I had the honour as President in office of chairing the meeting of the European Council which took place in Dublin Castle on 13 and 14 December. I was accompanied at the European Council by the Tánaiste and Minister for Foreign Affairs, Deputy Spring, the Minister for Finance, Deputy Quinn, and the Minister of State responsible for European affairs, Deputy Gay Mitchell. The outcome of the Dublin European Council is set out in detail in the conclusions, copies of which I have had placed in the Library of the House. Prior to the meeting I met each of the other Heads of State or Government who are members of the European Council and the President of the European Commission to discuss the agenda which we faced. These discussions contributed in no small way to the meeting's success.
The Dublin European Council represented the culmination of what has been acknowledged by all sides to have been an outstanding Irish Presidency. When I spoke in this House on 20 June last on the outcome of the Florence European Council I stated that the Government was determined that our Presidency would be viewed as significant in terms of a substantive response to the challenges facing the Union. We have delivered on our promise in this regard. In particular, the Dublin European Council gave a decisive further impetus to economic and monetary Union by agreeing the principles under which the stability and growth pact will operate, the modalities of a new exchange rate mechanism when economic and monetary union commences and the legal framework of the euro. It reaffirmed that unemployment was the key problem facing the Union and adopted the Dublin Declaration on Employment which sets out the policy framework for increased employment in Europe. It endorsed significant new measures in the fight against drug trafficking and abuse and against organised crime. It also approved the general outline for a draft revision of the Treaties submitted by the Presidency as a good basis for the work which lies ahead in the context of its reaffirmation of the importance of completing the conference and the treaty at Amsterdam in June 1997.
Before outlining what we have done to tackle the major challenges facing the European Union we should also recall the effectiveness and efficiency of the Irish Presidency on a whole host of other issues across Ministerial Councils which do not generally attract public attention. The feedback in regard to the Presidency's handling of these issues has been positive. This excellent stewardship was a result of careful planning and complete commitment by relevant Ministers and officials. The management and organisation of the European Council and the management of the many other events which took place during the Irish Presidency demonstrates that small countries can run successful, substantive and significant Presidencies.
At the commencement of the Presidency I set out four priorities which would drive our policy agenda. These were secure jobs, safer streets, sound money and a peaceful Europe. These priorities are the kernel of the challenges facing the European Union. They are the issues that concern the citizens of Europe. In setting them out as I did, I was also anxious that they constitute a simple and understandable message, stripped of "Euro-verbiage", which citizens could understand. The conclusions of the Dublin European Council reflect the success of our Presidency in addressing these four core concerns.
On secure jobs, the Council has adopted The Dublin Declaration on Employment: The Jobs Challenge. The declaration itself will not of course create jobs. It is, however, a tangible sign of the priority which the European Union attaches to tackling the totally unacceptable level of unemployment in Europe. While recognising that the primary responsibility in the fight against unemployment rests with the member states the European Council, on the initiative of the Irish Presidency, has committed itself to supporting the efforts of member states through the implementation of an integrated employment strategy covering macroeconomic policy and structural reform.
The declaration, which is included in the Annex to the Presidency conclusions, sets out the elements which must be put in place if we are to provide sustainable employment for our citizens. These elements include sound and stable macroeconomic policies oriented towards growth — adherence to the conditions for economic and monetary union is acknowledged as particularly important in this regard; the improvement of the efficiency of the way in which the labour market helps people to find jobs and increased investment in the training and education of the people themselves for jobs; special efforts to assist the particularly vulnerable groups of unemployed women, unemployed youth and the long-term unemployed; the reform of taxation and social protection systems to make them more employment friendly; modernisation of the markets for goods and services and the exploitation of new sources of employment in areas such as environmental protection and social services; enhancing European competitiveness in the global economy; and the promotion of local development.
It is highly appropriate that this should be called the Dublin Declaration on Employment. The policy prescription set out in the declaration accords with that which has been followed with such success by the Government and social partners in Ireland in recent years, and which has led to significant increases in employment here. The strategy in the Dublin declaration is supplemented by some useful initiatives in the conclusions proper, notably the commitment to regulatory simplification and the extension of simpler legislation for the internal market, or SLIM, which will reduce the costs of SMEs in particular. An especially welcome development is the mandate given by the European Council to the Commission to report before the Amsterdam summit on all necessary measures that must be taken to ensure that the full potential benefit of the internal market is achieved before the beginning of the third stage of economic and monetary union.
The second priority we set for ourselves was safer streets. There has in recent decades been a rapid increase in the rate of crime and particularly in both the scope and sophistication of organised crime. Ruthless drug barons now prey on the weak and vulnerable in every member state. The Presidency set out to energise Europe's response to organised crime and drugs trafficking. It is clear from the conclusions that we have been successful in this.
Many new initiatives have been agreed under the Irish Presidency, notably the agreement on a resolution on sentencing for serious illicit drug trafficking; the agreement which has been reached on the joint action on the approximation of laws, and practices of police, customs services and administrative authorities in the fight against drug addiction and illegal drug trafficking; the agreement to promote co-operation between customs and business in the fight against drug trafficking and to improve co-operation between police and customs authorities; the agreement to measures to address the drug tourism problem and to counter actively drug cultivation within the EU; of crucial importance was the agreement on the demand side of the problem to a five year programme on drug dependency; and finally a joint action programme which has been agreed on the exchange of information on the chemical profiling of drugs.
The European Council stressed that the momentum achieved in regard to the fight against drugs during our Presidency which has been considerable, must be further developed. Particular stress was laid on considering harmonisation of drugs legislation; more intensified co-operation between the law enforcement agencies; full application of the money laundering directive and further development on a co-operative basis of the fight against drugs and crime in Latin America, North America, Asia, central and eastern Europe and Russia. I am satisfied that the Netherlands Presidency will ensure that the groundbreaking work of the Irish Presidency in this area will be built upon.
Drugs are only one aspect of the problem. The key fight is the fight against organised crime. As I said on many occasions, crime does not respect borders. This underlines the need for the closest possible co-operation to fight organised crime. The modern organised criminal has access to vast amounts of financial resources and is making use of the latest technologies. It is important that Europe and the member states respond to these developments in an organised and coherent fashion. The European Council decided in Dublin, on foot of a proposal from the Irish Presidency, to create a high level group to draw up a comprehensive European action plan for the fight against organised crime. This group is to report by March-April 1997.
The fight against organised crime must also be fought at an international level. The meeting in Dublin of the European Council with the 11 applicant states focused on the problem of organised crime. Arising from this I am determined there will be much closer co-operation, across all Europe, to counter what constitutes the greatest threat to the security of its citizens. I am glad to report that the EU-US summit in Washington on 16 December also laid great stress on co-operation in the fight against organised crime and drug trafficking. Both the European Union and the United States are committed to intensifying their efforts in this regard.
In the light of the horrific events in Belgium the European Council in Dublin also expressed its abhorrence at the sexual exploitation of children and trafficking in human beings and committed itself to taking all necessary action to protect the most vulnerable in society. The agreement on a joint action in relation to offences against children and improving judicial co-operation in this area was welcomed as was the extension of the competencies of the EUROPOL drugs unit to such crimes.
It is important to act now. While clearly EU treaty revisions in this area will be necessary, we should not await these treaty provisions before we pursue further measures across the range of areas I have just mentioned — drug abuse, drug trafficking, crime, trafficking in children and organised crime. The European Council has set out an ambitious programme of practical measures which can be put in place in a short period and I have no doubt future Presidencies will continue to accord priority to this area of work.
The third key priority we set ourselves was sound money. The Dublin European Council has been a major success in paving the way towards economic and monetary union. The agreement of the structure of the new exchange rate mechanism will regulate the relationship between the ins and the outs, the endorsement of the two regulations that will constitute the legal framework for the use of the euro, and the agreement of the principles and main elements of the Stability and Growth Pact for ensuring budgetary discipline under economic and monetary union are all major achievements that further enhance the momentum towards the single currency.
The importance of the agreement on the Stability and Growth Pact has quite rightly been emphasised. The Minister for Finance, Deputy Quinn, deserves special praise for his handling of this issue and I also acknowledge the key role played at the European Council in this matter by my colleague, the Prime Minister of Luxembourg, Jean-Claude Juncker.
The agreement reached will require the adoption of sound public finance policies by all member states participating in economic and monetary union. It also recognises, however, that deep recessions may on occasion temporarily cause deficits above the reference value for member states, despite the fact that these states are following the correct fiscal policies.
The importance of the major progress made at the Dublin Council on the new exchange rate mechanism and the legal framework for the euro should also be underlined. The new ERM will regulate the relationship between those in and out of the economic and monetary union single currency and, with enhanced surveillance of economic policies, will help to avoid competitive distortions between the member states of the Union and ensure the proper operation of the Single Market.
The work on the legal framework for the euro was advanced beyond the target set; it is now virtually complete. This framework will give financial institutions, investors and the general public the legal certainty they need as to the effect the euro will have on investment and other decisions made in the various currencies prior to its introduction. Deputies will recognise the absolute importance of this certainty for the transition if continued investment and private and public sector funding are to be ensured for all types of purpose.
The Dublin summit also saw the unveiling of the new design for the euro notes. I regret I did not bring copies for each Member. Overall, Dublin clearly marked another significant milestone on the road to economic and monetary union and the introduction of the single currency.
Our fourth priority was a peaceful Europe. European integration has been the main force for peace and stability in Europe over the past 50 years. Since 1945, western Europe has enjoyed the longest period of peace in recorded history and that is directly linked to the existence of the European Union. It is essential for Europe that this process of integration within the European Union continues with a successful outcome to the current Intergovernmental Conference. The Intergovernmental Conference was, therefore, one of the major items on the agenda of the European Council and the Tánaiste will be reporting on this in greater detail. The Intergovernmental Conference outcome will address many of the other key priorities of the Union.
The Irish Presidency had submitted to the European Council an outline draft treaty requested in Florence and I am pleased to say it was warmly welcomed by Heads of State or Government and accepted by all member states as a good basis for further negotiations. This means that the conference remains on target to conclude in Amsterdam in June next year. It also means there is a coherent and balanced basis for further work which at the same time maintains the level of ambition of the conference with a view to equipping the Union to address the most direct concerns of its citizens and to face the challenges of a new century.
I am pleased that in many respects the progress made at the Intergovernmental Conference contributes to the key priorities identified for the Irish Presidency as a whole. Our draft of the treaty would incorporate a new title on employment in the treaty which would permit better co-ordination at European level in the fight against unemployment. The Irish Presidency draft treaty would introduce significantly strengthened provisions to the treaty to enable the Union to pursue more effectively the fight against international crime, including drug trafficking, etc. It would also give the Union a more coherent and effective basis for foreign policy and would equip it to contribute to peace.
We seek not only a peaceful Europe but a stable and peaceful Europe acting as a source of stability and peace in the world. The Dublin Council has advanced Europe's foreign policy perspective in a significant way and progress was made on a wide range of foreign relations issues. The Tánaiste will deal with these in his statement. I ask the House to note in particular the reaffirmation of our deep concern about developments in regard to democracy in Belarus — we offered to send a fact finding mission to Belarus and we urge its President to accept this offer — and a recognition of the importance of the Council of Europe in upholding human rights standards and supporting pluralist democracy. We look forward to co-operation with the Council of Europe in this important ask.
Given the very heavy workload associated with chairing the Council it was not possible to hold any bilateral meeting with Prime Minister Major or any other Head of State or Government during the European Council.
I would like to refer to the EU-US and EU-Canada summits which I attended this week. In Washington the EU and the US were able to record substantive progress on a whole range of headings — political, economic, trade and justice. Of particular importance was the information technology agreement reached primarily on the initiative of the US and the EU under the auspices of the World Trade Organisation which will liberalise over $500 billion in trade annually in a sector in which Ireland has a major interest. We also reached agreement in principle on mutual recognition of standards covering key sectors representing tens of billions of pounds of two-way trade across the Atlantic between here and the US. The economic benefit for Europe and Ireland of these agreements will be enormous.
I also signed a joint action programme between the EU and Canada in Ottawa on Tuesday. This programme will act as a framework within which relations between the EU and Canada are to be developed and deepened. I had detailed bilateral discussions with President Clinton and Prime Minister Chretien in Washington and Ottawa respectively. Overall, therefore, it has been an exceptional week for Ireland on the world stage.
The message from the European Council will be particularly gratifying to the citizens of Europe. The message is that Europe is working. Europe is committed to remaining at the very forefront of the global economy. It is committed to building a society where the individual citizen enjoys freedom, security and justice. Europe will have a sound currency which will act as an engine for economic growth. Europe aims to be both peaceful and stable in itself and an influence for global peace and stability. Europe looks forward to the 21st century with pride in its achievements and confidence in its future. Last, but by no means lest, the message is that Ireland will be at the heart of Europe in achieving all these objectives.
Eighteen months ago in Paris I was asked the priority for the Irish Presidency which was then 12 months away and I said it would be to deal with the problems of drug abuse and organised crime. I am glad that in addition to doing the normal work which fell to our responsibility, such as finalising the Stability and Growth Pact and moving the single currency forward, the Irish Presidency gave a distinctive push, which would not have occurred without our initiative, to the Europe-wide battle against organised crime and drug abuse, not only within the European Union but also as a result of our discussions with the eastern European countries. That work is now extended to include them. It is also included as a major part of the work we are doing in common with the United States and Canada. The Irish Presidency ought to be marked as one during which the Union became tangibly involved with a major concern of its citizens, the problem of crime. In showing that it can deal with crime the Union has increased its level of support among the people of Europe, even in countries where scepticism about Europe may be a feature. That European union is necessary to deal with crime is a reason for all of us to support the Union.