Bertie Ahern (Dublin Central, Fianna Fail)

I propose to take Questions Nos. 1 to 29, inclusive, together.

I travelled to Luxembourg on 2 June at the invitation of Prime Minister Juncker, who was meeting each of the EU Heads of State or Government in advance of the June European Council meeting, to discuss the EU constitution and the financial perspectives for the period 2007 to 2013. I informed Prime Minister Juncker that we will continue our preparations for a national referendum on the EU constitution and that we looked forward to a full discussion at the European Council meeting where the implications of the outcomes of the French and Dutch referenda were to be assessed.

On the financial perspectives, we discussed the revised "negotiating box" which had been circulated by the Presidency just prior to the meeting. I outlined Ireland's position in these negotiations, and emphasised the importance of respecting the October 2002 agreement on the funding of the Common Agricultural Policy. Later in the day, I travelled on to Berlin to deliver a lecture at Humboldt University and also met Chancellor Schröder. We discussed the European constitution in the light of the negative outcome of the French and Dutch referendums. We also exchanged views on the financial perspectives and informed each another of our negotiating positions. I met the Prime Minister Mr. Blair on 15 June in advance of the European Council. The discussions at that meeting included current EU issues.

As Deputies are aware, we will have a full debate on the outcome of the European Council today. I attended the Council in Brussels on 16 and 17 June. The Minister for Foreign Affairs, Deputy Dermot Ahern, and the Minister of State at the Department of Foreign Affairs with responsibility for European affairs, Deputy Treacy accompanied me to the European Council. While a broad range of issues on the European agenda was dealt with at the European Council, the key business was that of the European constitution and the financial perspectives. I have arranged for the conclusions of the Council and its declaration on the constitution to be laid before the House.

I very much regret the outcome of the French and Dutch referendums. We must fully respect the democratic right of the French and Dutch peoples, just as we must respect the decisions of the ten member states that have already ratified the European constitution. I spoke to President Chirac on 3 June and conveyed those sentiments to him.

It was agreed at the European Council that the ratification process should continue. However, the Council took note of the negative outcome in the French and Dutch referendums and agreed that a period for reflection, clarification and discussion was called for, both in those countries that have ratified the Treaty and in those that have still to do so. It is accepted that the timetable for ratification may be altered in some member states and there is a general understanding that the original target date of 1 November 2006 for entry into force is now almost certainly not tenable.

The European Council understands that those member states that must hold a referendum before ratification may need a longer and more intense period of reflection, clarification and discussion in the light of the French and Dutch results. Member states that intend holding a referendum should do so when they deem it opportune. It is still the Government's view that the constitution is strongly in Ireland's interest and that of the European Union as a whole. The European Council will assess the situation in the first half of 2006 under the Austrian EU Presidency.

The Government remains committed to ratifying the European constitution. Obviously, following the discussion at the European Council, we will not at this stage set a date for the referendum or progressing the Referendum Bill. We will continue to prepare for a referendum. We will use the period of reflection to intensify our engagement with the European constitution and Europe in general.

The failure to reach agreement on the financial perspectives was a further setback for the European Union at a time when it is still coming to terms with the results of the French and Dutch votes on the European constitution. The package put forward by the Presidency would have been good for Ireland and for the Union. Our particular national concerns were to safeguard the October 2002 agreement on the funding of the Common Agricultural Policy, to ensure adequate cohesion arrangements for our regions in transition, to reach agreement on a further PEACE programme and to ensure as fair a deal as possible with regard to our contribution to the EU budget.

The issue of the British budgetary rebate was one of the main stumbling blocks to reaching a final agreement on the financial perspectives. Following failure to reach agreement, the issue will now be taken forward under the incoming British Presidency and possibly the Austrian Presidency. The European Council will return to this matter. It is important that an agreement on the financial perspectives be achieved sooner rather than later. With regard to the resources available to the National Forum on Europe, I understand the forum is satisfied.

I advised the House on 18 May on my plans for foreign visits to the end of the year. Since making that statement, one additional visit to Hungary in November has been agreed. This visit is part of the ongoing schedule of bilateral meetings with European heads of Government to discuss EU issues.

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