I welcome the Minister of State at the Department of Foreign Affairs and Trade with special responsibility for European affairs, Deputy Lucinda Creighton, who will be attending the meeting of the General Affairs Council next week. I offer her our condolences on the death of her father. We were all very sorry to hear the news.
Forthcoming General Affairs Council: Discussion with Minister of State
I am very happy to meet the committee to discuss the items on the agenda for next Tuesday's General Affairs Council meeting in Luxembourg, at which I will represent Ireland. The meeting will be preceded by a meeting of the Foreign Affairs Council on Monday which will discuss the southern neighbourhood and Yemen, Belarus, Iran, the Middle East peace process and, possibly, the upcoming EU-China summit. I will represent Ireland at that meeting also.
The last meeting of the General Affairs Council took place on 12 September in Brussels. Ministers discussed the multiannual financial framework, giving their views on the proposed duration, structure and flexibility of the next financial perspectives. They also discussed the agenda for the October European Council and received an update from the Presidency on negotiations with the European Parliament on the economic governance legislative package.
The main focus for Ministers will be the draft conclusions of the European Council meeting to take place on 17 October. In addition, they will be briefed by the Commission on cohesion policy. The Polish Presidency will report on the outcome of its conference on sources of growth in Europe. The Presidency will also provide Ministers with information on the EU mandate for the upcoming G20 summit in Cannes.
Following a breakfast meeting with European Council President Van Rompuy, the General Affairs Council will consider legislative measures. The item for consideration will be a presentation by Johannes Hahn, Commissioner for Regional Policy, on the cohesion package of draft regulations. This package will be the Commission's input into the multiannual financial framework negotiations on the future cohesion policy after 2013.
The current multiannual financial framework proposal, covering the period 2014 to 2020, allocates €376 billion to cohesion policy instruments. EU spending on cohesion measures is proposed to be 36.7% of the total, the biggest single item in the budget. The cohesion policy is a clear demonstration of concrete solidarity across the 27 member states and the European Union's 271 regions. Economic and social disparities persist across the Union, with one in four regions having a GDP per capita of less than 75% of the EU average.
As I trust members of the committee will agree, the Irish experience of the Structural and Cohesion Funds has been very positive. Cohesion policy has played an important role in the development of Ireland's economy. The financial transfers from the EU budget are important levers available to member states to bring about change and encourage development in the regions.
In common with many EU partners, we agree that cohesion policy should have a focus on achieving the priorities for the Europe 2020 strategy for jobs and growth. There should be a focus on performance and results, high level political debate, increased co-ordination with national and EU policies to create synergies, and more simple and efficient administration systems.
We support a differentiated approach that would allow member states and-or regions the flexibility to select priorities according to the specific conditions and potential of their regions and their national reform programmes. This approach would give regions the ability to design the means to deliver policies that meet their own particular needs and provide for strong participation and ownership on the ground. This is a reflection of regional diversity in the European Union where regions have vastly different characteristics, opportunities and needs.
Members will note that for the forthcoming multiannual financial framework for the period 2014 to 2020, both regions in Ireland - the Border, midlands and western region and the southern and eastern region - will be classified as "competitiveness" regions, as the GDP per capita of both regions is likely to exceed 90% of the EU average, thus not benefitting from a proposed category for transition regions the GDP per capita of which is between 75% and 90% of EU 27 average.
The Polish Presidency will give a presentation on the outcomes of the conference on sources of growth in Europe which is taking place in Brussels today. This is, of course, a timely and welcome initiative on the part of the Polish Presidency. In tandem with today's conference, the Commission will also present a report on growth enhancing measures to the European Council on 17 October. This report will, among other things, set out a series of key priorities for internal economic policy that needs to be pursued in the short term.
The focus for the meeting of the European Council in 17 October will be the draft European Council conclusions. President Van Rompuy has now made available an initial draft of the conclusions which will receive an initial consideration by COREPER ambassadors in Brussels today, before they are the subject of political level exchange at the General Affairs Council on Tuesday.
The issue likely to dominate discussions at the October European Council is economic policy. This point is reflected in the first draft of the conclusions which addresses in a comprehensive and emphatic manner the various aspects of European economic policy - from growth enhancing measures to be prioritised in the short term to developing the energy and innovation sectors which will serve as important engines for growth in the medium to longer term. The European Council will also address the need for EU funds and, where appropriate, European Investment Bank resources to be used as a multiplier for boosting investment and facilitating access to financing by SMEs.
As well as considering short-term measures to enhance growth such as the timely adoption of the proposals set out in the Single Market Act, rapid progress on the digital Single Market, the continued reduction in the administrative and overall regulatory burdens and rapid progress on adoption of the simplification proposals on the table, the European Council can also be expected to address the considerable arsenal available to the European Union and its member states in the area of enhanced economic governance. The Europe 2020 strategy for jobs and growth has already shown itself to be a useful tool in promoting the delivery of growth enhancing structural reforms, through the process of each member state preparing a national reform programme this spring, during the first European semester. The European semester has also proved to be a useful framework for the implementation of reforms under the European 2020 strategy and the Stability and Growth Pact in a co-ordinated and joined-up fashion. We have also seen the establishment earlier this year of the Euro Plus Pact, under which Ireland and the other participating member states have made commitments to foster employment and competitiveness and the sustainability of public finances, while reinforcing financial stability.
Earlier this week the ECOFIN Council formally completed the legislative process of adopting the package of six legislative measures, commonly known as the six pack. These legislative measures will strengthen European economic governance, through the strengthening of the Stability and Growth Pact and budgetary discipline with the introduction of a new ex-ante surveillance framework to prevent and correct macro-economic imbalances. I warmly welcome the breakthrough in adopting this package of measures and commend the Polish Presidency, the European Parliament and EU partners for seeing these measures adopted at an early juncture. I trust that this agreement will pave the way for a new and higher degree of co-operation between the Council and the Parliament, particularly given the pressing need for unity of purpose between all those working in the best interests of the Union, its member states and its citizens. In the case of each of these tools now available, the key issues are implementation, implementation and implementation.
Given that the European Council on 17 October will be followed immediately afterwards by a eurozone summit on 18 October, discussions concerning the ratification of the enhanced European financial stability facility, which Ireland did before the end of last month following approval by the Oireachtas, can be expected to take place in that designated forum. Clearly from an Irish perspective, it is entirely in our interests to see a more flexible EFSF which is in a position to intervene in secondary markets and undertake precautionary lending as appropriate. The reduction in the interest rates charged to programme countries via the EFSF and the EFSM, as agreed by the Taoiseach and his eurozone colleagues at their last summit on 21 July, was a welcome and positive development for debt sustainability in each of the programme countries, including Ireland.
The eurozone summit will also reflect on proposals to be made by President Van Rompuy to improve the working methods and enhance crisis management in the euro area. As these issues are not expected to be addressed substantively at the October European Council, we do not anticipate that this issue will form the basis for discussions at next week's General Affairs Council meeting, which is tasked with preparing meetings of the European Council.
The European Council will also consider the external aspects of economic policy and how trade and investment policies might best assist in the support of growth and jobs. With little prospect of a breakthrough in the Doha Round, the need is even greater for the EU to maintain its strong focus on concluding trade and investment agreements with third countries and securing improved market access for European companies and businesses. Ahead of the Durban conference on climate change it is expected that the European Council will finalise the EU position going into those negotiations.
The October European Council will, as has become the custom, set an EU position for the Cannes G20 summit on 3 and 4 November, and there will be Council conclusions on this item. The Presidency has also added it as a separate item on the agenda of the General Affairs Council and it is anticipated that the Presidency will also provide Ministers at the GAC with information on the mandate for the Cannes G20 summit. The main French priority for the summit is to consolidate global economic recovery and the French chair would like to see the G20 agree an action plan for growth. The EU position is likely to focus on the global economy and the work required to rebalance world growth. The EU will also set positions on reform of the international monetary system, financial regulation, commodities and climate financing.
These are the matters which will be discussed by Ministers at the General Affairs Council but I should also inform the committee that the General Affairs Council is expected to approve without discussion the first step in transforming the guarantees given to the Irish people in advance of the last Lisbon treaty referendum into a protocol to be attached to the EU treaties. The guarantees were important in securing the support of the Irish people for the Lisbon treaty. At the time they were adopted by the European Council by way of a formal decision in June 2009, it was agreed that they should be turned into a protocol at the time of the next accession treaty. Now that text of the Croatian accession treaty is being prepared, the necessary steps are being put in train. At Ireland's request, the GAC will agree to forward the text of the draft protocol to the European Council which will, in turn, agree to consult the European Parliament and the Commission. National parliaments will also be notified. We have stressed to partners the technical nature of the exercise; the agreement to turn the decision into a protocol was taken in 2009, all we are doing now is giving it effect and I am pleased that it is being handled in a low-key and business-like manner.
That concludes my comments on the agenda for the General Affairs Council meeting next week and I am grateful to have had this opportunity to set them out to the Oireachtas. I will be very pleased to hear the comments of the committee as we finalise our preparations for the Council in the coming days and I will be very happy to respond to any questions members may have.
I thank the Minister of State for those wide-ranging remarks on the business that will be dealt with on the GAC, at the EU Council on 17 October and at the EU summit on 18 October.
Cohesion policy is important in the context of the multiannual financial framework in that it makes up the largest single item of the budget. It will be a minor item for us now but it was a major issue in the past. It made an enormous contribution to the economic well-being of the country. When we joined the European Union we had 50% of the European average GDP and now there seems to be no region that is not about 90% of the European average under which the cohesion transition arrangements operate. While we may be looking on at some of the other countries, it is important for us to recognise this is what Europe is all about, namely, solidarity, structural development and cohesion. We should be the first to welcome the fact that there is such an important amount of the multiannual financial framework underpinning the cohesion strategy.
It is good to see the emphasis in the European Council on 17 October on economic policy and on governance and the Stability and Growth Pact, ensuring the measures are put in place to stabilise matters that should have been dealt with years ago. At least now they are being confirmed. As the Minister of State said, we now need implementation, implementation, implementation, and I am sure she will hammer that home at the General Affairs Council.
Following the eurozone negotiations on the EFSF and EFSM programmes, when will the reduction in interest levels kick in? Each country must deal with issues individually. What is the timescale for our benefitting from the reduction in interest rates?
I welcome the Minister of State to the committee. It is fantastic she is here. Following the debate at European level on the multiannual financial framework, I note the broad agreement for a financial transaction tax from many countries in the eurozone. Has Ireland formulated a position on this? What would the implications be for us on the ground?
On cohesion, what is Ireland's position in percentage terms on the GDP per capita? I was shocked to hear that the BMW region would be in excess of 90% of the EU average. There is still a major east-west divide in terms of infrastructure, opportunity, depopulation and public transport. How was this figure reached? If we look at parts of the west such as Conamara, we still see huge disparities in infrastructure and depopulation.
Ireland was a huge beneficiary of Cohesion Funds when we were a net recipient for many years. What is our current status and what are we contributing?
I welcome the Minister for State and wish her well in her work this week. It is worth nothing the benefits Ireland has attained from the cohesion policy. While I acknowledge the concerns expressed by Senator Healy Eames, one must consider cohesion policy in a broader European context. All members are familiar with the immense benefits Ireland has accrued from the policy and if one is to be serious about having a comprehensive approach to developing cohesion across the European Union, one must recognise that other member states must receive a fair share of the pie to bring them up to a certain standard. Sadly, because of the financial crisis, in recent months a sense of nationalism has been emerging within Europe that is unhelpful and not beneficial to Ireland. In particular, the approach adopted by the two larger member states and their retrenchment from the idea of a Community approach to the resolution of matters across Europe is disappointing. Perhaps this has emerged because of the financial pressures and the consequential political pressures on the two leaders and their respective political parties. Notwithstanding this, it is important at this time to focus on practical matters such as cohesion policy. One must ensure a strong Community approach is taken and a broader view adopted than simply getting beyond the current financial crisis. It is important to look to the old ideal of developing a broader Community in which one attempts to bring people up to the same level and provide them with the same opportunities provided for those member states which were part of the earlier development of the European Union.
The Minister of State has mentioned the necessity to look at ways of assisting the European Investment Bank in providing the financial wherewithal to support or provide matching funding for small and medium enterprises. This is particularly important. There is broad agreement with regard to the resolution of Ireland's banking crisis and it appears as though this approach is being encouraged in other European Union member states. I note the strong signals emanating from the Commission, in particular, on the necessity for other member states to take an aggressive approach to meeting the capital requirements of various financial institutions. However, even in Ireland where this process has started and been under way for some time, access to appropriate credit to assist small and medium enterprises is still lacking. In common with other members, I attended a conference last weekend at which I met some people from the European Investment Bank. Interestingly, it is prepared to consider broader projects than the commercial banks. Moreover, the very fact that it is engaged in part-funding is in itself an incentive to get into play some of the mainstream commercial banks. The European Investment Bank will have undertaken due diligence and been prepared to spend money and time in so doing, whereas commercial banks, unfortunately, are not doing this. Therefore, it is important to pursue that angle, if possible. In her discussions the Minister of State should do anything she can to support efforts to provide the appropriate funding for the European Investment Bank.
I thank all members, including the Chairman, for their comments which gave much food for thought. I agree with the point on the success of cohesion funding in Ireland and many other member states. I also agree with the Chairman that it is about solidarity. Probably not since the end of the Second World War has there been such a need for solidarity within the European Union. While Ireland may not be a major beneficiary of cohesion funding in the next financial framework, we certainly can appreciate how important it is and how much we have benefited from it in the years since 1973. On the Chairman's point on economic governance, it goes without saying we now need to see action. It is widely accepted that one of the downfalls of the Stability and Growth Pact was the lack of implementation or at least the reluctance of member states to adhere to the rules and regulations to which they had signed up and which they themselves had framed. There is a lesson in this for everyone, as no one can afford to go down that track again. Action, rather than words, are needed in this regard.
As for the Chairman's question about the EFSF, the EFSM and interest rate reductions, my understanding is they will kick in at the end of the year but that they are retrospective. Consequently, in a sense it is irrelevant when they kick in, which is good news from Ireland's perspective, in particular. One cannot overstate the importance of the achievement in reducing the interest rate for Ireland in respect of the sustainability of its debt. It will have a profound impact on Ireland's ability to maintain and honour all of its commitments.
Senator Healy Eames asked about the financial transactions tax which is part of the ongoing negotiations under the Multiannual Financial Framework. Obviously, there are member states that are major proponents and enthusiasts of the concept, while others have reservations. Ireland falls into the category of those which have reservations and as negotiations continue and the opportunity arises to consider more facts and hard evidence, the Government must decide exactly what its position will be on the issue. However, it is fair to state Ireland has a certain scepticism about it. The Government fears it may lead to a flight of investment both from Ireland and the European Union as a whole, which would not be in anyone's interests. The Commission released an impact assessment in the last week or so which certainly seemed to indicate this would be the case. However, the proposal must be considered in more detail. As I noted, these will be lengthy, highly detailed and protracted negotiations for all member states. While there are many competing interests, the bottom line is that we must look after our own domestic interests and the wider European interests. That is our agenda.
Is the Minister of State surprised by the number of member states which are in favour of this proposal? How will a decision be reached eventually? Will it be by a simple majority or is there a voting mechanism in place?
A weighted voting arrangement will apply in this regard. In general, however, such matters are worked out by consensus. That has been the method used to date. I do not believe any member state ultimately would be supportive of a measure that would lead to a flight of investment from the European Union and I do not believe that is on anyone's agenda. There is a need to raise resources. During the discussions at the European Council the week after next and at the General Affairs Council there will be a huge focus on how to stimulate growth and job creation. These interests must be balanced. Everyone is conscious of the extreme austerity measures that must be imposed across almost all member states within the European Union, but that must be balanced with some stimulus, as well as methods to generate and promote job creation. It is a question of finding that balance, but certainly the Government would not be supportive of any measure or step that ultimately would drive investment out of the country or the European Union.
Members can rest assured regarding the Government's perspective in this respect.
To answer Senator Healy Eames's question, the level of cohesion funding is calculated by EUROSTAT. The GDP per capita ratio is calculated by EUROSTAT on foot of statistics provided by the CSO in Ireland’s case. They are reliable data. One might express shock that Ireland has come so far and that on the basis of an EU-wide analysis, the Border, midlands and western, BMW, region, for example, is deemed to be thriving. Moreover, while this is still subject to negotiation and further analysis, it appears as though the BMW region will exceed the 90% of GDP per capita threshold, which in a sense should be good news.
May I clarify one point?
Please allow the Minister of State to finish.
While this is not yet certain, I caution that it appears to be the case. However, there will be further negotiations in this regard and the Department of Finance is considering this issue as part of Ireland's overall approach to the multiannual financial framework and, in particular, cohesion funding. All members will acknowledge that if one looks around any part of the country and compare the current position with that which obtained 15, 20 or 25 years ago, we have come a long way. Obviously, these are difficult and challenging times, but the country has been subject to unprecedented development. Deputy Dooley talked about the sense of nationalism and said the two largest member states must face up to this question. All member states have become increasingly nationalistic. As we left behind our memories of the two world wars of the last century, people moved towards questioning the European Union and European institutions and it has become easier to forget our history and look to self-interest. We must continue to remind ourselves of how far we have come as a union. All member states have benefited from membership. We continue to benefit from our membership of the European Union. We must strive to foster a deeper sense of solidarity and patriotism - both national, which is important to all of us, and European. That is a big challenge. There is an absence of an emotional connection to what the European Union is about. However, Members of the Oireachtas have responsibility to foster this connection. It is in all our interests. No man is an island. No state is an island, in the sense that we all benefit from co-operation and from the solidarity the Chairman mentioned. We must remind our citizens, time and again, of how we benefit from membership of the EU.
The recent financial crisis showed that we live in a globalised world. People may not like it but we cannot turn our backs on it. We are part of it. We are much better served by being part of a union of states that work together in the face of that globalised world than by trying to retrench into a nationalistic and isolated nation. That applies to every member state, from Malta to Germany and every one in between. It is in all our interests to look at the benefits of working together and promote those benefits. I agree with Deputy Dooley in that regard.
Deputy Dooley mentioned small and medium-sized enterprises, SMEs. That sector will be the priority for the General Affairs Council and the European Council. Both those councils are talking about fostering growth. These are all things to which we pay lip-service, but the European Union is making huge strides towards making a much better environment for SMEs to do business. When I do bilateral trips to other member states I am struck by the enormous potential for SMEs to harness the market, but we have not succeeded in doing that yet. Many barriers exist, particularly in the provision of services, which is the future and is of huge importance to a country like Ireland. The environment has worked reasonably well for large multinationals but has stifled SMEs. There is a huge challenge there.
Of course, there is a role for the European Investment Bank, particularly in the simplification of procedures and red tape. I know we have heard all of this before, but the European Commission is now getting down to the detail. We are all aware of Mario Monti's contribution in laying the groundwork for this. We now need implementation. Likewise, there is huge potential in the digital market. Ireland is a leader in that sector and it is in our interest to push it. Our MEPs in the European Parliament, Members of the Oireachtas who attend the Conference of Parliamentary Committees for European Affairs, COSAC, as many members of the committee did in the last few days, and our Ministers at Council level all need to beat that drum and find opportunities to co-operate with other member states to push that agenda. I am optimistic. We have much common ground with other member states. From talking to my French counterpart, for example, I know that France is committed to this agenda, as are many other member states. We need to find common ground and work to achieve it. We must not simply talk about it but actually do it.
I welcome the report and the comments of the Minister of State. I wish her the very best for the Luxembourg meeting of the General Affairs Council. I welcome her comments, particularly the strong views she expressed on the retrenchment issue in her response to Deputy Dooley. The market-driven financial crisis does not recognise borders. It is moving all the time, and quicker than our capacity to make a cohesive response. I note the Minister of State's view that no man, or no woman, is an island. I agree strongly with her in that regard.
Like Deputy Dooley, I participated in the COSAC conference at the weekend. I found that many of our European partners have a far more positive view of Ireland and of our situation than Irish people do. In that regard, I congratulate the Minister of State on the diplomatic offensive which has been led by the Department of Foreign Affairs and Trade and to which the Department is fully committed. Can the Minister of State give a commitment of her support to the philosophy and objectives of COSAC? We will soon have the responsibility of hosting the COSAC conference. At last weekend's conference, I witnessed the value of the hard work carried out by the delegation in the diplomatic offensive. The people who represented the country did so to a very high standard. The response of delegates from other countries to the progress we are making was very positive. The Minister of State's report shows that this response is trickling down. I am concerned that as a consequence of the challenging domestic financial situation we may not be in a position to facilitate a COSAC conference of the quality we experienced over the course of the weekend. I hope the Minister of State will engage strongly with the Chairman of the joint committee to secure assurances that we would not be found wanting in fulfilling the expectation of who we are, as Irish people and as a player in the project. I hope the Minister of State can work closely with the Chairman in that regard.
I wish to put three points to the Minister of State. Senator Healy Eames raised the issue of the south-east, and Border, midlands and western regions. The acronym BMW for the Border, midlands and western region raised a few eyebrows when it was created. It was an unfortunate acronym, to say the least, in a region that was trying to catch up economically. The region was clumsily pulled together. Counties Kerry and Clare were initially to be part of the BMW region but had to be removed because their inclusion would have brought the economic status of the region above the average. The region is an unnatural unit.
Is the Government considering reconfiguring the regions? For example, the north west of Ireland, which straddles the Border, has the highest levels of deprivation in each jurisdiction. A strong case could be put to Europe for making it a region. It ticks so many boxes at European level, in the context of the peace process, regional development and cross-Border co-operation. I ask the Minister of State to consider this proposal.
In Ireland, we talk about the smart economy. This morning, I was part of a cross-party group who heard a presentation on the potential of broadband in Ireland. While we all understand the potential of broadband technology, this presentation opened my eyes to its full potential. Today, we remember the life of Steve Jobs and think of everything he achieved in Apple. That is how we must imagine a future for Ireland. We have to imagine a future where there will be next generation broadband and such opportunities for our people if we are to compete in the global economy. The figures which are presented for the roll-out of this next generation broadband are achievable. The Minister of State may not agree with me in this public forum but she probably will agree privately that we will have to renegotiate the promissory notes for Anglo Irish Bank and Irish Nationwide Building Society. These promissory notes are not tied to the memorandum of understanding of the troika and neither are they having an impact on contagion and therefore, they are clearly on the table to be renegotiated. The full figure, including interest, amounts to over €74 billion in repayments by 2031. We have to renegotiate because this will provide the opportunity to deliver services such as next-generation broadband. If our European counterparts want us to deliver on these very noble and important targets, they need to see that we cannot do so unless they give us some flexibility on these repayments, even if it means extending them.
My final point is with regard to Serbia. Ireland has recently ratified the stabilisation and association agreement with Serbia and this is right and proper. We need to signal to the people of Serbia that as they emerge from the time of that awful conflict, their future lies with being a part of the European family along with all the other regions who have endured conflict and economic tyranny in the past. However, there are real challenges which I will outline.
The gay rights parade in Serbia was banned once again because of the threat of violence from elements of the far right. Serbia cannot hope to be part of the European Union while it continues to ban gay rights parades and this needs to be addressed. Even more important is the issue of reconciliation with the neighbouring states. It is hoped that Croatia will be ratified because it is entitled to ratification for many reasons and the sooner it happens, the better. However, there are concerns about the role of Serbia in undermining unity and cohesion in Bosnia. I long to see the day when Bosnia can move towards application for the SANA. I long to see a time when Serbia will engage in real reconciliation. One of the aspects that troubles me is that the leader of the Bosnian Serbs, Milorad Dodik, denies what happened in Srebrenica. He denies that it was genocide when thousands and thousands of bodies were discovered. It is clear he is not working towards reconciliation and rather he is undermining unity and cohesion. Paddy Ashdown will be addressing the Joint Committee on Foreign Affairs and Trade and the Joint Committee on European Affairs and the sooner, the better. He is profoundly concerned about the potential for a return to conflict in Bosnia.
It is right to see engagement with the Serbians by the European Union in order to assist the Serbian people become part of the European family so that they will have the benefits of the European market. However, we need to say to them that it is unacceptable to give assurances of peace to the Bosnian people while at the same time they support Milorad Dodik in undermining the Bosnian state. Ireland has a significant role in the European Union. We need to challenge Serbia regarding its responsibilities and we must make clear that the undermining of Bosnia must cease. This denial of Srebrenica is beyond words. Anybody who would deny what happened there deserves to be politically isolated and should not be lauded and supported by another state.
I apologise that I must leave the meeting once I have spoken but I will read the response in the Official Report of the proceedings.
I am struck by the high esteem in which Ireland is held throughout Europe because of our efforts to rescue ourselves and the fact that we have accepted such severe austerity measures. I note the delight of the other European member states in cheering us on and giving encouragement. I note a sense of solidarity and of a European family and the other members certainly do not want anyone falling off the wagon.
The Irish EU Presidency in early 2013 provides a target for the nation and for this committee and I am very supportive of the point made by Deputy Keaveney.
It is very important that we balance our national concerns with the European project. EUROSTAT will report on our performance in dealing with the measures. I ask the Minister of State to clarify what are those measures. There are deficiencies in certain areas which the previous speaker has mentioned, such as in the west and the north west.
The Minister of State spoke about SMEs versus the multinational companies. I agree that our small and medium enterprises are struggling. Commissioner Máire Geoghehan-Quinn said that Ollie Rehn was working to arrange a fund - this may be with the European Investment Bank - to help small and medium-sized enterprises access credit lines. Has this funding arrived yet?
I identify with the points made by Deputy Keaveney and Senator Healy Eames regarding the planning for the EU Presidency. I invite the Minister of State to speak about it. This committee is extremely anxious that the necessary resources and personnel would be made available to work on planning the logistics of the Presidency. This work will need to be done throughout 2012 and into 2013. We must ensure the Irish Presidency is as successful as on previous occasions.
Deputy Mac Lochlainn raised the issue of cohesion and whether there is scope for reconfiguration of the regions. I presume there is no such scope but this issue is very real. My own constituency has substantial levels of disadvantage in areas such as the north city and Ballyfermot and Ballymun. The same is true in deprived areas of Limerick and Cork and other urban areas and in the BMW area. I ask if a more flexible mechanism could be provided to deal with these issues at a micro-level as distinct from the broad canvas of the specified regions.
I will attempt to be brief in my response as I address the issues raised by members. Regarding Deputy Keaveny's point about COSAC, during the Irish Presidency in 2013 it would be expected and it would be my desire to ensure that we would host a COSAC meeting or summit. I do not anticipate any difficulties in terms of ensuring all delegates from other parliaments are welcomed with the traditional Irish hospitality. We are undoubtedly constrained by resources, but this is a priority for the Government. Rebuilding our reputation, as stated repeatedly by the Taoiseach, Tánaiste and me, is one of our highest objectives. However, that does not simply happen through Government and ministerial engagement but at all levels. The 2013 Presidency presents a great opportunity in that regard and I expect COSAC to play an important role. I pledge my support to those endeavours.
In addition, the Tánaiste will assume the chairmanship of the Organisation for Security and Co-operation in Europe, OSCE, for 12 months from January 2012. While it does not perhaps fall directly within the scope of the committee's discussions, there is significant co-operation with European partners through that forum. It provides a good launching pad for the Presidency in 2013 and I will be working closely with the Tánaiste in that regard. It is another opportunity for engagement and the Government intends to grab it by the horns.
Deputy Pádraig Mac Lochlainn asked about EU's multiannual financial framework, MFF, the cohesion fund and the regions. I certainly would not rule out the possibility of a redefinition of the regions. It is something the Minister for Finance is already engaged in through the Department's negotiations in this regard. Much of what the Deputy said makes sense, likewise Deputy Joe Costello. It is a question of finding a formula that fits. While there must be flexibility for member states, there must also be a system which can be applied in a general sense across all of them. That is difficult to achieve, but there is a willingness to explore the options. I accept the Deputy's concerns on this issue and I have had discussions with various people in recent months regarding PEACE and INTERREG funding for the Border regions. I agree there could be better utilisation of resources. There must be a political will domestically and from the British Government and the Assembly to ensure that happens. It is something we will need to broach in the months ahead. I assure the Deputy it is most definitely on the radar.
In regard to the digital single market and the Deputy's point on next generation broadband, that is a stated priority of the Government and is included in the programme for Government. The establishment of NewERA, which was announced in recent weeks, will function as an engine to deliver that type of infrastructure roll-out. It is a priority commitment for the Government.
The Deputy assumes I cannot agree with him in a public forum on the question of renegotiating promissory notes. The Minister for Finance has already declared that he wishes to renegotiate the terms and conditions in so far as it is humanly possible so to do. We are conscious this is coming down the track at a rapid pace. The Minister has been using all efforts - all diplomatic and political skills - in his meetings with Mr. Trichet, with IMF representatives when he was in Washington and with others to achieve a better deal. I can only say that this work is ongoing. We will certainly pursue it as much as we possibly can.
In regard to Serbia, I welcome the ratification of the stabilisation and association agreement. It is an issue about which I feel passionately. When I talk about Europe I talk about the reunification of Europe, and I do not consider Europe to be unified until the Balkans are once again part of a broader united Europe. That is not to forget or erase what happened in the past and is to some extent still happening in respect of certain individuals at least. However, one need only look to the huge strides Croatia has made to see what is possible. It is extraordinary to have come from where we were in the early 1990s to a position where Croatia is set to join the EU on 1 July 2013. I am only sorry that is happening the day after Ireland passes on the Presidency.
Just one day too late.
Croatia is a beacon for the region and for those of us already in the EU. It shows that when a country puts in place both the political will and the institutional drive to make change happen, it can be done. We have already seen strides in Serbia with, for example, the arrests of Ratko Mladic and Goran Hadzic. These are important symbolic steps. While I share some of the Deputy's concerns, we cannot afford to be completely hung up on them. If we had taken that approach in the case of Croatia, we would not have seen the great progress that has taken place in that country in recent years. We must hold out the carrot to Serbia and use all the diplomatic tools available to us. I have no doubt that Serbia and the other Balkan states will ultimately join the EU. That is certainly my ambition, one I am sure I share with the Deputy. While casting a cold eye on the complexities and frustrations that exist, we must keep our eye on the positive goal. There is light at the end of the tunnel and that is very much at the core of Government policy in regard to Serbia.
I will travel to several candidate countries before Christmas and, after that, I hope to travel to Serbia and some of the other countries seeking to join the Union. It is important for Ireland to have strong links with these countries and to be a friend to them. We have a good tradition in this regard. I always pay tribute to the former Ministers and taoisigh who were involved in the negotiations preceding the accession of ten new member states in 2004. At meetings with counterparts from Slovakia, Slovenia and others of those ten states, I am often told how much Ireland's role in their accession is appreciated. That positive role must continue. We are concerned not only with the current core member states, but also with those prospective future members with which we can build friendships and alliances.
I spoke to some extent about the forthcoming Irish Presidency at a meeting of this committee in July. It is the mantra of Government, and certainly the mantra coming from the Department of Finance and the new Department of Public Expenditure and Reform, that we must be mindful in everything we do of budgetary constraints. As such, we will not have a flashy or showy Presidency. Rather, we are striving for a Presidency of substance where we can show leadership to our colleagues and friends across the EU and showcase the huge strides Ireland has made against the odds in hugely difficult times. It will not be about fanfare and image but about the substance of what we have to offer and how we can advance the European agenda. Whether the focus will be on concluding the MFF or the Common Agricultural Policy negotiations, we do not yet know, but it certainly will be about advancing the agenda of job creation and growth, economic governance and all the other issues that are central to everything we do in the Union. I very much look forward to it.
The planning is advancing but the budget is not yet determined. That is a matter for Cabinet. The Tánaiste has already brought two memos to Cabinet on the Presidency. There are two interdepartmental working groups, one of which I chair and which met this week, although, unfortunately, I was not in a position to attend. It is dealing with the broader planning for themes, policies and so on, while the other working group is dealing with logistics. The Tánaiste is due to bring another memo to Cabinet in the near future in regard to more detailed logistical planning. I have met with almost all Ministers at this stage to ensure the Presidency is firmly on their agenda and very much to the fore in all planning discussions at management meetings and so on.
There is undoubtedly a challenge in terms of personnel as a result of the recruitment embargo in the Civil Service and early retirements. It is a matter of maximising existing human resources. It is a challenge Ministers have raised with me and we are examining how we can assist in training and preparing staff to do more with less. That is what everybody in the country is obliged to do at the moment and the Presidency will be no different. Having said that, I have no doubt it will be a success. We look forward to the committee's input into that process. I anticipate many good ideas and positive contributions and I urge members to begin focusing on the issue.
I thank the Minister of State for outlining all of the priorities regarding the forthcoming meeting of the General Affairs council and elaborating on the preparations for the Presidency. We will take all of his comments on board and conduct our own deliberations. There is no doubt that we will discuss them in the months ahead. This has been an informative and invaluable meeting and we look forward to meeting the Minister of State in the near future. I suggest that we continue in private session for the remainder of the meeting. Is that agreed? Agreed.
The joint committee went into private session at 12.41 p.m. and adjourned at 12.46 p.m. until 11.30 a.m. on Thursday, 13 October 2011.