Eamon Gilmore (Dún Laoghaire, Labour)

I thank the Members who contributed to the debate, in the course of which there were many references, understandably, to the debates that took place during the general election campaign. Leaving aside the partisan comments we all tend to make about general elections and their outcomes, the overwhelming message from the general election was people's desire that the new Government would get to grips with the unprecedented economic difficulty the country is facing and address the issues of economic recovery, getting people back to work, getting growth into the economy and confidence back into the domestic economy, and restoring the country's reputation.

There is a great understanding among the people that this is a process that will take some time. I doubt that anybody in this country expects the Taoiseach to arrive back from the European Council meeting at the weekend with a neatly packaged solution to our economic and financial difficulties. We must therefore see the Council meeting as part of a process which the Government is undertaking and through which we are determined to restore this country's fortunes and get us back on our feet. In that context, there is a responsibility on everybody to be supportive of that effort. I do not mean it should be uncritical support, but support in the sense that we must be confident about this country's future. We should not be talking ourselves further into a depression or decline. Second, where Members of the House or individual political parties have suggestions about how we can best do that and constructive ideas about how we can move things forward, the Government is open to addressing them.

Apart from the economic issue, the Council meeting will address a range of issues which have been referred to by a number of Deputies. Preparation for this week's European Council was taken forward in a number of productive meetings held yesterday in Brussels. The Council of Ministers dealing with energy met and considered the situation in light of recent developments in Japan and north Africa. The Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, represented Ireland. With regard to energy markets and supply, the conclusion was that members have so far been able to cope with the consequences for the oil and gas markets but that these needed to be kept under close watch, including as regards price developments.

Where nuclear safety is concerned, it was agreed the priority is to ensure the highest standards are in force. Improving safety is a continuing process. The Council welcomed voluntary steps taken by national authorities and industry operators regarding the review of safety of nuclear facilities. There was a shared willingness to launch a process for defining a comprehensive risk and safety assessment of nuclear plants in Europe, the so-called stress tests.

A meeting of Finance Ministers was also held yesterday with regard to the European Stability Mechanism, ESM. The Minister for Finance, Deputy Noonan, attended that meeting. The main task of relevance to the European Council was to finalise the key structural features of the ESM, following the euro group Heads of State and Government meeting on 11 March. This was successfully achieved and the details are set out in an 11 page term sheet which I understand is now publicly available.

The Foreign Affairs Council, attended by the Minister of State, Deputy Creighton, met yesterday morning and over lunch and devoted a considerable amount of time and deliberation to the situation in Libya. Ministers agreed Council conclusions which clearly condemn the continued violence and ongoing violations of human rights by the Libyan regime against its people. Ireland strongly supports these conclusions which also express satisfaction at the adoption of UN Security Council Resolution 1973 and make clear that the EU will support actions provided for by that resolution which are necessary to protect civilians and civilian populated areas under threat of attack. The Council also adopted further sanctions against the Libyan leadership. A further round of EU sanctions is expected to be agreed by the European Council later this week.

Ahead of the European Council discussion on the southern neighbourhood, the Foreign Affairs Council also discussed the situation in the broader region, particularly the EU's support for transitions in Tunisia and Egypt, as well as the situations in Bahrain and Yemen. The Council agreed conclusions on Bahrain and Yemen which Ireland fully supports. On Bahrain, the Council deplored the recent loss of life and the escalation of violence and called for the immediate commencement of dialogue on reform, without preconditions. The need for the Bahraini Government and security forces to respect and protect basic human rights was also emphasised.

With regard to Yemen, the Council strongly condemned the use of force against protestors which resulted in at least 39 deaths last Friday. The Council also made clear that the EU will review its policies towards Yemen should the safety of demonstrators not be ensured. The Council urged all sides to engage in constructive and comprehensive dialogue without delay with a view to achieving an orderly political transition in Yemen.

As is usual and in line with the treaty provisions, the General Affairs Councilmet yesterday to prepare the meeting of the European Council on Thursday and Friday. This was a good meeting which worked through the draft conclusions of the European Council and brought together the diverse elements which figure on its agenda: the situation in Libya and the wider southern neighbourhood; the situation in Japan; and the comprehensive package of measures to respond to the economic crisis and preserve financial stability.

There are some grounds for satisfaction in seeing the components of this comprehensive package now come together, and in a relatively short timescale. The stepping-up of economic co-ordination at EU level through the European Semester has now been launched. The pact for the euro, agreed by Heads of Government on 11 March, is now in effect and is open for other member states to join. At the General Affairs Council, Denmark was clear in stating it would be participating, and a number of other non-euro member states are actively considering such a step.

The strengthening of the Stability and Growth Pact through legislation is advancing and the Council's so-called general approach now opens the way for negotiations with the European Parliament. The banking sector stress tests throughout Europe are under way, and the European Council will underline the importance of the peer review process. The final element of this package will be the adoption by the European Council of the decision which will amend the Treaty on the Functioning of the European Union, TFEU, with regard to the setting up of the ESM.

In the Council discussions yesterday the draft conclusions of the European Council on this range of matters were generally well received. Suggestions for amendment and improvement in a number of respects were put forward, including by Ireland regarding the attraction of capital to finance growth, and these will be considered by President Van Rompuy and his team before the next draft is presented to the Heads of State and Government.

As regards the southern Mediterranean region, since the Foreign Affairs Council had already had an in-depth discussion on current events, the General Affairs Council focused on how the EU can assist those countries, such as Egypt and Tunisia, which are now on the path to democratic transition. The Council and the Commission are considering a number of medium and long-term measures. These will form part of a new partnership between the EU and our southern neighbours which we hope will be founded on deeper economic integration, broader market access and political co-operation. However, there are also some actions we can take now, such as increasing lending from the European Investment Bank. These will be further considered by the European Council.

While there was little discussion at yesterday's General Affairs Council on issues related to the ESM and the EFSF, given that Finance Ministers were meeting in parallel, we welcome the acknowledgement in the pact for the euro of the importance of debt sustainability of recipient countries. In Ireland's case, bringing about the pricing reduction in the EFSF envisaged in the 11 March conclusions is a matter being addressed in ongoing contacts. We will work constructively to reach an outcome that is acceptable to all concerned.

The stage is set for a productive meeting of the European Council, marking the culmination of an intensive process of preparation of an integrated package of economic and financial measures, as well as providing for a distinctive European Union input to the preoccupying situations in both Japan and Libya.

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