Dara Murphy (Cork North Central, Fine Gael) | Oireachtas source

Gabhaim buíochas leis an gCathaoirleach agus le baill an choiste as ucht cuireadh a thabhairt dom freastal ar an gcruinniú seo. I welcome our guests from the diplomatic service who are here, and my colleagues in the Oireachtas. I am very happy to be here in advance of the General Affairs Council, which takes place next week. The General Affairs Council, in preparation for the European Council on Thursday and Friday of next week, will consider five issues: the European semester 2015, specifically the approval of the country-specific recommendations; the better regulation agenda; the situation in the Former Yugoslav Republic of Macedonia; and a new action plan on strategic communications to counter misinformation campaigns in the European Union’s eastern neighbourhood.

Preparations for the European Council will build on our discussions at the May General Affairs Council, during which we had an initial exchange on the annotated agenda. We also discussed in some detail at that meeting a follow-up to the special European Council of 23 April in relation to migration. Finally, there was a brief exchange about the forthcoming report by the five Presidents on improving economic governance in the euro area.

The committee has asked me to focus my statement today on a limited number of issues, namely Ireland’s country-specific recommendations, migration, EMU governance and, finally, the question of the UK’s relationship with the EU. All of these issues will be considered by the GAC in the context of preparations for the June European Council.

The other issues which will feature on the European Council's agenda are broadly as I outlined during our meeting last month. They include security challenges, covering the development of the Common Security and Defence Policy, CSDP; the review of the European security strategy and counter-terrorism; and also the broad topic of economic issues, including steps to progress the digital single market and VAT strategy.

With respect to our country specific recommendations, CSRs, and the European semester process, the June European Council will conclude semester 2015 by endorsing this year’s CSRs. With a period of prolonged weakness in the wider euro area representing what is probably the key risk to the Irish economic outlook, we all stand to benefit from a well-functioning European semester process that guides our collective polices in the right direction and supports the right mix of monetary, fiscal and structural policies. On 13 May the Commission presented its proposals for the 2015 CSRs. In the case of Ireland, there are four proposed CSRs. They cover continuing to restore balance to the public finances, including through the measures that will be reflected in the October budget; further improving the cost-effectiveness of health care spending in line with the Future Health reform programme adopted in 2012; continuing to improve the arrangements we have developed for addressing the risks of intergenerational transmission of poverty through so-called low work intensity households, including through strengthened child care provision; and completing the work under way to deal with the very difficult post-crisis legacy of non-performing loans in the financial sector. The proposed CSRs can be seen as reflecting continuity from last year's process, while building on the comprehensive country report already produced by the Commission at the end of February and consistent with the "no surprises" principle. They align well with policy directions that are already firmly established at national level through the Government.

It can be noted that Ireland remains fully on track to exit the excessive deficit procedure in the year ahead. Our stability programme update in April was forecasting a general Government balance of -2.3% in 2015 and -1.7% in 2016 below the required 3% deficit threshold. We should all welcome this. We have over-performed on deficit reduction every year to date and expect to see the deficit completely eliminated before 2019. Our debt-to-GDP ratio is also on a firm downward trajectory.

One of the most important lessons of the European semester process as it has evolved in recent years concerns the need for it to become more open and inclusive, including through more meaningful engagement by national parliaments and other key stakeholders. The process the committee has adopted today and at previous meetings and which is ongoing at the finance committee can continue to be improved. We continue to aim for a better balance, at both national and EU level, between more effective economic governance arrangements, on the one hand, and increased democratic participation and legitimacy, on the other. That is why the Government produced its new spring economic statement at the end of April, setting out a clear framework within which all stakeholders could contribute to the political dialogue that would inform further decisions to be taken in the October budget, including having regard to Ireland’s CSRs. This will be a key focus of the national economic dialogue to be hosted by the Minister for Finance, Deputy Michael Noonan, and the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, in Dublin Castle on 16 and 17 July.

Returning to developments at EU level, proposals to strengthen economic governance in the euro area will be brought forward in a report to be published in the coming days by European Commission President Jean-Claude Juncker, euro summit president Donald Tusk, European Central Bank President Mario Draghi, Eurogroup president Jeroen Dijsselbloem and European Parliament President Martin Schulz – the so-called “five presidents” report. The drafting of this report responds to a task from the Heads of State and Government in the euro area at a euro summit meeting last October.

Important policy and legislative changes introduced in recent years have served to strengthen European Monetary Union, EMU, in many cases responding to hard lessons learned as a result of the economic and financial crisis. An extensive economic governance framework has been put in place, including the European semester and the macro-economic imbalance procedure, while significant progress has been made in the implementation of banking union. As a result, we have an economic governance and financial system that is more robust, better able to identify and manage risk and that seeks to take account of the interdependencies between economies. Notwithstanding the positive measures adopted in recent years, some analysts and policy-makers argue that EMU is not yet complete and that more far-reaching changes are required. There is an expectation that the report of the five presidents will be reasonably ambitious in setting out a vision for the long term, while also considering what can realistically be achieved in the short to medium term.

Ireland, together with other member states, has had the opportunity to offer its views on EMU reform through specially convened meetings of the sherpa network, which comprises senior representatives of the Heads of State and Government. However, I underline that, while member states have been canvassed for their views, the final report will be presented solely on the authority of the five presidents. The more ambitious, longer term proposals brought forward during discussions included fiscal capacity for the euro area; a common eurozone finance Minister; and binding reform contracts whereby member states would agree to implement structural reforms in return for support from a solidarity fund.

Ireland, together with many other member states, has argued that our focus at this point should be on full implementation of existing economic and financial governance instruments. Implementation of these instruments is not yet optimal. For example, we see scope for a greater focus on the aggregate economic and fiscal position of the euro area as a whole, recognising that excessive current account surpluses and deficits both need to be tackled. Ireland also argues strongly that measures which can contribute to sustainable and job-rich growth across the European Union must be prioritised and driven forward. This includes completion of the Single Market, including the digital Single Market, roll-out of the investment plan and giving further impetus to trade negotiations. We believe it is towards these tangible objectives, rather than protracted introspective negotiations on new instruments, that we should channel our efforts and energies. Given that the report of the five presidents has not yet been published and, as a result, there is little time for analysis by member states in advance of the European Council, my expectation is that discussion by the Heads of State and Government will be very limited.

One of the most challenging and pressing issues for consideration by the forthcoming European Council is the migration crisis in the Mediterranean. The committee has also been actively engaged on the issue and corresponded with the Taoiseach on it. I have seen the Chairman's letter and the Taoiseach's response. To address the crisis, the special European Council in April set out clear priorities focusing on strengthening the European Union’s presence at sea, fighting traffickers in accordance with international law, preventing illegal migration flows and reinforcing internal solidarity and responsibility.

The Latvian Presidency, which comes to the end of its term at the end of this month, and the European Commission have translated this vision into what is termed a roadmap, which will form the basis for discussions at the June 2015 European Council next week. The Commission has also brought forward a new strategy, the European Agenda on Migration,which puts forward a range of short and longer term proposals.

On the question of the immediate actions necessary, I wish to comment briefly on some elements of Ireland’s approach. In response to the Commission’s recommendations on resettlement, Ireland has offered to take 300 refugees in addition to our existing commitments for the 2015 and 2016 period. That will bring our resettlement commitment over the period to 520, which is almost double the share proposed for us by the Commission in the European Agenda on Migration.

In addition, the Government last month dispatched the LE Eithne, a Naval Service vessel, to assist in humanitarian search and rescue tasks in the Mediterranean. Thus far, the LE Eithnehas conducted nine rescue operations, resulting in the rescue of more than 1,600 migrants. I am sure the committee will join me in thanking the crew of the LE Eithnefor its courageous work in the Mediterranean to date, and to wish it continued success in its life-saving endeavours. I had the pleasure of being at Haulbowline on the morning the Naval Service vessel departed. We are all very proud of the great work being done in the Mediterranean in very difficult circumstances.

There is no quick fix to the migration crisis. I expect there will be a robust debate at the General Affairs Council and, subsequently, at the European Council as to how the European Union can most effectively respond. A key sticking point is the Commission proposal to introduce a mandatory emergency relocation mechanism, whereby 40,000 people in need of international protection in Italy and Greece could be redistributed among other member states. There is concern among some EU partners, in particular, about the mandatory nature of the mechanism. A number also have issues with the allocation key for distributing the proposed cases among the member states.

Ireland’s opt-in protocol under the treaties would apply to this proposal and so the Commission has not allocated Ireland a relocation quota. However, we are examining the proposals very carefully with no final decision yet taken.

As a final comment on migration, I note that this discussion can be a little lopsided at times because of the understandable urgency of the humanitarian situation. It is excessively focused on the consequences of Europe’s pull factor, whereas we also need to engage more effectively with external partners in relation to the push factors that cause the migrants to take such perilous risks. Ireland has a positive story in regard to our record of working with African countries, in particular to stimulate their economies to provide better livelihoods for their young people. In addition to the steps I outlined previously, we will also continue, in co-operation with our international and United Nations partners, to provide humanitarian assistance in regions from which many migrants originate. This has included support totalling €41 million to those affected by the brutal conflict in Syria.

I turn to the EU-UK relationship. The committee is fully aware of where the Government stands on this issue of fundamental national interest. I am aware it has engaged and has visited the UK. As I have said, we want the UK to remain a full, integral member of the European Union. As the committee may be aware, the Taoiseach is in London today for a meeting with Prime Minister Cameron.The Minister for Foreign Affairs and Trade, Deputy Charles Flanagan, will meet the Foreign Secretary, Mr. Philip Hammond, MP, tomorrow in Dublin. Their discussions will no doubt cover a number of issues but the question of Britain’s future in Europe will, I expect, figure very prominently. The fact is that British membership of the EU matters hugely to Ireland's advantage and I expect the Taoiseach will avail of the opportunity to explain directly to the Prime Minister, Mr. Cameron, why that is the case. The hearings the committee held this spring provided a rich seam of evidence as to why British membership of the EU should be considered so important to Ireland. I very much look forward to reading its report on the issue which I understand is to be published next week. I thank the committee for its invitation to the publication but as it coincides with the General Affairs Council meeting I am unable to attend.

We are entering a more decisive phase of the UK’s relationship with the European Union. The Prime Minister, Mr. Cameron, was re-elected in May on the back of a manifesto that promised to reform the workings of the European Union, and to hold an in-out referendum before the end of 2017. Ireland respects the democratic mandate the Prime Minister has to pursue that agenda. What we now await is the substance of the UK proposals in regard to how the functioning of the European Union can be improved. This is the kernel of the matter. These proposals may be sketched out at the European Council, although it is not yet clear what level of detail Prime Minister Cameron is ready to provide. We already have a sense of some of the reforms the UK might seek to prioritise in the time ahead. I had the opportunity to explore some of these when I met my British counterpart, Mr. David Lidington MP, in Dublin on 26 May. They include issues such as an increased focus on competitiveness within the European Union, a greater role for national parliaments, and new provisions regarding welfare entitlements.

No matter what the UK actually puts on the table, the challenge is the same, namely, arriving at a consensual basis for continued British membership of the European Union. Given what is at stake, we will be playing a constructive and active role when it comes to any negotiations. Our instinct is also to be supportive and sympathetic on the substance. Let me repeat however what I have said before. As important as British membership of the European Union is to Ireland, we will not support any proposals with which we fundamentally disagree. Nor will we subscribe to any course of action that could significantly undermine or weaken fundamental principles of the European Union, such as freedom of movement of people. Next week’s European Council represents a first engagement at the level of Heads of State or Government on this issue. Much works lies ahead and Ireland is ready to play its part.