Dara Murphy (Cork North Central, Fine Gael)
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I thank the Chairman for inviting me here this afternoon. I welcome members from the diplomatic community and others who are joining us. I am very pleased to address the committee in advance of next week's meeting of the General Affairs Council. The meeting will consider five issues, the first of which is the preparation for meeting of the European Council on 17 and 18 December. That Council will consider the migration crisis; Economic and Monetary Union and the Commission's proposals made on the basis of the five presidents' report; the Commission's roadmap for the further implementation of the Single Market; the EU-UK debate; and our relationships with Russia and the situation in Ukraine.

In addition to the December European Council item, the General Affairs Council will also hold a discussion on ensuring respect for the rule of law; the Inter-institutional Agreement on Better Regulation; the 2016 annual work programme of the Commission; and the European semester.

A separate General Affairs Council meeting will take place the following day on 18 November and I will attend that in place of the Minister for Public Expenditure and Reform, Deputy Howlin. As that is not a matter for this committee, I will not address it in my remarks today.

The General Affairs Council discussions on 17 November will build upon those that took place at last month's meeting and on which I have not yet had an opportunity to brief the committee, although the Taoiseach addressed the Dáil both before and after the October European Council. The October meeting was centred on preparations for the European Council that month and above all dealt with the very challenging issues of migration, Economic and Monetary Union, and, relatively briefly, the European Union and UK issue.

Following concerns raised by some non-euro currency member states, there was also an exchange of views on a pre-EPSCO meeting that had been convened by the Presidency for euro member states only.

In my intervention, I made the point that we are a Union of 28 member states and that we should meet and act as a group of 28, where possible.

The December European Council will discuss the issue of migration. This issue dominates debate at EU level and it was, once again, the main item on the agenda of last month’s Council. Much of the exchanges built upon earlier meetings of Heads of State and Government and on progress to implement the various proposals. There certainly have been some advances, for example in the first relocations from Greece and Italy to other EU member states, and in listing countries of safe origin. However, challenges remain in meeting commitments, including on funding and seconding personnel. The slow pace of progress led to President Juncker convening a mini-summit just ten days after the October European Council, for countries affected by migrants travelling along the Western Balkans route. Discussions continued in the Justice and Home Affairs Council, including this week, and there will be further developments at the high level Valletta summit which is taking place as we speak in Malta.

There has been a particular focus on Turkey, as a key player in the EU's efforts to tackle the crisis through reinforcing co-operation with third countries. Delivering on the action plan agreed with the Commission just before the European Council will be a significant challenge for the EU and Turkey in the period ahead. While no one has any illusions about how difficult it will be to step up co-operation, the fact is that the European Union and Turkey simply have to work together to address the crisis of migration. There is no possible solution which does not involve Turkey to a very significant degree.

From Ireland’s perspective, we continue to respond to the migration crisis across a number of fronts, balancing the focus on longer-term solutions with the need to tackle the immediate humanitarian challenges. The main elements of our response are as follows. We have voluntarily opted into EU programmes where we have offered to take 4,000 refugees and asylum seekers between relocation and resettlement programmes. We have provided six liaison officers to facilitate this work. Everybody is aware of the assistance provided by the Naval Service vessels to the search and rescue operations in the Mediterranean, where they have rescued 8,066 individuals since 1 May.

Our significant assistance to key organisations responding to the crisis including to the World Food Programme, where we have doubled our core contribution to €20 million per annum for the period 2016 - 2018; to the UNHCR, where we provided €5.8 million in core support in 2015, with an increase in core funding likely to be proposed for 2016; and to the UNOCHA, where we gave €3.5 million in core and discretionary funding in 2015. We will pledge €3 million over the next five years to the Emergency Trust Fund to Africa. In all likelihood, we will exceed a pledge made in March to provide €12 million this year to alleviate the impact of the Syrian crisis, bringing our overall contribution to €41 million by the end of 2015.

Discussions at the European Council in December will continue to focus on the EU’s response to the migration crisis. At this early stage, we expect that there will again be a particular emphasis on implementing agreed measures, including operational matters, such as the hotspots in Greece and Italy, providing experts and the agreement to commit funding are also likely to feature. We expect that relations with third countries, such as Turkey, the countries of the Western Balkans, and Africa, will also be addressed.

As the Chairman mentioned in his opening remarks, the Heads of State and Government will give further consideration to the five presidents’ report on Completing Europe’s Economic and Monetary Union, published on 22 June, and specifically the Commission's proposals of 21 October which seeks to give effect to some of the report’s recommendations at the December European Council.

As members know from their own hearings with Commission officials and academics, among others, the report proposes a two stage approach. The first stage is short term, up to 2017, and focuses on boosting competitiveness, maintaining responsible fiscal policies and completing banking union. The second stage is for post-2017 and could involve more significant changes to the EU’s economic and institutional architecture.

The report has been discussed in various Council formats and the Commission’s concrete proposals for stage one, which provide an anchor for further debate, have, as I said, now been published. These include an in-depth review of the six-pack and two-pack which set out detailed fiscal rules in the framework of the Stability and Growth Pact, some re-organisation of the European semester and a proposal for external representation of the euro area at international financial institutions. The Commission is expected to make further proposals, perhaps this month, and these are likely to focus on the completion of banking union. Issues such as strengthening competitiveness in the euro area, taking an overview of its financial position and strengthening the social dimension of the euro area have also been discussed.

Like many other EU partners, Ireland believes that the focus should be on full and effective implementation of the reforms already agreed in recent years. We should be prioritising what can be done now to build on and strengthen existing instruments and to make the best use of existing treaty provisions to develop and improve Economic and Monetary Union. In this context, the emphasis on completing banking union in the report was welcome. We believe this is one of the most important post-crisis reforms and, although much has been achieved, banking union needs to be completed without delay. We also want to see progress on the capital markets union and in this context, we welcomed the capital markets union action plan launched by the Commission at the end of September.

As regards economic governance, we strongly support the streamlining and optimisation of the European semester process which has been discussed at a previous committee meeting and which we see as an important vehicle for the delivery of reforms across the European Union.

We would be cautious about the creation of new institutions which might not add value to existing processes but might instead form an additional institutional layer. In this regard, we remain to be convinced by the proposal for a new euro system of competitiveness boards, not least because we already have the National Competitiveness Council. We would also question the added value of the newly established European Fiscal Advisory Board when Ireland, too, already has the Irish Fiscal Advisory Council. The proposed composition of the new body and its operational focus both need to be studied carefully.

As regards the report’s proposals for stage two, post-2017, there is a need to reflect on the issues raised. The recent significant reforms to the governance of the eurozone require time to bed down.

We should not allow the focus to be diverted from our primary aim, which is to create jobs and growth which will deliver those jobs. Our discussions must remain grounded on what is achievable and urgent.

The December European Council will discuss the new Single Market strategy presented by the Commission on 28 October entitled, Upgrading the Single Market: more opportunities for people and business. It targets actions in three areas, first, creating opportunities for consumers, professionals and businesses; second, encouraging and enabling the modernisation and innovation that Europe needs; and, third, ensuring practical delivery that benefits consumers and businesses in their daily lives. We strongly support the overall focus on practical measures helping small and medium enterprises and start-ups and encouraging start-ups to grow and expand, which promotes innovation, unlocks investment potential and empowers consumers. Next year will mark the 30th anniversary of the signing of the Single European Act in 1986 and we see renewed momentum here as a crucial driver of job creation, growth and competitiveness. This can also be concluded in the discussions in the context of the current UK debate. There are 22 specific measures lined up for delivery by 2018, including guidance from the Commission next year on how EU law applies to the collaborative economy, as it is known, and those business models. The key issue is pressing ahead with concrete timelines and early results. There is no doubt that while driving ahead with the Single Market for goods, the European Union has done much less well in the Single Market for services and that this area retains considerable space for growth and job creation, particularly in peripheral countries such as ours.

The British Prime Minister, Mr. David Cameron, presented his proposals for reforming the European Union by way of a letter to President Tusk last Tuesday. The Prime Minister also delivered a speech on that day at Chatham House, in which he elaborated on the proposals made and outlined his view of how the negotiation process might proceed in the weeks ahead. The proposals fall across four broad clusters of issues, namely, first, economic governance- in effect, preventing non-eurozone countries from being disadvantaged by decisions taken solely by eurozone member countries; second, competiveness, including completion of the Single Market, better regulation and expediting international trade agreements; third, sovereignty, that is, strengthening the role of national parliaments in the European Union, as well as ending Britain’s obligation to work towards ever closer union; and, fourth,immigration, including proposed amendments to the United Kingdom’s welfare system and steps to address what are perceived by the United Kingdom to be abuses of freedom of movement. While outlining his objectives in each area, the Prime Minister’s letter made it clear that the details remained a matter for forthcoming negotiations. We expect these to commence immediately, with a first round of bilateral consultations at senior official level getting under way late this week or early next week. It is hard to know, therefore, what shape the December discussions might take at this stage. However, the Prime Minister, Mr. Cameron, has said his priority is to get the substance right. It is possible, therefore, that the negotiations might continue into next year.

As the committee knows, these are important, sensitive and complex issues which warrant careful reflection and analysis. The Prime Minister, Mr. Cameron, acknowledges that some of the proposals, notably those around immigration and welfare reform, will present difficulties for other member states and that work will be needed to identify workable solutions. As the Taoiseach said to the Prime Minister when they met in London on Monday, Ireland recognises the basis of British concerns and we will be open and constructive in supporting the United Kingdom in seeking reasonable adjustments to deliver a stronger, better functioning European Union. With constructive engagement by all partners, we believe sensible measures can be agreed across the four categories identified by the Prime Minister. Clearly, however, much remains to be done to achieve that end. I look forward to updating the committee on how the work is progressing ahead of the next General Affairs Council in December when we will return to the issue. As that will be in advance of the next European Council meeting, we may have more detail on the matter.

The President of the European Council has indicated that in December there will be a discussion of relations with Russia and the situation in Ukraine. The current respite in violence provides an opportunity for progress to be made on the political track and full implementation of the Minsk agreements which continue to offer the only viable framework for a resolution of the conflict.

The rule of law item is also on the agenda, following an agreement at the General Affairs Council last December to establish dialogue within the Council among all member states to promote and safeguard the rule of law in the framework of the treaties. As part of the commitment to return to this issue on an annual basis, we are looking forward to the Presidency-led discussions on the rule of law. It is incumbent on us and all EU institutions and member states alike to look carefully at this issue and how we are operating at home and abroad within a European Union of values. Many of our European partners have had to respond to acute and, in some cases, tragic instances of anti-semitism and Islamophobia, reminders that we all need to stay vigilant about protecting human rights and fundamental freedoms while upholding the rule of law.

The European Commission will have much to contribute to the discussion following its first annual Colloquium on Fundamental Rights in the European Union which was hosted by First Vice President Frans Timmermans and Commissioner Jourova on 1 and 2 October. Ireland has always stood behind the European Union as a Union of values and we welcome the opportunity to look more closely at how this is operating and how we might push it forward. The Presidency has circulated a discussion document on the rule of law in the age of digitalisation which gives a useful background to the legal framework underpinning freedom of expression, as well as other rights. Member states have been asked to come forward with both positive and negative examples from their own experience. I intend to draw on our experience from the Irish point of view of how we have been coming to terms with the legacy of a different and less inclusive Ireland, for example, through commissions of investigation and no-fault compensation schemes; our experience of tribunals and commissions of inquiry, for example, into corruption claims; and also with respect to failure as regards the rights of individuals, specifically the circumstances surrounding the taking into care of two Roma children in 2014 which I am sure members will remember and which was a traumatic and unacceptable event for the two families concerned.

The Presidency has added an item to the General Affairs Council agenda on the inter-institutional agreement on better regulation. Ireland has supported the Presidency’s efforts to push forward the agreement and we have supported more generally the better regulation agenda which has moved ahead significantly under the current Commission. The negotiations continue in trilogue format between the Presidency, the Commission and the Parliament and we are hopeful they will be concluded later this year.

The General Affairs Council agenda also includes a provision to discuss the Commission’s work programme for 2016. With other member states, in earlier discussions we welcomed the Commission’s intention to follow the priorities identified in the strategic agenda which were agreed to by the European Council in June 2014. We have underlined the need to prioritise the restoration of confidence and the promotion of economic growth and job creation, particularly for young people. In that context, we welcome the Commission’s emphasis on deepening the Single Market, in particular, the commitment to delivering on the digital Single Market strategy. We have stressed the need for rapid progress in this area, as well as for full implementation of the services directive and maintaining a strong focus on support for small and medium enterprises which, as I have said, are the lifeblood of the European economy.

As we all know the European legislative programme has an enormous impact on citizens all over Europe. In that light we will take particular interest in the Commission's proposals to boost jobs, growth and investment; the digital Single Market; the Transatlantic Trade and Investment Partnership, TTIP; implementing the 2030 climate and energy package and on other items of particular interest to the Irish people.

There will be two presentations to the GAC that effectively mark the beginning of the European semester 2016. The Commission will highlight the key features of the next annual growth survey, to be published next Wednesday. This will set out the Commission’s key priorities for supporting growth and jobs over the period ahead. The committee will recall that last year’s annual growth survey developed a threefold emphasis on boosting investment, accelerating structural reforms and continuing to pursue growth-friendly fiscal consolidation. With recovery in the European economy broadly on course I would expect to see continuity of this in the next cycle.

There will be a joint presentation by the current and incoming presidencies of the roadmap for the European semester for 2016. I expect this to include the timelines for key council discussions on the annual growth survey publications of the Commission’s country reports, engagement with the European Parliament and presentation of the draft country specific recommendations. I look forward to continuing a high quality engagement with this committee. There is a very significant workload over the next few months which necessitates my long presentation. That concludes my statement and I look forward to answering any questions committee members may have.