Enda Kenny (Mayo, Fine Gael) | Oireachtas source

With regard to energy efficiency, the absence of concrete proposals is noted, as is the Commission's intention to consider this element after the review of the energy efficiency directive in summer 2014. Improved energy efficiency remains the most cost-effective way to reduce emissions, improve competitiveness and increase affordability, especially for low-income consumers and it will have a direct impact on the European jobs and growth agenda.

Finally, Ireland welcomes the proposal in the communication to examine and pursue the most appropriate climate policy approach to agriculture and land use. This is an important development from Ireland's perspective. We believe that a coherent and cost-effective approach to the parallel priorities of sustainable food production and climate change is fundamental to a realistic way forward at national, EU and wider international level under the UN convention. In anticipation of a new international climate treaty in 2015, we look forward to early development of this particular strand of the 2030 framework.

As mentioned earlier, the European Council will also review progress in completing banking union. EU finance ministers meeting yesterday had a long discussion on the single resolution mechanism. The outcome of those negotiations is that finance ministers have now provided the Presidency with a revised mandate which I am confident will allow for an overall agreement with the European Parliament in advance of the parliamentary recess in April. The single resolution mechanism is the natural complement to the establishment of the single supervisory mechanism. It will overcome the asymmetry between supervision at the European level under the single supervisory mechanism and resolution at national level. It will create a central body to apply the bank recovery and resolution directive toolkit to banks in the eurozone area and to banks of participating non-eurozone area member states. This central body will be known as the single resolution board and will have the power to restructure and wind down failing banks. The single resolution board will have access to a single resolution fund, the principle for which is established in the regulation. The fund will be paid for by contributions from the EU banking sector. The rules for the use of and contributions to the fund are set out in the single resolution mechanism regulation. The target level of the single resolution fund is approximately €55 million to €60 billion.

The intergovernmental agreement will allow for the transfer of funds from national compartments during the transitional phase to the single fund.

Once a final agreement is reached between with the European Parliament, this will deliver the next essential step in creating the banking union for Europe and thus help meet the objective set by the Heads of State and Government of the euro area in June 2012 of breaking the link between the sovereign and the banking sector. Negotiations with the Parliament continue and while there are a number of differences between the co-legislators, I am confident that the deadline set by the European Council will be respected.

The March European Council is also expected to touch on taxation, particularly the savings tax directive, the parent-subsidiarity directive and ongoing work in the area of digital taxation. The parent-subsidiary directive flows from Ireland's Presidency last year, during which we prioritised work on aggressive international tax planning and achieved significant progress. We fully support measures to eliminate double non-taxation. We also support the proposed changes to the savings tax directive, which will expand its scope, make it more effective and create a stronger and more co-ordinated approach to tackling tax evasion. In my view, it is time to adopt this proposal now.

Ireland has, in addition, welcomed the establishment of the European Commission's expert group on digital economy taxation last November. We hope that this group will be able to assist the EU in tackling this difficult and complex issue. Of course, due to the global nature of the problem, we continue to believe that the OECD is the most effective forum for further work. It has become very clear in recent months that the issue of international tax planning by companies is neither limited to any one country nor limited to any sector of the economy. It is a global issue involving a wide variety of jurisdictions and companies and it requires a global co-ordinated response.

Finally, under the external relations agenda item, as previously mentioned, we will return to the situation in Ukraine. The European Council will also discuss preparations for next month's EU-Africa Summit. The theme of the summit will be investing in people, prosperity and peace. I will attend the summit and intend to meet a number of African leaders there. I see these meetings as a valuable opportunity to reinforce the aims of the Africa strategy, launched by the Tánaiste in 2011. The Minister of State, Deputy Donohoe, will say a little more on this in his contribution.

As I said at the outset, there is a very substantial and substantive agenda for our meeting next week, but I look forward to constructive and productive discussions and will come back to the House on the outcome of next week's European Council in due course. I thank the Ceann Comhairle and the Members of the House for giving me the extra few minutes to read all of that.

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