Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Over the last few days, all eyes have been on Greece. Therefore, before I turn to the agenda of the upcoming European Council meeting on Thursday and Friday, I want to report on the special euro summit which I attended in Brussels yesterday evening.

As the House is well aware, as time has passed, the sense of crisis surrounding the financial position of Greece has escalated. More importantly, the very real strains on the Greek people have only been intensified by the ongoing uncertainty and instability and their knock-on effects on economic activity. I am glad to say that, after much too long a stalemate, there now appears to be a reasonable prospect of an agreement between Greece and its creditors over the next few days. The Greek Government has forwarded new proposals, which are, as I speak, being intensively analysed by the institutions - namely, the European Commission, the European Central Bank, the IMF and the Eurogroup - and being discussed with Greek Ministers and experts.

These proposals arrived too late for a detailed discussion among finance Ministers at the Eurogroup meeting yesterday afternoon. The euro summit was never intended to be a discussion of technical issues in any case. However, first reactions from the institutions were generally to the effect that there has been an important step forward and there is a real basis on which to work. This very much set the mood at the euro summit, which gave the Greek Prime Minister the chance to set out his approach directly to all of the partners involved, and allowed him to appreciate the sense of purpose and determination among his colleagues. For my part, I stressed the importance of developing trust and implementing policies which can credibly meet the scale of the challenges that arise. I outlined our own experiences in Ireland, including our experience of modifying aspects of our programme which we sought to replace with others to achieve the same objective, but which were pro-growth in nature.

The Eurogroup is now scheduled to meet again tomorrow evening with a view to reaching agreement by Thursday morning, just before the European Council meeting begins. I hope that at the European Council we will be in a position to salute an important breakthrough, even if much work remains to be done with Greece on longer-term issues. Success will be important for the stability of the euro area and of Greece itself and will offer the people of Greece some sense of a return of hope and the prospect of a stable recovery.

I will now address the very full and diverse agenda of the European Council taking place this Thursday and Friday. The Council will continue to work to shape, on the basis of solidarity and responsibility, a comprehensive EU approach to migration, recognising that the situation in the Mediterranean is now at crisis point. We will continue our efforts to boost jobs, growth and competitiveness in the Union, giving strong political backing for the roll-out of a new digital single market strategy. We will consider how the union can best respond to existing and emerging challenges in both its internal and external security environment. For the first time at the European Council, British Prime Minister David Cameron will outline his thinking on EU reform and the UK referendum on EU membership. I have asked the Minister of State at the Department of Finance, Deputy Simon Harris, to address security and defence issues in his wrap-up statement. I will now address the other issues on the agenda.

Migration looks likely to take up more time than any other issue on the agenda. Instability, conflict and poverty across north Africa and the Middle East have resulted in unprecedented numbers of migrants attempting to enter Europe by sea. It is now estimated that well over 100,000 have made the perilous crossing across the Mediterranean so far this year. Although the EU has for some years now been taking important steps to address the crisis, the large-scale loss of life in April this year made it clear that we needed to do more, and urgently. I understand there may have been in excess of a million people on the Libyan shores over the past period.

An emergency meeting of the European Council, which I attended in April, identified four areas that required progress to tackle the crisis: fighting traffickers, strengthening our presence at sea, preventing illegal migration flows, and reinforcing internal solidarity and responsibility. The European Agenda on Migration, published by the Commission on 13 May, also provides an important framework for the future. Tackling the migration crisis requires a comprehensive approach. Our ultimate goal must be to have a stable neighbourhood that provides a secure future and genuine opportunities for its people. This requires us to work closely with those countries from which migrants originate, addressing the factors that drive people to risk their lives on the perilous Mediterranean crossing. While recognising the importance of a longer-term approach in addressing migration flows, however, we cannot ignore the reality of today's immediate crisis. We must be ready to demonstrate solidarity with our southern EU partners who are at the front line. In this regard, I expect the European Council to focus on two aspects: supporting those in need of international protection through resettlement and relocation schemes, and ensuring effective return policies for those irregular migrants who do not qualify for international protection. Tackling the organised criminal networks that profit from human smuggling is also a priority, as is evident from the decision yesterday by EU foreign Ministers to launch an EU mission which will work to disrupt these networks.

At the European Council, I intend to underscore Ireland's readiness to stand shoulder to shoulder with other EU member states in tackling the crisis. The LE Eithnehas already rescued more than 2,100 migrants since it arrived in the southern Mediterranean on 23 May in support of the Italian authorities. In addition, the Government has agreed to resettle a total of 520 refugees in Ireland in 2015 and 2016, 300 more than originally foreseen and nearly double the figure proposed for us in the Commission's European Agenda on Migration.Through our aid programme, Ireland has provided €41 million in humanitarian assistance to people affected by the conflict in Syria. A large proportion of those arriving on Europe's shores have been forced to flee by this brutal conflict.

The Commission has proposed that, as an emergency measure and to demonstrate solidarity, 40,000 migrants in need of protection who are already in Greece or Italy be reallocated to other EU member states. Discussions so far have shown that opinions are divided on the specifics of this proposal. Some are very supportive; others, while mindful of the need to show solidarity, are afraid that it could establish a precedent which would act as a further pull factor encouraging migratory flows. There is agreement that further action is required, and I am hopeful that a compromise can be reached. Under Protocol 21 to the Lisbon treaty, Ireland can choose whether or not to opt into this measure. That is why the Commission has not allocated Ireland a relocation quota, as it has done with other member states. We have yet to make a final decision on whether we will participate in such a scheme, and are continuing to examine the proposals very carefully as they evolve.

A further focus of this week's European Council will be on creating jobs, boosting growth and improving competitiveness. The growth outlook for the euro area is currently reasonably encouraging. Lower oil prices, appropriate monetary policies and a renewed focus on investment are expected to further boost economic activity through 2015 and into 2016. Member states must, however, continue their efforts, through appropriate fiscal policies and structural reforms, to ensure that recovery is sustainable. In this regard, the European Council will endorse this year's country-specific recommendations to the member states, thus concluding the European semester 2015. The House will recall that there are four country-specific recommendations for Ireland, which reflect continuity with last year's process and align well with policy directions that are already firmly established at national level. They cover public finances, health care spending, jobless households and child care, and restructuring of non-performing loans.

There is a general sense that the overall semester process has worked well this year, with better dialogue between the Commission and member states. Significantly for Ireland and for the Union, the European Council will also agree next steps on the digital single market, building from the excellent strategy presented by the Commission last May. I have taken the initiative in proposing to a number of colleagues that we write to the President of the European Council, Mr. Donald Tusk, this week, pressing for the highest levels of ambition for a fully functioning digital single market that is both open and competitive. My counterparts in Sweden, Finland, Estonia, the UK, the Netherlands, Poland and the Czech Republic have co-signed the letter, and I have no doubt that others will agree with much or all of it.

We believe there is no greater opportunity at our disposal to make a real difference for investment, growth and jobs in Europe, while delivering a vital boost to the Union's future global competitiveness. We have to make sure our shared market rules are keeping pace with the full extent of what is now possible for digital innovation and entrepreneurship, while unlocking a new wave of European investment in next-generation broadband services, connecting all parts of the Union, no matter how remote, including with the support of the new European Fund for Strategic Investments. If we get it right, I am absolutely confident that the digital single market can underpin a stronger economic outlook for Europe and for all member states. That is why I am pushing for the European Council to provide a strong political endorsement for the new strategy at this week's meeting: concrete measures, ambitious timelines and early results.

The European Council is also likely to note the report entitled Completing Europe's Economic and Monetary Union, which was published yesterday by the President of the Commission, Jean-Claude Juncker, in co-operation with the heads of the other institutions. Building on measures implemented in recent years to make the economic and monetary union more stable and resilient, the report proposes a two-phase approach to further reform: a first, short-term phase focused on boosting competitiveness, maintaining responsible fiscal policies and completing fiscal union, followed by a second, longer-term phase which would involve changes to the EU's economic and institutional architecture. Much of the detail of what is envisaged would require much further work. It is important to note that this report reflects the personal views of the five Presidents and will, of course, need to be studied carefully and debated in full by member states over the period ahead. I do not expect a detailed debate at this European Council.

Finally, I want to turn to the question of the UK's relationship with the EU, which the European Council is also set to address later this week. Let me begin by restating that this is an issue of real national importance. British membership of the Union matters hugely to Ireland. I think all of us in this House, regardless of our party affiliations or political convictions, understand why that is the case. I very much welcome the publication today of the comprehensive report by the Joint Committee on European Union Affairs on the UK-EU relationship. This confirms that the relationship is important for our economic ties, for Northern Ireland and for the promotion of Irish interests in the Union. Therefore, keeping the UK within the EU is, in the Government's view, essential, both for Ireland and for the EU as a whole.

I met with the British Prime Minister, David Cameron, in Downing Street last week. We had a very constructive and positive discussion about his plans for reform and renegotiation of the UK's relationship with the EU. I made it clear to him how much value we attach to the fact that both our countries are members of the Union. I said that, without necessarily agreeing on all points, Ireland would be as helpful in negotiations as we could be. I also welcomed the fact that he is talking to all of our European Council colleagues in advance of this week's meeting. I believe the Prime Minister fully recognises many of the benefits for the UK of the EU and of EU membership, and I know for sure that he appreciates its importance in the context of the British-Irish relationship. However, he also has a number of concerns, and he has been very clear that he wants these addressed before a referendum is held in the UK on whether his country should remain in the EU.

This week's European Council, which will be the first since the British election in May, will present an opportunity for the Prime Minister to outline his thinking. The purpose is not to have a lengthy debate but to allow him to sketch out the areas he wants to address in terms of reform. Issues already mentioned publicly and raised by the Prime Minister with me last week include the following: competitiveness; questions of sovereignty, including the application of the concept of ever-closer union and the role of national parliaments in the EU legislative process; the relationship between those member states within and outside the euro area; and the relationship between migratory flows within the EU and welfare entitlements. I expect that the European Council will launch a process of further exploration of the various options and possibilities in each area. The indications are that the first phase will be quite low-key and technical before firmer proposals come back to the European Council in due course.

There are likely to be elements of the UK's proposals on which Ireland and, indeed, other member states can be fully supportive, such as in regard to improving the Union's competitiveness through trade, the digital single market, which I mentioned earlier, and better regulation. There are others which, though complex, may allow for balanced outcomes which meet UK concerns without damaging the interests of the rest of the Union. On the difficult question of welfare reform, much has to be done to clarify what is feasible and achievable both technically and politically.

Like every other Head of State or Government, I will be mindful of the consequences of any changes for our own citizens and for the EU's core values. I want to underline that Ireland is eager to see the question of the UK's future in the Union resolved, and resolved positively. While the exact timing of a referendum is for the British Government to determine in due course, I hope the uncertainty over Britain's place in Europe can be dispelled sooner rather than later. This week's European Council essentially represents the start of the process. The challenge ahead is arriving at a negotiated and consensual basis that will allow for continued UK membership of the EU. I am hopeful that a solution that is satisfactory to all parties - the UK Government, the British people and other EU member states - will be reached. Let me assure the House that Ireland will be playing a very active and constructive role in the negotiations that lie ahead.

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