Bertie Ahern (Dublin Central, Fianna Fail)

I attended the European Council in Brussels on 23 and 24 March 2006. The Ministers for Foreign Affairs and Finance, Deputies Dermot Ahern and Cowen, accompanied me. The conclusions of the Council have been laid before the Houses of the Oireachtas.

This spring European Council was the first since the mid-term review of the Lisbon Agenda last March. It was a timely opportunity for European leaders to assess progress on the broad economic and social agenda facing the Union. The Council adopted comprehensive conclusions on a new energy policy for Europe. These conclusions will mark a watershed in the Union's treatment of energy issues and in time the Council will be seen as a very important one.

At the outset of its meeting, the European Council met the President of the European Central Bank, the presidents of the European employers and trade union confederations and the President of the European Parliament. The discussion focussed on the economic and social challenges facing Europe and the need for a strong growth and jobs partnership to deal with these challenges. In his presentation, Mr. Jean-Claude Trichet, the President of the European Central Bank, singled out Ireland and Denmark as two countries delivering very similar and successful economic and social outcomes. Mr. Trichet made the point that there is no "one size fits all" solution to Europe's economic challenges, but that differing economic and social models are capable of achieving similar results.

A future energy policy for Europe was the central issue for this Council. This is another area where we are likely to achieve far more by working together than pursuing independent national strategies. The European Council conclusions set out the broad guiding principles and the key objectives of the energy policy for Europe. The three main objectives are based on security of supply, ensuring the continuing competitiveness of Europe's economies and promoting environmental sustainability. Our discussions on energy were a first step in what promises to be a long and complex process. It is an issue of central importance to Ireland and the future success of our economy. We will participate in the EU debate and table our own contribution on the way forward. The Government will publish a national Green Paper on energy in the coming months.

At the EU level, the future development of the energy policy for Europe will be taken forward through an annual strategic energy review which the Commission will present on an annual basis beginning next year. In addition, the spring European Council next year will aim to adopt a prioritised action plan that will support the achievement of the objectives of the energy policy. In the short term, the EU will pay particular attention to driving forward an action plan on energy efficiency, implementing the biomass action plan, developing an interconnection action plan and making the EU-Russia dialogue more effective.

The European Council's conclusions make clear that the EU's work on energy will not affect our national policy to reject nuclear power generation in Ireland. The new energy policy fully recognises that decisions on the primary sources of energy and energy mix remain firmly with the member states. In the discussions at EU level we will continue to push for the highest possible standards for the operation of nuclear plants and the disposal of nuclear waste material. The conclusions also reflect our view that the development of regional energy co-operation in the EU should pay particular attention to countries and regions largely isolated from the EU energy market. This reflects our national position. Ireland, along with the Baltic states, Cyprus and Malta, is on the periphery of the EU energy market. Our small markets are not necessarily attractive to major energy companies and we therefore have difficulties in mobilising private sector investment for energy.

At the Council I pointed out that there is a need to be flexible in the application of state aid rules when the market does not deliver important infrastructural investment, such as for interconnection and for the development of renewable energy resources. The Commission has been asked to submit a priority interconnection plan by the end of 2006. Such a plan is in keeping with the importance of interconnection to our national energy supply.

Currently there is a North-South electricity interconnector. There is agreement to the building of a second interconnector and the technical aspects of this are being progressed. This is an important component of the all-island energy framework to which both Governments have jointly committed. The Government has agreed in principle to build an electricity interconnector between Ireland and Britain. This would link us to the UK grid and ultimately to the European grid. The Commission on Energy Regulation has submitted its report to the Minister for Communications, Marine and Natural Resources. He will make a recommendation to Government shortly.

In the ongoing discussions on a future energy policy for Europe, Ireland has raised questions about how the Commission sees the major investment projects in networks and storage facilities being delivered and funded. These important questions must be addressed as we move forward. In addition, while we did not indicate opposition to the idea, Ireland, along with other member states, has sought more details about the rationale for, and timing of, the establishment of a European energy regulator. We have also offered strong support for proposals around renewable energy, energy efficiency and increased funding for research and development.

On renewable energies, the European Council agreed to consider in the future some new targets on the share of renewable energies of the overall energy mix and a target on biofuels. These would also contribute to the fight against climate change while reducing the EU's dependence on the energy imports. Overall, the EU's new ambitious work programme on energy is very much in line with the Government's approach. Issues such as energy diversification, interconnection, storage, security of supply and greater exploitation of indigenous resources are all of crucial importance to us. Energy policy cuts across environment, climate change, transport, regional, research and development and external relations policies. The future development of our national policy approach will, therefore, be based on strong coherence at the national and EU level between energy and other key policies.

Since the French and Dutch referendums on the European constitution, there has been a very strong focus in the EU on showing our people that Europe works on their behalf. This European Council was in keeping with this focus. At last year's spring Council we relaunched the Lisbon Agenda, with a renewed emphasis on jobs and growth. We also agreed that the agenda needed to be more strongly rooted in national civil and social partnership processes.

Before the European Council I gave details to the Austrian Presidency of three national programmes that are in keeping with the Lisbon Agenda. These were Science Foundation Ireland's centre for science, engineering and technology, the Skills Net and One Step Up programmes to equip our labour force to meet the challenges of the new economy, and our wage subsidy scheme for disabled workers. These three projects reflect our intent to build a cutting edge and inclusive knowledge economy with a highly skilled workforce as its greatest asset.

In addition to addressing progress on the broad range of Lisbon Agenda related policies, the European Council conclusions focus on three particularly important issues: investing in knowledge and innovation, unlocking the business potential of small and medium sized enterprises and increasing employment opportunities for priority groups such as young people, women, older workers, people with disabilities, legal migrants and minorities.

On youth unemployment, the European Council agreed to work to meet new targets on reducing early school leaving and on efforts to ensure that unemployed young people are brought back into the labour force as quickly as possible. In this context, the Council agreed that by 2010 every unemployed young person should be offered a job, apprenticeship, additional training or other measure within no more than four months. Currently, the national practice is to do so within six months. On the target of 85% for the completion of upper secondary education by 22 year olds, the latest data show that at 86.1% Ireland, already exceeds the target and we are well above the EU average of 77.3%. The European Council also adopted a target designed to reduce the time for setting up a business in the EU with the objective of being able to do this by one week anywhere in the EU by the end of 2007. The time is three days in Ireland.

To contribute to Europe's competitiveness and to bring Europe closer to the citizen, I suggested to my colleagues at the Council that the EU should look at the possibility of reducing or eliminating mobile phone roaming charges for travellers within the EU. The recent progress we have made on this issue for people travelling between Britain and Ireland is a good example of what can be done if the political will exists. The Presidency welcomed this suggestion and it is now referred to in the conclusions. As a first step the EU will seek to reduce roaming charges. We will continue to promote the complete elimination of these charges and will be pursuing the issue vigorously at European level.

The conclusions reflect my long-standing view that the EU's state aid rules should encourage and facilitate a high level of investment in Europe and make Europe attractive for future investment. When EU member states pursue mobile foreign direct investment, they are not generally competing against one another. We are competing against China, Singapore and many other rapidly developing emerging economies. The European Council's conclusions recognise this reality. The European Council has said the Internal Market for services must be made fully operational, while preserving Europe's social mode. We have invited the Commission to table an amended version of the services directive without delay. Ireland continues to support strongly the need for a balanced services directive.

The European Council adopted a pact for gender equality to encourage action on closing gender gaps in the labour market, promoting a better work-life balance and better monitoring of gender equality actions.

The Council deplored the recent presidential election in Belarus as fatally flawed. I welcome the fact that the EU has signalled its determination to take sanctions against those politically and administratively responsible for violations of international electoral standards. The Council has confirmed that the EU will increase its support for civil society in Belarus. This is a point we have been pressing for some time. The EU has called on the Belarus authorities to allow people to exercise their right to freedom of assembly and expression.

The spring European Council was a strong demonstration of how Europe is working for our people. I compliment the efforts of Chancellor Schüssel and his team to ensure that the Council proceeded in a co-operative spirit and focused on the issues that are of real concern to the people of the European Union.

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