Dermot Ahern (Louth, Fianna Fail)

The reform treaty provides for a more effective European Union across a range of areas and will allow the Union to continue to develop positively, as it has throughout our 35-year membership. A more effective Union will continue to make Ireland an attractive place for foreign direct investment. All member states remain free to determine their own policies in these areas subject to EU rules on state aid and competition and other areas of EU competence. The reform treaty does not change this position. Article 2.157 of the treaty makes clear the Union's commitment to the progressive abolition of restrictions on trade and foreign direct investment. Accordingly, nothing in the treaty poses a threat either to Ireland's foreign direct investment policy or broader national enterprise policy.

The Common Commercial Policy, the European Union's international trade policy, is one of five areas of exclusive Union competence. In trade negotiations the Commission negotiates on behalf of the Union, subject to a mandate given it by the member states. In the reform treaty the provisions dealing with the Common Commercial Policy include a reference to foreign direct investment. This reflects the growing importance of outward investment from Europe in a globalised world. For example, existing trade agreements contain rules that apply to investment by EU companies in other countries and vice versa. Foreign direct investment is, therefore, already an aspect of the European Union's commercial policy. Mentioning foreign direct investment in the reform treaty merely adds clarification, recognising the Union's existing involvement in the area.

In the reform treaty qualified majority voting is the standard decision-making mechanism for the Common Commercial Policy. However, there are some important qualifications. The Council is to act unanimously in the areas of trade in services, intellectual property and foreign direct investment where the negotiations cover issues for which unanimity is required internally. An important example would be the area of taxation. Under the reform treaty, Ireland continues to have the right to determine how its fiscal policy is developed and applied. For us, this is a key aspect of enterprise policy for both the indigenous and foreign direct investment sectors.

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