Lucinda Creighton (Dublin South East, Fine Gael)

I refer to a number of the conclusions of the Council meeting. Regarding the objective of member states acting in a more co-ordinated fashion on a response to the economic crisis, I wish to hear the views of the Taoiseach and the Minister of State on the Government's position on enhancing the ability of the EU to impose sanctions in the sphere of economic policy as opposed to monetary policy. That area has been left untouched in respect of subsidiarity and the wishes of the member states. That position is unsustainable in the long term because, if we are to compete with emerging economies and have a more co-ordinated approach from the EU and particularly in respect of the eurozone, we must examine greater co-ordination coupled with the ability to impose sanctions.

At the meeting of the Joint Committee on European Affairs yesterday we discussed the De Larosière report. Some of the recommendations were quite far-reaching in respect of cross-border, almost criminal sanctions for the breach of financial regulations by member states and potentially institutions and companies. That would move the EU in a new direction. I would support it but we must examine this from a national perspective and adopt a clear position on it. It would have an impact on our position on justice and home affairs as well because we have, unfortunately, opted out of that to date. Perhaps we can re-evaluate much of what is going on in the economic sphere.

I refer to the commitments at the Council meeting on the reduction of VAT rates. It is an aspiration and an objective rather than a definite agreement but it is relevant in the context of the national debate, particularly in light of the forthcoming budget. Everyone accepts that a grave mistake was made at Government level with the 21% VAT rate increase. Now that there is a stated objective from the Council meeting, the reduction of VAT rates, in addition to the commitment on the European Investment Bank supporting SMEs and trying to create a better system of financing of SMEs, will we see a tangible result from these in next week's budget? It is a stated commitment of all member states.

The Stability and Growth Pact in respect of the conclusions of the Council meeting was to create sound public finances. We accept that Ireland has deviated far from sound public finances. I am interested to hear if the Taoiseach has picked up tips or new ideas in light of discussions at the Council meeting.

There is much talk about creating an appropriate crisis mechanism for energy security. This is important in the context of what happened in central and eastern Europe at Christmas time. What will that involve?

The Lisbon treaty will be dealt with at the next meeting in June. Will texts be presented to us on the concessions and agreements pursued by the Government at European level? Will the texts be laid before the Dáil or made available to the Opposition? Will we receive them in one tranche or will we have texts on neutrality preceding texts on family policy?

I urge the Taoiseach to reconsider the matter of justice and home affairs. This is too important for Ireland to opt out of and we must acknowledge that a mistake was made with that Cabinet decision. I hope it will be reconsidered in the context of the forthcoming Lisbon treaty referendum.

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