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Seanad Éireann debate -
Wednesday, 5 Feb 2014

European Union Affairs: Statements

I welcome the Minister of State at the Department of Foreign Affairs and Trade, Deputy Paschal Donohoe, who is no stranger to the House.

It is a pleasure to be here. The purpose of this debate is to give the House an overview of the Government's policy towards the European Union and provide an opportunity for Senators to comment on developments in the European Union which may be of interest to them. I will provide an update on the thinking and priorities of the Greek Presidency and some of the changes that are afoot in Europe. I also propose to comment on some changes that may occur in the European Union institutions later this year.

Before discussing these issues in detail, it is worthwhile to pause and reflect on everything that has happened in the European Union in the past 12 months. We should consider how far we have come, while remaining cognisant of how much more needs to be done and the journey that remains to be completed in the European Union and among its member states. It was not long ago that debates were taking place on the airwaves and elsewhere on whether the eurozone would break up. It was suggested that certain countries would leave the euro and we heard about the impact this would have on countries that remained in the eurozone. I recall being contacted by constituents 12 or 18 months ago asking where they should put their money and if they should invest in other currencies or metals.

Can we have copies of the Minister of State's speech?

I understood they had been circulated. If Senators have not received a copy, I apologise and will ensure they receive one immediately.

As I stated, I was contacted 12 or 18 months by constituents asking how best they could protect their money and ensure their wealth would be preserved in the event of the eurozone breaking up. A number of prominent economists and commentators spoke about a eurozone break-up at the time. One economist predicted it would break up in a matter of days or weeks, while others argued that only months were left to save the eurozone. The economic apocalypse that would have ensued has been averted through strong decisions that were made to ensure the euro remained secure and the eurozone survived and prospered. People believed that many of the changes made in that period would be virtually impossible to implement. The European Stability Mechanism offers support to member states and other new machinery was created and retrofitted to the currency to ensure it would be able to square up and meet the challenges it faced at that time.

While the worst of our fears did not come to pass, the European recovery is still at a fragile stage. Senators are familiar with the challenges faced by Europe and Ireland, the most important of which is the unacceptably high level of unemployment. As we seek to manage the consequences of the deep crisis, it is worth emphasising that the European Union has enlarged with the accession of Croatia as its 28th member state. This was a gigantic achievement on the part of Croatia given the scale of the difficulties and challenges it had to manage. I am pleased to note that Ireland will shortly open an embassy in Zagreb to deepen our relationships and working arrangements with the newest member of the European Union.

I referred to the difficulties faced by the eurozone and the deep challenges we continue to face. Last month, Latvia became the 18th member of the eurozone. This illustrates the faith the newer EU member states have in the ability of the euro to assist them in meeting the aspiration of their citizens to have sustainable and functioning economies. The European Union and eurozone are larger now than they were when we were in the depths of crisis. This gives us a degree of confidence about the challenges we need to navigate and the opportunities we need to grasp.

For Ireland, 2013 was an extraordinary year in that we completed another successful Presidency of the European Council and became the first eurozone country to successfully exit an EU-IMF programme. The work in recent years, in particular in the past 12 months, has done much to rebuild Ireland's image and profile in Europe and restore confidence in our economy and the wider European system. While much work remains to be done, we can take some pride in our achievements.

Against this backdrop, our colleagues in Greece have assumed the Presidency of the European Council. Late last year, I travelled to Athens to meet the Greek Prime Minister, Mr. Antonis Samaras, and EU Affairs Minister, Mr. Kourkoulas, to discuss the Greek priorities for the Presidency. I shared our experiences of the Presidency, outlining our preparations for the six-month term and the lessons we learned from it. I also described the work we had done to develop our relationships with the institutions and the intensive efforts we made to make progress on particular priorities and files with the Commission, Parliament and other member states. I heard about the significant challenges Greece faces as a country and during its Presidency. I also observed the tremendous efforts it is making to rise to these challenges.

The Greek Presidency is now five weeks old and it is apparent already that Greece is committed to delivering a successful Presidency which will contribute to a European and Greek recovery. Greece has set out a number of priorities on which it wishes to deliver.

Its first priority is growth, jobs and cohesion; its second priority is further integration within the EU and the eurozone; its third priority is progress on migration, borders and mobility; and its final priority is progress on maritime policy. Ireland welcomes these priorities. We are actively working with the Presidency to secure progress in each area.

From Ireland's perspective, ensuring the stability of the eurozone and consolidating economic growth remain the most important priorities on our agenda. The start of our recovery can be traced to the June 2012 European Council, at which agreement was reached to break the link between sovereign and banking debt. If the recovery we have set in train is to be consolidated, it is absolutely imperative that European leaders continue to follow through on this commitment in full. It is clear that banking union will do much to ensure the stability of the economic and monetary union which is necessary for lasting prosperity. The finalisation of agreement on the single resolution mechanism and the single resolution fund is a key priority for Ireland. We welcome the priority that the Greek Presidency has accorded to the development of both of these priorities.

Further measures are required to bolster economic growth and create employment in the short and longer terms. The enhanced Stability and Growth Pact and the Europe 2020 strategy form the blueprints in this regard. The European Council will consider an interim assessment of Europe 2020 when it meets in March. This presents an opportunity to focus on the jobs and growth agenda and to consider how efforts to address youth unemployment and support the financing of small and medium sized enterprises through the European Investment Bank can be refined and improved. I will give an example of the progress the European Investment Bank is making in this regard. The lending it is making available to Ireland is a multiple of the kind of lending we got from that institution in the past. That is already leading to practical results. I refer, for example, to the progress that is being made with the construction of the new DIT campus at Grangegorman, which is being enabled by support from the European Investment Bank. Similar work is taking place on the Luas BXD line, which will run through Dublin. This is a practical example of the kind of support the European Investment Bank is enabling in member states by means of investment.

The European semester is at the heart of the EU's stronger post-crisis economic governance arrangements. Following the completion of the EU-IMF programme, Ireland will participate fully in the semester this year. National parliaments have an important role to play in this process, for example, by explaining it to the public. That responsibility is particularly relevant for Ireland, given that this will be our first experience of the semester. Many other countries are now moving into their fourth period of operation of the semester. Following our exit from the programme, we are now going into our first period of operation.

I welcome the recent engagement of the Joint Committee on European Union Affairs with the Secretary General of the European Commission, Catherine Day, to discuss parliamentary engagement in the European semester. This theme arose when I attended a meeting of the joint committee this morning before I came to this House. Senator Noone, who was also in attendance, raised issues with me at that meeting. One of the points I made at the meeting was that it is important for the Oireachtas, including the Seanad and the committees, to take time to decide what role it should have in the work that will take place as part of the semester process. A great deal of work will place at Government level in the coming period, particularly in the run-up to the summer, regarding how we want to make an input into and work with that process. It is very important for Members of the Oireachtas, across all political parties, to understand the nature of this work. It will be a new experience for this country. Members of the Oireachtas should also avail of the opportunity to make an input into that process so that their views can be made known.

The objective of this process is to deliver stronger economic governance. Ireland will continue to follow up on some important priorities alongside that. We will focus on the deepening of the European Single Market and on steps to enhance business access to credit and stimulate external trade. The Transatlantic Trade and Investment Partnership, which was launched under the auspices of the Irish Presidency, is a very important example of an area in which we want to continue to make progress. We support the Greek Presidency's work on the priority actions under the Single Market Act. We continue to support the European Commission in pursuing ambitious free trade agreements with key partners. I am sure Senator Leyden will respond to some of the comments I am making. I recall a number of occasions on which he made reference to the support he gave to Irish investment abroad when he served as Minister of State. He always acknowledged the role of bodies like the EU in driving investment and emphasised the need for Ireland to be represented on such bodies.

The Transatlantic Trade and Investment Partnership, which will be a huge trade arrangement between the US and the EU, could create an extraordinary opportunity for a diverse range of companies in Ireland to perform even better in the US. It is incredibly important to us that such trading relationships should deepen in a rules-based environment. That is what the negotiations on the Transatlantic Trade and Investment Partnership are focusing on.

I would like to speak about the institutional agenda and the significant transitions and leadership changes which lie ahead this year. When I mention the "institutional agenda", I am referring to the Parliament and the European Commission. As many Senators will be aware, a new European Parliament will be elected in May. A new President of the European Commission is due to be appointed in the summer. Consequently, a new college of Commissioners will be appointed in the autumn. There will also be a new President of the European Council, a successor to Catherine Ashton as high representative, and a new chair of the Eurogroup. These elections will be the first European elections to be held under the Lisbon treaty. Our experience during Ireland's Presidency of the EU reminded us how significantly the treaty has expanded the power of the European Parliament. Its role in shaping and determining European policy, as co-legislator with the Council, has never been stronger. It matters like never before.

I will give a practical example in this regard. Senators will be aware that all Members of the European Parliament come together in plenary session every month to vote on the initiatives and proposals in front of them. We ensure an Irish Minister is present at each plenary session to meet all the Irish MEPs and engage directly with MEPs from other countries who are voting on legislative initiatives or proposals that matter to us. We repeatedly see practical examples of the European Parliament's role in affecting things that matter here at home. I will mention two such examples. Senators will be aware of the debate that is taking place at present about the role of plain cigarette packages. As this will be a Europe-wide initiative, in order for it to be developed it had to be voted on directly and agreed by the European Parliament. It is a growing sign of the significance of the European Parliament that a debate at that forum yesterday on a Commission document was reported on by RTE news. The comments of various MEPs were given particular relevance and prominence in the report.

Following the implementation in full of the Lisbon treaty, and in light of its role in initiating and strongly influencing legislation, the European Parliament is now an incredibly important forum for our country. Another example of that can be seen in the case of the banking union, which I referred to earlier in this speech. The next phase of the agreement of the European banking union will take place within the European Parliament.

There will be Members of the European Parliament within the committee of the Parliament and then within the plenary of the Parliament who will be voting on concepts and initiatives that have a material impact on something that is in our national interest. May's elections will provide the public in Ireland and across the EU with the chance to influence this direction. A total of 751 MEPs will be elected, more than half of them new MEPs. MEPs have more power than ever to make a positive difference in Europe. If there are any Senators present who are considering the European Parliament as another forum within which to make their views known and influence the development of legislation, I assure them that if they consider this move and are successful, they will find it is a forum and Parliament in which issues and legislation are debated that will have a very important impact on our country and the people we all represent. It is a forum that will play an increasing role in Ireland. Each time a Minister travels to the plenary session in Strasbourg, which happens every month, we make a point of meeting all the Irish MEPs to discuss issues that matter to us. I acknowledge that every MEP from every party and none will turn up to participate in those discussions because of their desire to understand what we are trying to progress within Government and to be constructive on behalf of our country.

I will now address external relations and touch on some topics I know are of interest to colleagues and that have been raised in this House in recent months. I will touch on developments with Ukraine. Despite the difficulty we have within the EU, many of the countries I visit that are outside the EU look at the way we govern ourselves nationally and the arrangements in place across the Union as something they want to join. They see this as a huge source of support for their people in trying to develop their prosperity and security and in trying to meet the aspirations of their citizens. On those visits, I have also become extremely aware of the challenges that many of these countries are facing. I will touch on what is perhaps the most prominent of them, which is that relating to Ukraine. I had the privilege of representing our country, along with the Minister for Children and Youth Affairs, at the Eastern Partnership Summit in Vilnius in November. While we saw Georgia and Moldova agree new association agreements with the EU, we saw Ukraine decide not to participate in that arrangement and decide instead to find alternate ways of developing its economy, society and country.

It was clear even when I was at that summit and the meetings that happened around it that this decision would have very profound and historic consequences for that country and region. That then became very clear to me a number of weeks later when I had the opportunity to visit Kiev when I represented Ireland at the OSCE ministerial meeting. During that visit, I took the opportunity to go down to Independence Square where I spent nearly two hours meeting the people down there. I did this as Minister of State representing the country but I did not really make any attempt to draw any attention to what I was doing because I wanted to talk to people who were out on the streets and see why they were there. Why did they feel like this? To touch on a point I mentioned earlier, it became extremely clear to me that what they were looking for was a relationship with the Union to develop their country and deal with some of the difficulties they face. It also became very clear that this was something about which they felt extremely strongly and for which they were determined to continue to campaign and agitate within their society. When I arrived at Independence Square that night - I did not have the opportunity to get down there until around midnight because we had such a full day - it was below freezing and there were tens of thousands of people there when the focus on it was just starting to develop to the levels we have seen.

This is something in which the EU has continued to be very engaged. The Irish Government has communicated directly to the Government of Ukraine via our ambassador our very strong message that restraint must be exercised on both sides, particularly from the side of Government given the role it plays in all of this. As members of the Foreign Affairs Council, we have continued to call on all individuals and actors involved in this to find some way of coming together through inclusive dialogue to agree a democratic solution to the crisis. High Representative Ashton who is a member of the Commission who looks to represent Europe in certain areas has played a very significant role in Ukraine and in Kiev in trying to move forward. We believe these efforts would be greatly assisted if the authorities were to launch a credible and urgent investigation into the many reports of violence and intimidation by security services. There can be no impunity for anybody playing a role in that kind of alleged violence and the alleged crimes perpetrated on people there.

Last week, I had the opportunity to visit the city of Sarajevo in Bosnia-Herzegovina. All will be aware that this is a country scarred by serious and horrific violence in its recent past but which, with the support of the EU, is attempting to forge a better future. I was very much aware of the fact that when I flew into Sarajevo last week, I was flying into a city that, just over 20 years ago, had endured the longest siege in the history of modern warfare and a country where, less than 20 years ago, many large parts were no-fly zones because of the scale of the war that took place in the aftermath of the break-up of Yugoslavia. During my visit, I had the opportunity to meet Bosnia-Herzegovina's equivalent of prime minister, who is the chairman of the council of ministers, the foreign minister and the committee of European Union affairs. I also addressed a public meeting that took place in Sarajevo on what happened to Ireland in recent years and the learning and experience that may be of relevance to the people of Bosnia-Herzegovina. In December, the EU reiterated our unequivocal support for Bosnia-Herzegovina's EU path. It also highlighted our concern at the limited progress to date in meeting key conditions and the responsibility of its leaders to resolve these issues. During my visit to Sarajevo, I reaffirmed these messages in respect of the need for the country, government and leaders to make progress on the Sejdi and Finci v. Bosnia and Herzegovina ruling. This ruling looks to ensure that any member of the communities within Bosnia-Herzegovina has the opportunity to stand for public office and participate in public life. I also emphasised the need for a very strong co-ordinating mechanism to be put in place to enable and allow that country to deal with the EU.

Earlier in the year, I was the first European minister to visit Albania following the decision of the European Council in December to grant candidate status to the country in June on the understanding that it continues to build on the encouraging progress made so far. There, too, I brought a message of support and encouragement. I met the Prime Minister, Foreign Minister and representatives from all of the political parties. It became clear that there is strong willingness on behalf of the Government and the public to hear that message. There is a clear commitment to the reform agenda, which demonstrates the very positive role the EU can play in that neighbourhood.

I emphasise some of the recent broader historical developments in that region. I refer to the role of the European Union in brokering an agreement between Serbia and Kosovo and dealing with many issues which appeared gravely difficult. I refer to the courage of the governments of both countries in making progress and the pivotal role of the European Commission represented by the EU High Representative, Catherine Ashton. I refer to the progress being achieved by Serbia in developing its relationship with the EU. In the months ahead I hope to have further opportunities to engage with eastern and southern neighbour countries to help them to deepen their links with the European Union.

I continue to invest significant time in developing our bilateral relationships. Tomorrow afternoon I will travel to Berlin to meet my new counterpart, Minister Roth, the recently appointed Minister for European affairs. I will also visit Warsaw to meet the Polish Government. In between I will visit Strasbourg to continue the engagement with the European Parliament. Between the end of August and December I made more than 20 different visits to countries or institutions to further develop our EU Presidency profile. To name but a small number I visited Italy and Greece. When visiting Brussels and Luxembourg I took the opportunity to engage with the institutions. I have spent a significant amount of time explaining the Irish priorities for the European Union, including making this clear in the current UK debate-----

The Minister of State is a very busy man. He should not neglect his constituency by the way.

I can assure the Senator that I follow in the footsteps of active Ministers such as the Senator. Whenever I am at home and not in here doing this work I do my best to be in Dublin Central. I thank the Senator for his advice.

I paid the price.

I have continued to do all I can to support the development of our relationship with member states and with the EU institutions. I believe we continue to make progress in many areas but I am aware of how much more needs to be done and developed. I am aware of the work we need to do to ensure that banking union comes about and in such a way as to enable our own banking system to develop in the way required and allows us to tackle many of the issues. I am also aware of the priority and importance of initiatives such as TTIP. I refer to the European Parliament elections and changes in the European Commission. I am aware of the need for Ireland to develop and maintain its voice during this period of change. What gives me great encouragement in my work is my understanding of how the Irish public is aware of the role Europe can play and its willingness to debate it and to be informed about it. A tangible example was evident in my visits to two Irish universities last Monday. I will be visiting all our universities in the coming weeks to discuss opportunities in the European Commission and to discuss Ireland's role in Europe. For each of those visits hundreds of students turned up to hear about those opportunities and to be informed about them. This was tangible evidence of the growth of interest in recent years.

Our task is to draw on the goodwill and the strong relationships generated throughout the Irish Presidency, reinforced by our programme exit, in order to deepen our influence and enhance our effectiveness in the Union.

I began my contribution by emphasising that the past year has shown the resilience and adaptability of the Union but it has also shown the extraordinary resilience of our country and its citizens. I look forward to the work ahead. I am very confident about the path Ireland has taken. As Minister of State it is my privilege to play a role in ensuring that we move forward on that path and always to the benefit of the people we are all very privileged to represent.

I remind speakers that we have only 24 minutes speaking time left. I will have to be strict.

I do not mind a reduction in my speaking time. I welcome the Minister of State back to the House. He was a very good Senator who worked hard. He probably honed his political ability in this House. I always thought he was a very fair-minded, non-political type person. I congratulate him on being made a Minister of State with responsibility for European affairs. I know he is working very hard in that role. I note that the Minister of State did not mention that his predecessor, Deputy Lucinda Creighton, was the Minister of State during the Irish Presidency. I know she has been air brushed out of Fine Gael politics and it is pretty obvious. There is no mention in the Minister of State's contribution of her work. She performed extremely well during the Irish Presidency. She led the Presidency in Europe and was ably assisted by our ambassador in Brussels and the staff seconded to the Presidency for that period of six months and the advance three months preparation period. It was a very successful Presidency, as have all the Irish Presidencies. Our public service contains the most talented representatives. As a former trade Minister I worked in Europe and I know their ability.

The Minister of State has outlined very well the role of the Greek Presidency. He referred to the situation in the Ukraine. I commend his courage in visiting the square in Kiev at this time. I believe Baroness Catherine Ashton that Europe was too heavy-handed with regard to Ukraine. It had been an integral part of the Soviet Union and it relied on Russia for its gas supplies. We moved too far too fast in my opinion. The Minister of State will have a role in a resolution of the issue.

I commend the Minister of State's work with regard to Bosnia and Herzegovina and his efforts in resolving issues in that region. That country's integration into the European Union should be fully supported and it is hoped that it will become a member in time. He did not refer to the Council of Europe even though he is the Minister of State with responsibility for European affairs and assigned to the Council of Europe. Ireland as a founder member of the Council of Europe is in a position of some influence. Deputy Joe O'Reilly is the Fine Gael leader of the delegation to the Council of Europe. Last week we elected a new president of the delegation who is a member of the liberals and democrats group. Peter Gunning is our excellent ambassador. I hope the Minister of State will take an interest in the Council of Europe. The European Union takes priority in policy matters but the EU Court of Human Rights made a very important decision in the O'Keeffe case.

It acts as a very good sounding board because countries such as Russia, Ukraine, Azerbaijan and Albania are members of the Council of Europe. I invite the Minister of State to address the Council of Europe on issues pertaining to the European Union. It is an important area and one that may have been neglected to some extent.

The European Parliament elections will take place on 23 May and the number of MEPs from this State has been reduced from 12 to 11, which makes it very difficult. When Croatia joined, we lost a seat and when the next country joins we will lose another seat. We could be down to six seats in the next ten years. While there is a limit of 751 seats in the Parliament why can we not extend it slightly to allow countries such as Ireland to have representation? We have ended up with unwieldy constituencies meaning it will be very difficult for candidates to campaign and for those elected to represent those areas.

The Minister of State is very busy and is travelling everywhere. I advise him not to neglect the home patch, including Drumcondra, as Mr. Bertie Ahern did every weekend. I assure him that his constituents will not be too impressed by his travels to Kiev, Bosnia Herzegovina or Greece; they will be looking to see if he is available to meet them and make representations. I wish him well in his job, which he is doing very well. I commend him on going out to the universities to meet young people and discuss European affairs.

I welcome the Minister of State to the House. I am glad he is doing his duty for the country in representing us very well. He seems to be very and is hard working. It comes as no surprise that he is taking such a serious approach to his representation of the country at European level.

Having recently assumed the portfolio of Seanad spokesperson on European affairs, I have spent the past few months sitting on the Oireachtas Joint Committee on European Union Affairs, representing Ireland at COSAC and raising European issues regularly in the Seanad in the media. As we are now in a post-EU Presidency stage I am glad that the Government is still displaying such a healthy commitment to fostering strong, working relationships throughout Europe. The Minister of State also mentioned bilateral relationships, which are very important. The creation of the portfolio of Seanad spokesperson on European affairs is an indicator of the Government's attention to Europe in the Houses of the Oireachtas.

Three witnesses appeared before the Oireachtas Joint Committee on European Union Affairs yesterday and Dr. O'Brennan, in particular, mentioned how much we need to up our game in the Houses of the Oireachtas when it comes to scrutiny of European legislation. The upcoming European Parliament elections can play a role in cementing a positive, constructive relationship with the Parliament, as was mentioned at the committee meeting already this morning. There is a danger of repetition for the Minister of State who has the two engagements so close together.

As we know, Greece started its fifth Presidency of the Council of the European Union on 1 January. Its four priorities are very appropriate to us. They are growth, jobs and cohesion; further integration of the EU and eurozone; migration, borders and mobility; and maritime policies. As we discussed earlier in the committee, the Greek Presidency is under pressure to deliver on a wide range of outstanding legislation before the elections in May.

The EU is facing many challenges on a number of fronts - politically, economically and perhaps socially. The accession of Croatia has taken place successfully, but work remains to be done with Bosnia Herzegovina. On the Eastern border the strife in Ukraine poses many dilemmas. The UK "in-out" referendum poses a significant challenge and would have a detrimental effect on Ireland if it comes to pass. Portugal is moving in a direction that we have moved in and we are seen as leaders in this regard. Our reputation, according to the guests at the committee yesterday, has very much been restored at a European and international level.

In March Dublin will host the congress of the European People's Party of which Fine Gael is a member. It is an honour that will see several Heads of State and Government coming to Dublin to meet, to debate and to work on a number of issues which face the EU. This will be the backdrop for a ten-week national conversation on Europe, Ireland and our relationship. People often ask what Europe does for them and often feel disconnected from Europe, as we discussed at this morning's committee meeting. However, on the whole Ireland is very much pro-Europe, and the people realise the role the EU has played in the past and continues to play in our daily lives.

The Minister of State recently said: "Ireland is an integrated and committed member of the EU and, with the consent of our people, will remain so. With all of its imperfections, difficulties and frustrations, however, it still offers the best platform for our country to represent and advance what is in our national interest". I could not agree more. People can be frustrated by EU decision-making and its perceived remoteness, a matter the Minister of State mentioned at this morning's committee meeting. It is a perceived remoteness when we think of some of the examples the Minister of State mentioned, such as roaming charges and plain tobacco packaging. It is clear that the EU gets credit for some things, but considerable work remains.

The number of Google employees in Dublin recently passed the 2,000 mark. We can be in no doubt that if Ireland were not a member of the EU, Google would not have that number of employees. In the months ahead, we will see the phased abolition of mobile telephone roaming rates, which is solely down to the EU, for which I hope it gets credit.

The upcoming European Parliament elections will result in Ireland having 11 out of 751 members. We need to ensure we have people of calibre, as are most of the candidates of which I have heard. It is all the more important for us to have people to represent us very well in Europe. As I mentioned at the committee meeting, there is a role for our national broadcaster in communicating to the people the achievements of the EU as well as its agenda and other issues with which it deals.

One of the witnesses at yesterday's committee meeting - I cannot remember if it was Dr. O'Brennan or Mr. Connelly from RTE - mentioned Ireland's role during the EU Presidency in the negotiation of the trade agreements with the US. While we have a very well established relationship with the US, it has been suggested that whoever is negotiating at present may be struggling and the Irish might need to play a fuller role in that regard.

Ukraine is of great interest to people. Based on its population and land mass, the country offers great potential. At the moment it seems to be suffering from Russian oppression. While there seems to be a major focus on it, I hope it will continue. I again thank the Minister of State for coming to the House today.

I call Senator Reilly, who has a maximum of five minutes.

I welcome the Minister of State to the House.

I refer in particular to the conclusions of the last European Council summit on Common Foreign and Security Policy, the need to enhance its development capabilities and strengthen Europe's defence industry, which essentially amounts to increasing spending on weapons and military technology. Let us couple this with the comments from the Minister of Defence to a NATO publication last year to the effect that neutrality is an outdated concept as well as a comment made at yesterday's meeting of the Joint Committee on European Union Affairs to the effect that foreign policy should be a blend of force, development aid and diplomacy. What are the implications of these in terms of our charity and foreign and security policies?

The European Commission has issued a communication on the voting rights of EU citizens. Article 2 of our Constitution asserts the right of Irish citizens, whether at home or abroad, to play an active role in their country. To comply with international human rights standards, any restrictions on the right to vote should be reasonable, proportionate and necessary for a legitimate public purpose. This is the background to the comments made by the Commission against five European Union countries, namely, Ireland, Denmark, Cyprus, Malta and the United Kingdom. Complete voting disenfranchisement of citizens outside the state is mostly the exception rather than the rule for countries throughout the world. This is evident given that the five countries named have been addressed on the matter. I call on the Minister of State to comment on the recommendations the Commission has made and the Government's response.

The Minister of State commented on the interim assessment of the Europe 2020 strategy. When Catherine Day came to the Joint Committee on European Union Affairs it was noted that the consultation period would run from April to September. She remarked that it was an important opportunity to influence EU policy. How will the Government be engaging with that process? How does the Minister of State believe the Oireachtas should engage with the process?

The Minister of State is in a unique position in that he has sat in both Houses of the Oireachtas, he is a Minister of State and he has sat on the Joint Committee on European Union Affairs. I have been privileged to be on the committee with the Minister of State and to have had the benefit of his experience. It is great to see that he is a Minister of State now. He is articulate about his portfolio.

When discussing the European semester process, Senator Noone noted the comments of Dr. John O'Brennan, who referred to a greater role for the Oireachtas. He suggested the Executive should not have all the power in setting the agenda on the European Union, what is being discussed and how it is discussed. The Minister of State referred to the European semester process, how the Oireachtas should provide input and that we should think about what we want to see in the process. During the summer the work on the input will be done by the Government. How will the Government work with the Oireachtas? The Minister of State is in a unique position in that he has sat in the Seanad, the Dáil and the Joint Committee on European Union Affairs. How can the Government work with the Oireachtas and how can we work with the Government? What processes could be improved? How does the Minister of State envisage that we can all work together on the country-specific recommendations?

I welcome the Minister of State and congratulate him and the Government on the highly productive and successful way in which we are currently managing our relationship with the European Union. Not only have we successfully exited the bailout programme but we have achieved critical concessions along the way, such as the terms under which we were able to deal with the vast liabilities of Anglo Irish Bank. Our handling of the European Union Presidency ensured great progress in building a stronger economic and banking framework for the future. However, everyone should acknowledge that this work is by no means over.

Perhaps the most important point is the way our representatives have gone about doing this work on a range of policy fronts. The reputation of Ireland throughout Europe and the world has been greatly strengthened after a period of neglect, complacency and arrogance during the latter years of the Celtic tiger. One of the key outcomes of the Irish EU Presidency was the launch of the youth guarantee scheme throughout Europe. I applaud the work of Labour Party MEP, Ms Emer Costello, on the issue in the European Parliament.

We should approach the implementation of the guarantee with missionary zeal. As some countries have demonstrated, particularly in Scandinavia and the Netherlands, if training supports are properly applied and we do not simply sit back waiting for people to show up at the doors, then the results can be excellent.

I wish to raise an issue relating to our future relationship within the European Union. I do not believe we are short of fundamental and serious issues to discuss, but within the coming years there is a distinct possibility that Scotland may withdraw from the United Kingdom and that the loss of Scottish votes, in turn, could ratchet up the chances of a referendum, leading to the rest of Britain pulling out of the European Union. If Britain were to leave the European Union it would have a major impact on Irish trade and on our relationship with Northern Ireland as well as a host of other issues. Not every impact would be negative, since some multinational companies might decide to relocate their activity from Britain to Ireland to stay within the EU. However, either way the issues are real. I wonder what thinking is under way in government about how we would manage such a scenario. For the sake of argument, would we support an independent Scotland's application for EU membership? Have we considered the implications for other older democracies with large populations which have aspirations for a separate identity? How would this tie in with the current enlargement of the European Union? Would these countries which would have to apply for membership again stack up behind Serbia?

We have seen some positive issues such as the emergence of the multi-annual financial framework to 2020. This framework provides great advantages in terms of certainty on the level of funding that is likely to be available over time for critical projects like the youth guarantee scheme. There is a good deal for us to learn nationally. Instead of spending all our budget in one year we will be allowed to move it into the following year.

At the same time I wish to exercise a note of caution. I am not necessarily convinced that the collective sense of EU governments along with the Commission has been sufficiently proactive in responding to the dangers of deflation and insufficient demand. Let us consider some of the dialogue at European level. We have heard a flavour of it in both Houses of the Oireachtas. I have been struck by the emphasis on budgetary discipline and the apparent assumption that it was a lack of discipline by governments that has been the cause of the current recession. In reality, it was the collapse of key parts of the private sector that resulted in the previous balanced government budgets going drastically into deficit.

Is enough attention being paid within the EU and among the EU leadership to agreeing indicators on private borrowing, as opposed to government borrowing, and to when it is getting dangerously out of control? What collective action should be taken to moderate that, when necessary? Setting solvency ratios for individual lending institutions under the Basel accords are not sufficient. We need to have a clear systematic view at sectoral level of relevant danger signals as well as the capacity to act on them.

In respect of the capacity to act, I am concerned that the German constitution has been changed to significantly constrain the ability of the German Government to borrow from 2016. We face a major challenge, therefore, in building the collective will at European level to confront our economic challenges as effectively as possible. I do not envy the Government's task and the challenge that this presents. It is important for all of us to build up within the European Union the capacity to act, to build alliances and to persuade others throughout the entire front of action.

The growing level of inequality in the western world and Europe is of concern. This has been raised in the US Congress by President Obama and it has been put to the centre of the agenda. Many people support the deregulation of markets as far as possible on the basis that markets are a force of nature best left to themselves. However, the reality is that markets are social institutions and if they are to work there must be rules to address them. Professor Joseph Stiglitz has referred to the fact that the wealth amassed by the top 1% has been due to their ability to influence how those rules are written.

I will finish by referring to the citizens' Europe and promoting equality. This issue has been raised by several others. There has been a breakdown. It is clear from attitude surveys throughout Europe that support within member states has weakened for the citizens' Europe. We cannot afford to be complacent about this. One of the factors that has been influential in weakening popular identification with Europe - the Minister of State raised this in the context of enlargement and I note he takes a positive attitude towards enlargement - has been the extent and the speed of enlargement that has taken place within the past decade. I am not at all against enlargement. I can see why it is a necessary thing. However, we should be conscious of how our citizens experience it. For example, people in Ireland were once able to name all the members of the European Union but few of them can do so today. It is tempting for the Government and all governments to try to win friends by telling other applicant states that they support their admission to the European Union, but that is not sufficient.

There needs to be a clearer understanding of where Europe begins and ends. The Union must be based on a broad sense of identity, founded on some form of common historical experience, or else it is simply an abstract set of criteria with which people will not identify sufficiently.

Ireland and the world in general needs a healthy and positive EU working cohesively and effectively to build a more prosperous, equal and sustainable future. Much has been achieved, but as has been said on many occasions, a lot remains to be done.

We are up against the clock, but I will give Senator Clune a couple of minutes. We must be out of here by 1.30 p.m.

Thank you. I wish the Minister of State well. I appreciate the importance of the work he is doing.

One point I would like to raise is the European Regional Development Fund and funding for urban renewal projects, which we hear may be excluded this time around. Cities like Cork, Dublin, Waterford and Galway, and probably Limerick as well, would not receive funding under this round, but it is important that they would. They are major cities, with many people living there. We need to work with what we have in renewing our urban facilities. I cannot stress how important that is. The Minister of State is nodding as if he is aware of it, but it is something I wanted to raise directly with him.

There are many other issues I would like to raise with him, but the situation in Ukraine is very sad. I would like him to encourage dialogue at all levels, which I think is very important. It is distressing to see scenes on our televisions of people being kicked and batoned by their own police force. This is a force that is supposed to protect citizens, but unfortunately that is not happening. I have visited Ukraine myself and it is divided between the EU and the west. The young people there want to move towards the EU. The protests there are peaceful at the moment, and I hope it stays like that. It is a very important conflict and I urge the Minister of State to maintain dialogue when and wherever he can on that issue.

I would also like to speak about the situation in Syria and its refugees. Senator Leyden and I are members of the Council of Europe. Last week we had a representation from the UN High Commissioner for Refugees who stated there 2.2 million refugees who have gone to neighbouring countries, and 1.1 million of those are children. There are 4.25 million internally displaced persons. The special rapporteur on human rights has called on the parties involved in the conflict to ensure international organisations and NGOs would be allowed to access and help refugees, especially those who are internally displaced in their country, particularly women and children, who represent the bulk of the affected people. Most of the refugees have gone to Turkey, Jordan, Lebanon and Iraq. Those countries have taken on an enormous burden, even though they are developing countries themselves. Lebanon does not have the infrastructure to host such a large number of refugees, and this is causing tension in the host countries. I know they are outside the EU, but member states such as Austria, Bulgaria, France, Germany and Luxembourg have accepted some refugees. Have we a strategy on this? We need to keep working on it. The children have no education and are forced to work under conditions that are contrary to the international convention on human rights. There is sexual and gender-based violence, rape, forced marriage and prostitution. There is a real issue here. Is the European Union doing enough to support these people, who may never be repatriated to their own country?

I let in Senator Clune with great reluctance because we are out of time, but I will also allow Senator Mullen a couple of minutes. It will have to be brief, because we are due to leave at 1.30 p.m. and the Minister of State should be replying.

I will be brief. I welcome the Minister of State and thank him for his speech. What is the Government's intention on protecting farmers the context of his reference to the transatlantic trade and investment partnership? In light of the recent trade deal with Canada, there is significant concern that the EU's trade agreements with the US may very well leave Irish farmers in a worse position. I can see the positive aspects of promoting trade, and the Minister of State mentioned the billions of euro in value to the EU, but it is also important to remember Ireland's particular local interests. I would have been grateful for a specific reference to a commitment to protecting the interests of our farmers.

We saw the best and the worst of the European Union and the European Parliament in recent days. Today we have the good news about the European Parliament adopting updated rules on the protection of consumer rights for air passengers, including compensation, relaxation of baggage rules when there are long delays or cancellations, allowing passengers to use the return part of their ticket even if they did not use the outward leg of their journey and so on. I welcome the EU's initiatives in this area. The EU does seek to protect consumers, often in the face of unscrupulous practices of big business. The European Parliament has indeed been a forum for such considerations. As an island nation, Irish citizens are particularly vulnerable to sharp practice by certain airlines, and I would like to know if the Government is supportive of such initiatives at EU level on the side of the consumer.

On the negative side, we saw the Lunacek report which came out today. The EU rightly has set out to combat intolerance and homophobia, although I do not think the intolerance and homophobia party would get many votes anyway, nor should it deserve to do so. However, under the guise of promoting common values, the EU often undermines - in the Lunacek report it proposes undermining - member state autonomy in areas that are of member state competence. An example is education, where the report proposes the mutual recognition of civil papers and education programmes, which perhaps could be better described as re-education programmes. This runs the risk of the likes of well funded organisations like ILGA Europe and other well researched insiders on the NGO scene getting money from the EU in the first instance, then making recommendations back to the EU. Where is the EU money for organisations that would try to promote the cause of marriage as necessary for the upbringing of children? In setting out to protect minorities, the EU often ends up running the risk of discriminating against other minorities and closing down free speech. That is a very relevant consideration in recent days here in Ireland, given the discussion we have had about allegations of homophobia being thrown around the place. I am concerned about the insiders in the EU who tend to be well funded, who adopt bogus methodologies and who seek to undermine member states' competence in areas like education, which ought to be sovereign matters for member states. That is a big concern I have about the EU, and I would like to see the Government and Irish MEPs taking a much stronger stand in that area.

I call on the Minister of State to reply. We are supposed to finish at 1.30 p.m., but I am sure we can give you a few minutes to wrap up.

I thank all Senators for their contributions. I should have made clear in my contribution that I am always available to come to the House to discuss matters in respect of Europe in any sphere. If I have missed out on any of the points raised, I would be happy to come back again, but I will do my best to go through all of them in turn.

Senator Leyden expressed the view that Europe may have moved too strongly in respect of Ukraine. I would contend that the negotiations which took place between the European Union and Ukraine were always very respectful of the right of the Ukrainian Government to determine its own course of action to make a decision on behalf of its own people. Even when the negotiations broke down during the partnership summit, the Commission and all the Heads of State always emphasised that it was the legitimate right of the Ukrainian Government to decide what course of action it wanted to take on its future and on the future of its people. The challenge now is to come up with a relationship between Ukraine and the European Union that can coexist with other kinds of relationships that the Ukrainian Government might want to develop. As Senator Clune mentioned when she spoke about her visit there, it is a massive country both physically and in terms of its population. It is directly in the interests of Europe that we enable a very peaceful and credible resolution to difficulties that are taking place there at the moment.

After my visit to Bosnia Herzegovina, I am very aware of the difficulties to which the Senator alluded. However, I also believe that the EU can continue to play a constructive and positive role in dealing with its resolution through the offices of Mr. Peter Sørenson, who is the High Representative of the European Union in that country.

With regard to comments made about the Council of Europe, I have met the Irish ambassador to the Council of Europe and I share the words that Senator Leyden expressed about him. If the opportunity were ever to develop for me to speak to the Council or its members, I would be delighted to do so. I am well aware, just like the Senator, of the long-standing role played by Ireland and, as he said, that Ireland is a founder country.

I will move on to discuss the contribution made by Senator Noone and thank her for her questions and comments. She made a point about Dr. John O'Brennan, National University of Ireland, Maynooth. He is one of the leading figures who understands the level of engagement the Oireachtas has with the European Union and he has made constructive proposals. At present all of the engagement takes place, as the Senator will be aware, through our committee system. Some committees are doing the work very well, but other committees handle it in a different manner. I have written to all the committees asking them to assess how they are dealing with European scrutiny and to supply me with the information. I have asked for the task to be completed by the end of January. I intend, on receipt of the information, to make constructive and practical proposals on what we can do to change how we conduct our business. In fairness to members on all sides of the House, we are doing an incomparably better job on it now than we did a number of years ago. However, we can do even better in a few areas.

With regard to the forthcoming European Parliament elections, I entirely agree with Senator Noone on their importance. She was correct when she said their timing will mean a smaller window of opportunity for the Greek Presidency because the European Parliament must be dissolved more than half-way through its presidency.

The Senator was also correct with her comments on Portugal. The Portuguese Government, with which I am lucky to work closely in a number of areas, has made extraordinary efforts to respond to its difficulties. I hope the way Ireland has exited its external aid programme will be of help to the Portuguese Government. Only two weeks ago Portugal successfully sold a large amount of its government debt at an interest rate that I hope will play a role in ensuring its exit from its programme. We all hope that happens very soon.

The Senator also commented on the Ukraine, which I touched on earlier in answer to Senator Leyden's comments. I agree with her comments on the transatlantic trade and investment partnership, and Senator Mullen also made a fair point on the matter.

I thank Senator Reilly for her contribution and understand her concerns about the defence policy. The same concerns were articulated by Deputy Crowe during the debate that took place in the Dáil after the European Council meeting to which she referred. I must emphasise that policy discussions must take place within the framework of the Lisbon treaty. The treaty and its protocols specifically reflect Ireland's stance on the issues. We are a neutral country, a stance I believe is of huge benefit to Ireland. We may be neutral but we also have security concerns as a country and we have a duty to our people to uphold them. It is purely within that spirit that we engage with other member states on this point. I am happy to return to the House to address the matter in greater length.

With regard to the Senator's comment on voting rights, like the Senator I am aware of the Commission's communication on the matter. The Constitutional Convention has made proposals on the area to which the Government will respond.

With regard to the Senator's two comments on the 2020 strategy and the semester process, the broad heading of both of the questions was how the Oireachtas can engage constructively with them. There is a great opportunity for the Oireachtas to do two things, the first of which is to understand as well as possible the nature of the work. The second thing is that individual Members must make their views clear on the content of the work. It is clear to me how the work should be done. Up to this point I would have said that it should be through the sectoral committees, and I encourage them to take the lead. However, as a Minister with some responsibility in the area, I think our committees can play an even more important role in the area. Perhaps the Leader of the Seanad and its parties will consider what role to play in the run-up to the preparation of the national reform plan and the interaction that will take place with the Commission.

With regard to the different points touched on by Senator Hayden, I agree with her on the role of the youth guarantee scheme. As members will know, the way in which the scheme will be rolled out was made clearer by the Minister for Social Protection, the Minister for Education and Skills and the Minister of State, Deputy Cannon, and included the development of the Pathways to Work scheme and the work that is taking place in the area. Like the Senator, I acknowledge the work done by Ms Emer Costello, MEP, and compliment her on leading the initiative and on doing such work.

With regard to the point made about Scottish independence and what might happen with the UK, the Senator wryly and accurately made the point that we are, unfortunately, not low on things on our horizon that could have a very great impact on us. The debate that is taking place in the United Kingdom is one matter. I have contributed publicly on a number of occasions to the debate on our principles regarding the United Kingdom issue. Senator Noone has quoted one of my contributions and I might have an opportunity to allude to the matter when discussing another point. I strongly believe that the overriding framework is as follows, subject to the consent of the Irish people. There should be no ambiguity whatsoever regarding the view of the Government, and I hope future governments, that the European Union is the best vehicle for us to progress our national interests, and that we are and will continue to be positive members. I strongly believe that a continued strong dimension to our future will be as successful as it has been in our past. Given the kind of uncertainty alluded to by the Senator, it is in our interest to make that clear.

The referendum on membership that may take place in the United Kingdom is first and foremost a British debate, but one that could have an Irish consequence. If and when the debate regarding the referendum is clearer, it is important that we continue to emphasise the kind of principles I have spelled out to date.

I agree with the point made about the causes of the economic difficulty. Yes, the decisions made by national governments on their budgets, structure and sustainability played a role in the crisis, but it was not the only role. It is correct to say that the role of collapsing banking systems and how the consequences were managed were decisive as well. It is on that note that I agree with the point about the risks that deflation poses to a fragile recovery. We are so used to dealing with the consequences of inflation in this part of the world that it is quite difficult for us to grasp the concept that people feeling that their money will be worth less in the future can have equally damaging effects on the current economic recovery. That is something of which I am very much aware and it is a risk on which I know the European Central Bank, in particular, has commented.

I have touched on the point Senator Clune made about the Ukraine. She also touched on the subject of the European Regional Development Fund. I am aware of the important role the fund can play in urban regeneration. I know that to be the case in Waterford, as mentioned by Senator Cummins, and it is the case for Senator Clune regarding Cork. The same also applies to many parts of Dublin, including some parts of Dublin that I represent. I will get back to Senator Clune at an early point to update her on the matter and on what work will be done.

It is an important area and I am eager to ensure the proposals in our last budget are implemented in order that people can see the benefit.

Senator Mullen raised the issue of Syrian refugees. It is a staggering humanitarian crisis. We have to acknowledge the extraordinary burden taken on by many countries as a result. Countries such as Turkey have hundreds of thousands of refugees inside their borders. The Senator mentioned Lebanon, a country that was not free of difficulty before this happened. It is also bearing an incredible burden. Member states are involved through the Geneva process that is under way to try to stem the flow of people out of Syria and to try to create better conditions for them in the country. I acknowledge the agreement in place for the city of Homs but that needs to be implemented. During December's European Council, the Union put in place a number of short-term measures to better and more fairly manage the situation across all member states. However, there will be a more substantive discussion on this at next June's Council meeting. I assure the Senator that it is being discussed in the manner he would want.

I am not cheerleading regarding the TTIP but it could deliver broad wins for our economy, particularly as the agreement is with the second most globalised country in the world, which has either been the first or second most globalised country for many years. I agree with him regarding the need to be aware of the concerns of our agricultural sector, which exported €10 billion worth of food and drink last year. The industry has been the backbone of the economy during the recent collapse. I assure the Senator regarding our continued focus on the concerns of those in the sector. At each stage of the negotiations led by the Commission, member states receive an update and we then engage with stakeholders regarding where they stand. We are very much aware of the perspective of the farming community in this regard. We have done this in other areas such as the recent Commission proposal on climate change and energy policy. It clearly recognised the role of the agricultural community and the Government was active in ensuring due recognition of this was given by the Commission for the reasons the Senator described.

He also referred to the undermining of national competencies. I am a strong supporter of the EU project and the role it can play in allowing countries such as ours to manage the difficulties we face and grasp opportunities that are available. I will communicate strongly that many areas come within national competence. Europe can play a role in allowing us to understand what other countries do that we might be able to learn from. However, there are areas that are the prerogative of national governments and I assure the Senator that I am sensitive to that. We are happy to hear the views of any groups on any of these areas and to engage with them. Social policy issues the Senator touched on sit clearly inside the parameters of national competence while we constructively share our sovereignty on economic, justice and home affairs and other policies that have been mentioned to deliver the national interest.

I thank the House for the opportunity to address Members. I assure them and the Leader that I am always at their disposal to participate in debates.

I welcome Deputy Paudie Coffey, who is a former Member of the House, and Councillor O'Leary who are in the Visitors Gallery to keep an eye on business.

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