Oireachtas Joint and Select Committees

Thursday, 9 May 2013

Joint Oireachtas Committee on European Union Affairs

General Affairs Councils: Discussion with Minister for Foreign Affairs and Trade

12:30 pm

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

I will start with the questions raised by the Chairman. First, on the issue of development aid, I refer to the provision in the MFF that was agreed at the Heads of State and Government meeting last February.

On heading 4, Global Europe, which includes development aid, the provision in the previous MFF was €56.815 billion and the provision in the new MFF, from 2014 to 2020, is €58.704 billion, which is an increase of €1.9 billion or 3.3%. In the previous MFF, from 2007 to 2013, the provision for the European Development Fund, EDF, was €26.826 billion. The provision for it in the new MFF is €26.984 billion, an increase of €0.2 billion or 0.6%. Therefore, the provision for development is increased in the MFF. In the original proposals, the Commission had proposed a significantly higher increase in that heading but what was agreed by the Heads of State and Government still represents an increase in the new MFF compared to the old one. Bearing in mind that the European Union and its member states contribute over 50% of all development aid in the world, that is very significant.

As I stated earlier, we must now secure the consent of the Parliament to the MFF. We will have a first formal trilogue on Monday next. There has been much informal discussion with both the President of the European Parliament and Mr. Alain Lamassoure, MEP, who is leading for the European Parliament on this issue. We will have a first formal meeting on Monday and then, hopefully, we will be able to progress matters after that.

I was asked about the issue of enlargement, with particular reference to the Former Yugoslav Republic of Macedonia. With a view to a possible decision on opening accession negotiations with the Former Yugoslav Republic of Macedonia, the Council invited the Commission to report on progress on EU-related reforms in the context of the high-level accession dialogue, steps to be taken to promote good neighbourly relations, notably with Bulgaria, and steps taken to resolve the name issue with Greece under the auspices of the United Nations. The Commission's report was published on 16 April. It was relatively positive, noting progress on almost all areas. The report noted progress on its recommendation that the Council should open accession negotiations with the Former Yugoslav Republic of Macedonia. However, it remains to be seen whether enough has been achieved to satisfy member states. The report will be considered at working group level with a view to further discussion at the June General Affairs Council and a possible decision at the June European Council. Decisions on enlargement are made by unanimity, requiring the agreement of all 27 member states. Ireland, in its Presidency, will facilitate discussion of the report and we will seek to have the issue progressed.

Ireland has supported the Commission's recommendation to open accession negotiations with Macedonia. However, we have maintained the position that it would not be appropriate to intervene in a bilateral matter between Greece and Macedonia. Third-party influence on this process would be counterproductive as it could entrench negotiating positions and force either side to act defensively. Greece and Macedonia must resolve this issue through bilateral talks and with the assistance of the UN special envoy.

As the Chairman stated, I visited Turkey last month. I had constructive discussions with the Turkish foreign Minister and the Minister for EU affairs on Turkey's accession process. We hope to be in a position to open a negotiating chapter with Turkey during the Irish Presidency. However, whether this proves possible will depend on the willingness of all parties - EU member states and Turkey - to facilitate progress. The chapter that we hope to open is Chapter 22 on regional policy and co-ordination of structural instruments. It has passed through the preliminary stages and Turkey has been asked to submit its negotiating position. On receipt of this, the Commission will draft an EU common position, which will be considered by member states, and once this is agreed the Presidency can then proceed to open the chapter.

Deputy Dooley asked about trade issues and banking union. On EU-US trade issues, at a political level much progress has been made. As the committee will be aware, the US President, Mr. Obama, in his state of the union address, committed to negotiating a trade and investment partnership between the European Union and the United States. We had a successful informal trade council here in Dublin some weeks ago at which much progress was made. There are issues. This is very big. It has considerable potential but, as with any major trade agreement, there are significant issues of sensitivity to some member states. Our objective has been to try to have the mandate for the opening of negotiations agreed by June, and this remains our objective.

On the issue of banking union, as I stated earlier, speedy progress on banking union is a high priority for the Irish Presidency. As the committee will be aware, political agreement on the single supervisory mechanism was reached at the informal ECOFIN in Dublin last month and COREPER ambassadors formally signed off on the two single supervisory mechanism texts at their meeting on 18 April. We are pleased to have made such progress on the single supervisory mechanism, which is a key element for an effective banking union. Having the single supervisory mechanism in place would allow the ECB to take over supervision by 1 March next and direct recapitalisation of banks by ESM would then be possible. As the committee will be aware, this is particularly important for Ireland and to give effect to the commitment that was made last June to separate bank and sovereign debt. We are continuing to work on how that will apply in practice, including on legacy issues. Since the agreement was reached in June we have made progress, for example, on the promissory note issue. I think everybody now agrees there was a very successful outcome to that.

I hear what Deputy Dooley is saying about the issue of the application of regulations. He correctly identified that financial services businesses are mobile. That is why we have been careful in the approach we have taken to issues such as the financial transaction tax and anything that would cause a movement of investment in that area. Ireland continues to be an attractive location for the financial services sector. IDA Ireland has been successful in attracting financial services to Ireland. I believe that will continue to be the case, but we are mindful of the fact that such businesses are mobile, and not only within Europe, as it is a global industry.

On Syria, in response to Deputy Donohoe, I have been following the discussions that have taken place between US Secretary of State, Mr. Kerry, and Russian foreign Minister, Mr. Lavrov. A more proactive role by Russia, working with the United States and the European Union, would be helpful. What has been missing in Syria is the ability of the international community to act effectively through the United Nations. I hope the discussions that have taken place this week will move us in that direction.

Of course, the other dimension to what is happening in Syria is the humanitarian situation - the significant numbers of refugees in Turkey, Lebanon and Jordan - and the significant issue of getting humanitarian aid into the country. The Chairman mentioned that former Minister of State, Mr. Barry Andrews, in his capacity as chief executive of GOAL, will be present at the event the committee is holding. I am in contact with Mr. Andrews about the GOAL's work in delivering humanitarian aid to Syria.

Deputy Eric Byrne spoke of the meeting the committee had this morning with the United Kingdom's Minister for Europe, Mr. David Lidington, MP. I had the opportunity of speaking with Mr. Lidington by phone late last week to discuss some of the issues that are before the General Affairs Council.

It is fair to say the Lisbon treaty gave national parliaments a greatly enhanced role in the preparation of EU legislation. There is, however, more that could be done. This committee has been doing great work on the role of Ireland's Parliament. National parliaments need to link with the semester process. Better co-ordination and consultation between the Commission and national parliaments is needed when legislative proposals first appear. Better co-ordination is also required with the European Parliament, in which regard the Chairman has been very active.

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