Ms Emer Costello, MEP:

A number of the joint committee's members touched on the democratic deficit issue and the disengagement of people from European affairs. That is why I tried to focus my remarks on re-engaging with citizens. The best way we can do that is through the development of a truly European social model. That is where the future of Europe has to go if it is to remain engaged with citizens. Otherwise, citizens will feel - as my colleague, Paul Murphy MEP, said - that they are only servicing banks and that Europe is not interested in working for people. I still believe in the original founding values and principles of the European Union, which are enshrined in the treaty. They are also in the 2020 strategy, but we need to work towards them.

As to why it has taken so long to make progress on a social compact and why we have not been examining social investment, we have very much fallen down in that area. Many observers have been struck by the fact that the IMF can come in and talk about the multiplier effect of austerity, yet one still has to get the EU to react to that. We are trying to address the issue in the European Parliament. For every euro we take out of the economy, the multiplier effect of that on nations is much worse. The IMF has pointed out this and there is a growing realisation of it within the European institutions.

Part of the democratic deficit is the Franco-German alliance that was built up during the early years of the crisis. That created huge problems, not just for Europe generally but also for the European institutions. The European Council was being by-passed in many ways because the Franco-German alliance met in advance of Council meetings. France and Germany were deciding the agenda and determining how decisions would be made at Council meetings. The European Parliament was also being ignored despite the fact that it has enhanced powers since the Lisbon treaty. It is important to acknowledge the parliament's legitimate and democratic powers.

On a number of occasions, Deputy O'Reilly quoted Martin Schulz, who is the former leader of our group and now President of the European Parliament. Mr. Schulz put it well in saying that we need a return to the community method. We need to ensure that all the institutions, including the European Parliament, are playing a participative role.

Deputy O'Reilly asked if the multiannual financial framework or MFF will get through. I agree with my colleague, Mr. Gay Mitchell MEP, that it will not get through in its current format. The European Parliament is deeply unhappy with many aspects of the MFF as it is currently presented, including the levels of funding. As I said in my introduction, the European budget must be a mechanism to deliver growth. The MFF must be fit for purpose and not just seen as an item of expenditure but also as able to invest in growth and development across the EU. Much negotiation remains to be done with the European Parliament. We will have a resolution on this matter at the parliament's plenary session in Strasbourg next week. We will give a mandate to our negotiators and will demand serious changes to the MFF.

The youth guarantee measure will follow the individual in trying to develop a career path. It is not about slotting young people into existing programmes and courses, but about determining a career path. The sum of €6 billion is a start and is welcome. Countries and regions with youth unemployment exceeding 25% will be targeted, which is to be welcomed. I have met with a number of community organisations and groups that are examining practical aspects of implementing the youth guarantee. A number of questions have arisen and I look forward to discussing these issues with the Minister for Social Protection, Deputy Burton, in future.

The Ballymun jobs centre has done amazing work with young unemployed people. The centre has applied for a pilot scheme and it is hoped it will be able to pilot the youth guarantee later this year. That might provide a template and model for future youth guarantee projects.

Deputy Kyne mentioned the 83% social spend in education. We cannot afford to look at spending on education or social welfare as just another item of public expenditure. We must look at it as a social investment. We must also monitor how we are using our social budgets to ensure the most vulnerable are protected at all times. That is the whole principle behind the social investment strategy that was launched last week by Commissioner László Andor. If refers to breaking the cycle of disadvantage concerning child poverty. We have high rates of child poverty in this country and must therefore address those issues.

I thank the joint committee for the opportunity to attend the meeting.