Brian Cowen (Laois-Offaly, Fianna Fail)

I wish to dissociate myself from the remarks made by Deputy Creighton on the Order of Business.

I attended the meeting of the European Council in Brussels on Thursday and Friday, 18 and 19 June. I was accompanied at the meeting by the Minister for Foreign Affairs, Deputy Micheál Martin. The Minister of State with responsibility for European affairs, Deputy Dick Roche, and the Attorney General were also part of the delegation.

The Council was among the most important for Ireland in recent years. As the House will be aware, the focus of our efforts was the guarantees on the Lisbon treaty and, in particular, on ensuring that both their content and form were satisfactory. That will also be the main focus of my statement to the House today but, first, I wish to cover the other important business of the Council.

Much of the discussion in the formal session centred on the fall-out from the international economic and financial crisis. Follow up to the De Larosière report on financial supervision was a key issue, and there was considerable debate on the degree to which the proposed new system of financial supervisory authorities should have binding mediation or decision making power. This is an important area and Ireland has been supportive of the Commission's proposals in ECOFIN. In particular, we believe it important that there is clarity about where responsibility lies, so as to minimise risk of any repeat of recent failures. Ultimately, the Council agreed that the European system of financial supervisors be established to improve the quality and consistency of national supervision and to increase oversight of cross-border groups, which are the norm in today's financial world. The reality is that we need far better cross-border regulation and Ireland is strongly supportive of the steps taken last week.

The Council agreed to the creation of a European systemic risk board and that its chair would be elected by the General Council of the European Central Bank. The summit clears the way for the Commission to bring forward legislative proposals so that the new arrangements can be put in place as soon as possible. I expect October's Council to return to this issue because of its importance and urgency.

The Council also adopted conclusions on strengthening efforts to support employment and welcomed the Commission's plans to develop concrete actions in the three priority areas of maintaining and creating jobs, improving skills and increasing access to employment. The Council also noted the important stabilising role and cushioning effect of social protection systems and social inclusion policies.

During the discussion of the economic and financial situation, a number of delegations raised the current situation in the milk market. I emphasised the importance of the sector and the need to address the low price currently being achieved by producers, which is not sustainable. The Council took up the issue and the Commission was asked to present an in-depth market analysis of the current market situation, within the next two months, including possible options for stabilising the dairy market. This effort will respect the outcome of the CAP health check with which Ireland was pleased. While the topic was not on the scheduled business of the Council, the response of the Council again highlights how responsive Europe can be and is to real issues.

The Council also discussed climate change. We agreed that the Presidency and Commission would produce a work programme to ensure the necessary internal EU co-ordination arrangements are in place to consider how to share the burden of helping developing countries adapt and-or mitigate their climate change impact. It is essential that we reach a comprehensive and effective agreement at UN level, which I hope will happen later this year in Copenhagen. The European Union has provided leadership to the world on this issue with our unilateral commitment to cut emissions by 20%. Others will also have to make their contribution. I am pleased to see that this is now commencing, particularly with positive signals from the new US Administration under President Obama. I made the point in my press conference after the Council that the need to act on climate change increases with the passage of time. The next six months are extremely important for us all and I look forward to the Swedish Presidency taking this work forward. We agreed to come back to this issue in October and to take whatever decisions are required at that point to ensure we maximise the prospects for a deal at Copenhagen.

There was also discussion on illegal immigration from outside the European Union. As the House will know, there is a particularly difficult situation in the Mediterranean area, notably in Cyprus, Greece, Italy and Malta.

There was considerable interest in the appointment of the President of the Commission. President Barroso presented his candidature and vision for Europe, and the members of the European Council were unanimous in agreeing to nominate him. The Presidency will now hold discussions with the European Parliament to determine whether the Parliament is in a position to give its approval to the appointment in July. It is in the interests of the Union to have this matter finalised as quickly as possible, in order to eliminate uncertainty about who will lead the next Commission at this time of great international challenge. I have already indicated publicly my view that President Barroso has been an excellent President of the Commission. He enjoys the support of the members of the European Council and confirmation of his appointment in the coming weeks would be a positive message of stability at the helm of the next Commission.

I turn now to the issue which dominated the Council for Ireland, namely the Lisbon treaty. Almost exactly one year ago, I made a statement to this House after a European Council meeting at which the main talking point was the rejection of the Lisbon treaty by Ireland days earlier. I reported then that the Council had been very concerned, and had highlighted the dilemma of trying to respond to the concerns of the Irish people while still trying to advance a process which they consider to be vital. I reported that they were perplexed by the impression they had that issues not related to the treaty had greatly influenced our debate. At that time, I informed the House of how I had said frankly to my counterparts on the Council that the result had to be respected. We would have to take the time necessary to understand why the treaty had been rejected. We would have to examine why the debate had often portrayed Europe as being more concerned with treaties, directives and regulations than with making a meaningful and beneficial impact on the lives of people in Europe.

Six months later, in my statement to the House following December's Council meeting, I reported how we had conducted extensive research and identified the key concerns of the Irish people that would need to be addressed if we were to revisit ratification of the treaty. I referred to the value of the work of the all-party committee in that respect. I also reported that, in response, the Council had agreed that Ireland should receive legal guarantees on specific concerns, that the importance of workers rights and social progress would be confirmed and that, if the Lisbon treaty entered into force, each member state would retain a Commissioner.

I am very pleased to say to the House today that last week, the European Council agreed a package of legally-binding guarantees that respond comprehensively to the concerns of the Irish people. We already had agreement that if the Lisbon treaty enters force, each member state will keep its Commissioner. That commitment was confirmed again in last week's conclusions. On Friday, the European Council also agreed on a set of legally binding guarantees for Ireland, in the form of a decision of the heads of State and Government. The Council further agreed that the contents of this decision will also be incorporated in a protocol to be attached to the EU treaties after the entry into force of the Lisbon treaty. The guarantees make clear beyond doubt that Ireland retains control of its own tax rates, that Ireland's traditional policy of military neutrality is unaffected by the treaty and the protections in the Constitution on the right to life, education and the family are not in any way affected by the Lisbon treaty.

The Council also adopted a solemn declaration making clear the importance of workers' rights and public services to the Union. I hope that this solemn declaration will help to deal with some confusion which appears to exist on the Lisbon treaty and workers' rights. The treaty represents a positive step forward on a variety of fronts, including the Charter of Fundamental Rights and the horizontal social clause. We should bear in mind that very much of the progress over the past decades regarding Irish workers' rights and legislation has been inspired by the experience of our partners and has been delivered through the mechanisms of EU laws. Some might wish the Lisbon treaty would deliver more in this area but that cannot negate the positive measures it would bring about for workers.

We are all aware of how the economic context has changed so dramatically since one year ago. The crisis we have witnessed on the financial and economic fronts is largely without precedent. The public finances are under pressure and we have seen, sadly, the return of substantial unemployment, which brings with it frustration, demoralisation and the loss of human potential.

The Lisbon treaty is important in the context of our economic recovery. Its ratification would remove the considerable doubt in the minds of business people at home and abroad about our commitment to Europe. That doubt is the last thing we need at a time when, more than ever, we want to create, protect and sustain jobs. We need to help ourselves if we are to retain existing investment and attract new investment, and if we are to keep existing jobs and attract new jobs. Using the treaty as leverage to pursue other goals is a dangerous game that puts jobs at risk. This would do no service to workers or their families, never mind workers' rights.

Our country faces several challenges. We must bridge the budget deficit and get cash flowing again adequately in the economy. We must restore economic activity to minimise the scourge of unemployment. To do all that, we must remove the doubt about where our country stands in relation to Europe. This issue transcends party boundaries. I welcome the supportive comments of the leaders of Fine Gael, the Labour Party and other Members of this House following the important agreement reached in Brussels last week.

Ireland needs Europe and we need a Europe that works. However, it must work for Germany, Slovenia and Finland as much as it works for us. The agreed means of achieving this is the Lisbon treaty.

With regard to those who point to this or that imperfection, I do not dispute the European Union might not be perfect. However, I am firmly of the view it is hugely positive for Ireland and that, without doubt, it is the greatest example across the world of international co-operation for the common good. For any set of rules to be acceptable to 27 sovereign states, there will always be compromises. However, focusing on specific issues, important though they may seem, while missing the big picture that this treaty is fundamentally about our working relationship with our European partners risks not seeing the wood for the trees. The European Union is the means by which we make a meaningful impact on the wider world in which we exist. The Lisbon treaty is designed to equip Europe for an unpredictable future. Now, more than ever, we need an effective Europe.

Since last June, our overriding objective has been to address the concerns expressed by the people in last year's referendum and to ensure we continue to pursue our interests effectively within the European Union. We have got the response we wanted. Based on that response, the Government is satisfied that we should now return to the Irish people and ask them again to approve Ireland's ratification of the treaty. The relevant legislation is being finalised and will be introduced to the Oireachtas very shortly. This legislation will set out the proposed constitutional amendment to be put to the people for adoption if they agree to ratify the Lisbon treaty. Once the legislation has been passed, the Minister for the Environment, Heritage and Local Government will be in a position to make an order formally setting the date for the referendum, which the Government believes should be in early October.

This referendum represents a hugely important juncture for this country. It is perhaps one of the greatest national issues to face us in very many years. Therefore, it should be the sole focus of our effort and attention on this occasion. We are, fundamentally, faced with a decision about how we regard our place in the European Union. Nobody should underestimate the importance or scale of this challenge for our country.

It is imperative that all of us who believe in Ireland's place at the heart of Europe and the benefits that accrue to Ireland from our EU membership wage a united campaign to secure a resounding endorsement of the Lisbon treaty and of Ireland's commitment to the European Union, a union that is the platform for much of our prosperity and essential to the viability of so many Irish jobs.

It is not my intention to engage in anything other than a strong, positive campaign, working with those who share my view that a "Yes" vote is vital to this country's interests, to demonstrate that the concerns of the Irish people have been addressed, to promote the significant positive features of the Lisbon treaty and, above all, to ensure Ireland both contributes to and benefits from the spirit of solidarity that is a defining feature of the European Union.

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