Oireachtas Joint and Select Committees

Wednesday, 13 October 2021

Joint Oireachtas Committee on European Union Affairs

State of the Union 2021: Discussion

Ms Barbara Nolan:

The Deputy referred to an inadequate response. The Commission has been doing its best. It has taken infringements wherever there have been breaches of rule of law or fundamental rights, against Poland and Hungary, and any other member state in that situation. The Commission has not yet lost a single case. All of those cases are very sensitive and delicate and take a long time to prepare, but they are extremely important because we are defending important principles. There have also been Article 7 proceedings, as the Deputy probably knows, but Article 7 requires unanimity of the member states and we do not have that when it comes to these situations. There have been several processes and attempts to rein in the excesses but, so far, it has been more piecemeal than we would have liked, but we are using everything we can.

We also have this rule of law mechanism since last December where EU funding can also come into play. If there is a breakdown of rule of law or a situation where we are not happy that EU funds can be managed in the correct way, EU funding can be stopped. As I said, there is a toolbox and I do not want to pre-empt what the Commission will do because it is studying the situation. There will be a comprehensive response in time to this challenge to the supremacy of EU law.

On the green deal, it is correct that there may be winners and losers to some extent, but several funds are being put in place to help to alleviate some of the negative effects on certain groups. First and foremost is the Brexit adjustment fund, whereby Ireland will get the lion's share among member states. Some of the funding is to go to fishing communities that have suffered quota cuts as a result of the Brexit deal, for example. We will also have a climate adjustment fund, which is also supposed to help with the adjustment to climate change. It is to help people with retrofitting, for example. It will help those in energy poverty or those suffering from some of the side-effects of going green. The social climate fund will have around €72 billion. It is to help citizens to finance investments in energy efficiency, new heating systems and cleaner transport. There is also the just transition mechanism, which is run by the Directorate-General for Regional and Urban Policy, DG REGIO, which will provide targeted support to regions and sectors most affected by the transition towards the green economy.

We have anticipated that the adjustments will be painful in certain areas and for certain sectors. I have referred to at least three different sources of funding that are supposed to alleviate the negative aspects of adjustment to the green agenda. On the farming side, the Common Agricultural Policy, CAP, is still one of the biggest funds we manage at EU level. The policy will still exist. It will be greener in the future but support for farmers is still part and parcel of what the EU does and is about. Combined with the other funds, we should be able to shore up and support the sectors mentioned.

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