Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

On 8 February the European Council reached agreement on the European Union's multi-annual financial framework, MFF, for the period 2014 to 2020. Under the Lisbon treaty, the consent of the European Parliament is required before the MFF can be adopted by the Council. As Ireland holds the Presidency, we have had the responsibility of negotiating the text of the MFF regulation and the inter-institutional agreement, IIA, between the Council, the Commission and the Parliament. This task has been a challenging one and the outcome remains critical to our capacity to begin to address the key challenges of creating jobs and growth across the European Union. It is an urgent task.

Since February we have been engaged in intensive consultations. Informal discussions with the Parliament began soon after the February European Council, leading to several rounds of formal trilogues between the Presidency, the Parliament and the Commission. These negotiations were advanced at political level through detailed consultations on 13 May, 28 May, 4 June, 11 June and finally on 18 and 19 June. I led the Presidency negotiating team, while Mr. Alain Lamassoure, MEP, has the lead for the Parliament's team. In each case the negotiators kept their respective institutions apprised of progress. From an early stage in discussions it was clear that four main issues were critical in securing the consent of the European Parliament, namely, flexibility, a mid-term review, own resources and unity of the budget. Throughout the iterative process we worked through our respective positions on each of these core concerns and substantial progress was made.

On 19 June Mr Lamassoure and I concluded negotiations and agreed a core package, comprising the MFF regulation and an inter-institutional agreement. We agreed to recommend the package to our respective institutions and are now in the process of discussing the elements of the package with both the Council and the Parliament. I remain hopeful that it will offer the basis for the final outcome on this important file. I am also optimistic that the process will conclude under the Irish Presidency.

Additional information not given on the floor of the House

An additional but important aspect of concluding the MFF relates to the amending budget for 2013. The linkage between the MFF and the 2013 draft amending budget 2, DAB 2, was established by the Parliament and recognised in the MFF negotiations as a political reality. The issue which is one of significant sensitivity was addressed at a summit meeting of the Presidents of the Parliament, the Commission and the rotating Presidency on 6 May. At the 14 May ECOFIN Council it was agreed that of the requested €11.2 billion, the Council would approve a first tranche of €7.3 billion, subject to agreement on the MFF. This issue will have to be addressed before final adoption of the MFF and I am confident we can find a workable arrangement.

Both the Council and the Parliament are now considering the outcome of the MFF negotiations. That outcome provides extensive flexibility in payment appropriations for the first time, as well as improved arrangements for the special flexibility instruments and a provision for the limited carryover of commitment appropriations. In addition, there will be a meaningful mid-term review, provisions on the unity of the budget and a detailed roadmap for future work on reform of own resources. All of this represents a significant step forward. The agreement of the Parliament and the Council would allow us to move ahead with rapid delivery of the spending programmes citizens need and expect. It is about real money for real people and real jobs at a time when they have never been more needed in Europe, particularly by the very many affected by the crisis of youth unemployment. The MFF deal will put in place a robust €960 billion budget for investment that will enable the European economy to grow, create jobs and begin to address youth employment. It is a matter of some urgency across Europe that this major investment is implemented without delay.

Ireland will benefit, in particular, from a strong and well funded Common Agricultural Policy and increased funding for competitiveness and jobs. This includes the special allocation of €6 billion for youth unemployment, in respect of which we have given our support to a front-loading beginning in 2014. We will also benefit from a number of specific and tailored resource instruments, including a special allocation of €100 million for rural development and another of the same size for the Border, midlands and western, BMW, region. I am especially satisfied to have been instrumental in ensuring a special allocation of €150 million for the PEACE programme.

I look forward to moving beyond the detailed negotiations to address the major political challenge we share as politicians, whether at the Council or in the Parliament, which is to ensure we use every euro of EU resources to address the impact of the crisis and the blight of unemployment across our European family. We have no time to lose.

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