Eamon Gilmore (Dún Laoghaire, Labour)
Link to this: Individually | In context | Oireachtas source

I thank the Chairman. As always, it is a pleasure to have this opportunity to meet the Oireachtas Joint Committee on European Union Affairs and to brief it ahead of this month's meeting of the General Affairs Council which will take place in Brussels on Monday, 24 September. The General Affairs Council will meet for a morning session next Monday. I will represent Ireland and will be joined by the Minister of State, Deputy Creighton. The primary focus of the meeting will be the multi-annual financial framework, MFF, preparation of the October European Council and the European semester. Over lunch, we will have a discussion on the working methods of the General Affairs Council.

Discussions on the MFF will be based on an updated negotiating box which the Cypriot Presidency circulated yesterday evening. It does not, as yet, contain figures. These will probably not appear until after the October European Council. As the committee is aware, negotiations on the MFF are intensifying. The Cypriot Presidency and European Council President Van Rompuy want negotiations to conclude at the 22-23 November European Council. We strongly support this timetable and we will do what we can to support the Cypriot Presidency in its efforts to broker a deal. In any case, it will fall to us during our Presidency to steer underpinning sectoral legislation through the European Parliament.

Our position on the MFF is quite clear. As the committee knows, we want a properly funded and properly functioning EU, with the right mix of priorities, fair allocation of resources and a firm focus on jobs and growth. We see a need for continued food security and safety, which warrants only gradual changes to the CAP. We also have an express national interest in defending our share of CAP payments. In particular, we want the MFF to reflect the importance of job creation as well as growth. We have stressed to partners the importance of the agrifood sector for growth.

While we are slowly approaching agreement on the MFF, it is clear there are still wide gaps between the positions of member states and there is a long way to go before we can get agreement on this dossier of vital importance for the medium-term future of the Union. The key issues, and the most difficult ones, in the MFF negotiations in the coming months will be the overall size of the MFF, the relative proportions allocated to CAP, Cohesion and other headings, and the funding of the EU budget, including arrangements for rebates and corrections.

The General Affairs Council will also prepare for the October European Council through consideration of the annotated draft agenda for that meeting which has been made available by President Van Rompuy. He has identified three main issues for discussion, namely, economic policy, strategic partners and foreign policy issues in light of events. Under the economic policy heading, President Van Rompuy will present his interim report to the European Council on strengthening Economic and Monetary Union, building on his first report prepared in collaboration with the Presidents of the Commission, the ECB and the Eurogroup in June. His final report is due to be made before the end of the year.

President Van Rompuy is investigating in more detail what might be required under the four headings he set out in June. These are: an integrated financial framework, often referred to as "banking union"; greater economic policy co-ordination; more fiscal or budgetary integration; and democratic accountability and legitimacy.

An essential process of consultation is now under way, with a round of official level bilateral meetings taking place this week – Ireland's bilateral will take place in Brussels tomorrow, 20 September – to be followed early next month by collective meeting of all member states with President Van Rompuy's team.

Of the elements President Van Rompuy is pursuing, banking union is being taken forward with real urgency. The Commission made its formal proposals for a single supervisory mechanism for banks in the euro area last week. Given the link between getting the concept of a supervisor off the ground and activating the possibility of the ESM directly recapitalising banks, there is a particular urgency to this work. The June summit set an ambitious deadline of the end of this year. This is, of course, an issue of importance for us, and President Van Rompuy has signalled that he wants the October European Council to assess progress being made and, as necessary, to set further orientations. Like us, he wants to see what was agreed in June implemented. Before concluding on this point, I would like to note that since the European Council and euro area summit meetings at the end of June, we have seen greater stability in the markets. Key to this has been the decision of the ECB to adopt its outright monetary transactions initiative, which opens the possibility of its buying the bonds of member states in difficulties.

The decision of the German Constitutional Court in Karlsruhe on the ESM was also very positive and welcome. The Commission's proposals on banking supervision have also contributed to a sense that we are getting to grips with what now needs to be done. However, to maintain this sense of increased confidence, we need to press forward urgently with implementation of what was agreed at the end of June. There can be no back-sliding. Confidence is fragile and a lack of progress could easily set us back again.

In October, leaders will also take stock of progress in the implementation of the compact for growth and jobs which they agreed in June. If required, they will set further orientations to promote growth and employment. The compact for growth and jobs is important reinforcement of political commitment to an EU growth agenda. The key task for us in the period ahead is driving it forward with real commitment and momentum. This is a vital national interest. Irish recovery depends on European recovery.

The compact provides a clear framework for actions at three levels: actions to be taken by member states; the contribution of European policies to growth; and EMU related growth factors. Ireland has been among those pushing most strongly for accelerated progress on the Single Market in particular, including the digital single market, as well as highlighting the role of international trade as an engine for growth. In particular, we look forward to the Commission's proposals for a new round of measures in the autumn under the Single Market Act, and to sustaining momentum in this area under next year's Irish Presidency.

There will also be a €10 billion increase in the European Investment Bank's paid-in capital on foot of the June meeting. This could expand the bank's lending capacity by some €60 billion over the next three to four years, and unlock a further €120 billion from other finance providers. The key Irish concern is that the approach must be sufficiently flexible to target investment where it is most needed, including addressing the particular circumstances of programme countries. This was the focus of our meeting with the new EIB president, Dr Werner Hoyer, when he visited Dublin on 6 July. On foot of that meeting, we have we have set up a high level working group with the EIB to examine the full range of issues involved in strengthening its support for Ireland. An initial report is expected in the coming weeks.

The October European Council will also discuss the EU's relations with key strategic partners. President Van Rompuy is keen that EU leaders consider relations with strategic partners on a regular basis and provide high level guidance on important issues, as necessary. While it is not anticipated that conclusions will be adopted on this issue, it will provide an opportunity for a free-flowing exchange of these critical relationships for the EU. It can be expected that the October European Council may also address certain foreign policy issues, as required.

This meeting of the GAC will contribute to a review of the operation of the European semester, which is under way, that aims to identify lessons learned from the experience in 2012, including a particular focus on procedures for the handling of country-specific recommendations. Given that Ireland will be presiding over the Council during the next European semester cycle, this exercise will be of particular interest to us.

Discussion will be on the basis of a paper prepared by the Cypriot Presidency. The Commission has also made proposals for more regular and structured contacts with member states. The second European semester cycle in 2012 operated under the enhanced economic governance arrangements introduced last December, and there was some disquiet about the preparatory arrangements in this regard. Ireland's CSR in 2012, as in 2011, is to ensure continued implementation of our EU-IMF programme. As the committee will be aware, the semester is the Union's annual cycle of economic and fiscal policy co-ordination and it is clearly growing in importance. The key aim is that policies implemented by member states reflect jointly agreed priorities.

The third semester cycle in 2013 is further reinforced by the compact for growth and jobs, as well as agreement in June that ESM assistance will be conditional on CSR implementation. The focus of the Cypriot Presidency paper is on lessons learned in 2012. It suggests that procedural improvements that might be considered include earlier presentation of the Commission's new alert mechanism report in November, alongside the annual growth survey; greater dialogue between the Commission and member states around the development of the Commission's CSR proposals, beginning with bilateral meetings in October taking stock of the 2012 CSRs; better organisation of the work of the committees supporting the ECOFIN and EPSCO Council formations, where there is important overlap on issues such as wage settlement, income tax and pensions policy; and the important Presidency role in striking an appropriate balance in this regard, including through greater involvement of COREPER ambassadors.

Initial discussion at next week's GAC will inform further consideration by both the EPSCO and ECOFIN Council formations. Refreshed arrangements on foot of the review under way will then be reflected in an Irish Presidency roadmap for the third European semester cycle. This is likely to be presented to the GAC in December.

Over lunch, Ministers will discuss the working methods of the GAC. To focus discussions, the Cypriot Presidency has circulated a paper focusing on the key role of the GAC in ensuring consistency in the work of the different Council configurations and in preparing and following up the work of the European Council. As the incoming Presidency in particular, we are especially interested in ensuring the GAC plays its full role in executing its responsibilities as regards the European Council, and we will be working closely with partners and with President Van Rompuy's office, as appropriate, to that end. This timely lunchtime discussion on working methods arises, in part, in response to a joint letter sent to the Presidency in July by the Minister of State for European Affairs, Deputy Creighton, along with her Finnish, Spanish and Italian colleagues.

The Cypriot Presidency has indicated that issue of the Roma community should be included on the agenda of this meeting of the GAC. We expect that this will largely be an information point, as it is anticipated that the Commission will make a presentation on its evaluation of national efforts aimed at inclusion of the Roma population. To this end, it will be noted that Ireland submitted its national Traveller-Roma integration strategy at the beginning of this year.

I appreciate the attention of members and I look forward to hearing their comments. I will be very happy to respond to any of points or queries.