I propose, a Cheann Comhairle, to make a statement on the European Council held in Dublin Castle on 3 and 4 December.
I chaired the meeting, as Presidency representative, and was accompanied by the Minister for Foreign Affairs, Deputy Peter Barry. In accordance with established practice, I have already had the Presidency conclusions of the meeting laid before both Houses.
A wide range of subjects was discussed. They included the economic and social situation; the enlargement of the Community; integrated Mediterranean programmes; the work of the two ad hoc committees established at the Fontainebleau Council last June; European union, famine in Africa; and a number of topics in the field of political co-operation, including the Middle East, East-West relations, Central America, terrorism and the abuse of diplomatic immunity.
I need not spend time here putting forward the case for enlargement of the Community to include Spain and Portugal. Politically and economically, it is incumbent on the Community, pursuant to the call in the Treaty of Rome to other like-minded countries in Europe, to have Spain and Portugal join in our common endeavours.
On another level, it is important, if the Community is to develop, that it has at its disposal resources additional to those available to it now from the 1 per cent VAT levy and other revenues. As Deputies know, the bringing into operation of increased Own Resources for the Community by raising the VAT contribution level to 1.4 per cent has been made conditional by certain member states on the date of Spanish and Portuguese accession to the Community.
The accession negotiations have been impeded by a number of difficulties and obstacles on which discussions both within the Community and with Spain and Portugal have been in progress for a long time now. The main outstanding issues before the Dublin Council were the regulation of the wine market, fisheries, questions affecting Spanish agriculture, and budgetary discipline.
The major achievement of the meeting was to unblock the negotiations on enlargement, in particular by overcoming the grave, at times even apparently insuperable difficulties, which had prevented agreement being reached, in either the Agriculture or Foreign Affairs Councils, on reform of the market organisation on wine. This was an essential preliminary to settling a Community position on wine for the negotiations with Spain and Portugal. Wine is a sector of major national importance to France and Italy, while Greece, the Federal Republic of Germany, and Luxembourg also had major interests at stake. Over the past few months, the Irish Presidency, working patiently and constructively in the different Councils, had succeeded, through successive compromise packages, in narrowing the differences between the views of these countries.
Nevertheless, following the Foreign Affairs Council on 26-28 November, we were faced with a deadlock which could have brought the enlargement negotiations to a halt. Once it was clear that the issues would have to be taken up at the European Council, I immediately initiated a round of contacts on the following days, 29 and 30 November, designed to establish the basis for a further Presidency initiative to break the deadlock. I visited Paris and Rome where I met President Mitterrand and Prime Minister Craxi, with other senior Ministers concerned, as well as meeting, briefly, Prime Minister Papandreou. In Dublin, before the Council, I met the President of the Commission and the German Chancellor.
As a result of these meetings and of telephone contacts over the weekend with Paris and Rome, we were able to table, at the commencement of the Council, a new Presidency compromise which was warmly welcomed as a suitable basis for discussion. The ensuing discussions were at times difficult but led eventually to an understanding which is embodied in a text on table wine that was agreed on Tuesday last by the Heads of State or Government. This text, which has been circulated, forms an integral part of the Presidency's conclusions of the meeting.
This agreement enabled the relevant Heads of State or Government to lift the reserves which had hitherto prevented the finalisation of Community positions on Spanish agriculture, fisheries and budgetary discipline. This they formally agreed to do at the Council. The agreement on enlargement and wine is, however, subject to a reserve by Greece. Following a procedure agreed by me as President of the Council with the Greek Prime Minister, I first read to the meeting a statement by him recording that Greece did not agree with enlargement unless a satisfactory position of the Community was taken on Integrated Mediterranean Programmes, and that this was also the Greek position concerning wine, followed by a text stating the agreed Community position to be that "Negotiations on enlargement will, therefore, have to proceed on an ad referendum basis in view of the above declaration, placing a Greek reserve on this issue”. The texts of these two statements, as agreed with the Greek Prime Minister, have now been circulated as an integral part of the Conclusions of the Council.
This means that negotiations on enlargement, on the basis agreed by the Community, can now go ahead on the individual items but that the whole matter remains ad referendum in the light of the Greek reserve. In the meantime, the question of the Integrated Mediterranean Programmes, on which the discussion at the Council was long, and, at times difficult, has to be advanced so that a positive decision may be reached on it at the March European Council, thus opening the way for ratification of enlargement on the basis of the outcome of the final stages of the negotiations with Spain and Portugal, which can now proceed.
The Community has for some years now been concerned with the longer term question of how it is to develop as an even more effective economic and political entity in the world today. At the Council in Fontainebleau, the Council agreed that ad hoc Committee consisting of personal representatives of the Heads of State and of Government should be set up on the lines of the “Spaak Committee”. This committee's function is to make suggestions for the improvement of the operation of European co-operation in both the Community field and that of political, or any other, co-operation. At the Dublin Council we had an interim report from the committee, containing a number of reservations, as well as incorporating disagreement by Senator Dooge himself on the inclusion of defence within the scope of the proposals. The Council recognised the high quality of the work of the committee and the need for it to continue with a view to reaching maximum agreement. The Council also agreed that the interim report should be published. For its next meeting in March 1985, the Council has asked the Committee to complete its work and submit a report which, after preliminary consideration at the meeting, will be the main subject of the European Council in June 1985.
The Council also noted the interim report of the ad hoc Committee on a People's Europe — which is concerned with measures to strengthen and promote the identity and image of Europe for the citizens of the Community and for the rest of the world — and asked the committee to make a further report to the European Council next March.
On the Economic and Social Situation, I had suggested to the Heads of State or Government in a letter which I sent to them before the Council, that, given the dominance and persistence of the problem of unemployment, we should discuss a collective effort to turn trends in a far more positive direction — as suggested by the Commission's excellent and balanced Annual Economic Report — a report which was, indeed, very warmly received at the Council.
We need to tackle this problem because growth in the Community is expected to be no more than 2.25 per cent in the current year — well below the Community's capacity. On present policies no increase is foreseen next year in this low rate of growth, which is markedly below the expected performance of the United States and Japan. At the same time, the growth in world trade is expected to fall next year from 9 per cent in 1984 to 5 per cent and, most critically, unemployment in the Community, at 11 per cent this year, is expected to rise even further to 11.5 per cent next year — or 13 million people. If growth in world trade were to fall below the expected figure the unemployment situation could be much worse.
If we consider the Community's performance in a longer perspective there are two central and disturbing facts.
First, the rate of potential growth shows no sign of recovering to the kind of level that is within the capacity of the Community and is needed to reverse the still surging tide of unemployment; and second, we have not been getting enough jobs even out of the inadequate growth we have had, as compared, say with the performance of the United States.
We should now be able to do better because inflation is falling, the Community's external payments are expected to be in surplus — although slight — in 1985, profits have been improving, and investment has turned up. In presenting this analysis of the situation to the Dublin Council I said that in facing these issues, we should have regard to the Commission's guidelines as set out in its Annual Economic Report — taking these guidelines as an overall package of proposals. Among the guidelines in the report that were referred to in the Commission's Communication to the Council were the placing of appropriate emphasis on the need, for example, to assure monetary policies that will steer clear of any acceleration in inflation; the need to remove obstacles to increasing the readiness to take on labour and the need to strengthen competitiveness. But I pointed out that other guidelines in the report, omitted from this communication, should, in addition, be taken into account notably the general objectives of a progressive increase in the actual and potential growth rate, combined with low and declining inflation; the recommendation for a pause in the reduction of deficits, where these have been brought soundly under control, in order to reduce tax burdens; and the need to develop co-operative action with the United States and Japan to sustain an adequate overall growth in world trade in the period ahead when the United States contribution will be less.
I also said that we welcomed the initatives which have been taken to develop the EMS and look forward to the completion of the work as quickly as possible. The development of the EMS is, of course, bound up closely with our ability to strengthen our economies and to promote increased convergence which is the aim of the policy guidelines in the Commission's Annual Report.
The Council's conclusions are in the documents, copies of which have been presented to this House. I am very happy to report that our initiative on unemployment, which we have pursued consistently since assuming the EEC Presidency, is now at least producing some results, with the European Council's acceptance of the priority now to be given to unemployment and their acceptance of the balanced package of proposals contained in the Commission's report. Moreover, the Council has agreed to the speedy implementation of these proposals. In addition, Deputies will note the precise and positive nature of the conclusions arising from the discussion between Heads of State and Government which ask the appropriate Ministerial Councils of the Community — first to initiate a review of manpower policies to re-orient training towards sectors where labour will be needed, take steps to encourage job mobility and foster enterprise, especially amongst the young; second, to take steps to complete the internal market, including implementation of European standards. As a comment, I should say that a great deal of work still remains to be done, now, more than a quarter of century after the Community was established, in order to complete this basic objective of the entire enterprise; third, to pursue and accelerate consideration of measures to achieve a greater role for the ECU and develop and strengthen the European monetary system; fourth, to implement without delay the firm political commitments agreed by the European Council at its meetings of Brussels and Fontainebleau in the field of transport policy. If transport, like other elements of our productive infrastructure, is not efficient, the Community suffers from the consequent lack of competitiveness and its people suffer in higher unemployment and lower living standards; and fifth, to adopt further measures to strengthen the technological base of the Community and restore competitiveness. To this end, the Council asked the Commission to submit an appropriate draft action programme for the next Council.
The Council also asked that the Community and member states should take measures, including concertation of economic policies, designed to reduce the differences existing between the various regions and the backwardness of the less favoured regions.
There is also at my insistence a specific request to the ECO/FIN Council and the Commission to keep external developments under continuous review and to report back to the next meeting in March on what measures might be appropriate for the Community or may already have been initiated to assure the objective of a progressive increase in the actual and potential growth rate for the Community to the benefit of employment.
The third major subject dealt with at the Dublin meeting was the appalling famine which is ravaging the people of so many countries in Africa, like Ethiopia and the Sahel countries. These people are suffering the effects of an unprecedented drought and widespread malnutrition and famine. At least two million tonnes of grain are required for these particular countries until next year's harvest, in order to meet the priority needs of the countries hardest hit.
I took the initiative to put this item on the agenda with a view to getting a clear political commitment from the European Council on further contributions on a scale commensurate with the urgent needs of the situation.
At the Council, I stressed the urgency of concerted international action to relieve the manifest disaster in these areas, and proposed to the Heads of State and Government a specific commitment: that the Community and its member states would provide between now and the next harvest 1.2 million tonnes of cereals — that is approximately 60 per cent of the estimated priority needs of these areas. I also proposed that the Dublin Council should appeal to other donor countries to match this effort in order that the total need of the famine-stricken countries will be met, especially in the months immediately ahead.
I am glad to say that this Irish initiative was adopted by the European Council, which instructed the Commission, after consultation with the member states, to establish the amount of grain that will be provided by member states bilaterally and, following this, to make a proposal to the Council with respect to the additional Community effort needed to attain the figure of 1.2 million tonnes. The European Council invited the Council of Ministers to take any necessary decisions on the basis of such a Commission proposal in order to secure the achievement of the 1.2 million total. It also appealed to other donor countries to match this effort in such a way as to ensure that the total estimated need of 2 million tonnes by these states be met. The Council also stressed the need for urgency to avoid the threatened shortfall in the months immediately ahead and emphasised the need to undertake urgent action to speed up and support the recovery and rehabilitation process in African countries. This will involve active support by the Community for their efforts to achieve self-sufficiency and security in food and to implement long-term operations to combat drought and desertification.
The political items we discussed were: the situation in the Middle East, East-West relations and Central America, and also the problem of terrorism and the abuse of diplomatic immunities.
The importance which the Ten attach to the continuation of the dialogue, begun in Costa Rica last September, and in particular our firm view that a solution to the Central American crisis can be found only through peaceful means, is reflected in the conclusions of the European Council on the issue.
The Middle East is an area in which the Ten have played an important role in recent years, and they remain convinced that a just, lasting and comprehensive peace can be secured only on the basis of a reconciliation of the rights of Israel and of the Palestinian people. It is important not to exaggerate the scope for Ten activity at this stage but I think it is important that the Ten remain prepared to play an active role, should circumstances warrant. It was with this end in view that the European Council have restated publicly the Ten's position and their readiness to assist in the search for a solution.
We reaffirmed the Ten's support for the sovereignty, independence and territorial integrity of Lebanon and the view that all foreign forces must be withdrawn from the country except those whose presence is requested by the Lebanese Government. The concern of the European Council was expressed at the apparently intractable Iran-Iraq conflict and at the slaughter and destruction which this conflict has brought.
East-West relations, while still troubled, have over the last six months shown clear signs of improvement. The European Council expressed the Ten's intention to continue to encourage a constructive, comprehensive and realistic dialogue between East and West and an early return to stable and predictable relations between the two superpowers. Of key importance is the resumption of crucial arms control negotiations, and the urgent need for the opening of talks aimed at avoiding an arms race in space. The European Council, therefore, welcomed the recently announced US-Soviet agreement to enter into new negotiations on arms questions.
It is worth noting that at the negotiations in which the Ten themselves are taking part, the Stockholm Conference on Disarmament in Europe, there has been a recent important agreement on the problems of a working structure for the conference — problems which had reflected deep-seated differences between East and West. We hope that this will permit negotiations there to get under way on concrete measures aimed at increasing confidence and security on our continent. We underlined the continuing central role which the CSCE process, as set out in the Helsinki Final Act, plays in East-West relations.
Our discussions also touched on the question of terrorism and the abuse of diplomatic immunities. The Foreign Ministers, at their meeting on 11 September, approved a general approach by the Ten to this problem, central to which was the principle that no concessions under duress should be made to those who practise terrorism. The European Council endorsed, at the level of Heads of State or Government, the approach already approved by the Foreign Ministers.
Towards the end of the meeting, convening separately as representatives of the Governments of the member states and, in accordance with the provisions of Article 11 of the 1967 Treaty Establishing a Single Council and a Single Commission, we appointed, by common accord, the members of the new Commission which is to take office from 6 January 1985. Those appointed are:—
Jacques Delors from France, President; Frans Andriessen from the Netherlands; Claude Cheysson from France; Henning Christopherson from Denmark; Willy de Clercq from Belgium; Lord Cockfield from the United Kingdom; Stanley Clinton Davis, also from that country; Nicolas Mosar from Luxembourg; Karl-Heinz Narjes from the Federal Republic of Germany; Lorenzo Natali from Italy; Alois Pfeiffer from the Federal Republic of Germany; Carlo Ripa di Meana from Italy; Peter Sutherland from Ireland; Grigoris Varfis from Greece.
As President-in-Office of the European Council, I thanked President Thorn for his work and the work of his Commission during the past four years and wished him and the outgoing members well for the future. Equally, I should like now to express the hope that the new Commission under the Presidency of M. Jacques Delors — whom I invited to attend the dinner for Heads of State and Government on Monday night — will find that their period in office is productive and will see decisive progress in widening and deepening European integration.
Finally, I should record that on 3 December, during an interval in the proceedings, I had a meeting lasting approximately a quarter of an hour with the British Prime Minister, Mrs. Thatcher, on some of the matters arising in the Council and on Northern Ireland. It is not the custom for either of the participants at these brief and informal meetings to indicate the content of the discussions. However, on this occasion, we were in agreement about reaffirming publicly our intention to proceed with the dialogue on the matters we discussed at Chequers, with a view to finding a political framework that would bring peace and stability to Northern Ireland.
On the nature of the Dublin Council, I feel that we achieved important progress in relation to negotiations for enlargement, the provision of aid to relieve famine in Africa until the next harvest, and a serious review of the social and economic situation and the unemployment problem, which had not been discussed at recent European Council meetings, as well as preparing the way for the discussion of the final report of the Dooge Committee. The issues before us were numerous and difficult — obviously involving deep feelings in many countries. However, apart from one or two passages, the general tone of the meeting was good and the meeting itself constructive — both in its substance and outcome. The way is, I hope, gradually being cleared for progress towards the achievement of the ideals for which the Community was established.
