Apologies have been received from Senators Ormonde and Bradford.
The first item on our agenda is a discussion on Romania's progress towards EU accession with the Romanian ambassador to Ireland. On behalf of the joint committee, I welcome the ambassador, Mrs. Silvia Stancu-Davidoiu.
I thank the Chairman. I am accompanied by my colleagues Mr. Adrian Stancu-Davidoiu, counsellor for European affairs, and Mr. Alax Ivanir, press attaché of the Romanian Embassy. I appreciate the interest of committee members in the progress of Romania towards European integration. I am pleased to address this topic which is of great importance to my country and me personally. The relevance of our meeting is increased as we look forward to the Irish Parliament adopting the European Communities (Amendment) Bill, ratifying the treaty of accession of Romania and Bulgaria to the European Union.
I refer to Romania's bid to join the European Union, a generous and extraordinary project that raises expectations and hopes as it pulls together the efforts of an entire nation. The European project is also symbolic of our return to the European family. I wish to highlight the reforms undertaken in Romania, as well as the catalyst role of accession in the modernisation and democratisation of Romanian society. Accession to the European Union will bring a cultural and political dimension and added value to the European construction. All progress recorded in many fields is the result of serious and systematic work of the government, to which the parliament, the business environment, political and social actors, civil society and mass media contributed to a great extent. The European integration project does not belong to a party or segment of Romanian society but to the Romanian people who seek their future within a united Europe.
We took the concerns of European politicians and officials into consideration. We dealt with all pending issues with a most critical and responsible attitude, without hesitation or camouflage. We are confident that, through sustained effort and with the continuing support of our European friends, we can certify our country's accountability, the solidity of the administrative and economic system and its functionality and capacity by 1 January 2007. Moreover, the accession of Romania and Bulgaria to the European Union will be the natural completion of the fifth wave of enlargement of the Union, thus ending the long ideological division of the continent.
The Romanian Government has vigorously pursued reforms along the three strategic directions which sustain the European integration process — reforms in the social field, economic reforms that facilitate welfare reconstruction and reforms to consolidate the rule of law. I will point out how the measures undertaken by the authorities have led to relevant progress. These positive developments were acknowledged by several EU officials and some sectoral EU review missions that visited Romania in the past month. We are confident that they will be reflected in an objective manner in the progress report of the European Commission which is due in May.
In terms of protecting minorities' rights, Romania can nowadays be considered a leading model across Europe. We have one of the most generous political and social models for preserving and developing the cultural identity and rights of national minorities. From a state much criticised in the past, we have turned into a model for inter-ethnic harmony. Guarantees are offered for ensuring and preserving the ethnic, cultural and religious identity of minorities. In Romania the national minorities have the right to study in their mother tongue at all levels and forms of education. In specific situations the use of the mother tongue in local administration is permitted by the national government. At the same time minorities' associations have the right to run for national and local elections. A political party representing the interests of the Hungarian minority is now part of the governing coalition and was associated with the government in previous administrations.
Special attention is given to the integration of citizens of the Roma community. A national strategy to improve the situation of the Roma population is being implemented and important positive results have been obtained in education, health and employment. It is also worth mentioning that Romania is holding the Decade of Roma Inclusion presidency, an international programme in central and south-eastern Europe focused on the particularities of this special community.
We are proud of our achievements in the protection of children's rights. A comprehensive legal framework is in place and fully harmonised with the UN convention. The Romanian authorities are now focusing on vulnerable categories of children such as homeless, exploited or trafficked children. Particular attention will be paid to those cases of children with parents working abroad. The framework legislation on children's rights entered into force in January and puts in place a modern system of protection according to Romania's international commitments. The law introduces measures to prevent children being separated from their parents. New working instruments have been introduced such as individualised plans of services and individualised plans for protection aimed at responding to the specific needs of every child.
To support local communities, the bodies implementing the policy, we have set up national programmes which are carried out by NGOs acting in the field of children's rights and child protection and implemented throughout the country. Community and internationally funded programmes contributed to the progress achieved in the field of children's rights. Several institutions were closed down and alternative services created. It is an ongoing process. In this respect, I pay tribute to the work of Irish NGOs that have been actively involved in such projects for many years. They have provided valuable assistance for the Romanian authorities in the effort to radically change the institutionalised child care system.
With regard to inter-country adoptions, the remaining legal framework is in place and in full compliance with the UN convention on children's rights and the European Convention on the Protection of Human Rights and Fundamental Freedoms. At the beginning of this year there were more than 1,400 Romanian families attested to adopt children. There were 580 children for whom the domestic adoption procedure had been initiated according to the new legislation. There are almost 1,400 registrations of inter-country adoptions obligations submitted by foreign families for the adoption of Romanian children which were not approved during the moratorium on inter-country adoptions which lasted from 2001 to 2004. These files were not accepted mainly owing to non-compliance with legal procedures. The Romanian office for adoption has started to communicate to the foreign families concerned the position on their adoption file.
With regard to the Internal Market, the Romanian authorities have taken decisive measures to be able to cope with the competitive pressures within the European Union. At an economic level, the government has strengthened the market economy and allowed companies to develop with a healthy improvement of citizens' income. The flat tax and fiscal discipline consolidation have been the main measures taken in this regard. We have reached the EU level in competition law and anti-trust legislation and are a few steps away from reaching the EU standard in the area of state aid. The progress achieved in 2005 has led to the withdrawal of our name from the list of areas of serious concern for the European Commission.
As Romania will benefit in coming years from important financial assistance from the European Union, to bridge the gap with the more advanced European countries, the management of Structural and Cohesion Funds has become a top priority. In this respect, the Irish success in making the best use of Community funding is an inspiring model and we look forward to benefiting from Irish know-how and best practices.
The judiciary has undergone profound reform in terms of strategy, legislation and implementation. The independence of justice is guaranteed by the superior council of magistrates and the executive does not interfere with the judiciary. In terms of strategy and legislation, there was a thorough updating of the reform strategy and the action plan with substantive amendments to the legislative framework and procedural codes. With regard to implementation efforts, significant resources were provided for the judicial system. It has strengthened the administrative capacity; the training of judges and prosecutors was improved and access to jurisprudence and legislation facilitated.
A strong commitment was given by the Romanian authorities to fight corruption. Official measures were taken that yielded concrete results. There is a national anti-corruption strategy aimed at preventing and countering corruption by refining and rigorously implementing the legal framework through legislative coherence and stability and by institutional strengthening of the entities with important tasks in this field. The principles at the basis of this strategy are the rule of law, good governance, responsibility, the prevention of corruption Acts, efficiency in countering corruption, co-operation and coherence, transparency, consultation with civil society and social dialogue and the importance of public private partnerships.
To ensure effective prevention of corruption, transparency and integrity in the public administration have increased. A new, compulsory declaration of wealth and interests for all officials is among the strictest in Europe. The criminal immunity of bailiffs, notaries, former Ministers and lawyers was eliminated. Legislative measures on bankruptcy, tax evasion and money laundering were empowered and the rescheduling of exemptions from tax payments was eliminated.
In terms of combating corruption, several measures were undertaken to increase the integrity and resistance to corruption of the judiciary, strengthening the institutional capacity of the national anti-corruption prosecutor's office and amending the criminal procedure code. As a result we experienced a considerable increase in the number of officials and public servants sent to trial, as well as in terms of convictions. There is a strong determination to pursue this process and anti-corruption officials are currently working on several high-level cases.
In speaking of our integration into European structures, the image is fragmentary unless we also mention the added value Romania can bring to Europe. Romania wants to be a part of this process of reconfiguring Europe in an era of globalisation. We know we can fight Euro-scepticism by contributing to the general welfare and security of our continent.
As I have mentioned, EU integration represents an extraordinary chance for Romania's geophysical and economic potential, as well as in cultural and human terms, to be better valued in a structured organisation which is stronger and can multiply the critical mass of my country. It is a matter of fact that we are a bridge between west and east. Romania lies in an area of confluence between NATO and EU borders where European and transatlantic interests meet. We are bordering the European neighbourhood and the states of the western Balkans. Romania intends to be a strong external border of the EU but also a country that will try to radiate a set of values and modestly share the experience of our relative success in getting closer to European and transatlantic institutions with other friends and neighbours.
We have gradually become aware of our neighbours' interests in being more functionally connected to the European area and we have good expertise in their political, economic and cultural capabilities in this respect. We certainly want to build bridges, rather than walls. We have acquired a balanced sense of the past and a clear understanding of how we can build the foundations for a better future.
The western Balkans remain at the top of our external agenda. The persistent challenges should not deter our investments for stability and economic recovery in the Balkans. This year is a key one for the region and we trust that, together with our regional partners, lasting stability can be achieved only through close co-operation with the European Union, NATO, the United Nations and the OECD
In this respect, the principles of our regional policy in south-east Europe are aimed at supporting the EU's proceedings and projects, promoting good neighbourly relations as a prerequisite for advancing integration in a pragmatic manner, along with the use of regional co-operation and sharing good practices to prepare for Euro-Atlantic integration.
Another major project of the Union in which Romania has been fully involved since its inception is the structural development of the new relationship with eastern European countries under the auspices of the European neighbourhood policy. Support for Moldova, Ukraine and the people of Belarus and the southern Caucusus has been our constant policy in past years. We strongly encourage their efforts aiming towards full democratisation, revival of civil society, ensuring the rule of law, and providing economic and social welfare. We are deeply committed to helping them draw closer to the European family by assuming European values and enjoying European standards. In this regard we support concrete steps aimed at the implementation of the European neighbourhood policy, while making best use of new financial external instruments, such as the European neighbourhood and partnership instrument. We have already initiated several cross-border projects along these lines.
As for the Black Sea region, an area of paramount economic importance linking the Caspian Sea with western Europe, we approach it in close connection with the European neighbourhood policy. Similar to the EU's northern dimension, a clearly focused Black Sea co-operation policy will benefit the EU's relations with privileged partners, such as Russia, Ukraine, Georgia, Romania and Azerbaijan. This could also contribute to confidence building through new incentives for economic co-operation.
To strategically secure the Black Sea region, we must combat asymmetrical threats and risks to solve frozen conflicts as the main source of risk for European security and interests, to strengthen democracy and the rule of law. On a larger scale, we want to be part of a European Union which really plays a major international role and gradually becomes a global player, as we believe Europe is a model of society and civilisation for many countries around the world.
This is what Romania brings to the table: we can represent a springboard for European interests, values, principles and ambitions in this broader region. While we have made tremendous progress, we are fully aware of the complexity of the tasks still lying ahead of us. We are determined to pursue the rhythm of reforms with a particular focus on their implementation. We will continue to pay attention to all the shortcomings and sensitive issues that are still on the agenda. Our efforts will not cease when we become members of the Union. We are determined to continue to treat European commitments with the same responsibility as the Romanian people are the final beneficiaries of our endeavours.
I thank you for your attention, Chairman, and look forward to a substantive debate.
I thank the ambassador for her address. I will begin by asking Mrs. Stancu Davidoiu about the moratorium on inter-country adoptions. She mentioned the figure of 1,400 applications being received during the moratorium period. Some of those applications would certainly have been from Irish families. It is unclear as to how those applications will now be dealt with. The ambassador said that, as far as the Romanian government was concerned, those applications did not comply with legal procedures and the families are being contacted about the current position of their files. Can Mrs. Stancu-Davidoiu provide the joint committee with any more clarity as to how those applications will be treated? Will she tell us how many Irish applications were received during the moratorium period?
As regards the figures, between 27 and 30 cases involve Irish families who intended to adopt Romanian children. The legislation is fully in force and looks on international adoption as a last resort. The basic principle is that the children must be returned to their families where possible, or should be adopted inside the country. I mentioned a figure of almost 1,400 international adoption files during this moratorium period. All of these have been dealt with not only by the Romanian authorities but also by a committee of European experts which examined each case. Each family has received, or will receive, an answer, with arguments for each decision. Fewer children meet the requirements to be adopted than there are Romanian families who want to adopt a child. There are approximately 900 Romanian families wishing to adopt but only 580 children who meet the requirements.
Under this law, children under two years of age are not put up for adoption. We are considering different possibilities for returning them to their families. In hundreds of cases the parents, or one parent, have taken the child who is reintegrated with his or her family. Some of the children go to other close relatives, such as their grandparents.
I wish to clarify a point. Are there 37 Irish cases?
There are between 30 and 37. I do not know for sure but I can find out.
To clarify another point, is the ambassador saying that in all likelihood those 37 cases will not be considered if the applications were made during that moratorium?
If those applications were made during the moratorium it is very unlikely that they will receive a positive response.
Regardless of whether the agreed date of accession is January 2007 or 2008, how many Romanian workers does the ambassador think will come to Ireland, if we open up our labour market, as we have to the other ten accession countries? What kind of skills will they bring to Ireland?
The Romanian authorities have already conducted some preliminary analyses in this field. There are already almost 2 million Romanians working in other European countries because we have bilateral agreements with many countries, and quotas of workers. According to our estimates, there will be few Romanians left to seek work abroad. We estimate that approximately 300,000 Romanian workers will look for work in other European countries whose labour markets will open after accession.
Many of those already abroad, and those who intend to leave, go to Italy and Spain where it is easier for them to learn the language and adapt to society. There are approximately 800,000 Romanians living and working in Italy and approximately 600,000 or more in Spain.
I welcome the ambassador and thank her for her clear explanation of Romania's plans. I congratulate Romania on setting a standard on child protection and adoption which has been admired around the world, following criticism some years ago.
I do not understand the Romanian judicial system. There is an independent judiciary which cannot be dismissed but approximately 1,200 of the judges resigned recently. Why?
The Romanian people have some concerns about the regulations and rules involved in EU membership. Will the ambassador touch on what those concerns are, rather than assuming that everybody wishes to join the European Union? For example, some producers expressed concerns about food safety and hygiene.
We are concerned about the possibility of disease carried by dogs from other parts of the world, and have developed an anti-rabies control. There is a big problem in Bucharest, where there are approximately 60,000 stray dogs. Some time ago a Japanese businessman died after being bitten by a dog there. The government has introduced a sterilisation system to deal with this. Will the ambassador outline the other steps being taken? If this is not controlled it will be a matter of concern when the borders open.
Romania has made arrangements for the Americans to land openly and use a particular airport in Romania in their war with Iraq. Romania also has forces in Iraq. Was this an area of concern, or was it easy to decide to join the invasion of Iraq and participate in the war?
The concerns expressed about the independence of the judiciary have been tackled in a careful manner. Our system is different from that in Ireland and is closer to the French model. A separate body dealt with the main issues regarding the judges' careers and concerns and needs. This body, the Supreme Council of Magistrates, was established three years ago. It is the only body which has the right to interfere in the career of a judge or prosecutor. Many of the 1,200 judges have retired and some resigned because they were not compatible with the system. We have tough requirements for someone to become a judge — not everyone can become a judge. Those who resigned might not have complied with some of the professional requirements or had to pay for bad judgments or shabby professional activity.
The system constantly renews itself. The judiciary now has large financial resources and a large sum of money has been invested in improving the working conditions, such as modernisation of the courts, and installing an IT system in all the courts. I do not know if that answers the Senator's question.
On the sanitary concerns, it is one of the areas where we are trying to implement fully all the EU standards and requirements. The institutions are in place. We have a national sanitary authority which is dealing with many aspects, including the sensitive food safety aspect and meeting the sanitary requirements for the food processing industry and so on. Many facilities have been closed because they did not comply with our standards. Those people were probably upset but they must understand that those are the standards and laws and, within the European Union, such shabby places cannot be allowed to remain open. Most of the people involved, who are private entrepreneurs running private operations, understood that and they are now learning how to make the best use of the European and national funds we put at their disposal to improve the sanitary standards in their respective production units.
On the question about dogs, the figure is questionable. It is hard to imagine that there are 60,000 dogs. There are many dogs on the street but this is an issue that was tackled five years ago. Different approaches were taken. Many people said we should sterilise the dogs that were wandering around the city. Some of them claimed they should be put down. There were many claims from different non-governmental organisations concerned about people not touching the dogs. The other option was to build different lodgments to house and take care of the dogs. Those models did not work properly and we took the very tough decision that the dogs had to be sterilised and taken off the street, not because we are insensitive but because we had to put aside the emotional aspect of the problem and tackle it once and for all. Those dogs have been sterilised and as quickly as possible they will be taken off the streets and put in compounds or other such accommodation.
On the question of our joining the coalition in Iraq, that was a foreign policy decision consistent with our commitments in terms of security and democracy. We are not participating in the military operation. Our troops based there are involved in providing security and helping with the reconstruction; they are not in the field. Our military co-operation with the United States is very transparent. We did not make any secret of it.
We opened all the facilities for investigation by the European teams and the Council of Europe who wanted to examine those airports and facilities that had been used by the American troops. They could not find any proof. It is a military airport. They came to the conclusion that there was no way to say that there was any suspect building or activity at that airport.
As a political decision Romania has signed two agreements with the United States which will allow in a short period for the Americans to have two American bases on our territory. They are small bases and are not permanent. They will be used only for training, transit and whatever other needs are necessary.
I understand Romania has a large Hungarian minority which has its own political party. Is that correct?
Yes.
Recently, Romania appeared to have some dispute with Hungary regarding the extension of social benefits to the Hungarians. Is that correct?
No, I do not believe so. It could be an issue that was dealt with in the past. We have a large Hungarian party in Romania. It is one of the parties in the Government coalition. I dare to say that our relations with Hungary have been excellent for the past number of years.
It could be the case that the issue the Senator raises was part of a larger package of a law that was passed by the previous Hungarian Government, the Fidesz Government under the premiership of Mr. Orban. It was the status law for Hungarians living abroad. There was a provision at that time about social benefits for Hungarians living outside Hungary but that issue was debated six or seven years ago. It was sorted a long time ago. Romania and Hungary came to a mutual agreement in terms of the application and implementation of the status law. Both Governments signed a memorandum which sets out the mechanism and methods for the implementation of some provisions of this law that are applied in Romania, mostly in the field of preserving the cultural and linguistic identity of the Hungarian minority.
I have two questions for the ambassador, the first of which is a broad brush question. Assuming the ambassador's country becomes part of the Union next year or the year after, does she see her Government as being natural allies of, say, the old European French-German axis, which has generally favoured greater federalism, to use that simple explanation, or falling into the same category as, say, the more Euro-sceptic recently acceded countries such as Poland and the Czech Republic?
My second question is about Moldova. I assume the ambassador's country is committed to non-intervention in Moldova. Should there be any worsening in the situation in Transnistria, for example, does the ambassador see Romania staying out of any dispute there? I am aware there are ethnic links with a large part of Moldova.
I thank the Senator for the question. My country has been and is a strong supporter of the traditional European values. From our perspective as a candidate for EU membership, we have always supported the idea of a more integrated Europe. We strongly believe that a larger Europe should lead to a stronger and more integrated Europe. These deep-rooted beliefs will not change.
Is it not fair to say that support for more populist nationalist parties has become stronger in Romania in recent years?
Support for such parties has decreased. No party in the Romanian parliament, and only a tiny fraction of political opinion outside the parliament, objects to Romania joining the EU. No voices have been heard arguing against joining the EU and pointing out the disadvantages of EU membership. There is no such debate in Romania. We cherish European values more than we sometimes dare to say. Once it joins the EU, Romania will probably be centrally involved in a positive and constructive manner in the debate about the future of Europe.
Moldova is a neighbouring country with which Romania has a close and special relationship. The state of affairs in Transnistria, a Moldovan region, has become a European issue. Transnistria is a frozen conflict region. While Romania is not part of the group of negotiators attempting to find a solution to this frozen conflict, it monitors developments very closely. Romania was the first country to recognise the Republic of Moldova as an independent state and the past 14 or 15 years show no sign that it will change its attitude to Moldova in the future. We support Moldova and would like to see it move closer to democratic European values and a more open and developed society. We will do our best in this respect. We have a regular dialogue with the EU special representative for Moldova so we are keeping in touch with our European partners in respect of developments in this region.
I join other members of the committee in welcoming Mrs. Stancu-Davidoiu to the meeting. People making decisions in Romania clearly feel that benefits will result from Romania's full accession to the EU. Could Mrs. Stancu-Davidoiu quantify some of these benefits?
When Romania becomes a full member of the EU, we will have a significant border with Ukraine. How does Mrs. Stancu-Davidoiu envisage relations with Ukraine evolving and developing once Romania becomes a full member of the EU?
Romania is examining its future in Europe, mostly in terms of the positive effects of EU membership. The way in which Romania has sought to join the EU has been very beneficial. It has speeded up reforms and provided a further incentive to take tough decisions which would probably have been delayed in the absence of any plans to join the EU. It has been a tremendous incentive not only for the political class but also for Romanian society. It has been a team effort.
EU membership will help Romania consolidate its economy. In the past year, we have enjoyed solid economic growth of approximately 5%. Access to the European market and the possibility to improve infrastructure and bring about further investment in sensitive areas of the economy will be a tremendous achievement. EU membership will be a further incentive for foreign investment. Romania is a large market for European products as its population is 22 million. Romania's proximity to the considerable markets in Ukraine, Moldova, Russia and across the Black Sea to the Caucasus is also a positive factor for investors. Nobody expects all these positive developments to occur the day after Romania joins the EU. It will be a long and difficult process but everyone believes it is worthwhile.
Romania's relationship with Ukraine and the border it shares with that state is a cause for the utmost concern to which the Romanian Government is paying close attention. We will have an EU external border of 2,000 km upon joining the EU so we have embarked upon the difficult task of securing this border. There are many problems and much funding has been set aside for projects connected with securing the border. As I said previously, we want to build bridges rather than walls. We will try to continue with the many trans-border projects with Ukraine. Some pilot projects have already commenced under the auspices of the European neighbourhood policy and it is intended to establish many more of these projects. These are important because they operate at Community level. They not only help in terms of communication but also help build new possibilities of dialogue and co-operation between these communities. Matters are moving slowly in this direction because we already have visa arrangements for Ukrainian citizens visiting Romania. We must try to mend those fences by other means, such as projects of this type and transborder co-operation.
What about trade?
Trade is happening as before. Those communities on the border are strongly connected and are practically doing their day-to-day business with one another. This is also a valid point in the case of the communities on the border with Serbia or Moldova.
I add my voice to that of my colleagues in congratulating Romania on its significant and speedy progress in all areas towards meeting the EU's key requirements. It is warming to hear Mrs. Stancu-Davidoiu say that the prospect of joining the EU speeded up progress. I am sure she is aware that those of us who have been in the EU for a considerable number of years are finding it increasingly difficult to keep people on board with the integrated European project. Does Her Excellency have any advice on how we could reinvigorate those states that have done extremely well in Europe but are now losing their citizens' support while countries such as Romania, which are anxious to get in, would do pretty much anything to join the European project? I admire what Romania has done so quickly. While Romania has a little cynicism, it does not seem to have the same level as EU member states.
It is a difficult question. After enlargement, people will get to know one another better similar to a small community and will probably influence one another and discover that there is much to learn from one another's experiences. We are still in that accommodation period at the broader European level. Currently, we are shaping a common vision on the future of Europe. From this perspective, situations will also change.
I also welcome the ambassador and thank her for a comprehensive and frank outline of the situation. We wish Romania well in its application for membership of the EU. While Ireland had concerns about joining the EU, it was anxious to do so. However, there was considerable benefit in joining. I hope that, as a result of Romania's accession to the EU, it will share the member states' benefits and responsibilities. The world has become a small place and we are more dependent on one another than previously. I had a number of questions but they have been answered.
How many Romanian citizens are in Ireland?
That is a difficult question. I cannot answer it, nor can the Irish authorities. We can only give an estimate of approximately 20,000. Of this number, approximately 10,000 have illegal status.
There are approximately 10,000 Romanians in Ireland illegally.
Yes. They come and go. One cannot say.
Her Excellency mentioned a figure of 300,000 for the estimated number of people who may leave Romania after accession in addition to the 2 million who have already left. Have any other member states indicated they will open their labour markets to Romanian workers and could the ambassador tell us which ones?
Finland definitely, and Spain. Probably Italy also, although it is not the proper moment to take a decision. Italy has just held elections and the issue has not been discussed or decided upon yet. Belgium may consider the matter, as may Sweden. We do not know. We are expecting the UK's decision soon.
Only Spain and Finland have decided.
From the beginning, the new member states said they will keep their markets open.
Of the 10,000 Romanian citizens illegally in Ireland, could the ambassador give the committee a breakdown of their status, work permits, educational status and visas?
There are a couple of groupings. The bulk of Romanians are here on residency permits and approximately 3,000 have Irish-born children. They have steady jobs and are making a living here. Romanians in another group are here on work permits, mostly in the services area, such as hotels, restaurants and so on, and some in construction. In another category, approximately 1,500 IT and engineering specialists work with top companies in Ireland and as lecturers and professors in universities all over Ireland.
What type of skills base would make up the hypothetical number of 300,000?
Probably those willing to work in construction. It will be in response to the demands of the labour market. If they find places in the construction industry, they will come here to work in that field. I do not hesitate to openly say that I am afraid many of the top people who are well prepared with university degrees, such as IT specialists, will also come to Ireland in large numbers. A country would not normally be happy about this but what can one do?
I have a general question that other committee members have touched on. Deputy Kirk asked the opposite question. What benefits will Romanian membership provide the EU with from an economic and social standpoint? What benefits will Romania's membership bring to Ireland first of all and the European Union in general?
In economic terms, there is always a partnership. We will provide the EU with an open market of 22 million people for its products. Most products already have access to the Romanian market but there will be new opportunities. For example, investors will be able to set up new businesses. The Union will receive economic benefits in many respects from us.
There may be other benefits from a broadly political and geopolitical point of view. With our membership, more stability would be brought to a region that has been troubled for many years. We neighbour the Balkans and would bring more stability and democracy to that area. With Bulgaria, we would be an example of what can be achieved with hard work and political will. Moreover, from the geopolitical point of view, we stand at the gates of the Middle East and the continent of Asia, and the republics of the Caucasus lie across the Black Sea. Hence, from this perspective, we will probably act as a kind of gate to those countries. Equally, as far as borders are concerned, this will bring more hard work.
The Turks told us the same thing. They will act as the next gate after Romania.
We are there.
Romania introduced a 16% flat tax rate. How is that working out? How does it affect business in Romania?
Businesses are happy with it and it is working fairly well. We still have some work to do in respect of the collection mechanism. I have had some exchanges of views with Irish colleagues who were involved in this major project many years ago when Ireland introduced a flat tax. There are still some problems with regard to collection and moving out of the grey areas such as tax evasion and so on. However, things are moving in the right direction. The business community is happy in this regard because a flat tax implies that it has less to pay.
Very well.
What natural resources does Romania possess?
We have plenty of natural resources, although we must take care to make good use of them. We have some natural gas and oil reserves. Although we are not self-sufficient, our reserves meet something of the order of 60% or 70% of our oil and gas needs. We have extremely fertile agricultural land, which has already proved to be an incentive for foreign investors because in recent years many farmers from the European Union bought land and assembled large modern farms. Moreover, the people are also a natural resource because they are skilful. Although we have come through some very bad times economically, one should not forget that we had a higher level of education and that most of the people are skilled and professionally trained. The collapse of the old industries did not mean that the skilled workers also disappeared and they are still present.
How does Romania make up its oil and gas deficit? Does it import?
We import gas from Russia and oil from several partners.
I thank the delegation for attending. The joint committee has received an invitation from its counterpart in Romania to visit that country and perhaps we will discuss the matter in private session. I ask the ambassador to pass on our thanks for the invitation, which we appreciate.
