JOINT COMMITTEE ON EUROPEAN AFFAIRS díospóireacht -
Tuesday, 15 Jun 2010

EU Enlargement and 2020 Strategy: Discussion with Czech Delegation

Chairman

I welcome from the Senate of the Czech Republic Senator Ludek Sefzig, Senator Válav Koukal, Senator Miroslav Krejca and Senator Miroslav Skaloud. I also welcome Ambassador Tomas Kafka. By virtue of section 17(2)(l) of the Defamation Act 2009, they are protected by absolute privilege in respect of the evidence they are to give to the committee. If they are directed by the committee to cease giving evidence in relation to a particular matter and should they continue to so do, they are entitled thereafter only to qualified privilege in respect of their evidence. They are directed that only evidence connected with the subject matter of these proceedings is to be given and asked to respect the parliamentary practice to the effect that, where possible, they should not criticise nor make charges against any person or persons or entity by name or in such a way as to make him, her or it identifiable.

The subject matter of the meeting is an exchange of views with the delegation from the Czech Senate on the 2020 strategy and EU enlargement, two subjects which have occupied the attention of the committee in the past. The committee has set about correcting some concepts that had previously been established. We are interested to hear the views of the delegation. We do not suggest we have the answers to all of the issues that have arisen, but, like the delegation, we consider we have an input to make to the discussion on the outcome.

I invite Senator Sefzig to make his opening remarks, after which we will have time for questions and answers.

Senator Ludek Sefzig

I thank the Chairman and committee members for giving me the opportunity to meet face to face and speak openly in discussing important issues about the European Union and its future. The Chairman introduced the delegation and I will continue my remarks in the official language of my country, as not all of us, including me, speak English very well. Our remarks will be translated.

I thank the committee for its warm welcome. We are glad to be here, although we realise that we have come at an intense and interesting time for the Parliament. We are aware of this and have been through similar situations in our Parliament. I do not need to remind the committee that last year the government fell during the Czech Presidency of the European Union. We appreciate the importance of the issue for the largest Opposition party in the Parliament.

Earlier today we met Deputy Perry to discuss the issues related to implementation of the Lisbon treaty and the ratification process. Therefore, at this meeting we can focus on the issues mentioned by the Chairman, namely, the EU 2020 strategy and further enlargement of the European Union, as well as provide information on our committee.

I will focus on the European 2020 strategy which is a continuation of the Lisbon treaty strategy. Our committee has dealt with this issue extensively because as a country which experienced a centralised operation during the Soviet regime, we appreciate that competitiveness is the only way to ensure the future of the strategy. Time will show whether this political vision is correct. Although the vision pursued by the previous regime in our country may have looked interesting and tempting, ultimately it did not work and did not prove to be acceptable. Therefore, we will closely observe the attempts of the European Union to resolve the issue of competitiveness.

With regard to the communication on the 2020 strategy issued by the new Commission earlier this year, our committee met on 22 April and adopted its longest ever resolution, in which I shall pinpoint certain points. First and foremost, we expressed our general support for the EU 2020 strategy. However, more critical points of view were also expressed, mainly related to the fact that there was insufficient flexibility on the issue of the labour market. We also commented on the fact that there were still barriers within the common market. This does not only apply to the interim period which will expire in 2011 but also to countries which have already lifted the barriers to the free movement of labour. The exceptions are countries such as Germany which have not done so. I take the opportunity to express our gratitude for the support shown to us by Ireland and Sweden which at the beginning were the first countries to lift the ban on the free movement of people. I do not say this merely out of natural politeness; I really mean it.

As we have all studied the communication provided by the European Union, committee members will probably agree that the EU 2020 strategy mainly contains micro-economic measures. The macro-economic side is not addressed very well, but this is something economists must deal with. We all agree that the biggest added value item to ensure competitiveness at European level is investment in research, development and innovation. Nevertheless, this is very much linked with better protection of intellectual property.

We shall build a smart connection or grid for energy networks. Our resolution emphasises the need for further utilisation of safe and clean nuclear energy. Of course, we are aware that not every country will agree with this standpoint and do not want to draw the attention of our Austrian friends and neighbours to the resolution, the point of which on the position of the government is that it used a group of consultants who recommended it. The resolution also calls for the maintenance of strict fiscal co-operation and the Stability and Growth Pact, including the use of mechanisms to ensure stability and growth in Europe.

The resolution was adopted by the Senate committee on 22 April, prior to the most recent meeting of ECOFIN which discussed these matters in a similar way. I will not comment further on the resolution at this point. Would the committee be so kind as to inform us of its position on the document? We would like to learn more about its attitude and approach towards these issues.

Chairman

I thank Senator Sefzig. I particularly welcome the members of the delegation as Members of a national parliament. We have repeatedly stressed the importance of Members of national parliaments within the European Union meeting each other to become more familiar with each other's territory, problems and issues. We have the European Parliament and the European Council, but more than ever national parliamentarians need to meet regularly to understand each other's position. It used to happen regularly ten, 12 or 14 years ago, but it does not happen so often today because other institutions have taken up that role. This does not necessarily mean, however, that those institutions fulfil the requirement. The fact of the matter is that the job being done by the delegation is very important in that context.

Our committee has compiled a report and made a submission as part of the 2020 strategy process and we will be glad to provide the delegation with a copy. Germane to it was a call to reaffirm a commitment to the manufacturing and service industries and competitiveness. We also noted the importance of European countries being competitive in global trading markets.

Senator Terry Leyden

I extend a warm welcome to the members of the Czech Parliament's committee on European affairs and the Czech ambassador. I thank them for their recognition of the fact that we opened our market to young and other people from the Czech Republic. Its citizens played a very important role in Ireland because of their highly technical skills. We were very pleased to support the accession of the Czech Republic to the EU. As I stated privately, I was very pleased to make a small contribution to the economy of the Czech Republic by buying quality Zetor tractors. The high skill of the Czech workers ensured we had good trade links, including prior to its membership of the EU.

I thank the delegation for attending the meeting and I wish them every success in their visit. I also wish the Czech Republic every success in the future.

Senator Mark Dearey

I thank the Chairman for allowing me address the committee as I await to hear whether I will be a member of it. I welcome the ambassador and Senators and it is a pleasure to be able to address them. I listened carefully to the description of the complex resolution by Senator Sefzig. I also lay claim to helping the balance of payments in the Czech economy as in my spare time I run a bar and nightclub and I am delighted to serve Staropramen and Budvar every day of the week. There is a net balance of payments gained to the Czech Republic through that.

As a member of the Green Party I know Ondrej Liška, the former Minister of Education, Youth and Physical Training, and I am aware of how troubled the period was in the previous session described by Senator Sefzig.

With regard to the resolution, I was interested to hear about the smart grid and I am interested to hear more about how the delegation sees grid connection developing in that part of Europe, and whether the witnesses see it as part of a wider pan-European grid. It will hardly surprise the delegation to hear that as a member of the Green Party I think the nuclear issue is difficult and I would be interested in a discussion on it, particularly with regard to the management of nuclear waste.

Chairman

I ask Senator Dearey to allow for the translation.

Senator Mark Dearey

I did not realise I had spoken for so long.

Chairman

The Senator is more eloquent than he thought.

Senator Mark Dearey

Does the delegation see the Stability and Growth Pact as a sufficient mechanism to protect the currency? Do other instruments need to be introduced?

Deputy Seán Power

I welcome the Czech delegation and I hope they have an enjoyable and fruitful visit to our shores. Unfortunately, they are here on a very difficult day and the Chairman has probably explained to them that his party is at war. The rest of us will not get involved.

Chairman

It could be said also that the Government parties are having a testing time.

Deputy Seán Power

The Chairman is to be neutral and not interfere with or interrupt speakers.

No doubt, the delegation will have noticed the difficulty we had in passing the Lisbon referendum. The general view is that when the downturn of the economy took place the importance and relevance of Europe struck home with most people. Were it not for the downturn it is possible that we might not have been successful in having the treaty passed. We have a love-hate relationship with Europe; people have a certain fear of Europe and the enthusiasm that existed in earlier years has disappeared. It is more difficult to pass referenda, and despite the fact that on occasion all of the main political parties support a particular treaty we have difficulty convincing our electorate of the benefits of supporting it. Is the Czech Republic having a similar experience in trying to sell Europe to its people and getting them to understand its relevance or importance?

Chairman

I am sure Senator Sefzig would like to respond. Apart from the comments made a few questions were asked.

Senator Ludek Sefzig

I thank members for their warm welcome. I am pleased to hear that Irish employers and companies appreciate the skills and educational qualifications of the Czech labour force. A mobile workforce is the key element in achieving better economic competition within the European Union. The more we step up economic competition within the Union, the more competitive we will make Europe with the Third World and third parties. This is also the main reason the Czech Republic is striving to remove red tape and bureaucratic obstacles to the free movement of workers, goods, services and finance. The free movement of labour must not be hindered by political decisions. I refer, in particular, to our closest neighbours, Germany and Austria, which have decided against lifting the restrictions on the movement of labour imposed during the two year transition period, despite evidence which clearly demonstrates that the Czech labour force does not pose a threat to their labour markets. The restrictions have had two effects. First, the inhabitants of our country felt like second class citizens of the European Union and, second but more positive, we did not lose our much sought after experts in information technology and other industries. This is related to the fact that Czechs are not globetrotters but prefer to stay at home. We did not even fill the labour quotas introduced by Austria and Germany. It is interesting to note that Germany is one of the countries which supports the free movement of workers. As far as trade relationships and business exchanges are concerned, there should be no political obstacles.

The stability pact is a good instrument, but it has to be used if we want to see results. If one does not use the tools of one's trade, there will be no result to one's work. Unfortunately, in granting various exemptions to countries, the European Union has made the system both complicated and inefficient. As we can see in the negotiations being pursued by Mr. Van Rompuy and his colleagues, we are not getting the results we require. We have to apply the pact more efficiently and the instruments for punishing countries which are not complying with the requirements have to be used. At the same time, the national and European supervising bodies have to be politically independent.

As regards the smart grid, members might be surprised to learn that the Czech Republic is much more vulnerable to blackouts than any other country in the European Union. This is due to the fact that we are in the heart of Europe and the grid runs through our country. It is overloaded by supplies from alternative energy sources whenever a strong wind starts to blow in Germany or the sun shines in the south and we suffer as a result. It should be regulated in a better way by technological procedures rather than political decisions. In regulating it we should make sure energy is distributed in a way that prevents overloads and blackouts.

It is a question of being competitive with third countries. In this respect, the bigger the internal market, the more competitive Europe can become. In the Czech Republic, political parties support further enlargement of the European Union, provided that candidate countries meet the Copenhagen criteria. The enlargement made possible through Ireland's ratification of the Nice treaty on its second attempt has caused Europe to slow down the enlargement process because the necessity of stabilising the EU means it is no longer possible to proceed swiftly. Although it would probably be relatively easy for Iceland and Croatia to accede to the EU, the negotiations with candidate countries such as Serbia, Bosnia-Herzegovina and Macedonia are more complex. Of course, we must not forget about the candidate country that has been waiting the longest, Turkey, which first applied in 1964. The latest developments clearly indicate that Turkey is seeking other partners to the European Union. In other words, it is up to individual countries to decide whether they want to be member states of the European Union. All the parliamentary parties in the Czech Republic support further enlargement of the European Union, with the possible exception of one newly elected party in the Lower House.

Chairman

Europe is undergoing its second phase of evolution and much will depend on ensuring this process does not continue indefinitely. Ireland has always supported European enlargement because we believe that by excluding countries we could curtail or stop the European project, which is not in the interest of any country in Europe. While aspiring countries must comply with the acquis on a progressive basis, the EU should not delay indefinitely or frustrate their accession if it does not want them to seek alternative, less beneficial, partners. Ireland supports the accession of western Balkan countries as they become capable of meeting the requirements of the acquis and we believe countries which have suffered the ravages of war in recent years should receive particular assistance on the road to membership.

This generation of European parliamentarians — I do not say "politicians" because they are often outside of parliaments — have a duty to bring the European project towards a progressive and constructive conclusion in a peaceful and co-ordinated manner. They need to be able to compete with their predecessors, who brought Europe to where it is today. Even though we are small countries, we have a role to play in progressing Europe.

We were delighted to have been addressed by the delegation and we encourage further meetings between us. Modern technology and all that goes with it will attempt to take over but video conferences cannot compete with personal interaction.

Senator Ludek Sefzig

I completely concur with the Chairman. I thank him and his colleagues for inviting us to meet them and I hope we will have an opportunity to continue our discussion. We are able to correspond through www.ipex.eu and other websites but personal interaction remains very important.

On behalf of the delegation, I offer a small present of a typical Czech product, crystal from a Bohemian factory.

Chairman

In response I offer a memento of our guests' visit and hope it serves them well.

Sitting suspended at 4.52 p.m. and resumed in private session at 4.53 p.m. The joint committee adjourned at 5.10 p.m. until 12.45 p.m. on Tuesday, 22 June 2010.