Vol. 425 No. 8
9 Mr. Cox asked the Minister for Finance the assessment, if any, he has made of the financial implication for Ireland of the failure of Switzerland to ratify the European Economic Area Agreement in view of the fact that Switzerland accounted for almost 28 per cent of the total proposed Cohesion Fund, from which Ireland would be a key beneficiary.
It is not possible at this stage to determine whether the non-ratification by Switzerland of the European Area Agreement has any financial implications for Ireland. Discussions will commence shortly between the European Community and the other EFTA countries concerned with a view to bringing the European Economic Area Agreement into operation as speedily as possible. These discussions will also consider whether any technical modifications to the agreement are required in the light of Switzerland's non-ratification.
Will the Minister explain why no assessment can be made when it is clear that Switzerland was due to contribute 28 per cent of the total value of the Cohesion Fund, which consists of 1,500 million ECUs? Clearly, as one of the cohesion countries, there must be some basis on which we can assess its implication? Secondly, will the Irish Government insist that that loss be made good by the other EFTA countries or will we be prepared to write it off?
We certainly will not be prepared to write it off. The stance we are taking in the negotiations and discussions that are proceeding is on the basis that we expect the loss to be made good by the other EFTA countries. As the Deputy will appreciate, it was only on 6 December that the Swiss decided in a referendum not to take part in this agreement. As the Deputy says, Switzerland's share of the contributions to the fund was set at 28 per cent, although this is not explicit in the text of the agreement. There is that scope for maneouvre and discussion. The General Affairs Council of Ministers, at its meeting on 1 February, mandated the EC Commission to enter into discussions with the remaining EFTA countries with a view to drawing up an agreement on the implementation of the EA agreement. Those discussions have only commenced.
Does the Minister accept, on the basis of the proposition she has advanced that we would expect other EFTA member states to make up the loss, that it logically follows that the Irish Government's position would be to refuse to bring an instrument of ratification back to this House to allow the European Economic Area to proceed unless that loss is made good?
As I have explained to the Deputy, the developments in this area are very recent, the European Council of Ministers has taken a position and negotiations have commenced in the last week. It would be appropriate to wait for the outcome of those discussions before coming to any conclusions one way or the other. Those will be very carefully considered by the Department. Obviously, the benefits of a mutual market area are of great benefit to the EFTA countries and with that in mind this cohesion money is coming to us. Our position at present is that if on the EFTA side one country has pulled out, that is EFTA's problem. Obviously, the details will have to be teased out in discussion and, if there are modifications, the Deputy may be quite sure that those negotiating for Ireland will have Ireland's national interest very much to the fore.
