Enda Kenny (Mayo, Fine Gael)

The meeting of the European Council on 25 March and 26 March was dominated by the circumstances in Greece. Greece has to borrow €53 billion this year and this debt is expected to rise to €290 billion over time. The Greek Government announced austerity measures and plans for structural reforms on 3 March. Prime Minister Papandreou believes this shows his country's determination to keep the euro strong and stable. He also stated high borrowing costs would make it difficult for Greece to meet its budgetary goals.

I welcome the statement of solidarity by the European Council on this matter in that, as part of the package involving substantial IMF funding and European financing, which comprises a majority, euro area member states are ready to contribute to the co-ordinated bilateral loans. We discussed this with the Taoiseach during Question Time.

The failure of any euro zone member to meet its obligations would be severely damaging to the single currency. Any financial support given to Greece, if it arises, must be part of a pathway back to financial stability. Therefore, any assistance provided must have a clear plan attached that sets out specific steps to ensure recovery.

I attended the European People's Party, EPP, summit in Brussels before the European Council meeting. It was attended by several of the Prime Ministers who attended the latter. Very strong support was expressed for Greece. Earlier this month, I accepted responsibility from within the EPP for the area of employment and job protection. The EPP is the largest political group in the European Union and it is determined to take the lead in tackling the jobs crisis. The ministerial group I now chair will enable us to do so in a coherent and co-ordinated way.

I would like to see job creation and protection placed at the top of the agenda. For too long the European Union has been talking about institutions and the need to reform them. It is now time for the politicians to step up to the mark and prove the EU treaty formally adopted and given authority by the Irish electorate works. If the European Union is to be seen to work by its citizens, there must be support for job protection and creation initiatives. When one speaks to various Ministers from the European Union, one notes their problems are very different. Germany does not have enough people to work in health, education or renewables while other countries have different problems. In three months' time the European Council will formally adopt the main elements of the Europe 2020 strategy for smart, sustainable and inclusive growth. Member states will set national targets, taking into account their relative starting positions and individual national circumstances. Each member state will draw up its own national reform programme and I look forward to the publication of the Irish document by the Government.

Vital elements of the plan include job creation, improved education levels and reducing poverty. Obviously, Ireland has a poor record in aspects of all three. I look forward to the Government's publication of employment targets and job creation policies for the future. Just yesterday the Minister for Finance stated that unemployment rates had stabilised, yet the live register figures published by the CSO today reveal that unemployment continues to rise and now stands at 13.4%, the second highest in the eurozone.

The most worrying feature of today's figures is the evidence that more and more people are moving from short-term job seeker's benefit to long-term job seeker's allowance, as their credits run out. Put simply, 88,000 people have moved from the short-term unemployment category into long-term unemployment, which is a severe restriction on them. The social consequences of long-term unemployment are as serious as the economic consequence currently paralysing the country. They lead to loss of hope, destroy communities, cause poverty and serious personal problems for so many.

On the issue of poverty, the 2020 strategy includes a commitment to promote social inclusion, in particular through the reduction of poverty. In the last year, however, the Government abolished the Combat Poverty Agency and 100,000 people now live in consistent poverty. A major commitment in the national action plan on social inclusion aims to reduce the numbers of those experiencing consistent poverty to between 2% and 4% by 2012. However, the EU survey on income and living conditions, released in December 2008, which applied to 2007, indicated that the rate of consistent poverty within the population that year was 5.1%.

The 2020 strategy commits to improving educational levels in particular, by aiming to improve school drop-out levels, and by increasing the share of the population that will complete third level or its equivalent. Taking into account the Commission's proposals, the European Council will set the numerical rates for these targets in June 2010.

Ireland's drop-out rates are very high. In 2007 the ESRI said that 14% of students do not complete the leaving certificate while the TUI suggests that as many as one in five drop out before the leaving certificate, which increases to one in three in some parts of Dublin. This is not good enough.

I welcome the inclusion, at the Taoiseach's request, of agriculture and the future of CAP reform in the Council's conclusions. This is something we should discuss here in a serious manner and it will provide a great opportunity, if exploited properly.

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