Bertie Ahern (Dublin Central, Fianna Fail)

I chaired the European Council meeting held in Brussels on 25 and 26 March. I was accompanied by the Minister for Foreign Affairs, Deputy Cowen, and the Minister for Finance, Deputy McCreevy. The Minister of State at the Department of the Taoiseach with responsibility for European affairs, Deputy Roche, also attended. I apologise for the absence from the House of the Minister for Foreign Affairs, who is in the Middle East, and the Minister of State, who is in Strasbourg. The conclusions of the European Council and the declaration on combating terrorism have been laid before the Houses of the Oireachtas.

The meeting was successful for the European Council. We adopted a declaration on combating terrorism; we agreed to resume our negotiations in the Intergovernmental Conference and reach agreement no later than our next meeting in June; we identified what needs to be done to promote sustainable growth and more jobs; and we discussed a range of foreign policy issues and adopted conclusions, including on the Middle East, Iraq, Afghanistan, the Balkans and Russia.

A successful meeting of the European Council was important for the European Union at this time. We face a period of uncertainty and challenge in the European Union. In face of this uncertainty we need to forge agreements. We need to show that we are doing everything possible to protect our populations from terrorist actions such as those that took place in Madrid. We need to move forward our economic agenda and create more and better jobs. We need to prepare for the enlargement of the Union to 25 member states on 1 May and prepare the Union to cope better with the challenges ahead.

For 50 years there has been common purpose and collective political will and the European Union has moved forward. It has met challenges with solutions. It has delivered. Our meeting last week showed that the European Union can continue to deliver. The successful meeting will send out a message to new and old members of the Union that working together enables us to achieve our common objectives. By setting our goals and working together to achieve them as we did last week we can deliver the outcomes that our populations deserve.

The first session of the European Council was devoted to combating terrorism. It was held as a direct response to the horrific terrorist bombings in Madrid on 11 March. The scale of the attacks in Madrid demanded a rapid and real response. That is why the Council adopted a comprehensive declaration on combating terrorism, drafted by the Irish Presidency, in which we endorsed the European Parliament proposal to declare 11 March a European day commemorating the victims of terrorism. The declaration reaffirms that we are at one in the European Union in our determination to face down the terrorist threat. Since the events of 11 September 2001 a huge body of work has been ongoing in our fight against terrorism. The attacks in Madrid injected a new urgency in bringing this work forward.

The declaration adopted by the European Council was considered at a specially convened meeting of justice Ministers and was considered also by foreign Ministers. It highlights our existing co-operation, seeks to improve it and emphasises the need to implement what we have agreed. It also sets out a number of important initiatives in the fight against terrorism. We have included measures to improve intelligence sharing, strengthen border controls and the security of travel documents, enhance protection for our transport systems and counter the financing of terrorism. We have renewed our commitment to implement the European arrest warrant in every member state and strengthened our efforts to prevent the financing of terrorism.

Combating terrorism demands a more effective and systematic approach to exchange of information between our police, security and intelligence services. The EU high representative, Javier Solana, has been asked to report to the June European Council on how intelligence capacity can be integrated within the Council structure. We have agreed new strategic objectives for a revised plan of action on terrorism and will agree the key tasks and the deadlines by which these tasks are to be achieved in June. Improved co-ordination across the whole of the European Union is essential to defeating terrorism. This is why a counter-terrorism co-ordinator has been appointed. Dr. Gijs de Vries will have the job of co-ordinating the work of the Council and following up on Council decisions to make the fight against terrorism more effective.

We also need to enhance our international co-operation. The declaration reaffirms the central role of the United Nations and underscores the need to continue to enhance our co-operation with partners, including the United States. In addition, we have agreed a declaration on solidarity against terrorism. This highlights an element of the draft constitution for Europe which commits the member states to act jointly in a spirit of solidarity if one of them is the victim of a terrorist attack. It is, of course, subject to the constitutional requirements of each member state. The message coming from our meeting was simple. We are building on our existing co-operation and seeking to improve it. We are also emphasising the need to implement what we have agreed and considering what more we can do.

Following the session on terrorism, the members of the IGC considered the conference over dinner. We had a positive and constructive session. There was appreciation for the Presidency's approach. I asked colleagues to commit themselves to a timeframe in which to bring the IGC to a conclusion and we agreed to conclude no later than the time of the June European Council. There is still a substantial amount of work to be done. There are complex and important issues to be resolved. However, there is a strong will to find a way forward. Everyone understands that there must be compromise. This is a collective process in which we all have a part to play. Everyone has shown flexibility. In the discussions that will follow, more compromises will have to be made.

I would like to see agreement on the new constitution sooner rather than later. At the same time, I want the best possible outcome. If possible, we will reach agreement before the European Parliament elections. However, we should not forget that when we began at the start of the year there were many who said that it would not be possible to set a target for the end of the year. We now have a commitment to finish by June.

While combating terrorism and crafting a constitution for Europe are critically important matters, the spring European Council was originally conceived as an economic summit. In advance of the meeting, I wrote to my colleagues on the Council outlining the Irish Presidency's priorities on the Lisbon agenda and our approach to advancing them. I highlighted the fact that overall, Europe is well behind target in a number of areas and that we must now give the highest level of political priority to the critical issue of delivery. I underlined the importance of stepping up implementation at national level of the commitments to which we have all agreed over the past four years. Fortunately, the climate for delivering on the Lisbon agenda is improving. The global economy is picking up and we must position ourselves to benefit from the upturn.

I took the decision that we would concentrate on two urgent priorities: sustainable growth, and more and better jobs. The true test of the Lisbon agenda will be whether the European Union will, by 2010, be able to sustain higher levels of growth and employment than a decade earlier. For growth, we need the right combination of sound macroeconomic policies and greater competitiveness. To this end, we called for the draft directive on services to be agreed to improve the internal market for consumers and business; we committed ourselves to accelerating regulatory reform; and we agreed on the need to invest in basic research and the life sciences.

The level of private sector investment in research and development is too low. All member states have been asked to improve the general conditions for research and development investment and to consider targeted support and incentives to encourage greater investment by business.

Growth will not be sustainable if it is coupled to the increasing use of finite natural resources. This is why the European Council called for a rapid implementation of the environmental technologies action plan. As well as protecting the environment, this plan will also contribute to competitiveness and economic growth. The European Council also called for full implementation of the Kyoto agreement.

Growth and competitiveness are not ends in themselves. They are the means to secure and develop the European social model, with its emphasis on sustainability and inclusion. Protecting the most vulnerable members of our society is an essential part of the Lisbon agenda.

Our other focus was jobs. We agreed that our top priority now must be to increase the employment rate in Europe. Higher employment will not only boost growth but will also provide the best route out of poverty and social exclusion. We agreed that we will carry out a detailed review of our national levels of progress on jobs at next year's spring European Council. We agreed also that the urgent challenges that need to be tackled are adaptability, attracting more people to the labour market, improving the quality of employment and investing in human capital.

We acknowledged the substantial progress made in a range of areas, which will promote mobility, including the European health insurance card. In addition, the reform of Regulation 1408, which will protect the social security of migrant workers, is an important measure that will be agreed over the coming weeks.

Governments alone cannot bring about the range of changes required. All stakeholders have a vital role to play and, to this end, the European Council agreed to establish national reform partnerships. These partnerships will be initiated by each member state in accordance with its own national arrangements and traditions. They will help to build commitment and legitimacy as a lever for change at national level.

The European Council also looked ahead to 2005, the mid-term point in the Lisbon goal and an appropriate time for an in-depth review of delivery. While we were all agreed that the continuing validity and relevance of the Lisbon agenda is not in question, we need a comprehensive mid-term evaluation to guide us over the next five years. The European Council, therefore, invited the Commission to establish an independent high-level group, headed by Wim Kok, which will undertake an evaluation of the Lisbon agenda. With his proven track record, Mr. Kok will provide continuity with the earlier work of the employment task force, given that employment is one of the key areas of the Lisbon agenda.

On foreign policy, we discussed Kosovo, Afghanistan and the Middle East, focusing on our partnership with the wider region. We also had a discussion on Cyprus. On Kosovo, the High Representative, Mr. Solana, and Commissioner Patten reported on their visit there last week. While the situation appears to have stabilised, the recent outbreak of violence has been undoubtedly a setback. We must try to ensure that there is no further descent into the type of ethnic violence which has destroyed so many lives throughout the western Balkans over the past 13 years. We reconfirmed our support for Security Council Resolution 1244 and the policy of standards before status.

On Afghanistan, we welcomed Germany's decision to host an international conference in Berlin on 31 March and 1 April. The people of Afghanistan require a future governed by the principles of freedom, justice, respect for human rights and fair political representation. The Berlin conference will mark another step towards securing this.

The Middle East continues to be of grave concern to the European Council. Extra-judicial killings are contrary to international law and undermine the rule of law. The European Union has condemned the killing of Sheikh Ahmed Yassin by Israeli forces last week. Violence must cease. We have called on the people of the region to look beyond the politics of the last atrocity. They need to summon up the political will necessary to overcome the current impasse in the peace process. We remain convinced that the quartet road map offers the basis for a lasting peaceful settlement resulting in two viable, sovereign and independent states, Israel and Palestine, based on the borders of 1967.

The European Council also expressed the desire of the European Union for partnership with the countries of the Mediterranean and the Middle East. We welcomed the interim report endorsed by foreign ministers last week, which is entitled An EU Strategic Partnership with the Mediterranean and the Middle East. The European Union and the Middle East are neighbours. We share strategic interests and concerns. Many of the countries in the Mediterranean and the Middle East face challenges that require far-reaching political, economic and social reforms. These reforms must come from within. At the same time, the European Union stands ready to help.

The Minister for Foreign Affairs, Deputy Cowen, and I planned to attend the Arab League Summit in Tunis yesterday to convey this message of partnership and engagement. Unfortunately, however, the summit was postponed. We maintain close contact with the leaders of the principal Arab states. The Minister, Deputy Cowen, was in Cairo yesterday and is visiting Damascus today to emphasise the need for a concerted effort to advance our common goals of peace and security in the region.

We are at a critical stage this week in the UN-led efforts to arrive at a settlement in Cyprus, with the intensification of negotiations in Switzerland. We fully support the efforts of UN Secretary General, Kofi Annan, to help the parties to seize this historic opportunity to bring about a comprehensive settlement. I am maintaining close contacts with the negotiations.

At our meeting last week, the European Council reaffirmed its strong preference for the accession of a united Cyprus to the European Union. We reiterated our readiness to accommodate the terms of such a settlement in line with the principles on which the Union is founded. We remain convinced that a just, viable and functional settlement is achievable by 1 May. I urge all parties to grasp the opportunity for a successful outcome to the negotiating process in the days ahead.

Our meeting last week was a good and productive one. We are now at the halfway point of our Presidency and much work remains to be done. As in the past, this Irish Presidency will be judged on its results over the six month period and whether it achieved what it set out to do. I thank Ministers and officials for their continuing efforts to deliver for the European Union. At the halfway mark, we can be satisfied with what we have achieved to date. We now need to continue this good work.

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