Oireachtas Joint and Select Committees

Wednesday, 13 June 2018

Joint Oireachtas Committee on European Union Affairs

General Affairs Council: Minister of State at the Department of Foreign Affairs and Trade

2:00 pm

Photo of Helen McEnteeHelen McEntee (Meath East, Fine Gael)
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I thank the committee for the invite. As always, I am delighted to be here. It has been a particularly busy period since we last met. There have been many developments and so as mentioned by the Chairman I will confine my remarks to the four key areas. If there are other areas on which members have questions I am happy to deal with them in the questions and answers session. As highlighted by the Chairman the four key areas are the current state of play in the Brexit negotiations, which I am sure is top of most people's agenda at this time; the debate on the future of Europe, including the national citizens' dialogue which concluded last month - I take this opportunity to thank the chairman and all members who attended the events throughout the country and also the final event; the EU enlargement perspective for the Western Balkans, particularly following on from the summit in Sofia, which I attended with the Taoiseach; and the multiannual financial framework, MFF, which the committee addressed in detail yesterday with the Commission but on which members may still have questions.

I will start with the multiannual financial framework as it dominated much of the General Affairs Council which took place in March. We had an initial discussion on the Commission's recent legislative proposal for the MFF, the EU's next seven-year budget framework. This issue will also be discussed by the Taoiseach and other Heads of State and Governments at the European Council on 28 and 29 June, which is approximately two weeks away. This is the beginning of the negotiating process between the Commission, the Parliament and member states, which will last into at least the middle of next year. As the current framework runs to the end of 2020, it is crucial that agreement is reached before that deadline.

I warmly welcome the fact that Ms Jennifer Brown, an official from the Commission, travelled from Brussels to Dublin yesterday to address this committee and other interested stakeholders. I am sure the committee is well-versed in the details so I hope I do not go over too much ground or repeat what was said by Ms Brown yesterday.

As with any organisation, it is fundamental that as EU member states, we agree on how much we can spend, how and when we spend it, and how to raise the money. It is a question of adapting to the changing global environment and, most important, of prioritising competing and evolving requirements and demands. Since last year, I have been running a series of citizens' dialogues or national engagements about the EU and we are asking citizens what they want to see, and this consultation on the future of Europe will feed into our position on how the EU allocates its resources. The initial proposal was published by the Commission just over six weeks ago, on 2 May. It was a highly anticipated publication and over recent weeks it has been further elaborated, with each sectoral package in turn being published. These cover a wide range of areas in the EU's role, touching on agriculture, cohesion funding, the Erasmus programme, research and innovation, the EU's external actions including development aid, and much more. The whole proposal runs to thousands of pages and it is now the subject of intensive analysis by all member states and the European Parliament.

The Oireachtas involvement has likewise begun, and I greatly appreciate this committee's engagement with the multiannual financial framework, MFF. Given that the budget proposal by the Commission amounts to some €1,135 billion and covers almost all aspects of our society and economy, it is only appropriate that a number of Oireachtas committees should offer their specific concerns and consider specific aspects of the package as they relate to their areas of responsibility. Across all Departments, analysis is now being carried out, closely co-ordinated by the Department of Finance together with the Department of Foreign Affairs and Trade. Our representatives in Brussels will also be closely involved throughout the process. Similarly, at EU level, a wide range of European Parliament committees and ministerial councils will closely debate and negotiate a final framework to ensure that our limited resources are spent in alignment with our agreed priorities. The General Affairs Council, GAC, which I attend, will take a horizontal approach to the MFF negotiations, with input from almost all other council formations. At the next meeting of the GAC, in two weeks, we will have a lunch discussion with Commissioner Oettinger, the first opportunity for member states to react in the round on the basis of all the sectoral proposals which have been published since the initial document six weeks ago.

The European Council meeting at the end of the month will also have an initial discussion on the MFF and it will give guidance on the likely timeframe for the negotiations. There are strong arguments for completing the negotiations before the European Parliament elections in May next year. There are strong arguments as to why such difficult and complex negotiations can take time. Either way, the Government will not be found wanting. The important thing, whatever the timeframe, is to get it right. While it is too early to speak in great detail, we know so far that these negotiations will be particularly challenging for Ireland. This is the first time that we will be negotiating an EU budget without the British contribution, and it is the first time that Ireland will be a net contributor from the outset. As our economy recovers and grows, our contribution to the EU will grow. In recognition of the broader value of our EU membership, the Government has stated that we would consider an increased MFF contribution from Ireland to address new and emerging EU priorities and challenges that we face. We can only do so provided that our core interests are met and European added value is ensured. Protecting the Common Agricultural Policy, CAP, remains a priority for Ireland. We are also supportive of a range of programmes to support jobs and growth, including cohesion funding, supporting research and innovation with the Horizon 2020 budget, digital Europe and the Connecting Europe Facility. I am very pleased to see the proposal for increased funding for a further expanded ERASMUS+ programme. I know the Commission has suggested that we double the amount of money being spent on our young people, which we need to consider in the overall context of the budget.

I will move on to the Brexit negotiations. We moved on to a critical phase. All phases have been crucial but we are now entering one of the last phases of the negotiations. As members of the committee are aware, the overall objective is that the full legal text of the withdrawal agreement, as well as a detailed political declaration on the framework for the future relationship, should be concluded by the October meeting of the European Council. In order to meet this objective, negotiations have been continuing between the EU and the UK teams in recent weeks and will further intensify in advance of the European Council in June, in less than two weeks. The aim of these discussions is to make significant further progress on the outstanding withdrawal issues, including on the draft protocol on Ireland and Northern Ireland, and avoiding a border on the island of Ireland. We see the UK's presentation last week of a paper on a temporary customs arrangement, which it sees as relevant to aspects of the island of Ireland backstop, as a welcome, though incomplete, step forward. After its publication last week, Michel Barnier, while also welcoming this step, raised questions and concerns about the proposal. The Commission is the Union’s negotiator with the British Government on these issues. We have to allow the Commission to address some of the concerns which it has already raised and to further negotiations on these issues.

The Government's focus remains on the outcome we need to see, of which a key element is ensuring the protection of the Good Friday Agreement and the gains of the peace process, including avoiding a hard border on the island of Ireland. It is welcome that the UK’s commitment to this is reaffirmed in its proposal and that the commitments and guarantees provided by the UK in the joint progress report of December 2017 and repeated by Prime Minister May in the March Council meeting and her letter to President Tusk in March have been reiterated. While our preference is still for an overall EU-UK relationship which would resolve all issues, it remains essential that a backstop is agreed which provides certainty that, in any circumstances, and no matter what the outcome of the negotiations on the wider EU-UK framework and future relationship, a hard border will be avoided. We must have certainty in all scenarios on the commitments made on Ireland and Northern Ireland. This certainty requires agreement on the protocol to the withdrawal agreement. I therefore very much hope that there will now be further intensive negotiations and discussions between the British Government and the Commission before the European Council on 28 and 29 June. As we have repeatedly stated, substantial progress is required by then. We know that this week, more detailed negotiations are perhaps happening from a legal point of view and otherwise, and next week, higher level discussions between Barnier and Davis are to take place. We will keep a watchful eye on how that progresses.

The debate on the future of Europe, which was energised by the UK's decision to leave the Union, is continuing across Europe. This committee held its own very successful public outreach initiative and I look forward to seeing its findings when they are available. Last November, the Taoiseach, accompanied by the Tánaiste and me, launched Ireland's own national citizens' dialogue, which culminated in a major event at the Royal Hospital Kilmainham on 9 May, marking Europe Day. I thank the Chairman for accepting our invitation to participate in the event, including as a panellist for one of the sessions. It was very much appreciated not only by me but by all concerned. I thank the members who attended and contributed on the day. Between November and May, I travelled the country, covering 2,000 km getting to and from Galway, Cork, Limerick, Maynooth, Letterkenny, Navan and many other venues. Hundreds of people turned out to our regional sessions and the level of engagement at each of them was impressive. From the outset, we were adamant that this would essentially be a listening exercise. To give some shape and continuity to the various dialogues, participants were encouraged to focus on the five questions posed to citizens deriving from the Bratislava Declaration, agreed by EU countries in 2016. These centred on jobs; competitiveness and consumer rights; peace and security; better management of our natural and built environment; equality and fairness; and education and training in order to maintain the EU's competitiveness. If there was a theme which emerged throughout these discussions, it is fairness. People wanted to ensure fairness in an increasingly competitive world. They want the environment to be protected so we can hand it on to future generations in a fit state. There is also a demand for inter-generational fairness. People want to ensure that our young people are given the best of opportunities when they start their careers and their families, and also that older people are able to enjoy their retirement in dignity and comfort. Education at all ages and all stages in life played a key part in that discussion.

We are taking that information and compiling a report which I hope will feed into the wider consultations that are still taking place in Europe. On 9 May next year, at a summit in Romania, EU leaders are expected to mark the culmination of this process with a renewed commitment to an EU that delivers on the issues that really matter to people. We will be well placed at that stage to actively input into that summit based on the experiences of our national consultations. Our consultations are over but we hope to continue our engagement with people in various different formats, so we will have a lot to input into next year's summit.

Let me now turn to the latest developments regarding EU enlargement. Ireland is a supporter of the European perspective of the Western Balkans, and will continue to be. I was pleased that the renewed focus on the region provided by the Bulgarian Presidency was reflected in the successful EU-Western Balkans summit on 17 May last. At this summit, the Taoiseach and I were pleased to engage with our EU and Western Balkans counterparts across a range of issues. In the summit declaration, the EU pledged unequivocal support for the European perspective of the Western Balkans, and the associated priority agenda set out six flagship initiatives to drive progress in the areas of rule of law, security and migration, socio-economic development, connectivity, the digital agenda, and good neighbourly relations in the Western Balkans. It is our hope that implementation of these initiatives will lead to deeper continued engagement with the Western Balkans.

We believe that the European perspective of the Western Balkan countries must be a credible prospect in order to advance the stability and security of the region, and are clear that candidate countries must give the rule of law, justice and fundamental rights the utmost priority in terms of reform. We need to encourage the Western Balkans to continue to pursue these reforms vigorously, and we, as the EU, need to give practical assistance and ensure our message is communicated effectively across the region.

The next discussions on enlargement will take place at the General Affairs Council on 26 June, which will review the European Commission country reports published in April and make recommendations for the coming period. Four countries in the Western Balkans currently have EU candidate status. They are Montenegro, Serbia, Macedonia and Albania. Of these, both Serbia and Montenegro are well advanced in their accession negotiations, while Albania and Macedonia have not yet opened negotiations. Ireland will support opening negotiations with Macedonia and Albania in line with the Commission's recent recommendation. Although significant work remains to be done in both countries, we feel they have made sufficient progress to warrant opening. Opening would also serve as a signal of EU commitment and provide motivation to the region. The Albanian Foreign Minister, Ditmir Bushati, visited Ireland last month.

I said I would touch on four topics but because I know the Chairman has a meeting later today I will briefly outline just one important issue that has been preoccupying the General Affairs Council, namely the issue of the rule of law and Poland, which was discussed at the May Council and which will be discussed again in the coming weeks. Commission Vice-President Frans Timmermans provided an update. As the committee will know, the central issue here is the rule of law and its application in Poland. Ours is a union based on shared values, including democracy, human rights and the rule of law. It is essential that all these commitments be reflected clearly in the internal arrangements in all member states.

At the last Council meeting, the Commission informed member states that, while Poland had amended some of the changes recently introduced to the operation of the judicial system, these amendments did not address the primary concerns that have been identified by the Commission. At the May Council, I welcomed the fact that dialogue had taken place and stressed that the dialogue should lead to an early outcome that addresses the very real concerns that have been identified. This, I said, is clearly in all of our interests. The Commission has now called for a hearing on the rule of law in Poland at the General Affairs Council later this month. It is important that, in the time available, concrete proposals to address the outstanding concerns can be agreed by the Polish authorities and the Commission.

I understand the committee will be discussing this further with the Polish ambassador, who is to appear before the committee later this afternoon. I wish the members well in those discussions.

As I said in my introduction, there are other issues I could discuss but I have taken up enough time. I want to hand over to members to ask questions.