H.E. Mr. Stéphane Crouzat:

I thank the Chairman and distinguished members of the committee. First, I would like to express on behalf of the French Government and the people of France my deepest condolences to the families of the victims of Storm Ophelia.

Our sympathy goes to all those who have suffered because of this storm. France stands ready to help with the recovery efforts.

Thank you very much, Chair, for your invitation to discuss the future of Europe. I congratulate you and your committee for putting this crucial topic on the agenda. I am very honoured to be given the opportunity to present to you my authorities' contribution to this debate.

I will start with Brexit, which is a very pervasive issue, particularly in Ireland. That is understandable, because Ireland is on the front line. The British people have made their choice. We regret it, but we respect it. The 27 member states are negotiating in a unified manner and with clear principles. The conditions for the withdrawal of the UK from the EU have to be well drawn out before we can agree to discuss the terms of our future relationship. France will stand firm to maintain this unity and solidarity of the 27, in particular regarding the Irish Border.

Brexit however, must not deplete our energy. As my President has said, "The Union with 27 member states must be stronger than an EU with 28 member states minus one". The EU needs to go forward. President Macron has put a new European ambition high on his agenda. He expressed it with vigour, first in Athens, then in his speech at the Sorbonne on 26 September. He affirmed two convictions that have guided his actions since the beginning of his presidency. The first is that in an unstable world, only Europe will allow us to exercise our sovereignty and be fully in control of our destiny. The second is that the European project can only succeed if we bridge the gap that has grown over the years between peoples and European institutions, to the extent that nationalism and populism may threaten our democracy. We cannot afford to keep the same policies, the same habits, the same procedures and the same budget. Neither can we choose to turn inwards within national borders. The only way to ensure our future, is the rebuilding of a sovereign, united and democratic Europe.

The proposals that the French President has made are set out in a specific period of time. First, 2019, when the European elections will take place and, second, 2024, which will be the timeframe given to the next Commission. This is the timeframe for rebuilding Europe. I will try to sum up in a few words some of President Macron's proposals which he set out in an hour and a half. I promise I will be shorter. The first is a sovereign Europe. The French President has set out six keys to European sovereignty. The first is a Europe that guarantees every aspect of security: be it in the area of defence, with the swift implementation of the European Defence Fund and permanent structured co-operation, and a European intervention initiative enabling us to better integrate our armed forces at every stage, be it in the fight against terrorism, where Europe needs a European intelligence academy to ensure closer ties between our intelligence services, and a European public prosecutor's office for organised crime and terrorism; be it in civil protection, where Europe needs a common civil protection force, pooling our resources for rescue and intervention, thus enabling us to respond to disasters.

The second key to European sovereignty is a Europe that addresses the migration challenge. We need to create a common area for border management, asylum and migration, in order to effectively control our borders and receive refugees in decent conditions. We need to create a European asylum office that will speed up and harmonise our procedures. We need to gradually establish a European border police force that ensures rigorous management of borders.

The third key that the French President has set out is a Europe looking to Africa and the Mediterranean. Official development aid needs to be increased. My President has announced that France will commit to increase it to 0.55% of GDP by 2022. What we propose at a European level is to relaunch the project for a new European tax on financial transactions to finance this policy. All of its receipts would go to official development aid.

Fourth, is a Europe exemplary in sustainable development. We need to fix a fair price for carbon, one that is high enough to ensure the energy transition, at least €25 to €30 per tonne. We need to develop electric interconnections to make the European energy market function more efficiently. Our bilateral project - the Celtic interconnector - makes complete sense in this respect. We also need a European border carbon tax, to make sure that our manufacturers that are most exposed to globalisation are on an equal footing with competing companies from other regions that do not have the same environmental requirements. Europe needs to establish an industrial programme to support clean vehicles and the required infrastructure such as charging stations in particular. It needs to ensure its food sovereignty by reforming the Common Agricultural Policy, CAP, with two important objectives, namely, protecting us from volatile global markets that could threaten Europe's food sovereignty and promoting the major European agricultural transition and giving countries more flexibility in organising their regions and sectors. Our recent debates on glyphosate and endocrine disruptors have proven the need for European scientific assessment that is more transparent and more independent, with better-funded research so that risks can be identified and alternatives proposed. We must also establish a common inspection force to guarantee food safety for Europeans, tackle fraud, and ensure compliance with quality standards throughout Europe.

The fifth key is a Europe of innovation and regulation adapted to the digital world. Europe needs to establish an agency for breakthrough innovation, jointly funding new fields of research, such as artificial intelligence, or those that have yet to be explored. It needs to ensure equity and confidence in the digital transformation, by rethinking its taxation of digital companies, and regulating the major platforms. We propose to tax the value created, where it is produced, which will allow us to overhaul our tax systems and to stringently tax companies which relocate outside of Europe for the specific purpose of avoiding tax.

The sixth key is a Europe standing as an economic and monetary power. We need to make the eurozone the heart of Europe's global economic power. In addition to national reforms, Europe needs the instruments to make it an area of growth and stability, including a budget allowing it to fund common investments and ensure stabilisation in the event of economic shocks. This budget must be placed under the strong political guidance of a common Minister and be subject to strict parliamentary control at European level.

The second issue put forward by my President was a united Europe. First, there would be concrete solidarity through social and tax convergence. We need to encourage convergence across the whole EU, setting criteria that gradually bring our social and tax models closer together. Where tax is concerned, we need to define a "corridor" for corporation tax rates. We cannot have such disparate corporation tax rates in the European Union. This is why we would like to see a binding rate range that member states must commit to ahead of the next European budget in 2020. Compliance with this corridor would determine access to the European Cohesion Fund.

In social affairs, we need to develop true social convergence and gradually bring our social models closer together. We need to guarantee a minimum wage for all, adapted to the economic realities of each country, and regulate social contribution competition.

The second key for a united Europe is culture and knowledge. Creating a sense of belonging will be the strongest cement for Europe.

We need to step up exchanges, so that all young Europeans spend at least six months in another European country, 50% of each age group by 2024, and that all students speak two European languages by 2024. We need to create European universities. Networks of universities that enable students to study abroad and attend classes in at least two languages. In high schools, we need to establish a process of harmonisation or mutual recognition of secondary education diplomas, as in higher education.

The third point my President pointed out related to a democratic Europe. There is a need for debate and this is why we propose democratic conventions. For six months, national and local debates will be organised in 2018 in all EU countries that volunteer, on the basis of common questions, in the run-up to the 2019 European elections. The Irish experience in this regard will be sought, and will be very helpful.

I refer to strengthening the European Parliament with transnational lists. We propose, starting in 2019, to use the quota of seats of departing British MPs to create transnational lists where people vote for the same MEPs throughout Europe. At the following election, as many as half of the European Parliament could thus be elected on such transnational lists.

What does the French President envision for Europe by 2024? He envisions a European Union founded on common democratic values that are non-negotiable, values where there can be no two-speed Europe; and a European Union founded on a simpler and more protective single market, along with an overhauled trade policy. This EU, if it enables ambitious differentiations, could gradually expand to include the western Balkan countries. That will require reform of EU institutions, with a smaller Commission, downsized to around 15 members and in a few years’ time the UK will be able to find its place, if it wishes, in this EU refocused on uncompromising values and an effective market. Within this EU, those who want to go further and faster need to be able to do so unhindered. Co-operation will always be open to all, based on the sole criterion of the level of shared ambition, with no predefined format.

All states which share this ambition can take part in the launch of a group for overhauling Europe. This group will include representatives of each participating member state and will involve European institutions. Until summer 2018, it will work to clarify and propose measures that will implement this ambition, drawing on the debates held in the democratic conventions. Theme by theme, the tools required for the overhaul will be examined. We hope Ireland will join in this reflection process.

I thank the Chairman and the distinguished members of the committee very much for their attention. I look forward to our discussion.