Senator Lydon has two minutes remaining.
European Communities (Amendment) Bill 2006: Second Stage (Resumed)
Question again proposed: "That the Bill be now read a Second Time."
I thought I had seven minutes remaining.
On what basis?
I thought each speaker had 15 minutes and I only spoke for four or five minutes the last day. I ask the Cathaoirleach to check again.
The Senator has already spoken for six minutes and the allocation for each speaker was eight minutes.
I spoke last week about what the Bulgarians are doing and now wish to turn my attention to the Romanians. The Romanian Government is aware that remedying all the remaining issues and continuing the internal preparations in all areas remains the priority. It is committed to completing all internal preparations in order to meet the 1 January 2007 accession objective.
Following the comprehensive monitoring report of the European Commission, issued on 16 May, the Romanian Government adopted a concrete plan of priority measures, a to-do list for remedying the issues that were still of concern in internal preparations. An in-depth presentation and discussion of the action plan took place on 7 June 2006 with the Commission in Brussels. The to-do list focuses on the key areas pointed out by the monitoring report of the Commission in internal preparation, namely, the four red flag areas identified in the agriculture and taxation fields.
Even if the fight against corruption and reform of the judiciary no longer represent issues of serious concern to the Commission, they are still very high on the Romanian Government's agenda, and special emphasis is placed on their achievement. Therefore, specific measures with regard to those two fields have also been included in the action plan to provide further tangible progress on the ground and ensure the irreversibility of the reforms.
The plan establishes for each issue precise measures to be accomplished, together with strict deadlines, as well as institutions in charge of their achievement so that progress can be seen in all those areas by the time of the Commission's autumn report.
Regarding agriculture, the action plan focuses on the full functioning of the paying and intervention agencies and finalisation of the integrated administration control system, IACS, as well as on the rendering and collection system. Concrete measures are being implemented, including filling vacant positions in the two paying and intervention agencies, to be finalised in September 2006. A tender has also been issued for the necessary software for the IACS system, which is also due to be finalised by the autumn.
With regard to the sanitary and veterinary field, Romania will send all information regarding the rendering system in the country to the Commission this month. By the end of the year, two important measures will also be finalised. These are completion of the rendering facilities system and the destruction of fodder stocks based on animal proteins.
Preliminary testing of the compliance of the tax collection system in Romania with those used in the European Union will take place in July. Testing is to be completed by October 2006. Work is in progress regarding a law on financing political parties, as well as one on verifying statements of assets, conflicts of interest and incompatibilities that will establish an agency for checking declarations of assets and incompatibilities. The deadline for adoption of the two draft laws is the end of August.
The institutions in charge have already begun work in the spirit of the to-do list since publication of the Commission's monitoring report. Several important outcomes have already become visible, especially regarding justice reform. The criminal code and criminal procedures code have already been adopted by the Parliament.
Romania focuses well on areas where further efforts are needed, so-called yellow flag issues, to strengthen its capacity to function effectively within the EU after accession. To that end, the action plan was adopted. Romania is working closely with the Commission to advance its preparation for accession further. In that context, monthly reports will be sent to the Commission's services regarding progress in internal preparation. Furthermore, several peer review and evaluation missions will take place during the period to allow thorough assessment of the situation. Romania is convinced that based on solid progress in internal preparation, the Commission's next evaluation on 26 September will note decisive advances in all those areas and convey a message of support regarding its objective of joining the EU on 1 January 2007.
The forthcoming accession of Bulgaria and Romania to the EU will mark the completion of the Union's fifth enlargement, increasing its membership from 15 to 27. It is a wonderful project. Since the Commission's monitoring report in October 2005, both countries have significantly reduced the number of issues to be addressed. Some of the problem areas that remain are common to the two, particularly regarding implementing the necessary arrangements for the disbursement of EU funds. In agriculture, the two countries are working to establish a proper, integrated administration and control system.
Ireland believes that Bulgaria and Romania must make full use of the time available to address the remaining issues so that they can join the Union as planned on 1 January 2007. We look forward to working with them as equal partners in a successful Union of 27 member states. I thank the Cathaoirleach for his indulgence.
The Senator did very well.
That was a great impression of Dr. Garret FitzGerald.
Or perhaps Mr. Alan Clark. I wonder if Senator Lydon might run that by us again. I welcome the Minister to the House.
I recall the first time I visited Romania. I had been hoping to fly to Bucharest from London but missed the flight and ended up in the Hungarian capital of Budapest. I was driven in a car for ten hours between Budapest and Timisoara, the place where the revolution that ultimately ended Ceaucescu's military dictatorship began. I recall crossing the border between Hungary and Romania at 3 a.m. in the car. It took us 40 minutes to get through. I said to myself that if ever there were an example of a country needing to open its borders, engage with its neighbours and allow economic and personal freedom, it was Romania. It is a great country, about which I know little. I feel great affinity with the many democratic political forces that have attempted to bring about normal democracy since the end of Ceaucescu.
Romania is a landlocked country which deserves to become a member of the EU and whose people, like the people of Bulgaria, deserve to become EU citizens. We must remember that in putting this legislation through both Houses and allowing our Government to sign up to the end of the accession process to allow for Romania and Bulgaria's entry into the EU in January of 2007 or 2008, depending on the final decision taken this year, it will be a very good day for the EU. It will be something in which all of us can take pride, particularly in light of the number of people from Romania who have come to this State in recent years for all manner of reasons. I, like my colleagues, welcome this very much.
I wish to make three points about the accession process which occurred from 1990 to the conclusion of talks between both countries last year. Structural Funds and financial assistance to economies which are effectively transforming themselves from command economies can cause a considerable amount of difficulty within these economies. It can be argued that if Romania had taken the tough economic decisions taken by Hungary after the fall of the Berlin Wall, it could have been among the second or third group of accession countries which joined the EU. Both countries are very similar but Hungary took very tough economic decisions after the fall of the Berlin Wall which Romania chose not to take, thus effectively postponing the date of its entry into the EU possibly by approximately ten years.
We do not do enough to extol the importance of economic transfers to EU citizens. If ever there was an example of redistribution within Europe, it can be seen within the EU where the old economies have been forced to pay more to help transform economies like those of Ireland, Portugal, Romania, Hungary and other eastern European countries within the EU. This is an example of where radical sums of money have been transferred from the centre of Europe and the old economies to the east and west to encourage the radical and necessary transformation of the economies in these regions.
The EU does not do enough to explain to its citizens and people outside it borders the extent to which international norms, rights and obligations affecting all EU citizens are not simply worldwide rights but are EU rights. It is arguable that the EU has a much more fundamental notion of human rights than that found in, for example, the US and that the question of guaranteeing these rights is much more substantial than it is in many advanced countries, particularly the US. We must explain this to our citizens, be profoundly proud of these achievements and tell applicant countries which will soon be full members of the EU that these are not simply universal rights but specific rights which apply to the EU.
The transformation of its economy has been very difficult for Romania. I visited the country approximately eight years ago and saw how it was grappling with this problem. Tough decisions were not faced up to at a much earlier stage and matters were not helped by the fact that a multiplicity of parties were in place after the fall of Nicolai Ceaucescu. Ireland has an excellent opportunity to extend our trade with Romania and Bulgaria and these countries have the same opportunity to extend their trade with us. I understand that our trade with both countries has tripled in a very short period of time. Given that we must export more and more of our goods and services to remain competitive, we must realise that the new countries coming into the EU offer great opportunities for our own exporters.
I recently met a friend who used to employ six people in a company that provided design work to various businesses in the Dublin area. He has decided to relocate his business to Prague. He is in constant e-mail contact with six or seven people who work for him on a per diem basis to service Irish businesses. This might be difficult for the six or seven people in Dublin who lost their jobs, but it makes the point that if we are in one economy and trading market and we are to keep our economy competitive, these are the competitive edges that constantly come to the fore.
A difficult decision must be taken by all governments on whether to open their labour markets to both of these new countries. However real or imagined the displacement argument is, we must tread carefully in respect of this issue. There is a perception that too many of our economy's manual skilled and non-manual skilled jobs are being taken by people who understandably migrate to where there are job opportunities. Unlike the last wave of accession countries, Romania and Bulgaria are large. We must weigh the balance before making a final determination on whether all labour markets within the European Union will be opened from day one, given the number of potential workers within both of those countries.
Moving from a military dictatorship has been difficult for Romania and we should not forget that when Ceaucescu first came to power, he was seen as a local nationalist leader who stood up to the Soviet power of the time. Subsequently, a terrible cloud fell on the people of that great country for a number of decades. For them and their friends in Europe and beyond, it is a matter of great pride that they are taking their rightful place within the largest and most powerful economic club that, as an international organisation, is universally recognised as embracing human rights, freedom and democracy. It is a great day for those countries and we must help them to make the transformation as others helped us.
I welcome the Minister of State and I also endorse this Bill's subject matter, the provision for the accession of the republics of Romania and Bulgaria. This will give effect to an enlargement that must be completed by December 2006.
Last week, I visited Lithuania and Latvia as a member of the Oireachtas Joint Committee on European Affairs and witnessed their transformation from a commitment to the communist regime to their current situation. Despite having full membership of the EU, many problems remain. This made me consider the difficulties experienced by emerging democracies and how they will shape up in the years ahead.
I remember the fall of Ceaucescu many years ago. I welcome this opportunity to say how important it is that Romania and Bulgaria become members of the EU. During recent years and the preparations for accession, issues have been red flagged. I noted in the Minister of State's speech that the number of major issues in respect of Romania has been reduced from 14 to four. In Bulgaria the outstanding issues have been reduced from 16 to six. The main areas of concern to member states are progress in judicial reform and the fight against corruption and organised crime, which are still prevalent in both countries. In addition, there are concerns over measures to combat trafficking and the integration of minorities.
Lithuania and Latvia are new member states which acceded to the EU in 2004 and still have many problems as emerging democracies. Many new parties have formed, eager to make a name for themselves and become the key parties of the future. The governments in both countries are about to collapse and are trying to reform with a mixture of small parties. We should be concerned about the administrative structures in Romania and Bulgaria. Both have emerged from communist regimes and still display mindsets from that era in the way they deal with Structural and Cohesion Funds and the bureaucracy of the European Commission. Latvia's entry into the euro was rejected because it had not done its homework so detailed preparation is necessary for accession.
What does the future hold with regard to enlargement? When do we cry "Stop" and say "Enough is enough"? The public is concerned that the EU is becoming too big and unwieldy and, while there is a need for a common purpose on crime, the threat of terrorism and energy, as well as on the emergence of the growing economies of India and China, people are concerned over the ratification of the constitution and the future of enlargement.
I welcome Bulgaria and Romania's accession applications, but their ratification does not necessarily mean all the problems will have gone away, even though the accession of new countries in 2004 was a success, especially in the way it allowed for the free movement of people into this country. Bearing in mind the days of Ceaucescu, who would not welcome the emerging democracies of Romania and Bulgaria? However, many details still require to be worked out. It will not be an easy transition and people in every member state question whether, if enlargement goes any further, the structures of the European Commission will be able to cope. That is for a future discussion but the Bill before us today is to ratify the accession of Bulgaria and Romania to the EU.
I welcome the Minister of State and his officials. I welcome this Bill and the fact that public opinion, as reflected in the Oireachtas, is still overwhelmingly positive, despite some of the fears expressed by the previous speaker. I am sure that fact is intimately connected with the success of our economy, which means we do not have too many grounds to be fearful.
This Bill which deals with EU enlargement to include Bulgaria and Romania, is a reflection of the enormous success of the European Union in overcoming the division of Europe in a peaceful and harmonious fashion. Notwithstanding certain problems, previous enlargements proved to be overwhelmingly positive experiences. It is quite wrong to say that, in the 1960s, the Europe of the six was a harmonious place. It could be argued that it endured the most bitter divisions of all, when disputes between General de Gaulle and the Commission led to an empty chair policy.
The Minister of State noted that the origins of this process date to 1990 and the Irish Presidency under the late Charles Haughey. I remember a debate at that time in which the French argued for a Europe of concentric circles, with a core membership and outer rings of countries associated to various degrees. I am glad that debate has been resolved in the way it has, namely, by the inclusion as full members with full rights of all the countries of central and eastern Europe, when they are eligible.
Senator Brian Hayes was correct to draw attention to the importance of redistribution but it is also important to note the effect of relatively small, in a global sense if not for the recipient countries, redistributive amounts, which were catalytic both for us and the Mediterranean countries, and which are now to be received by the countries of central and eastern Europe. I am pleased we have also given some bilateral assistance.
I hope it will be possible for Bulgaria and Romania to complete the preparations for accession by 1 January 2007. I have never been to Romania but have visited the capital of Bulgaria, Sofia, and was impressed. I would be very pleased to welcome both countries into the EU.
The Minister of State's speech made passing references to some of the outstanding problems. The issues of corruption, criminality and trafficking arose momentarily in an Irish context last year in connection with the fallout from the Northern Bank raid and the suggestion that some moneys might be laundered via Bulgaria. That underlined the point that for Bulgaria to deal effectively with such matters is of interest to the entire European Union and not just Bulgaria. The same is true of the call for agricultural procedures in Romania to be put in working order. As Romania is an agricultural exporter it is of interest to every agricultural country in Europe.
The Minister of State cited the impressive growth in trade between Ireland and Romania and Ireland and Bulgaria, which I am sure will be greatly built upon, as it has been with other countries of central and eastern Europe once they became full members. I also suspect both countries will become attractive for tourists. My father attended an international conference 30 years ago in Bulgaria and was very impressed with the Black Sea resorts. That will be good for us and will extend, mentally at any rate, the type of places to which we will be willing to go.
The Government is right to be cautious about when, and under what conditions, to implement the free movement of workers. These two countries have substantial populations. There is no doubt we took some risk in 2004, but our studies and European ones show it has been very beneficial to Ireland. I am not convinced, however, that we should push our luck too hard. I would not want to second-guess the Government as it is a matter for it and its various expert agencies to study closely what is the right decision for this country. I would not attempt to prescribe it.
The Minister of State raised the question of future enlargement. This must be done carefully and gradually as it has been to date. After all, it took the countries which first entered into relationships with the European Union in 1990 some 13 or 14 years before they could become full members. It is extremely important for the reasons stated by Senator Ormonde that countries only become full members when they are fully prepared, will not have a destabilising effect on the existing Union and will not undermine confidence in it.
With that very important caveat, I must say I have the vision of General de Gaulle that the eventual boundaries of the European Union should probably stretch from the Atlantic to the Urals and the Caucasus. That leaves a question in regard to what to do about Russia given that it stretches to the Pacific but I suppose I am thinking of countries such as Ukraine.
Despite fears expressed about the increasing unmanageability of the Union in the absence of the EU constitution, it seems to have operated so far reasonably smoothly and harmoniously. However, that cannot be taken for granted and the Government is correct to be committed to the constitution and to hope that conditions and circumstances, particularly in the two countries which rejected it, change to allow adoption of all or most of it.
I am glad the Finance Ministers changed their minds about Slovenia joining the eurozone, which I raised on the Order of Business. As it was 0.1% out on its inflation figure, it was not going to be eligible to join but the Finance Ministers have thought better of that attitude, which I welcome.
I thank Members for their contributions today and on Wednesday last. I am heartened to hear such broad support for the European Communities (Amendment) Bill 2006. As Members will know, Ireland has always been an enthusiastic participant in the European Union. We actively supported the fifth expansion of the Union and we look forward to its completion with the accession of Bulgaria and Romania.
It is interesting that Ireland held the Presidency on 1 May 2004 when the last ten countries acceded to the Union. I have been impressed by the level of goodwill towards Ireland which is evident among Ministers from those countries. To some extent, that goodwill arises from the fact Ireland held the Presidency at that time and did a particularly good job but also from the fact we shared our experience and expertise with them as we have done with Romania and Bulgaria. Undoubtedly, many benefits have flowed to them and to us arising from that.
As the Minister of State, Deputy Treacy, said last week, 17 countries have already ratified this treaty. It was dealt with in the Dáil on 24 May. The Commission's report of 16 May, which is the most recent one, commended both countries on the progress they have made and, as a number of Members mentioned, there are some outstanding problem areas which, hopefully, can be addressed before the accession date of 1 January 2007. Clearly, there is a possibility of having that date postponed if necessary.
Senator Brian Hayes referred to the level of trade between Ireland and Romania which, traditionally, would have been quite small — as low as €5 million per annum in 1992. It was well over 30 times that last year with a 75% increase in trade in 2005 over 2004. That is an extraordinary level of growth. Likewise, growth in that year of trade with Bulgaria was of the order of 11%. Clearly, there is considerable potential for growth in that area and for benefits for Ireland and the two accession states.
The movement of workers is a matter of concern to the Department of Enterprise, Trade and Employment. Ireland was one of three countries which allowed free access of workers from the ten accession states from the date of accession. The other two countries were Sweden and the UK. It is interesting that a recent Commission report found that the three countries enjoyed a considerably better employment performance than the 12 countries which had employment restrictions. I am glad to note that at least four of the other countries have now decided to allow full freedom of movement for people from the ten countries.
The Minister for Enterprise, Trade and Employment, Deputy Martin, introduced an amendment to the Employment Permits Bill with an enabling provision which has three options in regard to whether workers from Romania and Bulgaria will be allowed access to Ireland. The three options are as follows: free access, as has been provided for the other ten states; the grant of a permit on foot a job offer; or continuation of the present regime with a requirement for employment permits. As Senator Mansergh and others have said, a number of matters must be considered and the Government will make a decision later in the year, or at least in advance of the accession of the two countries, on how best to proceed. I welcome the comments of Senator Brian Hayes and Mansergh in that regard. We have the national interest to consider as well as other considerations and the Government will give very careful thought to the matter.
Another Commission paper worthy of mention is that which found that all member states benefited from the last enlargement. Many concerns have been expressed — for example, in regard to the ratification of the EU constitution and the difficulties which arose in France and the Netherlands. There were also difficulties in regard to the adoption of the budget. At that time Members will remember there were all types of dire warnings about the future of Europe. Thankfully, the difficulties in regard to the budget have been successfully resolved and I am sure the other matters will be resolved.
The recent Commission paper found that all member states benefited from the last enlargement, which is very encouraging. The stability helped to multiply trade and investment. It provided opportunities for companies in the existing states to expand into the other ones on a much more positive basis than many would have expected with many more benefits flowing to the host and the accession countries arising from that. It has led to a far stronger and more dynamic euro economy. In view of the challenges to the economy of Europe, not least from China and India and the traditional economic power blocs of Japan and the United States, it is very important the European economy is able to prosper and move forward in a very dynamic way. The dynamism which has flowed from the accession of the new states has been very encouraging and has benefited Europe enormously.
Undoubtedly, there are questions surrounding Commission membership and issues which have been dealt with in regard to membership of the European Parliament and decisions at Council of Ministers level which require ongoing examination to come up with a model that best serves the interests of the people of the European Union as a whole. That is something that must be dealt with over a slightly longer period. It must also be dealt with carefully and proactively. There will be substantial challenges to the economic well-being of the Union if we choose to stagnate and do not face up to the fact that there are considerable economic power blocks in other parts of the world. These are areas of the world where the pace of development is truly astonishing. We must match it and better it, if possible.
As Commissioner Rehn made clear last month, it is entirely feasible for Bulgaria and Romania to accede by 1 January. There is no doubt but that in the coming months both countries will intensify their efforts to make this a reality. Both countries will benefit from EU membership and will, in turn, make a positive contribution to the Union, as indeed Ireland has done for the past 33 years.
Question put and agreed to.
When is it proposed to take Committee Stage?
Tomorrow.
Committee Stage ordered for Wednesday, 21 June 2006.
Sitting suspended at 3.50 p.m. and resumed at 4 p.m.