Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Chairman for the opportunity to address the joint committee. I am delighted to be here and I always value the opportunity to brief the committee ahead of any of my attendance at the General Affairs Council. I will give the committee a report on events since the last meeting. I will also refer to questions from colleagues at the previous meeting. I will give an update on the pertinent points raised with me.

One of the key roles of the General Affairs Council is to support the development of the European Council agenda. Along with the Taoiseach I was pleased to brief the Dáil last week on the outcome of the October Council meeting, the agenda of which was particularly lengthy, including a dedicated and productive debate on the digital economy innovation and services.

It also covered, youth unemployment, banking union and the broader work currently under way on Economic and Monetary Union, as well as migration and other issues. We took an active part in the work of the Council, not least in the context of the priority which the Government accords to many of the matters that were discussed. A range of opinions always emerges in these debates but it is in the final conclusions that agreement is reached. A further priority for Ireland at the European Council was to flag the potential contribution of the digital sector to the effort to tackle youth unemployment. We were pleased that, as a result, this issue was also addressed at the Paris summit on youth unemployment, which the Taoiseach and the Minister for Social Protection, Deputy Burton, attended earlier this week.

Since our previous meeting, I have been continuing to build up relationships with my counterparts in other member states. I visited Rome and Athens at the end of October and had very productive discussions with Ministers in both cities. Greece and Italy are, for course, to two states which will hold the Presidency in 2014. I gained valuable insights in both capitals, particularly in the context of youth unemployment and migration issues. Last week I visited London and Edinburgh and met the my counterpart, the Minister of State at the Foreign & Commonwealth Office, Mr. David Lidington, MP. I will be continuing to reach out to my colleagues in all member states. It is essential to take every opportunity to ensure that Irish positions are understood at political level and that we keep up to date on the developing priorities and challenges for our partners.

I will now deal with next week's General Affairs Council. The agenda includes a number of important presentations by both the Commission and the Presidency. These will cover: the European Commission work programme for 2014; the roadmap on the implementation of the 2014 European semester; the Commission's annual growth survey for 2014; and a Presidency report on the implementation of European Council conclusions. The draft agenda for the December European Council will also be presented. Under any other business, my colleagues and I will also be briefed on the EU strategy for the Baltic Sea region as well as on a subsidiarity review carried out in the Netherlands. I am aware, of course, that members will be particularly interested in the latter.

The presentation of the Commission work programme is the first agenda item. As members will be aware, the background to this is that each year an annual work programme outlining how the European Commission President's political guidelines for the 2009 to 2014 will be implemented is published. The 2014 programme was published on 22 October and this will be the first opportunity to review it at political level. I understand that members had a meeting with Barbara Nolan, Head of the Commission Representation, earlier this week and I would be interested to hear any of their feedback on that. In reviewing the programme we must recognise that the term of the current Commission ends next year. It is no surprise, therefore, that the focus is inevitably on delivery and implementation. I am pleased that, very much in line with Ireland’s priorities, the programme is geared towards completing work on measures aimed at consolidating financial and economic stability and promoting growth and jobs. In a break from the usual format, the 2014 programme sets out which legislative files the Commission believes should be prioritised by the Council and the European Parliament. The aim is to achieve agreement on these before the European elections next May. I welcome this as a sensible and realistic approach. I especially welcome the continued focus of the Commission’s work programme on growth and jobs, with a particular emphasis on combating youth unemployment.

In the economic and financial area, the Commission has committed to completing the banking union, the urgency of which was emphasised by the European Council last week. Ireland supports the Commission in its drive for quick agreement on the single resolution mechanism, the bank recovery and resolution Directive and the deposit guarantee schemes. When I was last before the committee, Deputy Eric Byrne made reference to the digital market, its value and the work that is being done in respect of it. In that context, I am happy to report that great strides have been made to finalise many of the outstanding files for completing the Single Market, with particular reference to the digital Single Market. I welcome the strong focus in the work programme in respect of this matter. Important files in this area include e-identification and signatures, public procurement and e-invoicing in public procurement. I am also pleased to note that the work programme continues the Commission's focus on bilateral trade agreements, including the Transatlantic Trade and Investment Partnership, TTIP, negotiations with the US, which are of particular interest to Ireland.

A limited number of new initiatives for 2014 are also set out in the work programme. These include a labour mobility package and an initiative on resource efficiency and waste. While the current Commission accepts that these new proposals will not come to fruition before the end of its term, they may well contribute to the agenda and immediate priorities of the new Commission. Deputy Durkan has on many occasions referred to the status of industrial policy and made the point that while the development of the digital economy is welcome, it is not something in which every existing or potential worker in our overall economy will be able to participate. I am pleased that the list of new initiatives includes an industrial policy package. We fully support the need for a strong industrial base which can deliver a robust and thriving real economy for business and society. It is important to fully exploit the potential of the inter-linkages and mutual dependency between manufacturing and services in particular. In its work programme the Commission also commits itself to a wide range of preparatory and exploratory work to help prepare the ground for some key decisions to be taken in future years.

At our previous meeting Deputy Dara Murphy referred to regulatory competitiveness and the need to ensure that the regulations in place - with particular references to those relating to small and medium-sized companies - will be fit for purpose. In this regard, the Commission is taking a fresh look at existing legislation in order to ensure that it is fit for purpose. The work programme lists a range of legislative acts which the Commission aims to recast and simplify as part of its regulatory fitness programme, otherwise known as REFIT. This has emerged as a key priority for President Barroso and is something we very much welcome. It is essential that we continue to see real and timely progress in the reduction of regulatory burden, especially for SMEs and micro-enterprises.

The work programme also includes a long list of legislative proposals which the Commission has decided to withdraw. This is mainly due to the fact that these proposals have been overtaken by new ones, have become obsolete or in respect of which, in a few instances, agreement within Council or between the Council and Parliament has become impossible. Departments are still studying the text but overall our initial assessment of the Commission work programme 2014 is positive. What remains to be seen is how much can be achieved in the final year of this Commission's mandate, particularly in view of the time constraints created by the European Parliament elections at the end of May. I am, however, looking forward to the Commission’s presentation and I will be feeding this into our national considerations.

I again welcome the fact that this committee has already engaged with the Commission on the work programme. This is very positive in the context of the recent initiative for the planned identification of priorities for detailed scrutiny by all sectoral committees. In the past, a matter of discussion for this committee and others has revolved around when they should pitch their interventions. In other words, when should they engage with the Commission or the Parliament. There is little point engaging with them when everything is cast and when things are already happening. I welcome the fact that the committee - through Barbara Nolan - has already engaged with the Commission. I understand it has also extended an invitation to the Secretary General of the European Commission, Catherine Day. Again, this is a very good idea and I wish the committee success with it.

From a national as well as a strategic EU perspective, it is crucial that committees focus on the proposals which are of most relevance. This year is, of course, different because of the approaching end of term for the Commission. Nevertheless, the annual work programmes are an invaluable tool for committees seeking to engage effectively with EU policy making.

I will now deal with the second agenda item, namely the European semester. At our previous meeting, Deputy Kyne referred to this matter and posed a number of questions on it. I wish to provide him and other colleagues an update on the position in this regard in the context of the General Affairs Council. As many members will be aware, the European semester lies at the heart of the EU's stronger, post-crisis economic governance arrangements.

It is fundamentally about developing and implementing the Union’s jointly agreed priorities to support growth and jobs, underpinned by the enhanced Stability and Growth Pact and the Europe 2020 strategy. The General Affairs Council, GAC, will continue preparations for next year's European semester process informed by two important inputs, a presentation by the Commission of the annual growth survey 2014 and a presentation by the Presidency and the incoming Presidency of the Roadmap for the European Semester 2014.

The Commission produced the annual growth survey yesterday setting out the broad EU economic priorities for the year to come. This marks the first key step in the annual cycle. The main message of annual growth survey 2014 is that biggest challenge now facing Europe’s economy is how to sustain the recovery that is now under way. It presses strongly for a continued emphasis on five main priorities over the coming year: pursuing differentiated, growth-friendly fiscal consolidation; restoring lending to the economy; promoting growth and competitiveness for today and tomorrow; tackling unemployment and the social consequences of the crisis; and modernising public administration. This is an issue Deputy Crowe raised on the last occasion I was here. He made the point to me that we need to have enhanced focused on growth and on from where this growth will come. This is a discussion that will be taking place at the General Affairs Council and at other European meetings across the coming months in the context of this annual growth survey. This survey will now be the subject of intensive consideration with the Council and that will, in due course, inform the guidance from the spring European Council to member states on preparation of their national reform programmes and stability programme updates for submission next April.

Along with the annual growth survey, the Commission produced yesterday the alert mechanism report, which serves as an early warning on macroeconomic imbalances; the joint employment report, which assesses the social and employment situation; and the report on Single Market integration, which highlights both implementation gaps and priorities with greatest growth potential. I look forward to the Commission’s initial presentation of these matters at next week's meeting.

In so far as the Roadmap for the European Semester 2014 is concerned, I expect that the Presidency and the incoming Presidency will set clear timelines for managing the various stages of next year’s process. This will be informed by the synthesis report from the Lithuanian Presidency on lessons learned in 2013, as noted at the last General Affairs Council in October. This committee will recall that effective management of the third European semester cycle was an important focus for the Irish Presidency earlier this year. The key goal was to ensure that all relevant Council formations worked in a co-ordinated and consistent manner towards a thorough preparation of the March and June European Councils. Our overall emphasis was on improving dialogue and strengthening national ownership of proposed reform measures. This is an emphasis that is reinforced strongly by yesterday’s annual growth survey.

The important work taken forward by both the finance committee and European Union Affairs Committee of the Oireachtas has also provided a strong basis for exploring further ways in which the involvement of national parliaments in the European semester processes might be reinforced in the period ahead. I commend the committee on its initiative in this regard and look forward to working closely with its members to ensure a successful return by Ireland to full participation in the European semester 2014, underpinning an economic recovery that will be smart, sustainable and inclusive.

The main preparatory work for the next European Council will be done at the December General Affairs Council. For the benefit of colleagues, it is worth noting that the European Council meeting will take after the General Affairs Council meeting following next week's General Affairs Council meeting. That is where much of the discussion will place in relation to it. I will meet the committee to outline my briefing for that General Affairs Council meeting. Nonetheless next week’s meeting will consider the draft annotated agenda. This will include the Common Security and Defence Policy; economic and monetary union, including banking union; economic and social policy, including SME financing and taxation; enlargement; migration; and energy. It is immediately obvious that this is a heavy agenda which focuses on many important issues for Ireland. I am looking forward to next week’s discussion as an opportunity to get a sense of how preparations for the Council are proceeding and what colleagues' current views are. Detailed work is also being taken forward in the relevant Council formations, including ECOFIN, the Foreign Affairs Council and the Justice and Home Affairs Council.

The General Affairs Council will also receive a Presidency report on the implementation of European Council conclusions. We appreciate and support the Presidency’s work. Ireland’s position here is clear. We strongly believe – the Taoiseach has repeatedly made this point – the European Council has to be seen to deliver on its commitments if it is to be effective. We must all work to ensure the full implementation of European Council conclusions.

On a positive note, I am also very pleased to note that agreement has been reached on a new EU budget for 2014. It is currently expected that the agreement on budget 2014 and draft amending budget 9 will be approved at the General Affairs Council and then by the European Parliament on 20 November. This is the first annual budget agreed under the 2014-2020 multi-annual financial framework. It follows the Irish Presidency's earlier work in brokering a political agreement with the Parliament on the multi-annual financial framework. This budget implies an over 6% year-on-year reduction in the allocation for payments from the 2013 budget. The final package protects Irish interests, including Common Agricultural Payments payments and cohesion funding. It also frontloads youth unemployment and research and innovation moneys, from which Ireland will also be a beneficiary.

My colleague Minister of State, Deputy Brian Hayes, said after the ECOFIN Council that the agreement is a pragmatic one that responds to the needs of a Europe emerging from a painful period of contraction. Spending at EU level has to reflect this present reality while also meeting the future funding needs of the European Union.

I also want to let the committee know that, under any other business, the Dutch Government has requested an opportunity to brief the General Affairs Council on the outcome of its recently published subsidiarity and proportionality review, entitled Testing European Legislation for Subsidiarity and Proportionality – Dutch List of Points for Action. The review contains some food for thought, which is of interest to all member states, including Ireland. The October European Council conclusions also welcomed steps being taken by member states with the aim of better identifying excessively burdensome regulation and noted in this respect the subsidiarity and proportionality principles. I think this reflects some of the thinking we have seen from our colleagues in the Netherlands. Frans Timmermans, the Dutch Foreign Minister has written to me to draw attention to his country’s initiative. He is seeking to a promote a debate between member states and the institutions on how to achieve a sharper focus in EU initiative. In that context he is organising a seminar in the Hague in January on the theme, "Is subsidiarity relevant for better EU Governance?" I will listen with interest to Minister Timmermans’ outline of the Dutch review’s key findings at next week’s General Affairs Council. These are important issues which affect us all and it is important to take time to consider them.

I thank the Chairman for the opportunity to address the committee. I have made an effort to relate the work of next week's General Affairs Council and in the meetings to come to questions colleagues put to me at the last meeting and I will do my best to answer any new points or questions the members wish to put to me.