Enda Kenny (Mayo, Fine Gael)

At last week's EU summit it was clear that, as a community, we have a long way to go to meet the ambitious objective set out in the Lisbon Agenda of making Europe the most comprehensive and dynamic knowledge-driven economy in the world by the year 2010. It is a daunting prospect given the difficulties and inhibitions in the various systems to achieving that. Although, as the Taoiseach has pointed out, there has been some progress, even with the re-launch of the agenda by the Commission last year, focusing on growth and jobs, the reform necessary to see the EU reach these targets is simply not fast or far-reaching enough. Consequently the innovation gap between the EU and China and the US is still growing. The fact that China continues to build more roads, airports and bridges in five years than the EU and America combined are building in 20 is something we can ill afford to lose sight of as we strive to reach the Lisbon objectives and secure our Union's future in the longer term.

President Chirac brought his customary colour to the summit, flouncing out with some élan when Mr. Ernest-Antoine Seilliere decided to treat the audience to an address in what he called the language of business — English. Thankfully, the French head of the ECB, Mr. Jean-Claude Trichet, came to rescue, restoring Gallic pride, and the French contingent with it, by addressing the meeting in his mother tongue, a language which once dominated EU proceedings.

The summit took place under something of a cloud. There is the ongoing rise of India and China, excess deficits in various parts of the Union, high unemployment, low growth — which is improving — and a pensions bill and requirement that is on the way up. There is also what has been called economic nationalism overshadowing the Union's stated ambition to be more competitive in the globalised economy. President Barroso said that to be global we cannot have barriers internally. President Chirac and Chancellor Merkl disagreed publicly about our economic future, the latter criticising French attempts to limit foreign investment. President Chirac, for his part, faces ongoing trouble at home owing to mass protests over an unpopular employment law designed to tackle some of the rigidities in the French labour market. Prime Minister Berlusconi is facing a tough election and perhaps some frustration by the planned energy merger that could prevent Italy's Enel making a possible bid for the Franco-Belgian giant Suez or some of its assets. This difficulty may have implications for Ireland as time passes.

While I am confident about closer co-ordination of energy policy, some questions must be asked about what will happen overall if this economic introspection continues. President Barroso summed it up when he said we cannot be open for business with the rest of the world and closed to each other. Commissioner McCreevy also took the right tone when he warned about the futility of building political "Maginot lines" around a member country's economy.

Energy was, and should be, central to the proceedings. The development of a common EU external energy policy, the holding of a strategic review of energy use in the Union, a review of policy on oil and gas stocks and the development of the internal gas and electricity markets were among the key ideas. It is not before time that these are being raised. I am a great believer in a single European energy market. Had the recent spat between Russia and the Ukraine continued, it would undoubtedly have affected Ireland in terms of rising costs and, consequently, competitiveness, which is being affected in any event.

I agree in principle with the Government's decision to build an interconnector between Ireland and Britain. The relevant report should be made available to the Minister as a matter of urgency and followed through. Ireland is now 91% dependent on imported energy, thereby making it one of the most vulnerable countries in the world.

In the wider context, a common approach to energy is both desirable and necessary. Europe's energy import is 50% and rising and energy is becoming more expensive. Despite moves towards efficiency, the cost is increasing by 1% to 2% in the Union per year. At a time when 80% of our energy use is based on oil, coal or gas, hydrocarbon reserves are depleting. At the current rate of growth, greenhouse gas emissions could be 5% higher in 2012 than they are today. This is quite alarming when one considers that our Kyoto target requires an 8% reduction.

Our energy infrastructure requires serious improvement. Some €1,000 billion will be needed over the next 20 years to meet expected energy demand. Global warming is reaching a level such that serious questions are being asked about how life will be sustained in many areas around the world. Ironically, the changes are greatest in countries that have contributed least to the problem of climate change.

While I welcome the common approach to energy, we must be clear that different countries will have different needs. Our island status means we have vastly different energy needs and demands to other member states. Our individual requirements in terms of access and so forth must be taken into account. There is an economic and moral imperative for Ireland to develop a serious workable policy, not just a token one, regarding renewable energy. Green energy has become mainstream and I am convinced of the national need and duty to develop modern, exciting alternative renewable energy sources. It is absolutely appalling that, while Ireland is the second richest country in the world by some standards, it has been belching out greenhouse gases that had risen by 130% by 2002. The Irish level is six times the EU average. This phenomenal increase could have been minimised over recent years if the Government had pursued specific policies to promote the use of biofuels. With the collapse of the Irish sugar market, due in large part to incompetence, it is politically unacceptable that the Government will not pursue an energy agenda based on biofuel use.

Before the summit, a meeting was held involving the leaders of all those parties within the EPP, among them Prime Ministers and Heads of Government. They included Prime Minister Berlusconi, Jan Peter Balkenende, Jean-Claude Juncker, Angela Merkel and Wolfgang Schüssel. There was general support at that meeting and at the summit for condemnation of the Belarus authority for arresting peaceful demonstrators exercising their legitimate right to free assembly to protest at the conduct of the presidential election.

Further resolutions on terrorism within our borders were also made. On the welcome ceasefire announced by ETA, the EPP recalled that paying any political price for the terrorists to abandon their violent actions is not acceptable. The EPP affirmed its confidence that the source of terrorism would be defeated, pointing to its support for the fight against terrorism in the past and its clear intention to continue that fight in the future.

One view that was not discussed at the meeting of the Heads of Government, but in respect of which this country could perhaps take a lead, is that the EU should have a defined policy or proposals to attempt to deal with the transnational scourge of child pornography on the Internet. This is a threat to all children and is clearly an affront to morality and the dignity of the person. It is not easy to tackle and possibly does not rate on the radar screen portraying the major political issues that need to be decided. However, given the nature of our country and that the problem impacts absolutely seriously on so many families, particularly children, it should not be beyond the scope or imagination of European leaders to have competence in this area of technology and examine the reasons persons involved in child pornography develop their undignified and morally outrageous pursuits. I believe strongly that EU analysis of the reasons for the problem and proposals to deal with it would be very beneficial. Perhaps the Taoiseach will take the opportunity to float this idea at some stage.

See this speech in context