Ms Emer Costello:

I thank Mr. Kitching for his presentation. I have been privileged to meet him and to hear him speak on a previous occasion. I belong to the school of thought in the debate on further and deeper economic and monetary union which is firmly of the view that economic and monetary union is not possible until social union is achieved, that there must be a social pillar to support economic and monetary union. Otherwise, as Mr. Kitching said in his presentation, people's living standards will be at risk and citizens will be treated merely as consumers. The notion of achieving a truly social union is the only way to ensure a political commitment from the citizens in order to bring us towards the deeper economic and monetary union. As Mr. Kitching points out, the European Investment Bank could be a significant player in the effort to stimulate investment. Ireland is hoping to avail of the European Investment Bank to fund education projects. Even when EIB funding is available, it is still offset against our deficit and our expenditure. In order for Ireland to use EIB funding to leverage social investment, it must be regarded as a social investment rather than expenditure.

It would mean offsetting that against the deficit rather than including it in the fiscal targets and fiscal consolidation that are required under the rules and regulations laid down by the European Union. It is one very feasible way in which we could work towards achieving social union and investing in people. Social investment means trying to avoid problems before they emerge. It means investing in areas such as child care, education, health care and elder care.

Another important aspect of the social pillar of economic and monetary union is the question of automatic stabilisers. Members might be aware that the Committee on Employment and Social Affairs of the European Parliament discussed this issue last week. The idea is that every employee would make a social contribution to a stabilisation fund. Where unemployment in a particular member state reaches a certain designated level, automatic stabilisers would kick into place to assist it in meeting its welfare bill. It is about ensuring there is true European solidarity and that all member states come to the rescue of the one experiencing major economic problems.

I am interested to hear Mr. Kitching's view on an issue that is of particular interest to me. As we discuss the European budget and seek to finalise the trilogues in areas such as the European Social Fund, I am very concerned about the whole area of macro-economic conditionality in regard to EU funding. It is something that needs to be addressed. National parliaments might have to step in and demand that funding which is targeted towards dealing with the least well-off citizens is not put in jeopardy because of the fiscal rules on consolidation. This is of particular relevance in the context of the youth guarantee fund, an issue on which I have campaigned very strongly in the European Parliament. Countries which are due money under the youth guarantee must ensure they maximise their potential and there is no macro-economic conditionality in terms of their ability to draw down funding.

Finally, I concur with what Deputy Bernard Durkan said regarding the loss of one of our seats in the European Parliament. It is a major loss to Ireland and a significant problem in the context of democratic accountability. There are 26 committees in the European Parliament and we will now have only 11 MEPs to cover them all.