I welcome the Minister of State at the Department of Foreign Affairs and Trade, Deputy Dara Murphy.
Europe Day and European Commission Work Programme: Statements
It is a great pleasure to be here for statements on Europe Day and the European Commission's work programme. I am very grateful to the House for giving me the opportunity to contribute to these exchanges in the run up to Europe Day.
The work programme produced by the new Commission last December, A New Start, sets out the actions the Commission intends to take this year to make a real difference for jobs, growth and investment. President Juncker has referred to "leading an EU that is bigger and more ambitious on big things, and smaller and more modest on small things", while First Vice President Timmermans has highlighted the need to "clear the decks so political efforts are focussed on the real priorities", which are most important to the citizens of our European Union.
There is a clear emphasis on strengthening the economic recovery that is now at last under way, but that recovery remains fragile, and a strong fit with the strategic agenda agreed by the European Council last June will be required.
There will be 23 new initiatives in 2015, reflecting a significant streamlining of effort. The Commission is also proposing to withdraw or modify up to 80 pending legislative proposals, and has identified further legislation that it will review and amend to make the European Union work much better for all our citizens and businesses. First Vice President Timmermans will report within the next year on how the approach to better regulation could be further strengthened.
Ireland is a strong supporter of the overall political emphasis that has been established by the new Commission. It sets clear direction, prioritising what is important, simplifying what is already in place and withdrawing what is unnecessary, while repealing what is out of date.
While welcoming the clear prioritisation of economic issues in current circumstances, we should also be clear that the emphasis on better regulation is no less important in the environmental and social policy areas. It means striking the right balance through stronger preparations at policy design stage - well targeted measures that avoid unnecessary or disproportionate administrative burdens, and produce better outcomes for both citizens and businesses. This is the right emphasis and it has my full support.
At the heart of the Commission's work programme is President Juncker's investment plan, which is aiming to mobilise €315 billion in net additional investments in the real economy over the next three years. Progress here remains firmly on track. Finance Ministers agreed a general approach in March on the draft regulation setting up the new European Fund for Strategic Investments, EFSI. Negotiations are now underway with the European Parliament, which took a very positive view when President Juncker originally highlighted this initiative at the time of his election last July. The March European Council took stock of progress and reinforced expectations for political agreement by June.
The key focus of the Commission's proposals is essentially on getting in place quickly a pipeline of high quality projects that would otherwise be unlikely to proceed, while attracting private investors by reducing complexity and sharing risk.
It is clear that President Juncker's investment plan cannot be a magic bullet for all of Europe's economic problems but it is also likely that it can make a significant contribution, combined with the right mix of structural, fiscal and monetary policies. As Vice President Katainen has indicated, there is plenty of liquidity in Europe, but it is not currently being translated into investment.
It also reflects a shared view by Governments on the important role targeted investment can play at this stage of the economic recovery. We continue to see potential to develop synergies between the EU investment plan and the Ireland Strategic Investment Fund, ISIF, and the Strategic Banking Corporation of Ireland, both established by the Government last year. These share the emphasis of the EU plan on using public resources to mobilise a stronger pipeline of private investments in the real economy. Work towards identifying specific areas of co-operation will continue over coming months.
We should also keep in mind the indirect benefits of the new investment plan. A period of prolonged EU-wide economic stagnation is probably the main risk to our own economic recovery. A boost to the wider European economic outlook is therefore an important boost for Ireland too.
The Commission adopted its Digital Single Market Strategy yesterday, setting out 16 key actions which it will deliver by the end of next year. These will be presented under three key pillars: simplifying access for consumers and business; creating the right conditions for digital networks and services to flourish, including through data protection reform; and maximising the growth potential of the digital economy, including by developing the right standards for big data, cloud computing, and fully interoperable e-services.
Ireland supports a high level of ambition for a fully functioning digital Single Market that is open and competitive. This is a clear win-win proposition for consumers and businesses, particularly small to medium-sized enterprises, SMEs. However, we must be careful that our approach is one that supports and does not undermine investment, innovation and entrepreneurship. With Europe still facing unacceptably high levels of unemployment, most jobs are created by fast growing young firms. Barriers to doing business digitally should, therefore, be seen as barriers to growth.
Turning to the external environment, Ireland believes the ambitious Transatlantic Trade and Investment Partnership, TTIP, will bring benefits to economies on both sides of the Atlantic. It will promote job creation, economic growth and investment. It will be important in maintaining the strong EU-US leadership on international regulatory standards at a time when other global players are becoming more important. Politically, it will underline on both sides of the Atlantic the continuing vital importance of the strong EU-US relationship. The negotiations are not easy and there will be a need for give and take on both sides, but the prize on offer at the end is worth the time and intense efforts both sides are continuing to make in the negotiations.
Commissioner Malmström visited Dublin in March to launch the Copenhagen economics report with the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, on the implications of the TTIP for Ireland. It suggested the TTIP should be positive, predicting gains in the order of 1.1 % of GDP. Other findings included the potential for increased exports of approximately 3.8%, increased imports and increases in real wages and investment. I hope we can maintain the high level of ambition and exclude as few areas as possible, but we must remain conscious that in any negotiations there will be sensitive issues. Beef production is one such issue for Ireland and will have to be handled carefully. In some circles in Europe there is ongoing public debate about aspects of the TTIP such as the investor state dispute settlement, ISDS, mechanism. Winning this debate requires that we take part in it respectfully and openly, listen to legitimate concerns, make adjustments where necessary and challenge those making unfounded claims with the facts.
As Members will be aware, scrutiny of the European Union's business was previously centralised in the Joint Committee on European Scrutiny. It is more appropriate and a considerable improvement that sectoral committees that understand the wider context into which EU legislation plays now have responsibility for the scrutiny of proposals. Following on from recent reforms, sectoral committees set their own scrutiny priorities, focusing on the issues of most relevance to their specific areas of work and interest. The mainstreaming of EU scrutiny with sectoral committees allows the Joint Committee on European Union Affairs, under the chairmanship of Deputy Dominic Hannigan, to focus on matters concerning the strategic direction of the European Union, as well as those of a cross-cutting nature. Some useful work has been done to date, most recently in the joint committee's examination of the implications for Ireland of a UK exit from the European Union, which is of interest to us today as voters in the United Kingdom go to the polls. It is welcome that sectoral committees have identified proposals, both legislative and non-legislative, from the European Commission's annual work programme that they intend to subject to detailed scrutiny. This will enable members to focus on issues and proposals that will have a lasting impact on all of our lives and demonstrates the value and importance of an effective Oireachtas scrutiny mechanism.
I welcome the Minister of State with responsibility for European affairs. It is appropriate to recognise Europe Day, which I presume is happening all over Europe. Perhaps this morning's effort in the hall of the Oireachtas could be improved for the future and involve Members further, including the Cathaoirleach, the Leader of the House, the leader of our delegation to the Council of Europe, Deputy Joe O'Reilly, and others. We might not give Europe Day the recognition it deserves, makes it a special day each year or recognises our involvement in the European Union and the benefits we have derived from our membership since the early 1970s. The Leader has been actively trying to devise a method of scrutinising certain EU legislative proposals based on new developments in that regard. I will work with him and other Senators to ensure the House, as opposed to sectoral committees, will have an opportunity to scrutinise legislation on important and strategic issues.
Unfortunately, the European Union has been damaged by the amount of legislation and recommendations coming from the European Commission that have never been scrutinised by either House or any of their committees. This led to the disastrous situation involving the preservation of cutaway bogs. The issue was handled in a way that created many difficulties for Governments, farmers and bog owners and such difficulties should be avoided. The more scrutiny of legislation there is, the more they can be avoided.
In the European Union there is a vast area of responsibility. The Minister of State made a point about legislative scrutiny. The Joint Committee on Agriculture, Food and the Marine held 12 meetings, considered 53 proposals and referred five for further scrutiny, while the remainder were deemed not to warrant further scrutiny. The Joint Committee on Education and Social Protection held five meetings; the Joint Committee on the Environment, Culture and the Gaeltacht , six; the Joint Committee on Finance, Public Expenditure and Reform, eight; the Joint Committee on Foreign Affairs and Trade, 11; the Joint Committee on Health and Children, three; the Joint Committee on Jobs, Enterprise and Innovation, 13; the Joint Committee on Justice, Defence and Equality, eight; and the Joint Committee on Transport and Communications, seven. The level of scrutiny is higher than it ever was.
I compliment Deputy Dominic Hannigan, Chairman of the Joint Committee on European Union Affairs, of which I am a member, on his leadership in dealing with the referendum on the possible exit of the United Kingdom from the European Union. Some of these issues will be resolved tomorrow or late tonight after the votes have been counted and the new British Government has been formed. One of the leading parties has promoted the holding of a referendum in two years time, which is causing uncertainty and difficulty for everyone involved, particularly us. If the United Kingdom were to withdraw from the European union, Ireland would be the most affected, especially given the work that has been done in the North via the Good Friday Agreement, the committees that have been formed and the joint efforts in promoting tourism, Waterways Ireland, etc. These wonderful efforts might need to be renegotiated, given the fact that the Republic of Ireland would be in the European Union, while Northern Ireland which is part of the United Kingdom would be under British rule. These issues are of great concern. I accompanied the Chairman, Deputy Dominic Hannigan, and other committee members to London recently to discuss with British MPs and others the implications for both countries. Ireland cannot stand idly by if the referendum is held. We would have a role to play and become deeply involved because of the implications for the Republic. In the meantime, the uncertainty has had a small benefit. American multinationals are not comfortable in making major investments in the United Kingdom if there is a possibility that it will withdraw from the European Union.
It is not a practical proposition. When we spoke to members of committees there, they did not seem to be aware of the implications of withdrawing from the European Union, with its 450 million customers. The car industry would be in great jeopardy because of the imposition of taxes, but we will all know more about it in the next 24 hours.
We heard a submission today at the committee meeting from the National Youth Action Group which gave a very good and comprehensive report on the attitudes of young people. They argue that there is not enough in the schools system about the benefits of European membership and on how the European Union works. The Minister of State might consider this in conjunction with the Department of Education and Skills. Programmes, including history modules, should emphasise the benefits of EU membership. I heard a very good submission from Ms Liz Wall, national president of the Irish Countrywomen's Association. Her organisation has put forward a most positive point about the European Union and her submission will be considered by the committee in due course. It was heartening to hear somebody who represented 10,000 women in Ireland expressing a very positive view based on the work she had carried out. Ms Maureen Kavanagh made a very interesting contribution today on older people in the European Union. Although people aged 55 years are not old, she indicated that this generation had strong memories of Ireland before accession. The post-colonial inward focus before accession to the European Economic Community meant that Ireland was an unequal and unfair society. The people concerned are absolutely satisfied with what has been achieved through EU membership. Measures that discriminated against women were lifted after we became a member of the European Union.
I congratulate the Minister of State and wish him a happy Europe Day.
I welcome the Minister of State. I concur with Senator Terry Leyden who, in fairness, is a very enthusiastic member of the Joint Committee on European Affairs and a big promoter of the European Union for Fianna Fáil. I agree with his comments on Europe Day, which could be embraced a little more in the House in a positive way. I know that it is difficult to generate enthusiasm, not least among the media, about the European Union, but it would be good if we could make more of a deal of it in the House.
Europe Day offers us the opportunity to discuss many issues relating to the European Union, including the challenges and opportunities we face, as well as the work programme, to which the Minister of State alluded. There can be no question that citizens expect the European Union to make a difference on the big societal changes we face, whether economic or social, such as unemployment and competitiveness. However, if we distil the broader ideas into narrower, more easily defined concepts, it often provokes a more favourable response from people in their attitudes towards the European Union. The termination of mobile phone roaming charges and the Youth Guarantee are two specific policy objectives which show that the European Union has a direct and positive impact on the lives of its citizens.
When reflecting on Europe Day, it is worthwhile looking back to the position we were in when we joined the European Economic Community 41 years ago in 1973 to get the full context. Since 1973 we have seen both Ireland and the European Union make unprecedented progress in economic and social matters. We must not forget that it has been the single most successful peace project of all time. In this Government term we held the EU Presidency for the seventh time. We have held the Presidency during key periods in the European Union's history - when the Berlin Wall fell, when Ireland facilitated the reunification of Germany within the European Union when others hesitated, and in 2004 when the biggest expansion of the Union took place with the addition of ten new member states. Each time we have held the position, we have served wider Community interests. There were significant achievements on the budget, in banking, fisheries policy, dealing with the issue of youth employment and advancing a new trade and investment partnership with the United States. I was delighted to hear the Minister of State's comments on the Transatlantic Trade and Investment Partnership, which will be extremely positive in the context of investment and growth between the United States and the European Union. Irish politicians, diplomats and civil servants are doing a professional job at all levels across the European Union. Our reputation has been hard fought for but well maintained.
The Ireland of 1973 was a very different place from the Ireland of today. There has been phenomenal economic, social and political change in Ireland in the past 42 years in which our membership of the European Union was a crucial catalyst. In 1973 EU membership seemed to promise us many things, including access to a larger market, greater export opportunities for business, more employment, better wages and the removal of protectionist barriers. At the time of accession, Ireland's gross domestic product, GDP, was two thirds of the EU average, but now it is a third higher. In 1972 the net benefit to Ireland of EU contributions was €41.4 million, or 1.2% of GDP; in 1992 the net benefit was €2.08 billion or 5.5% of GDP, while in 2004 it was €1.59 billion or 1.3% of GDP. In total, in the past 40 years the net benefit to Ireland has been in excess of €20 billion in cash from the European Union. The value of exports has increased from $1.1 billion in 1973 to $110 billion, while GDP has grown four times over. As such, when we reflect on Europe Day, we must reflect on these positive achievements during the years.
Similarly, when we look to the future, we must admit that the European Union is in a period of rapid transition, as Senator Terry Leyden mentioned. We have learned a great many lessons from our membership, not least that compromise is necessary and that strong representation and diplomatic links throughout the European Union are vital in order to succeed. The "Brexit" and "Grexit", as the possible exits from the European Union of Britain and Greece are called, pose dilemmas that the Union has never faced before and the year ahead could yet be a defining one. As the Minister of State said, today will be interesting in terms of whether the United Kingdom will remain in the European Union. Nevertheless, the ordinary work of the Commission must continue and we must ensure the European Union will work to provide solutions for citizens through initiatives such as the Youth Guarantee.
When the Commission adopted its work programme for 2015, it set out the actions it intended to take this year to make a real difference in terms of job creation, growth and investment to bring concrete benefits for citizens. The intentions are clear and the 2015 programme includes the delivery of the announced investment plan, opening up the opportunities of the digital single market for citizens and business, launching the European energy union and putting forward a new, balanced European agenda on migration, as mentioned by the Minister of State. If we look further at the details of these proposals, we find an ambitious agenda for the year, specifically the investment plan for Europe which will see an unlocking of public and private investments in the real economy of at least €315 billion in the next three years. In addition, an ambitious digital single market package should create the conditions for a vibrant digital economy and society by complementing the telecommunications regulatory environment and modernising copyright rules. I know that the Minister of State has done much work in the area of data protection. In addition, we have taken the first steps towards a European energy union. This is a vital proposal to ensure energy supply security, further integrate national energy markets, reduce European energy demand and decarbonise the energy mix. This will be important for Ireland in the years ahead.
All told, while we reflect on Europe Day, the challenges posed by talk of both a potential British and Greek exit, as well as the work of the Commission in the year ahead, we can be sure Ireland's best interest will best be preserved when we work at the heart of a strong European Union. That is why the Government has worked to ensure we have strong representation in the European Parliament and that we put our best foot forward with a Minister of State with responsibility for European affairs who has ensured a vital link between the Cabinet and our European partners, while also working to attract inward investment.
It has shown a capacity to influence the debate and build relationships with key decision-makers. Its negotiations with the ECB, the IMF and other international organisations are an abject lesson in the value of hard work, persistence and determination. They are in stark contrast to the diplomacy practised by other countries in recent negotiations.
The lessons learned from Ireland's membership of the EU have been many and varied. The one lesson, however, is that it has been a good thing for Ireland, our citizens, businesses large and small, exporters and consumers. Above all else, it has ensured our rights throughout the EU. That is what we should remember when we reflect on Europe Day and what the Europe of 2015 offers to our citizens.
I thank Senator van Turnhout for allowing me to speak before her. I welcome the Minister of State, Deputy Dara Murphy, and I am delighted to hear what he had to say.
Senator Noone referred to 1973, but I will go back to 1958 when I had just finished in university. On the following day I went to the Continent and spent the winter there. I came back from that winter believing for the first time that there was a thing called Europe. We never heard of it back in the 1950s and had not even recognised Europe. At around that time, or shortly afterwards, President de Gaulle said "Non" - he did not want Britain or Ireland coming into the Common Market. We did come in at a later stage, however.
Later on I became the president of Euro Commerce, which represents all the retail and wholesale trades in Europe. I was president for three years and vice president for a further three years. In those days, that body represented 27 countries, not 28. It was a real reminder of the opportunities we have.
The Minister of State spoke about the digital Single Market and the 16 key actions that will be taken, which is a reminder of what can be done on this basis. As a European I am excited about what we can achieve. Rather than covering some of the areas that will be mentioned in this debate, I will touch on one or two others. We should be having more debates on the EU itself. Currently there are several prominent issues to the fore to which we are not paying attention.
Two of the great successes of the EU, free movement and the creation of a common currency, are being severely undermined. First, we must discuss the plight of emigrants who try to reach the EU. Some EU member states, such as Italy, Malta and Greece, are bearing most of the responsibility for illegal migrants. It is estimated that 50% of illegal migrants end up in Greece because it is the first EU country they reach. We are spared this due to our location, but we cannot turn a blind eye to it. We spoke about this the other day when it was announced that the LE Eithne would sail to the Mediterranean. That vessel will rescue people who are in danger of drowning and then leave them on the shores of Italy and Malta. I could well imagine Malta, Greece and Italy saying: "Hold it. Why should we have to burden ourselves with all these immigrants that are coming?" In the context of discussions on how Europe treats the so-called boat people, I think we have a moral obligation to take more of these people who are fleeing from terrible conflicts, such as the one going on in Syria.
I will quote from a recent article in The Economist, which stated that
Generous countries like Sweden and Germany want others to take up the slack: two-thirds of migrants end up in just five EU countries, according to [German Chancellor] Angela Merkel ... The countries on the front line, like Italy and Malta, want the task of processing asylum-seekers to be redistributed. Everyone accepts that the Dublin regulation, according to which asylum-seekers should be dispatched to their European country of entry for processing, is a failure.
I do not think that regulation is working, so we must find a solution. I would be interested to know the Minister of State's view on Ireland's role in that particular area.
Unfortunately, the plight of people in the Ukraine is not getting the attention it needs, yet they are an immediate neighbour of the EU's. It has been reported that aid organisations are advised not to give families in the rebel zones in the Ukraine the €268 cash assistance to which they are entitled for fear of driving up inflation. People there rely increasingly on small parcels of food and other products donated from private individuals. That is a real concern. Perhaps Ireland could play a greater role through Irish Aid and its world-renowned NGOs to help those suffering on Europe's doorstep.
As a business person, I would like to see more research on the cost of EU legislation to Ireland through a detailed audit. Germany's Better Regulation Council says that at least half, if not 60%, of the regulatory costs for businesses is generated by EU legislation. It is easy for MEPs and EU officials in Brussels to pass legislation and for that to be transposed into Irish legislation, which can have a massive effect on SMEs. In this respect, I was glad to read last week that there has been a proposal at EU level that any new laws adopted by the EU will have to be approved by an independent scrutiny panel to make sure they do not impose unnecessary burdens on businesses before they can be tabled. This is according to a leaked document from the European Commission. I hope this is true, as similar proposals in the past have not happened. This is something Ireland could push for at EU level.
Other speakers have referred to the possible implications of an UK exit from the EU, and Northern Ireland's corporation tax rate. One of the most important questions we must consider is what would happen if the UK leaves the European Union, the so-called Brexit. We will know more about that tonight because if the Conservatives win the election, they have promised a referendum on that issue. The Brexit is inextricably linked to the outcome of the UK general election, so we need to prepare ourselves for all eventualities. It is amazing to consider that each week there is €1 billion worth of trade between both countries, supporting about 400,000 jobs. There is no getting away from the fact that we are the UK's largest trading partner.
A new report by the German think tank Bertelsmann-Stiftung examined three possible scenarios under which the UK could leave the European Union: one, a so-called soft exit whereby the UK secures a trade agreement and status comparable to that of Norway and Switzerland; two, a deep cut, where the UK enjoys a trading status equivalent to that between the EU and the United States; and three, isolation. Under the best case scenario, the Irish economy would contract by at least 0.8%, which is incredible. They say, however, that we would suffer an even bigger economic hit of 2.7% if the UK was unable to agree an EU trade deal. This is the sort of study that we should be doing ourselves. I urge the Government to consider what we should be doing.
We should also consider the plan that Northern Ireland has to reduce its corporation tax to 12.5% to match the rate here. The rate is currently 20% in the UK, so I wonder how much foreign investment and jobs we are likely to lose if that goes ahead. Do we have any figures on this and, if not, is it possible to get them?
I am delighted the Minister of State has attended the House on Europe Day. It gives us an opportunity to discuss these items. Having listened to Senators Leyden and Noone, I believe they are on top of what is happening. However, I do not think we are giving the matter enough attention in general in Ireland. We should do so in future. I know the Minister of State's heart is in the right place in this regard.
I am delighted to get this first opportunity to address the Minister of State since he was appointed to ministerial office. I am also glad of the opportunity to discuss this matter. I have a special affiliation with Europe having run as a candidate in last year's European Parliament elections.
I would like to begin by highlighting that Europe Day, on 9 May, will mark 65 years since the then French foreign Minister, Robert Schuman, presented his proposal on the creation of an organised Europe. It was designed to ensure peaceful accords between European countries after the horrors of the first half of the 20th century. The proposal, now known as the Schuman Declaration, is widely regarded to be the act that created what is now the European Union.
With celebrations for Europe Day being prepared across the EU, it is important to reflect on the significance of this day for Ireland and for all member states. One of the central themes in this year's celebrations is the European Year of Development, a field in which the EU institutions do a large amount of work supporting and initiating key projects in development aid and the fight against poverty.
We only have to look at the investment that has taken place here in Ireland since our joining of the then EEC in 1973 to see the dramatic changes our membership of the EU has brought, in everything from roads infrastructure to equality legislation. This investment continues to the direct benefit of citizens across member states and here in Ireland. As an example, in my capacity as a Galway East-based Senator, I was delighted to learn recently that a new primary care centre will be developed for the town of Tuam as part of a project to build 14 primary care centres nationwide. This project will be one of the first to receive pre-financing under the Juncker Commission's new investment plan for Europe. The European Investment Bank, EIB, and the European Investment Fund, EIF, have agreed to fund up to €70 million of the construction costs. Such funding supports are crucial and bring a myriad of benefits to Irish citizens, including short and long-term employment and the provision of quality, community-based health care services.
The European Commission's work plan for 2015 reflects the concerns of the modern democracies which are at the heart of the European project. The plan for the next 12 months is mindful of citizens' concerns about major issues such as employment and economic stability and their desire to see greater transparency in how Europe conducts its affairs. The 2015 plan sets out ambitious targets for the year ahead, not least of which is a funding allocation of €315 billion over the next three years for economic investment to the benefit of Europe.
Here in Ireland, we enjoy a robust technological and digital sector. For many of our citizens, the lnternet is a core part of their lives and, in many cases, their livelihoods. Therefore, the Commission's desire to develop an digital single market package is most welcome. I commend the Commission for its intent to create the conditions for a thriving digital economy and society by complementing the telecommunications regulatory environment, modernising copyright rules, simplifying rules for consumers making online and digital purchases, enhancing cyber-security and mainstreaming digitalisation. There is no doubt that citizens, as private individuals and as consumers, need better protections online, as do producers of copyrighted material. I am heartened to see the Commission recognises the lacunae that need to be addressed and I will be watching these developments closely, especially in relation to those which involve tackling cyber crime that takes place across borders. This is not an easy task given the nature of digital technologies and how swiftly they are evolving. Nevertheless, tackling such issues is vital and I hope Ireland, as a member state and a country with many of the world's biggest tech names on its doorstep, can make a significant contribution to the Commission's work in this area.
Globally, we are experiencing levels of inequality not seen since the 19th century. Such inequality threatens our economic stability and can, as history has repeatedly shown, lead to serious civil unrest. Key to delivering fairer societies is the redistribution of capital through the tax system. That is why I welcome the Commission's commitment over the next 12 months to a fairer approach to taxation. Beginning with an action plan on efforts to combat tax evasion and tax fraud, it will include a communication on a renewed approach for corporate taxation in the Single Market in the light of global developments.
The action plan will also, as stated, "Starting from the work done on base erosion and profit shifting at OECD and G20 levels . . . [include] . . . measures at EU level in order to move to a system on the basis of which the country where profits are generated is also the country of taxation, including in the digital economy". The Commission will aim at a stabilising corporate tax base in the EU for a fair taxation environment, including re-launching work towards a common consolidated corporate tax base. Such proposals will hopefully lead us to a much more level playing field, where those who make huge profits play their part in ensuring our societies remain fair, stable and progressive.
I wish all the Members a very happy Europe Day 2015 in advance of 9 May. I hope all citizens and member states celebrate the day in the spirit of our union which was born out of a longing to ensure peace, prosperity and a bright future.
It is very important that we mark Europe Day on Saturday. The challenge for all of us will be whether we are willing to discuss Europe with those around us because we all have a responsibility and a role in that discussion. I thank the Leader, Senator Cummins, who has been very good at facilitating and encouraging us to get more involved and active on the issue of the EU and its importance in our lives and those of the people we represent. I thank him also for organising a recent briefing with the European Commission representation in Ireland with Barbara Nolan and Jonathan Claridge. It was an excellent briefing and it is a pity more Senators did not turn up. I hope next time we can encourage more to come along.
It is good to see sentiment is rising, according to the latest Eurobarometer polls, in November 2014. Trust is rising, which is positive. The EU has taken some very positive measures to deal with youth unemployment. We have seen across Europe but particularly in Ireland how young people are disproportionately impacted by a recession through losing jobs and having to emigrate. What statistics are available to demonstrate the success or failure of the youth employment initiative? We hail big flagship projects but how do we, as Senators and parliamentarians, demonstrate to the public that it is worth this investment, the initiatives are working and we are able to use the experience? I appreciate what the Commission Vice-President Mr. Franz Timmermans is doing in trying to reduce the number of initiatives. It is very positive but part of me wonders what the Parliament will do with all the extra time it will have without the Commission producing initiatives. We may have to move to implementation. That will be very tough for member states because we will have to stop coming up with lots of new ideas and get down to the gritty work of implementing what is happening at an EU level.
In respect of the work that will happen to lighten the regulatory burden it is very important that we hear from small and medium-sized enterprises, SMEs, and civil society organisations across the sector. We can all say how important it is to lighten the regulatory burden but how we do it is also important.
Ireland has to play a very active role in respect of the possible UK in-out referendum. I am very encouraged by the fact that the Taoiseach and the Department of Foreign Affairs and Trade and all other players in the Government have taken on a role in that referendum. Ireland will not stay silent on an issue of such importance to the EU and to our closest neighbours, the UK. It most definitely will have ramifications for us, mostly negative.
The lack of an EU immigration policy is an issue. We can say what we want about the United States, US, but it has very clear immigration rules and one can apply to go there. The EU cannot get its head around it. In certain member states there is rising sentiment, stimulated by the lack of EU leadership on the issue. We think that if we just put up the borders people will not come. If I have a choice between certain death and probable death I will take probable death. That is why people are getting on boats. We have to wake up. Being part of the EU is part of our values. We sing about the respect for human dignity, liberty, equality or human rights but when it comes to people who are not EU citizens do we, all of a sudden, throw the values into the Mediterranean as well? Member states have to take this issue more seriously. We should not call them migrants, they are individuals just like any of us and if I was in their situation I would get on that boat. We all have to know we would do that if we were facing certain death in the situations they are fleeing. The EU has a responsibility and a role on the world stage.
The digital Single Market and the fact that we could create up to €340 billion of additional growth in Europe over the next ten years is very exciting. I hope Ireland will maximise its slice of that pie. It is well-placed in respect of that market. I am also very heartened to see that within the development of that policy the EU is considering child protection issues.
An issue on which I wrote a report and had great support from Members on all sides of the House is child abuse material. I was heartened to read on the Commission's website that it is considering having a system of filtering child abuse material in the absence of us not having an effective system to remove child abuse images. It will look at doing that at a European Union level. It is happening in the United Kingdom. In Ireland, UPC and the mobile phone operators have brought in such a system, but it is voluntary rather than us saying these images should be blocked. There are very good reasons we need to do that. Twenty-seven per cent of women in the EU, not in Africa or some other country, have experienced some form of physical violence before the age of 15. We must step up what we are doing on the issue of child protection and children's rights.
We know that approximately 16% of the victims of trafficking registered by EU member states are children. We know that violence is still relatively hidden and under-reported, with 90% of all abuse undetected, according to the World Health Organization. That ranges from issues such as child sexual abuse and exploitation to bullying and cyberbullying.
In terms of these statements, I know we look at the area from a business and jobs perspective but we must ensure that we also use the children's rights lens when we are looking at those issues.
I refer to an excellent reflection paper the EU produced yesterday on the 9th European Forum on the Rights of the Child - co-ordination and co-operation in integrated child protection systems. I am disheartened to see that 25 EU member states are parties to the UN Convention on the Rights of Persons with Disabilities. Finland, the Netherlands and Ireland are the only three countries in the EU that have not signed up to that convention. It is something we need to examine. I believe the capacity legislation may be the blocking mechanism for us. We always say that Ireland plays our role in that regard but when we look at the implementation issues, we are not as good. We need to focus on that issue and consider how we are implementing and upholding our responsibilities as EU citizens, whether here in Ireland, within the European borders or on the world stage.
I welcome the Minister of State, Deputy Murphy, to the House to discuss Europe Day, which we will celebrate on Saturday, and the European Commission's 2015 work programme. As Senator van Turnhout mentioned, I invited Ms Barbara Nolan, Head of the European Commission Representation in Ireland, here last week where Senators had the opportunity to discuss the Commission's 2015 work programme, including Ireland's priorities for the coming year. At that briefing Ms Nolan detailed the Commission's announcement at the end of last year and referred to it as a "new start", reflected in the Commission's determination to ensure it works better, is more open and more democratic.
The new approach by the Commission was flagged by European Commission President, Mr. Jean-Claude Juncker, at the European Parliament in 2014, when he outlined ten political priorities on which the new Commission's mandate to 2019 would be based. Ms Nolan reiterated the Commission's commitment to initiatives upon which it can deliver, and actions it will take in 2015.
The work programme for 2015 sets out 23 new initiatives, which are grouped under ten political priorities. The 23 new initiatives for 2015 will be in addition to the many actions already agreed over the past years including the European Semester, Structural Funds commitments and monitoring the application of EU law, to name a few.
President Juncker and the Commission are also committed to cutting red tape and improving existing legislation during its mandate, essentially lightening the regulatory burden and ensuring existing EU legislation is fit for purpose, something Senator Quinn and all involved in business will welcome.
I invited Members of the House to pick three priorities from the initiatives in the Commission's work programme. The first they chose was item 2, which was promoting integration and employability in the labour market. This initiative to promote labour integration and employability will include a package of measures to support member states in getting people, especially the longer-term unemployed and younger people, into work and developing a skilled workforce. This will include measures to follow up on the implementation of the youth employment initiative, a proposal for a Council recommendation on the integration of the long-term unemployed, which should be adopted by mid-July or September, as well as measures to promote skills development which will be launched later this year or early next year by the Commission.
Linked to that is the investment plan which is intended to kick-start investment, jobs and growth in Europe. The new €315 billion plan was developed in close co-operation with the European Investment Bank. Implementing this plan is the top priority for 2015, and is an area where the Commission is looking forward to working closely with the Irish authorities.
It is worth noting that funding has already started to flow from the new investment fund, as Senator Higgins mentioned. An Irish project for constructing 14 new primary health care centres was one of the first projects to be funded under this initiative.
The Members also chose item 5, which is the strategic framework for energy union. This project was launched by the Commission in February of this year and sets out a strategy for sustainable, secure and affordable energy in Europe. The focus is on energy supply security; integration of national energy markets, including the issue of interconnectors, which is relevant to Ireland; reduction in European energy demand; and decarbonising the energy mix and promoting research and innovation in the energy field.
One startling figure to be aware of is that the EU is the largest energy importer in the world, importing 53% of its energy. As this is such a major topic, I hope to organise another briefing session for Members with an energy expert from Commission headquarters on the energy union strategic framework very soon.
The third items the Members chose was the Internal Market strategy for goods and services. The Commission's Internal Market strategy will aim to deliver a renewed and integrated approach for the Single Market, deliver further integration, and improve mutual recognition and standardisation in key industrial and services sectors where the economic potential is greatest, for example, business services, construction, retail, regulated professions, advanced manufacturing and combined services-goods provision. A particular focus will be on small and medium enterprises, SME.
Linked to item 7 is the Commission initiative to create a capital markets union which has the potential to be a huge benefit for consumers, businesses and communities. The proposed capital markets union would improve access to financing; increase and diversify the sources of funding; and make markets work more effectively.
The role of national parliaments in taking forward the Commission's work programme is an important one, and the Seanad can have a significant impact on the scrutiny of EU legislation and the work programme. The Commission has been clear on the need to deepen the existing political dialogue with national parliaments and it is now time for the Seanad, with the co-operation of the European Commission representation office, to help build this close co-operation with the Seanad and the joint Oireachtas committees.
I can assure the Minister of State that we have no intention in this House to duplicate what is happening in any of the committees but I know the Government fully supports the recommendation of the Seanad reform group that this House should have a greater role in EU policy, and the EU work programme in particular. We need to engage more in European affairs because there is a disengagement on the part of the people with Europe, and we should lead on that.
In the coming months we hope to have a number of Commissioners address the House. We intend to have debates on the three items from the EU work programme I mentioned, and I am sure the Minister of State will be present for some of those debates. I thank him for coming to the House. It has been a fruitful debate as we look forward to celebrating Europe Day on Saturday next.
I thank Senators for their constructive contributions to this debate on the European Union. The main benefit of Europe Day is that it gives people an opportunity to think about Europe and how important it is in our lives.
Senator van Turnhout suggested that on Saturday people might take the time to engage with friends and family and talk about the European Union. Naturally, much of the time we talk about the Union, we think about the economic and regulatory requirements and difficulties it presents. However, since its inception and since Schuman made the moves to set it up many decades ago, the European Union has been a remarkable force for good for the people of Europe and Ireland. We have benefitted enormously from it, whether economically or, as Senator Leyden mentioned, through the changes that have come about here, particularly changes affecting women and how our society functions.
From time to time we need to take stock of what existed in Europe before the EEC or the European Union came to save a Continent that had settled its differences over hundreds of years through strife, war and violence. As Senator Noone said, the fundamental reason we have the European Union is that Europe required a peace process. It is for that reason there has been significant reference here today to the election that is taking place as we speak in the United Kingdom. The outcome of that election is important. Membership, involvement and engagement within the European Union of our close friends and colleagues in the United Kingdom are a matter of national importance to us. That is why the Government, with the support of the Opposition, has been very blunt and forthright in saying that we want and will encourage the United Kingdom, under whatever government comes about and whether or not there is a referendum, to remain an active member of the European Union. That is in our economic interest and in the interest of not only the European Union but of Europe. The United Kingdom will always be an important part of Europe and we believe it should remain a member and work within the European Union.
The crisis in the Mediterranean was highlighted in our debate this afternoon and Members are aware the Government has committed the services of the LE Eithne to assist in rescue operations there. We have also committed funding to the operation, targeted specifically at those refugees most affected. We are also playing a significant part in taking in refugees here.
I do not have specific figures to hand on youth unemployment and the direct effect of the Youth Guarantee, but I will forward them to the Senator. We are glad to see a significant reduction in youth unemployment. In any economic crisis, it is generally young people who are most affected and who are required to leave our shores due to their inability to find work. This is the reason we need new initiatives, such as TTIP, the ambitious Juncker package or other fiscal measures. We have seen these develop, though perhaps quite late in the process. However, under the new Commission and under the new presidency of the Central Bank, we now see a European Union that is functioning well and is starting to tackle many of the social and economic issues.
This is an opportunity for us to consider the position and to encourage and demand of Europe that it be ambitious for our people. We are ambitious for Europe, but we have also seen and will continue to see great benefits here. Given our population, Ireland has always played a disproportionately significant and strong and active role as a member of the European Union. I compliment the bipartisan approach seen here, particularly in the Joint Committee on European Union Affairs. While there is much that divides us politically, by and large Ireland's membership and strong support of the Union unites us politically. Long may that continue.