Oireachtas Joint and Select Committees

Tuesday, 20 January 2015

Joint Oireachtas Committee on European Union Affairs

Priorities of Latvian Presidency of European Council: Latvian Ambassador to Ireland

2:30 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I welcome the ambassador and his colleagues and congratulate him on Latvia’s objectives. Dr. Apals's comments were true. Some issues were not mentioned but still remain. In terms of cohesion and security, Europe is a challenging place at the moment. The Latvian and subsequent Presidencies will have to address the emerging issue of security. We do not want to see a repetition of how relatives were not allowed to collect belongings after an aeroplane was downed in Ukraine. Hooded, masked and armed personnel surrounded them and prevented them from doing so. Such a situation was seriously damaging to the concept of a powerful, cohesive and protective Europe that wanted to push ahead economically and socially.

The Italian Prime Minister mentioned that Europe was at a crossroads. It has been at a crossroads for many years. Some would suggest that it has been on a roundabout, unable to decide which exit to take. The time has come for the European leadership to concentrate on where Europe is going and to move away from the old adage about the future of Europe and how Europe is changing. We make the future. We make the change. Each member state has a contribution to make.

In this context, I will allude to the elephant in the room, namely, the situation in the UK.

To what extent will the ongoing question of the UK's future in the European Union impact on the cohesiveness and competitiveness of the Union in the foreseeable future?

In regard to digitalisation and innovation, I hope euroscepticism which has grown in the past number of years is finally addressed over the next couple of years. If that is not done, it will lead to unfortunate circumstances. However, we can address the matter on a number of levels. Digitalisation and innovation in job creation can be utilised in addressing issues that affect people. We also need to identify the main underlying reasons for euroscepticism which we can see evidence of on a daily basis and read about all the time. If such scepticism is not addressed, it will continue to grow. Some scepticism may stem from domestic politics in individual member states. Collectively, however, it has a debilitating effect on the concept of developing and consolidating Europe, what it stands for, where it has come from and where it is going, particularly in terms of the future of Europe.

We are faced with the challenge of achieving higher levels of economic growth and development. Europe has a huge population of 500 million and thus has massive economic clout so it should be able to generate the necessary growth and development to be a world leader. Job creation automatically follows such growth and development.

Social cohesion will suffer and fracture as a result of dissension within. One cannot have dissension, a wish to opt in or opt out and euroscepticism at the same time as an evolving concept of modern European. I referred to security earlier.

With regard to my colleague's comments, I do not necessarily agree with the claim that nothing has happened in banking. Quite a considerable amount of progress has been made in that area. At least there is an indication now that all European countries recognise that something had to be done, and that we generally point in the same direction. It is very important that we all face in the same direction throughout the European Union because, otherwise, we will not succeed.

A few years ago during the boom years in Europe we were told that we had no control over our currency because it was controlled by Brussels, that interest rates were controlled by Brussels and nothing could be done. That was untrue because we now know credit controls were possible at all times and had to be introduced in the final analysis. Credit controls were introduced and were effective. Many eurosceptics were critical of the European project, suggested that we should devalue our currency and claimed that if we were not in the eurozone we could have done so. We devalued our currency and it is now called the euro. We collectively own the euro and whatever happens to it affects Irish citizens. The euro is now almost back down to parity with the US dollar where it started. To those who suggested that devaluation was the solution to all of our problems I say that we would have resolved some of our problems at this stage by now.

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