Dáil Éireann Debate, Thursday - 28 March 2013
30. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide an update on the additional steps that have been taken to reform the institutional architecture of the EU since the outbreak of the sovereign debt crisis; and if he will make a statement on the matter. [15582/13]
View answer73. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade if he is satisfied that the European institutions are sufficiently co-ordinated in terms of policy objectives to be in a position to identify a crisis before it occurs and as a result deal with any such issues more effectively; and if he will make a statement on the matter. [15926/13]
View answer74. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the extent to which he expects to be in a position to encourage his European colleagues to focus more effectively on the various issues affecting the EU inside and outside the eurozone; and if he will make a statement on the matter. [15927/13]
View answerI propose to take Questions Nos. 30, 73 and 74 together.
An unprecedented economic crisis has faced the European Union, and more specifically the euro zone, over recent years. While our response has being sometimes criticised, great strides have, in fact, been made in dealing with these exceptional and complex circumstances. EU institutional architecture per se has not fundamentally altered. Indeed, Treaty change would be required to introduce many such changes, and I am not convinced that current circumstances would best be served by Treaty change in itself. Instead, what has happened is that many new instruments and mechanisms have been developed to cope with emerging challenges. At the beginning of the crisis, there were no effective support mechanisms to assist Member States in trouble. The Union has put in place the rescue mechanisms for Member States in difficulties, firstly on a temporary footing, the EFSF and the EFSM, and then a permanent support mechanism, the ESM.
Similarly there have been significant improvements in the economic governance structures in place through agreement on a series of measures including the “six-pack”, the Euro Plus Pact and the Stability Treaty. The “two-pack” of economic governance measures, on which the Irish Presidency recently secured agreement with the European Parliament, will improve our ability to anticipate where problems arise.
Alongside improvements in economic governance, it became evident that economic surveillance, the discussion of economic and fiscal policies, needed to take place in a more integrated manner.
This led to the introduction of the European Semester process which is now in its third year. As Presidency, we are working with partners and the Commission to ensure that the process is as effective and meaningful as possible. The March European council saw the conclusion of the first phase of the Semester. We are making efforts to correct perceived imbalances in the management of the process and aiming to be as timely and inclusive as possible in the way we deliver on that process.
Beyond economic governance and surveillance, it became clear that the Union needed to strengthen what underpins our Economic and Monetary Union (EMU). This new strengthened EMU will be built on a more integrated financial framework or banking union. Last December, EU Finance Ministers agreed an ambitious timetable for delivering the various elements of banking union including; the Single Supervisory Mechanism; CRD IV; the Bank Recovery and Resolution Directive; and the Deposit Guarantee Scheme Directive. Earlier this month, the Irish Presidency reached provisional agreement with the European Parliament on the Single Supervisory Mechanism. This was a top priority for the Irish Presidency. The agreement, which we as Presidency have also brokered, on CRD IV will see the risk profile of the European banking system lessened over time. As Presidency, Ireland is working intensively to make further progress on the various strands of banking union. An operational and effective banking union will help to address one of the key brakes on Europe’s recovery.
Beyond the short and medium term steps already taken, there is an appreciation among EU leaders that further deepening of the Economic and Monetary Union may be necessary in order to underpin the euro as a stable and credible currency into the future.
The European Council, in December last, asked President Van Rompuy to consider and consult further on four strands – coordination of major economic reforms; the social dimension of EMU; the feasibility of contracts for competiveness and growth between governments and EU institutions; and solidarity mechanisms. President Van Rompuy will present a “time bound roadmap” on these issues to the June European Council.
As Presidency, Ireland fully supports President Van Rompuy in his further work and we are facilitating discussions in the relevant Council formations. It is clear that any new steps towards strengthening economic governance will need to be accompanied by further steps towards stronger democratic legitimacy and accountability.
