Dominic Hannigan (Meath East, Labour)
Link to this: Individually | In context | Oireachtas source

I remind those present to please ensure their mobile phones are switched off, not just turned to silent mode. We have received apologies from Deputy Seán Crowe and Senator Terry Leyden.

The first item on the agenda today is a discussion of the priorities of the Lithuanian Presidency. On behalf of the committee I am delighted to welcome to our meeting today His Excellency Vidmantas Purlys, ambassador of Lithuania to Ireland. I thank him for coming to talk about the programme and priorities of the Lithuanian Presidency of the Council of the European Union. Lithuania took over the Presidency at the start of this month at the end of our Presidency. Hosting the rotating Presidency is always demanding for member states, as we well know, particularly smaller ones. This is Lithuania's first Presidency since it joined the European Union nine years ago. It was our seventh Presidency. We very much look forward to Lithuania's Presidency. I have no doubt it will rise to the challenge. I was fortunate to attend the first event for members, the COSAC chairpersons' meeting, which took place on Sunday and Monday of this week. We had an excellent visit to the capital, Vilnius, and also to Trakai Castle. We had a very good, informative and robust session with the Lithuanian Commissioner for Inter-Institutional Relations and Administration and the Vice President of the Commission, Maroš Šefčovič. We discussed the priorities of the Presidency but also political and economic union. It was a very useful event, which was very well chaired by the Deputy Speaker of the Seimas, Gediminas Kirkilas. Most people went away refreshed and assured that the Presidency would be successful.

Before we begin, I remind members of the long-standing parliamentary practice to the effect that members should not comment on, criticise or make charges against a person outside the Houses or an official either by name or in such a way as to make him or her identifiable. I advise Mr. Purlys that by virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of the evidence they give to the committee. If he is directed by the committee to cease giving evidence on a particular matter and he continues to do so, he will be entitled thereafter only to a qualified privilege in respect of his evidence.

He is directed that only evidence connected with the subject matter of these proceedings is to be given and asked to respect the parliamentary practice to the effect that, where possible, he should not criticise or make charges against any person or entity by name or in such a way as to make him, her or it identifiable.

I invite His Excellency Mr. Purlys to make his opening remarks.

H.E. Mr. Vidmantas Purlys:

It is a great pleasure and honour to address the committee and I thank the members very much for the invitation. I will structure my presentation in three parts. First, I will briefly introduce Lithuania as a member of the European Union and outline our approach to the Presidency. Second, I will outline the context for the EU legislative process in the second half of 2013. Third, I will inform the committee of the plans and priorities of the Lithuanian Presidency.

I congratulate Ireland and the joint committee on an excellent Presidency. We are very happy about co-operation with Ireland in preparation for the Presidency, as trio partners and bilaterally, among capitals and in Brussels. Co-operation between Lithuania and Ireland is important to ensure continuity at EU level.

This is our first Presidency of the Council of the European Union. We believe and feel we are well prepared to steer forward the EU agenda. We have benefited greatly from the European Union and work hard to contribute to strengthening the Union's credibility, promoting growth, providing safety to the citizens and enhancing the international standing of the Union. In Lithuania, there is broad public approvalof our membership of the Union, as well as political party support on the European policy priorities, which cut across the political spectrum.

Lithuania developed successfully over the last 23 years since the restoration of independence in 1990 after 50 years of Soviet occupation. The last two decades were years of radical structural reforms, economic growth and modernisation. Although we experienced an economic downturn in 2009, we emerged strongly in 2010 and grew by over 3% in the last couple of years. Today Lithuania is one of the fastest-growing economies in the EU.

We believe it is important to engage closely with EU institutions and the member states since the EU legislative process is a collective exercise. We will be counting on both our preparation and the engagement of all our EU and worldwide partners in moving the EU agenda forward across a broad range of sectors. Lithuania will be a result-oriented and honest broker.A busy and exciting period is ahead of us. The Lithuanian Presidency is the first of a Union with 28 member states. We are very glad to welcome Croatia as a member state. The Lithuanian Presidency will mark the peak of the legislative activity in the current cycle, with European Parliament elections coming in May 2014. We will, therefore, have to deal with an agenda that is much busier than usual.

The Lithuanian Presidency comes last in the current EU budgetary cycle, meaning that decisions will have to be taken to give effect to the multi-annual financial framework for the period 2014 to 2020 and EU budget 2014. To have budgets adopted and money flowing in to concrete programmes is critical to the member states and EU citizens, especially in the current economic climate. This requires significant concerted efforts by the EU institutions. The MFF-related legislative package comprises 75 pieces of legislation. Fifty-nine of these files have to be closed by 1 January 2014. We should work hard to ensure the timely adoption of an EU budget for 2014.

The Irish Presidency has done a great job. Lithuania will continue on the same track, focusing on three main areas. We will work for a credible, growing and open Europe. The European Union's economic credibility is built on our ability to ensure financial stability and sound public finances. To this end, we must implement an enhanced framework for economic governance, deepen economic and monetary union, develop the banking union and protect the financial interests of the Union and its member states.

The banking unionwillbe a top priority for us. We will focus on reaching final agreement with the European Parliament on a bank recovery and resolution directive and on deposit guarantee schemes. The Commission's proposal on the single resolution mechanism was announced yesterday. On this file, we would like to make as much progress as possible with a view to completing this dossier by the end of the parliamentary term.

Financial market reform is also important. We hope it will be possible to reach agreement with the Parliament on the directive and regulation of markets in financial instruments, the Omnibus II directive, the market abuse regulation and the regulation on central securities depositories.

The framework for economic governance will be effective only when properly implemented. Therefore, before considering new elements, we need to ensure that the potential of initiatives such as the European semester, Stability and Growth Pact, six-pack and two-pack is fully realised. We await Commission proposals on ex ante co-ordination and the convergence and competitiveness instrument, and will take discussion of these issues forward in accordance with the decisions by the June 2013 European Council.

On credibility, we are determined to strengthen the Union's efforts in the fight against tax fraud and tax evasion so as to protect the financial interests of the Union and its member states. We will seek agreement on a revised savings taxation directive and seek progress on some other legislation in this area.

Stability in financial markets will help restore confidence. However, more needs to be done to secure sustainable economic growth. Therefore, the second priority of the Lithuanian Presidency will be a focus on growing Europe. We need growth that results in real jobs for the people of Europe. We need growth that enhances European competitiveness. To this end, we will redouble our efforts on the Europe 2020 strategy and on effective implementation of the compact for growth and jobs. We will ensure that the next European semester cycle gets under way in good order. We expect the annual growth survey to be presented by the European Commission in November and we will steer discussion in the Council on this issue.

Growing Europe also means going further to complete the Single Market. As holders of the Presidency, we are keen both to complete the Single Market I package - with particular emphasis on the implementation of the services directive - and make good progress on the Single Market II initiatives, notably on product safety and market surveillance regulations, electronic invoicing in public procurement and reducing the cost of deploying broadband communications.

Specifically, on the digital single market, our aim is to establish a clear link between the digital agenda, integration of the services markets, and a SME-friendly regulatory environment. Cutting the cost of communications is critical for business, especially SMEs, so we need to reach agreement on trans-European telecommunications guidelines and e-identification. The digital market will not be effective without proper cyber-security so we will be considering also this particular issue.

The Presidency will seek to ensure that the implementation of smart regulation initiatives promote favourable environment for business, in particular SMEs.

The next priority is the internal energy market. The 2014 deadline for its completion is rapidly approaching. We will focus on implementation of the third energy package and the list of projects of common interests. The completion of the energy market in Europe will allow the main costs for companies and economies more affordable and make our own economies more competitive. We in Lithuania are very well known as being cut off from the rest of the Union and we know what it means not to be integrated into the internal energy market. In this regard, Europe needs to speak with one voice on external energy relations and our interaction with the major energy suppliers.

We firmly believe that progress on all these files will create employment opportunities, for young people in particular. We will put special emphasis on implementing the youth guarantee and youth employment initiative. We will initiate discussion and seek the adoption of the Council declaration on the European Alliance for Apprenticeships.

Research and innovation also drive growth and competitiveness. We want to develop a genuine single market for knowledge, research and innovation. Policy debate on a European research area will play an important part at the October European Council meeting.

The EU's regional market strategies also contribute to growth, so our Presidency will review progress in the strategies for the Baltic Sea and the new regions.

The last priority of the Lithuanian Presidency will be to strengthen the EU as a global model of openness and security. Croatia joined the EU on 1 July 2013 - the first day of our Presidency - but that does not make the enlargement portfolio any thinner. Current EU negotiations with Montenegro and Turkey will be further advanced, as will the European perspective of other western Balkan countries, including the start of EU accession negotiations with Serbia, as decided by the European Council.

Naturally, we place importance on the advancement of the EU's eastern partnership. November's eastern partnership summit in Vilnius should be an opportunity to sign an association agreement, including a deep and comprehensive free trade agreement with the Ukraine. Similar agreements with Moldova, Georgia and Armenia should also be initialled. We might also be able to look at advancing the process of visa liberalisation and facilitation for some eastern partnership countries.

Free trade agreements have the potential to foster economic growth and bring jobs to Europe. The Presidency will aim to accelerate talks on free trade agreements not only with the eastern partners but also with the Mediterranean countries and, most importantly, strategic partners like the US and Japan. That is also important to Lithuania nationally. Lithuania's exports make up 80% of our GDP. We have a small and open economy, so free trade is significant in our case.

Aiming at the effective control of European borders, Lithuania will seek to make progress in the Council on the so-called smart borders package. Other elements of an open Europe include development, continuing preparations for the UN General Assembly, and preparing Council conclusions on financing for development, as well as integrating the transition experience of member states in the EU's development co-operation.

In conclusion, Lithuania will devote particular attention to the parliamentary dimension of EU co-operation. Nine major parliamentary forums will be held in Vilnius, including three interparliamentary conferences and six meetings of the chairpersons of parliamentary committees. The Chairman and his colleagues are very welcome to visit Vilnius. I hope the Chairman enjoyed his previous stay there and had a productive discussion.

Parliamentary co-operation is of particular significance during the European Year of Citizens, which will conclude by holding a major civil society forum in Vilnius in December.

I thank members of the joint committee for their attention and look forward to their comments or questions.

Dominic Hannigan (Meath East, Labour)
Link to this: Individually | In context | Oireachtas source

Thank you, Ambassador. The joint committee will be visiting Vilnius again at the end of October for the 50th COSAC plenary session. We had an opportunity to debate the agenda for that event at the weekend and it looks very promising. There will probably be three or four members of this committee in attendance. In addition, at least one member of this committee will attend the Article 13 conference in mid-October. In the coming five and a half months, therefore, there will be a number of visits by members of this committee to Vilnius.

Kathryn Reilly (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I would like to welcome the ambassador to the joint committee. My first question might be off the topic of the Lithuanian Presidency. What action will the Lithuanian Government take concerning some of Lithuania's prisons? I raise this issue because in two recent court cases - one in Dublin and one in Belfast - the judges refused to extradite individuals who faced possible imprisonment in Lithuania. This was because of the conditions there, including overcrowding. The European Committee on the Prevention of Torture and the European Court of Human Rights have conducted research on prisons in Lithuania and have stated that the conditions in one particular prison remain inhumane and degrading. Given that Lithuania currently holds the Presidency, what will the Lithuanian Government be doing to improve prison conditions, including some prisoners' human rights and the visiting conditions which for some people may be conducted in a harsh environment?

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I appreciate that the ambassador has updated the committee on the priorities for Lithuania's Presidency. I wish to concentrate on the issue of a banking union and the banking recovery and resolution agenda. The ambassador will be aware from a programme country perspective that we have been encouraged by the decision taken in June 2012 on the notion of breaking the link between the sovereign and bailing out banks. Clearly, however, a significant amount of work has to be done to resolve various issues before that comes to pass. I would like to get an idea from the ambassador about what timeframe is involved in getting to a point where the necessary architecture will be in place, so that once and for all we can say that the link between weak sovereign and weak banks is broken. To that extent, the burden will no longer be required to be borne by taxpayers in a potential bailout situation.

As regards strengthening the 2020 growth strategy, we all recognise that while much of our discussions during the Irish Presidency were about trying to resolve the financial crisis that has developed across Europe and elsewhere in recent years, we will hopefully at some point reach the end of that. It will only happen, however, when there are sustainable levels of growth. Has the Lithuanian Presidency set any growth targets it hopes to achieve across Europe by the end of the year?

Eric Byrne (Dublin South Central, Labour)
Link to this: Individually | In context | Oireachtas source

I would like to extend a warm welcome to ambassador Purlys, whom I have met on previous occasions. I applaud him and his embassy staff for liaising with the Lithuanian expatriate community in Ireland. Officially that community is around 37,000 but may be as high as 50,000. I congratulate the embassy for maintaining that cultural link with the Lithuanian diaspora here. They are very welcome. They bring a lot of cultural diversity to Ireland, which is more than welcome.

This is an exciting time for Lithuania. We have so much in common and have comparable populations. Lithuania has suffered a lot from the same difficulties that we do, including emigration. I hope the ambassador will find the liaison with the Irish Presidency's officials to be beneficial, given that Lithuania is now holding the Presidency for the first time. It is a major, challenging task but I am sure Lithuania is quite capable of coming to terms with it. During the Irish Presidency I was amazed at the amount of activity that parliamentarians, including Ministers, and civil servants had to undertake in hosting such an important event. I wish Lithuania well in carrying out this task.

Lithuania is situated in a very important region and is closely involved through the Nordic-Baltic co-operation agreements with its neighbours, including Estonia and Latvia. I am curious to know how Lithuania will handle the developing relationships with the former adversaries, the Russians who border on Lithuania. We are aware of tensions with Russia and earlier in the week we read about the Magnitsky case. The Lithuanian President has been involved in answering questions about that matter. The gentleman who came here, Mr. Browder, has been sentenced to nine years in prison in absentia by the Russian authorities. We know how sensitive the Russians are about such issues, but it is obviously more sensitive for Lithuania and its immediate neighbours in the Baltic states in terms of how it can develop relationships with Russia.

I wish Lithuania well in holding the current Presidency. How does Ambassador Purlys see the evolution of relationships between Russia and Lithuania in the coming six months?

H.E. Mr. Vidmantas Purlys:

With regard to the prison situation, Lithuania is party to all major European conventions and organisations such as the Council of Europe, the Organisation for Security and Co-operation in Europe and the European Union, as well as the United Nations. We comply with all the human rights frameworks that are in place that govern prison conditions. These are improving and will continue to improve. I am not an expert on prison conditions but I assure the committee it is developing in a positive direction. I hope this is shared all by other European partners and all prison conditions are getting better.

The further development of a European banking union is an important priority for the Lithuanian Presidency. There are several directives and regulations that need to be adopted to give effect to the banking union. Two of them were agreed under the Irish Presidency and will have to be negotiated with the European Parliament. We will take a hands-on approach to these discussions with the European Parliament with a view to wrapping up these conditions by the end of the year. The recent announcement by the Commission of the single resolution mechanism directive is a further building block for banking union. We hope to have this directive adopted by the end of the parliamentary term of the current European Parliament. The breaking of the link between sovereign and banking debt will be discussed while these regulations are debated.

The implementation of the EU 2020 strategy is in full gear. I do not believe new targets will be established for the remainder of this year. Lithuanian will vigorously push the EU 2020 agenda as agreed by the relevant Council conclusions and EU documents.

I thank the committee members for their kind words with regard to the diaspora and the Lithuanian community here in Ireland. Liaising with our nationals is a significant part of our embassy’s work. I thank the committee members for their good words on our co-operation and that it will develop positively. I fully agree co-operation between Lithuania and Ireland is very close. There is a good deal of co-operation between the two countries’ officials, parliamentarians and Ministers at EU and OSCE levels. The Lithuanian Presidency will open new windows for engagement with Irish officials and Ministers. The Lithuanian community in Ireland is the strong human bond that connects the two countries.

With regard to the Magnitsky case, it will depend on the discussion between EU member states as to how the response will develop. The Lithuanian Presidency will not take its own initiatives in this regard and will listen carefully to what our partners have to say on this particular issue.

As regards relations with Russia, it is a strategic partner of the EU. There is the partnership for modernisation and the post-partnership co-operation agreement with Russia. There are trade relations with Russia which are important to many EU countries. There is also a human rights dialogue. These are all important building blocks in our relationship with Russia. By and large, we have constructive and pragmatic relations with our Russian partners in a variety of areas including trade and economy.

In the area of energy, there are several actions the EU can take to balance the relationship with Russia’s major suppliers. The completion of the Internal Market with good energy infrastructure links will be very beneficial to all of our economies. It can assist in providing alternative sources of energy, reducing prices and boosting our competitiveness.

Seán Kyne (Galway West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I welcome the ambassador to the meeting and wish his country the very best during the forthcoming six months of its Presidency.

What impact has the instability in the European Union and world economies had on Lithuania? He referred to the autumn summit in Vilnius between the EU and its eastern partnership countries. How are relations between the EU and its eastern partnership countries? Obviously, there are concerns about relations with Russia in those countries which depend on Russia for oil and gas supplies. What opportunities exist for the EU to develop trade links with Russia?

Colm Burke (Fine Gael)
Link to this: Individually | In context | Oireachtas source

I welcome the ambassador to the meeting and wish his government every success during its Presidency.

The European Commission is winding down between now and 2014. Certain issues will be parked by Commissioners because they know they will not have them dealt with by the end of June 2014, while others will be prioritised. Has Lithuania any concerns about these issues?

Another issue that needs to be tackled is youth unemployment across Europe. While economic growth is important, dealing with youth unemployment is a far slower process.

Over the next six months and in particular over the next 12 months, does the ambassador see any way this issue can be fast tracked as regards trying to deal with that issue in each individual state? I know each state has its contribution as well as assistance from Europe.

The other issue of importance from an Irish perspective is the EU trade agreement with the US. How does the ambassador see that progressing over the next six months and 12 months because it is very important from both an Irish and European perspective because the growth of exports to the US is important for us? While much progress has been made over the past 12 months and two years on a number of key areas like CAP reform and the budgetary issue, there are still major challenges facing Europe. Youth unemployment is one issue facing us with which we need to deal very quickly from now on.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Like other speakers, I welcome Mr. Purlys and wish him well during the course of the Presidency. What is his overall opinion of the EU, its evolution and the extent to which it is meeting expectations in its development and in achieving its goals? Does he see any particular areas of concern with particular reference to the need for the EU to speak as an entity as opposed to speaking at itself or different regions appearing to speak to each other in less than deferential terms? Will he and the Presidency be in a position to encourage the evolution of unity of purpose within the EU?

My next question concerns the availability of dual passports for some people. For example, in Ireland, there are some people who qualify for Irish passports and I understand that some difficulties arose in respect of obtaining dual passports in Lithuania. To what extent has that been resolved?

My other question relates to stateless persons. To what extent are people categorised as stateless in Lithuania? How are they accommodated? We have a number of stateless persons of Russian origin in this country. We are coming to terms with arranging their eligibility for naturalisation but there are some who still find themselves in literally a no-man's land for a considerable length of time. To what extent will that be resolved?

Reference has been made by other speakers to the EU's neighbourhood policies. To what extent does Lithuania see itself as being able to encourage the development of that neighbourhood policy to the south, east and north?

Dominic Hannigan (Meath East, Labour)
Link to this: Individually | In context | Oireachtas source

Before I bring in Deputy Crowe, can I expand on that last point? I would be interested in hearing about neighbourhood policy relating to the west. Could the ambassador include Kaliningrad in his answer?

Seán Crowe (Dublin South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The ambassador spoke in terms of the targets for the Presidency. Does he agree that across Europe, there is a sense of crisis in many states, for example, with youth unemployment, more and more people in debt and people losing their homes? If there have been criticisms of the Council of Europe and what is happening within Europe, one of them has been that there does not seem to be that understanding within the leadership of that sense of crisis. How important will it be for the Lithuanian Presidency to convey that sense of crisis relating to the major issues mentioned here and that need to be addressed? How important will that be in respect of resolving some of these larger issues affecting Europe?

The EU was expanded during the Irish Presidency with Croatia as a new member state. I thinking of some other states, particularly in the Balkans, and the difficulties affecting Bosnia-Herzegovina. Is this a priority for the Lithuanian Presidency in terms of trying to support such states, which are certainly interested in reaching the criteria for EU membership? It is those states that are being left behind. Does the ambassador feel this could create instability in many regions? Has the Lithuanian Presidency any plans in respect of that?

On the last occasion I was in Lithuania, I attended a conference on people trafficking. This does not just involve sex trafficking. The media focus on it but one can also find economic trafficking of individuals and modern slavery. Does the Ambassador see that as an issue for Lithuania? We have heard reports of sham marriages and the importance of greater co-ordination among European countries on this. This is one of the major issues. We are talking about huge money being made out of the total exploitation of people. Is that on the agenda for Lithuania?

My colleague, Senator Reilly, raised the issue of prisons. The interest for people here is the case of Michael Campbell who is in prison in Lithuania. The information from his family and friends is that conditions are appalling and the courts seem to be backing that up. The Presidency does not involve looking at one's own state but it is important that conditions be improved if international committees consider them inhumane and degrading. I think we would all be concerned about that, particularly because of what Irish prisoners have gone through over the years. Could the ambassador keep an eye on the situation involving that prisoner?

Dominic Hannigan (Meath East, Labour)
Link to this: Individually | In context | Oireachtas source

I will hand over to the ambassador. If he would like to answer the questions and sum up, we would appreciate it.

H.E. Mr. Vidmantas Purlys:

I thank members for all the questions. Questions relating to the economic situation, instability and unemployment, particularly youth unemployment, form one package of issues that are top of the agenda in the EU and in the minds of leaders and politicians in EU member states. In my presentation, I also put an emphasis on the economy and employment. In particular, youth unemployment is at the core of our priorities. There are no specific Lithuanian priorities in this regard. This is all about continuity and the sense of urgency in this area. We are taking over from Ireland and will continue in pushing forward whatever decisions are there to alleviate or stabilise the situation or address unemployment. Further building of economic and monetary union, creating the banking union, implementing all the instruments that have been put forward among us in Europe like the European semester and all the other relevant documents and above all, agreeing on the multi-annual financial framework and giving the budget for Europe for 2014 are really important objectives to have the money flowing into the concrete programmes so that such initiatives as the youth guarantee and others can be adequately financed and spread out across countries.

Lithuania is also very interested in availing of this opportunity since unemployment is also a problem there. It is decreasing at the fastest rate in Europe but is still around 13%, and higher for youth unemployment. There are further initiatives, including apprenticeships, the posted workers directive and some others which we see as moving in the direction of helping to deal with that issue.

We have significant energy relations with Russia, which is one of the biggest suppliers of energy to the European Union. We want that relationship to be stable, predictable and based on all the rules we have in the EU the World Trade Organisation and other relevant forums. Over-reliance on one supplier is not a good thing, so for countries such as Lithuania, which is very dependent on one external supplier, especially in the gas sector, it is important to have viable alternatives. We are building bridges with the rest of the EU to provide these alternatives and running a number of projects to reduce our energy dependency. There are many other related issues including energy efficiency.

The end of the political cycle in the EU and nearing the completion of the Commission mandate is a factor that impacts on our Presidency. There are many initiatives on the agenda and we counted approximately 500 files at different levels of maturity. In co-operation with the European Commission, the European Parliament and other member states, we need carefully to establish the most important priorities. We had our three-year programme launched by Ireland, Lithuania and Greece. That provides an 18-month framework. Ireland has its own priorities and has adopted many important decisions, including EU-US trade and banking union. We will continue to build on that and work on all these important files.

Trade with the US is important for the EU and Ireland, and very important for Lithuania, given the size of our country and our exposure to international markets. We are an open, trading country and will work very vigorously to move those negotiations forward. There was a meeting on Monday in Washington which launched these negotiations, which were agreed under the Irish Presidency. We will work hard to proceed on that. I do not want to prejudge any timelines but there is a full commitment on our side to move ahead with US trade negotiations.

I am not aware of the dual passports issue so maybe we can have that discussion and clarify that. Regarding stateless persons, I am not aware of it as an issue in Lithuania. When Lithuania was re-established in the 1990s, citizenship was granted to all our citizens regardless of nationality, so there are no stateless persons in Lithuania. We do not have that issue there.

Neighbourhood policy is very much the priority for the Lithuanian Presidency. When we speak about the EU as a global partner we firstly think about asserting our influence in our neighbourhood. What is beyond our immediate borders is extremely important, be it the Eastern Partnership, the Mediterranean or the Russian Federation. We must see that we have the right policies in place, that we encourage our partners to move closer to Europe and on a good European path in their development so that our relations are stable. We must ensure they have their European future and move on to closer economic integration, becoming part of the internal market and getting as close as possible in political terms to the EU. It falls under the Lithuanian Presidency to arrange a summit of EU partnerships that brings together all EU leaders and leaders from Ukraine, Belarus, Moldova and three south Caucasus countries, Georgia, Armenia and Azerbaijan. This summit is an opportunity to strike some important strategic decisions vis-à-visthese countries such as an association agreement with Ukraine, provided Ukraine addresses some of the issues that Europe asks it to deal with. These are European countries and they are our neighbours, and there are good economic prospects for co-operating with them. It is extremely important to have these countries developing in a way that ensures a good European market economy and the protection of human rights and the rule of law.

Kaliningrad Oblast is also a neighbour to the west. That is an important partner, as is the whole Russian Federation, so we have close ties with this region on the municipalities level and there are opportunities for tourism and cultural relations. We are working on getting those relations on a good, stable footing and exploring the possibilities for co-operation there.

We are very much a pro-enlargement country and we welcome the European Council's decision to begin accession negotiations with Serbia. We hope these negotiations will begin under our Presidency. The major agreement we negotiated with Serbia was ratified by all countries and we have to start implementing that. Other western Balkan countries are at a different level of relations with the EU and we hope they will proceed consistently towards the objective we set in Thessaloniki many years ago. The destiny of these countries is within the EU so the work must be done on the ground to provide conditions for the EU to move ahead with negotiations. We see potential to upgrade relations with a number of countries, including the former Yugoslav Republic of Macedonia, Montenegro, Bosnia and Herzegovina, and Kosovo. We will be working to see that there is as much progress as possible, given the conditions on the ground and the framework of discussions and consensus we can see within the EU.

Regarding prisons, I do not have anything to add to what I said in reply to Senator Reilly's inquiry.

If she provides me with more information on relevant documents from any reputable international organisations in which the conditions are described as degrading or inhumane I will seek answers in Vilnius on whether there is non-compliance in this regard.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

With regard to the economic situation in Lithuania, I could not help but notice that according to our briefing note, in 2009 it had a fiscal deficit of 9.5% and four years later this has fallen to 3.2%, which is a rate of adjustment almost twice what has been achieved in Ireland. Will Mr. Purlys explain the changes which have been made to deal with this to hospitals, schools and public sector wages so we have a feel as to what has happened? Will he also explain what has happened to the currency during this period?

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

My reference to passports was that a ruling of a constitutional court in Lithuania in 2006 made it more difficult for Lithuanians living abroad throughout the European Union to obtain dual citizenship. Some legislative changes took place in 2011 which eased and addressed the situation somewhat, but there is still a problem for children of Lithuanian parents born in Ireland who are anxious to have dual citizenship. People of Lithuanian birth are very anxious to retain their national passports.

H.E. Mr. Vidmantas Purlys:

With regard to Deputy Donohoe's questions on the measures taken since 2009, savings were made across the board, public sector salaries were cut and our capital programme was reduced.

Dominic Hannigan (Meath East, Labour)
Link to this: Individually | In context | Oireachtas source

Will Mr. Purlys provide information on percentages?

H.E. Mr. Vidmantas Purlys:

I do not want to mislead the committee so perhaps I can provide the information later. From my experience as a civil servant, cuts of approximately 15% to 20% were made. Cuts were also made in other areas, such as to state pensions, which was a sensitive issue. We feel the decisions made worked because the following year we had growth and this growth is continuing. With regard to macroeconomic indicators on growth and investment, on balance we are doing quite well. We aim to introduce the euro in 2015. We welcome the decision by ECOFIN which approved Latvia's entry to the eurozone on 1 January, and we are keen to introduce the euro in 2015. We will consider our deficit and inflation conditions at the time.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Why does Lithuania want to join the euro?

H.E. Mr. Vidmantas Purlys:

Our currency is tacked to the euro at a fixed rate so in effect we are a de facto part of the eurozone and we do not have our own monetary policy. It makes sense to become a member of the eurozone and participate in it. I alluded to the fact we are a pro-European country and we see deeper integration in the EU as a strategy to strengthen our statehood and independence. Since our independence in 1990 the European project has been very much related to our freedom and statehood. Given the region in which we are based, and our historical experience and legacy, the way forward seems to be to get as deep as possible into the EU. This is an additional dimension to the question.

Dominic Hannigan (Meath East, Labour)
Link to this: Individually | In context | Oireachtas source

I thank Mr. Purlys for coming before the committee and taking part in a very constructive engagement. We wish Lithuania the very best with the Presidency and perhaps Mr. Purlys will come before the committee again towards the end of Lithuania's Presidency to update us.

H.E. Mr. Vidmantas Purlys:

I thank the Chairman and the committee.