of that involvement there are down sides. We can see the obvious up sides in terms of Structural Funds and the benefits that have accrued to agriculture; they are easily identifiable for us, but there are responsibilities placed on us as a people and they come into the area of give and take in helping to develop Europe itself. There will be aspects of the development and of the integration of Europe with which we will not be entirely comfortable, but they should be seen as part of our role in terms of what we have to give in order to receive many of the benefits we do.

I believe such questions can become clear in the minds of our people if dealt with correctly. It has been the fear to identify clearly what these issues are that has led to some of the problems, and also the fact that they will not even be addressed. I welcome the discussions now taking place, even if only tentatively, on European defence and on our position on neutrality. It has been a long overdue debate in this country and it is one that will certainly have to run its course. I do not have any difficulty with Ireland becoming part of a committed Europe in the many areas we have identified, including defence. If that means some sort of a military alliance in a European context, I have no problem with that either. I see it as part of our involvement in all the issues that make us Europeans.

I do not believe there is a role for any country or any people who want to pick certain cherries from the tree and not face up to their responsibilities in other areas. To me it is logical that, as a full participant in an increasingly integrating Europe, we must participate in all the areas that will be integrated and all the policy areas that will be formalised. I do not believe, for instance, that Ireland has ever really been a neutral country — that is what many people call it. We have always been pro-Western and supportive of the United States. If we talk in a simplistic way and say we are neutral or compare us with Sweden, one of the biggest arms producers in the world, the debate could go on and on. But the reality is that there is a role for Ireland to play in that context. Because of our neutral background we can have a very positive outlook on what defence and a military alliance would mean. It would be absolutely appalling for us to absent ourselves from that type of discussion and to do it on the basis that we were not really interested or that somehow or other it was too difficult a national political question to face up to. To adopt the attitude that, rather than facing that, we would simply walk away would be disastrous. You would immediately be creating a two-tier Europe on whatever level you like to look at it.

I do not think that a country like Ireland, which is very small and vulnerable in such a wide range of economic areas, can afford at any stage to give the impression that we are somehow incapable of participating at all levels in the development of Europe. It is absolutely essential that we participate to the fullest in those areas so that we can have an impact on the policies, strategies and agreements that emerge. In that way we would get an agreement that has some influence from an Irish point of view and, therefore, some benefits from an Irish point of view. Very often the argument is hijacked into very emotive realms and when that happens it becomes difficult to get a serious debate so that everybody can put a reasonable point of view and have a reasonable understanding of what is actually being said. It would be my wish that this Government would have a very open and definite attitude towards having the fullest possible discussion of all those ideas.

One of the items I want to bring up here is peripherality. Now we have "subsidiarity" and "cohesion"— words keep flowing in all directions. There is one thing I cannot understand when we look at the map of Europe and see where Ireland is located. Countries like Denmark seem capable of forming what they call the Nordic Union and that does not seem to impinge in any way on their membership of the European Community. I do not understand why Ireland, because of its peripherality, does not have a definite trade agreement with the United States of America. I think this is relevant in the context of this debate because our need for the sort of relationship is becoming more and more obvious as a result of the development of Europe. As Europe expands further eastwards we will be even further from the centre. I always feel we have a huge back door that we should be trying to shore up.

It is obvious that America, as a country, has needs. In making such a proposal I believe we have a lot to offer. I think this is something the Americans would look at with interest. As I said, I believe we have a lot to offer them in terms of mooting a definitive trade agreement which would help to expand our opportunities in another direction so that we would not be limited by what may happen in Europe. In this way we would create major trade opportunities for ourselves and for America in the European context. Ireland is one of the obvious centres in Europe for America, Great Britain is probably another one. Because of our relationship with America, if a properly thought out package was put together, the Americans would be very interested and something could come out of it.

In the early sixties, during the time of Seán Lemass, this idea was mooted but, for whatever reason, was not thought opportune. However, for me the merits of this suggestion have not diminished. Indeed, my view is that the merits have grown in terms of need and the opportunity. If other member states can form trading blocs with countries, in my view, outside the Community, it would not be illegitimate for us to act similarly where there are obvious benefits for us and when it enhances and strengthens our hand in the European sense. I do not see a conflict between the two because, as I have stated, other members of the EC do not have that conflict. It has strengthened their position and enhanced their ability to do business on a wider scale. I believe very strongly that this country should be seeking to at least explore and see what possible benefits could accrue from something like that.

Agriculture is probably the most highlighted area of our involvement in Europe. I am not satisfied — and I do not mean to be over-critical — that Ireland is getting the message across of the importance of agriculture to our economy and also the social implications. When you look at any EC country you realise that none of them has the obvious dependency on agriculture we have. If we pursue some of the lines being suggested at the moment, we will transpose into rural Ireland the ghettos we have in Dublin and every other city in this country. Where are the benefits? There are obviously no benefits. Why, then, are we allowing ourselves to be forced down this road?

I am not an agricultural expert and I have never pretended to be, but I meet young people in farming today. They have come through the college system like many young students looking for jobs in the city. The relationship between rural and urban has changed in the last few years. I wonder what future are we offering those people. Are we getting it right? I believe there is a failure at IFA leadership level. I do not believe that in today's world they are providing themselves with the resources that are necessary to deal with many of the problems they are facing. This is something I regret. I believe that is something many people in agriculture would accept. That is a mistake. They have not played the kind of leadership role in terms of evolving policy they should be playing. Their role is defensive. Perhaps they feel that role is being forced on them. Nevertheless, I do not think it is too late for a more professional attitude to prevail in that organisation, that it would be more research orientated in terms of the quality of the people — necessarily in the backrooms — who should be capable of delivering on many topics but who, in my view, are not delivering either in the public arena or in many of the negotiations in which they are involved.

In a general sense I am pleased that this debate is taking place. I sincerely hope that out of the Maastricht Summit some very positive news will be forthcoming on two levels — the European level and particularly from an Irish point of view. This is only the beginning of another difficult and long process but, nevertheless, a process that is worthwhile and that can offer further tremendous benefits, particularly to the young people who will be the future breadwinners and the leaders who will decide where this country can go in the future.

I understand that for procedural reasons at this stage it is not possible to move the Labour Party amendment to the motion. However, we will be moving the amendment at the appropriate time. I will be talking about some of the times which are contained in the amendment.

At the outset, I find it difficult to see this debate making any worthwhile contribution to the events in Maastricht on Monday and Tuesday next. How can this debate be expected to influence next week's proceedings when, for the most part, now the die is cast? It is stretching credibility to think that anything said here will affect the European Heads of State and how they are going to behave next week.

It is difficult also to see how it will affect the Irish position other than to provide the reassuring noises. If this Government wanted to take seriously the views of the Oireachtas they would have sought those views much earlier than this, the eleventh hour. All we are seeing here today is a harmless, futile gesture by the Government which is unlikely to fool anybody. What is at stake at Maastricht will determine the shape of Europe and the welfare of Ireland for many years to come. Despite this reality there has been little debate on the issues. The public do not seem to understand what is at stake because the Government could not be bothered to explain the ramifications of the proposed developments. There has been no White Paper. There has been no information campaign. The Government have sat tight. They have done their business behind closed doors and have been happy to have the electorate distracted by yet another episode of the tiresome soap opera that, broadly speaking, could be described as the fall, the rise and the rise again of the Taoiseach, Deputy Charles J. Haughey, as this autumn he used up another one of his nine political lives.

(Interruptions.)

It seems that the debate on European political and monetary union has been allowed to be conducted by a tiny elite and key decisions are influenced by small groups of people who are unrepresentative and not accountable to the Irish public. Decisions with the most profound implications on matters such as neutrality, defence, agriculture and the capacity to formulate our own budget are being influenced by a new aristocracy of informed people with the time and the resources to figure out what best suits their notion of the national interest.

The recent commitment of the Government to produce a White Paper is welcome. It is a case of better late than never. We are on our way to a federal Europe. Our sovereignty, of necessity, will be seriously diminished; our neutral stand will be increasingly difficult to maintain. How may people realise that the proposed changes will greatly diminish our capacity to control our economic affairs in matters such as expenditure on health and education? How many realise that decisions are in the process of being made which will affect our exports with a consequent influence on the job prospects of thousands of people? I do not under-estimate the difficulties which may arise in relation to the referendum which will need to be passed to ratify the outcome of the Maastricht Summit. In addition to those who will be opposed to changes in sovereignty and the erosion of neutrality, there will be those who will use the referendum to draw a lash on the Government regardless of the issues or what the consequences of failure to pass the referendum might be.

There are 320 million people in Europe and 528 MEPs. Ireland with a population of three million people, has 15 MEPs. Given that this is the situation, it is difficult to see, despite our notions of grandeur from time to time, how Ireland can have a major influence on European development. On the radio this morning the Minister for Finance said in response to a question that Ireland was on an equal footing with the other nations in the present negotiations. All I can say to that type of statement is "God bless his innocence".

There is a great need for somebody in this country to spell out clearly where we fit in Europe, what our options are, if they are widespread, and where the whole process that is now underway is taking us. There is a feeling that we can, by good negotiations, prevail on rich Europeans to solve all our problems. We are now 20 years in the EC, yet we are beset by wholesale unemployment, great difficulties in agriculture and widespread poverty. The early years of EC membership gave this country enormous opportunities with huge increases in agricultural earnings. While a certain amount of those earnings went to improve the standard of living of Irish farmers, for the most part the earnings were squandered. They were wasted purchasing land at enormously inflated prices; they were used in the unnecessary purchase of farm machinery; they were not spent devloping value added branded Irish products which would have an enduring value on European markets.

The Community has expanded and looks like getting bigger with many of the eastern European countries now likely to join. When we joined we were one of nine members and the remaining members were more prosperous or as prosperous as we were. Now the number has grown and there are a number of countries in a similar position to the one we now find ourselves in. Many of the eastern European countries can be expected to join over the next few years and it is naive to expect the rich Europeans to continue to give handouts to increasing numbers of poor countries who will make their way into the Community.

During the negotiations Ireland seemed to be irrelevant. Despite our problems we do not appear to have taken up a strong position on anything. We have confined ourselves to polite requests for more money so that the country can bail itself out of its problems. Even at this late stage there is need for a more forceful emphasis on the need for cohesion and the requirement for the implementation of the social charter.

Talks of a two-tier Europe are disturbing and need to be vigorously resisted. Rural Ireland is dying before our eyes. An old culture is being pulled asunder. In the west, parishes are falling apart and whole communities are breaking up. There will be a powerful attraction to the centre when the Maastricht Summit ends, and that will continue. Unless we are capable of coming up with proposals and implementing them we will go downhill more and more. The trend is not good and I can see no clear evidence that it will be reversed nor can I spot any feasible ideas which would help to reverse it.

I welcome the proposal that the European Parliament be given greater powers. This will mean that, to some extent, the democratic deficit in European institutions will be reduced. It is also vitally important that closer links should be established between national parliaments and the European Parliament. I hope some definite proposals in this direction will emerge when the debate on the role of the Seanad is concluded.

Influence in the European Parliament is exercised through the groups. My party, the Labour Party, is a member of the Socialist group, the biggest and most influential group in the Parliament. Our party is in a position, through the European Socialists, to exercise quite a considerable influence to the extent that Irish people can influence things in Europe at all. We are best placed to make that influence count but I emphasise that our capacity, even when developed to the fullest, is still fairly small given the reality of the numbers. Our party is in a much better position to exercise influence in the European Parliament than are the Fianna Fáil MEPs who are linked into groups in the European Parliament who, to say the least, exercise peripheral influence on the Parliament and on European affairs.

They can make their influence felt.

How do Irish people see Europe developing? How do the Government see Europe developing? How can this development be brought about? We have no answers to these questions. As far as most Irish people and the Government are concerned, those questions do not arise, yet Europe and its institutions will shape this country in the next number of years. There is little point in this country continuing to adopt the policy of give me, give me more. There is no future in saying no to proposals we do not like and there is little future in proposing weak, lame alternatives to what we do not like. The Europeans seem to be grim; they are driven by logic and they do not understand our inconsistencies nor do they understand our easy attitudes. I am not sure that Irish people understand the Europeans; I am not sure that they understand that Europeans say what they mean and mean what they say.

We have joined the enormous European juggernaut. I do not think we can easily disentangle ourselves from this enormous vehicle if we wanted to. We do not fully understand what would be involved in doing so and we seem to have few plans or proposals to cope with such an eventuality, even if we wanted to consider that contingency. The debate which has started here marks an initial consideration by the Oireachtas of what is at stake in next week's Summit. There will be many issues arising from the Summit and I hope more attention will be given to them. This debate should continue.

The Maastricht Summit is one of the most important events in our history. It is the culmination of two major IGCs, one on monetary union and one on political union. These two endeavours necessarily run together. As Professor Brigid Laffan said in her paper, The Governance of the Union, the link between political and economic integration cannot be avoided in the Community of the nineties. I mention in that regard the publications Senator Norris spoke about. These publications and the small document on political union written by Paul Gillespie and Rodney Rice, were produced by the Institute of European Affairs.

I welcome the development of monetary union and would like to see it proceed with all speed towards achieving its goal. We depend on trade with our 11 partners for the promotion of our economic well being. However, we are more dependent on this interchange than most of the 11. If we achieve economic union we will eliminate most of our trade related currency exchange risks. There is the danger that in a full, free Single Market with a single currency growth would be more evident in the centre than on the periphery. This is a fear that has been referred to by a number of Senators. Hopefully, however, in the new Treaty we will see a commitment towards cohesion and a move away from the concept of variable geometry. If the new Europe is to mean anything, there must be a move towards levelling out living standards in the Community. The rich must support the poor, otherwise the whole idea of economic union is a farce. I know that those who have very rarely give to those who have not, but we must fight for a firm commitment to a substantial transfer of Community funds.

We have to date benefited from EC membership. We have received £6 for every £1 we put in. It is hard at first to understand why Germany as I suppose, the paymaster, would welcome the disappearance of the Deutsche Mark and the Bundesbank but German business people seem to be attracted to open markets and expect a single currency to save them money. Having once been the author of the destruction of Europe, the new Germany sees herself as a positive force in her commitment to a new Europe and to the building up of a new Europe. When I led the debate on German unification I welcomed this new German outlook and said I believed, as I still do, that we have nothing to fear from a powerful Germany that is committed to peace and European unification.

Let me deal with some of the issues which will arise in the course of the debate. Neutrality is a key issue. I would expect to see a clear demarcation between security and defence. If we have a large European army, who will control it? Will it be controlled by generals or the Council of Ministers, by majority voting or by consensus voting? Will we be forced to have nuclear weapons on our soil? Will this be a requirement if the larger countries so decide? If we had an army at the time of the Yugoslav conflict would Hans Dietrich Genscher have liked us to go in and help the Croats? Would somebody else have liked us to help the Serbs or would it have been a peacekeeping force? We should keep our neutral stance as long as possible, because if with enlargement, Austria and some of the Scandinavian countries join us, we could consider forming a neutral bloc as a counterbalance against the military bloc.

Armies require arms and many of our partners are arms producers. The French, for example, sent exocets to Argentine to shoot at another Community member, the British. The British themselves have a huge export trade in arms. Many countries have supplied even Iraq. Are we to be part of this huge, murderous industry? These questions need to be addressed and I would like to hear the answers.

We seem to be moving closer to the Western European Union. However, Western European Union is subject to NATO and military operational terms under Article 4 of its charter. If we have to have a defence arrangement, we can run it ourselves. As the Taoiseach said in the Dáil on 9 July 1991:

A defence arrangement which the European Community works out for itself and which has Community interests as its primary focus is clearly different from a system in which wider arrangements continue to have primacy and where non-Community members are part of the decision-making process.

In the case of social policy, I understand that the Government negotiators will be inserting into the Treaty a protocol which would prohibit the evil of abortion ever being foisted upon us in Ireland. I welcome this but I am not sure if this protocol is strong enough. I know for a fact that if it were not included in the Treaty any subsequent referendum would be defeated.

There are other areas where we may be forced to adopt European laws, for example, on pornography which exists in such countries as Denmark, or the legislation of so called soft drugs. There is the question of euthanasia. Will that be foisted upon us also? All this needs to be clarified and I hope it will be talked about during the course of the forthcoming debate. What would be the competence of the Supreme Court and what would be the status of our Constitution? I understand that the judgment of our Supreme Court can be overruled, so has it any status at all?

I worry too about abandoning our foreign policy. If we have a common foreign policy, does this mean that a principle stand such as that taken by Mr. Haughey at the time of the Malvinas war where he so rightly condemned the sinking of the Belgrano by the British with the acccompanying loss of hundreds of young Argentinian lives will be possible in the future or will the Taoiseach of the day and his Government be effectively muzzled for expressing the views of the Irish people? This also needs clarification.

Lest you think I am entirely negative, this is not true — in fact I am on my way to chair a sub-committee meeting of the Irish Council of the European Movement of which I am Vice Chairman. At that meeting I will be organising support for the referendum, provided all these things are taken care of. There is one overriding factor which commits me to being European and that is that the spectre of war among the Twelve, and I hope shortly among the 14, 15, 20 or whatever it happens to be, has disappeared. We must remember that it is only 50 years since the nations who are now friends and working and collaborating in so many ways, were destroying each other. That alone probably overrides every other consideration.

There is one small exception and that is the Six Counties in the North. What will happen when we achieve political union? Will we be able to move freely throughout the whole of Ireland without being stopped by foreign troops? Will European union finally mean an end to the occupation of these Six Counties and lead to a peaceful resolution of the problems there so that not one more Irish life is lost, so that terrorism ceases and so that we can live in peace in the four provinces of our country? I sincerely hope so. That is one of my dreams for a better and more united Europe. Jacques Delors said recently that the Community has allowed us to suppress the war between us and has brought about an unprecedented economic development.

It is for these reasons that I hope we all support the motion. I have no hesitation in commending it to the House. I am a committed European with some reservations, particularly in the area of social policy. I repeat my sincere belief that if there is no protocol on abortion included in any treaty that is reached, then a subsequent referendum will not be successful. I do not think that will arise. I hope we can see our way to getting around these difficulties. One of the great things about the European debate is that we have achieved so much by collaboration and co-operation rather than by antagonism. That is what makes me hopeful. A wonderful vista will be spread before us following Maastricht as it was following the Treaty of Rome and the Single European Act. We may some day in the not too distant future have peace and unity from the Atlantic to the Urals — a wish expressed recently by the Holy Father where he also saw this wonderful vista of people working in co-operation and harmony together. Who would argue with such a——

He was not watching at the fifth floor.

Of course he was not. That would be a different ballgame. I have no hesitation in supporting the motion and I hope it passes with the unanimous support of the House.

I second the amendment proposed by Senator Doyle. I thank the Minister for giving us a very comprehensive outline of what is happening. I welcome this debate but I regret it is so late in the day. The people we expect to support the referendum next year do not know what is going on. Terms like "European Monetary Union", "ECU", "EPU", "CSCE", "cohesion", "subsidiarity" and so on mean nothing. They are irrelevant to the people who are unemployed, sick, poor, homeless or who are suffering in any other way. I regret to say that we, as politicians, have done nothing in either House to explain the relevance of the Maastricht Summit to these people. I would not be surprised if they punished us by rebuffing our referendum in the year ahead. That would be a tragedy for all of us. It is important, therefore, that we try even at this late stage to explain the relevance to Ireland of the Maastricht Summit, the decisions that will be made there and their consequences.

Unless Europe is doing well economically, we can hardly expect to do well out of Europe. There is no guarantee that we will do well even if Europe does well but there is an absolute guarantee that we will do badly if Europe is not doing well. Right now Europe is not doing as well as it should be doing particularly in competing in markets against Japan and the United States. It is a tragic example of our failure in the car industry that more than 50 per cent of the vehicles sold in Ireland today are of Japanese origin. That is a clear demonstration of the failure of European manufacturers to compete. We benefit significantly from the European car industry. For instance, we sell more, in value, in car components to European car manufacuters than the value of the European cars we import. If we were getting almost all our cars from Europe consider how much better off we would be in jobs, good employment, national income and so on. That is just one example and there are hundreds of others. It is important for us that Europe should do well and the Maastricht Summit will have much to do with whether we do well in the future.

The logical consequence of a Single Market is to have a single currency. The benefits of a single currency are clearcut. Some have already been mentioned here today and in the Dáil and I mentioned some of them before in this House. The first and most obvious benefit to the ordinary citizen is the reduction in the cost of currency transactions, but there are other equally or even more important consequences of having a single currency. For instance, the second less quantifiable but equally important benefit is that generated by a reduction in speculated transactions between European currencies which seek to exploit interest rate disparities and exchange rate fluctuations, even when the latter are within the margins laid down by the EMS. The third benefit — it is also difficult to measure — results from the uniformity of prices of goods and services throughout the Community enabling traders to profit from rising output, larger markets and increased mobility of labour and capital. The single currency produces greater transparency of costs and prices by making them comparable across the Community thus increasing competition. We have all seen the benefits we can get from competition in various ways, for instance, in air transport.

The fourth economic benefit is the cost reduction resulting from the simplification of accounting operations. This is interesting and probably is something the layman has not given much thought to. The cost of accounting operations in all firms which keep accounts or conduct transactions in several currencies is substantial. In the case of firms operating throughout the Community, these costs represent not much less than 1 per cent of the total administrative cost expenditure. The most significant benefit of all results from the removal of the major constraints on economic policy imposed by the need for Governments to maintain the balance of payments price and exchange rate stability.

Another in the list of benefits of monetary union would derive from the ECU's elevation to a status of an international reserve currency. The benefits go on and on, but there is one that the lay person will be able to understand more easily than these technical currency exchange rates, risks and so on, and that is, interest rates. When we have a single currency we will have a single interest rate throughout the Community. Everybody will be aware that we are paying interest rates above what we should be paying simply to protect our currency. For example, when we had an interest rate as low or lower than the Germans, we were paying considerably more in interest rates because we had to protect the Irish punt. A single currency will bring very great benefits to us as far as interest rates are concerned. A single currency will remove the disincentives for business people to take risks because of the danger of currency fluctuations, even though we are in the EMS.

We must accept that there will be loss of sovereignty as far as this country and every other country is concerned. That is not such a tragedy. We had that situation before when we had a single currency with Britain. Our behaviour in monetary and economic matters immediately after we detached ourselves from the British currency was far from beneficial for this country. We were unable to impose upon ourselves the kind of discipline which is essential for good economic performance and which will be imposed upon us when we lose our sovereignty and are subject to the constraints imposed upon us by a single, European Central Bank determining our monetary policy and, to a considerable extent, our economic policy.

Much has been said about cohesion. If I may be negative and cynical, I find it hard to believe that there is a real commitment to cohesion in Europe. How can one believe that Europe is committed to cohesion when it is at the same time putting a lid on development in the two areas where we have important natural resources? We have milk, sugar and fish quotas and we will have quotas in grain and sheep. We can only achieve cohesion or a reduction in disparity between the rich and the poor areas, not by handouts, although these will be useful in helping us to generate increased activity, but by having the opportunities to do so. By blocking off our development at a time when our agriculture was totally underdeveloped in relation to other Community countries, is a very bad signal about the earnestness of our Community partners to see cohesion being brought about. I regret that. We will have to take a stronger stand on that. It is unreasonable that a wealthy country like Holland, for instance, can have a milk quota per hectare nine times higher than ours. This is unacceptable to a country that is so dependent on agriculture. We should address that issue even if we solve it at the expense of very intensive factory farms reducing their output, to enable us — I am not asking for any handout — to develop our own resources.

I am glad education was mentioned. We are making a contribution to the Community that is not recognised. The monetary cost of educating the third level graduates, diplomats, nurses and so on that we export, who is of the order of £100 million per annum. Most of that benefit goes to the wealthier countries of the Community, although admittedly, some of it goes to the USA and so on. We have a right to some return. I am glad the Minister mentioned that we make a strong case for education. I hope that will be recognised and acted upon.

That brings me to another area which I do not think I can develop at this stage and if the Chair does not mind, I will move the adjournment and complete it in the morning.

Debate adjourned.
Sitting suspended at 6 p.m. and resumed at 6.30 p.m.
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