Enda Kenny (Mayo, Fine Gael)

I am very happy to open this first Europe Day debate in the Dáil and to commemorate the 61st anniversary of the Schuman Declaration. Today's debate represents the fulfilment of an important commitment in the programme for Government. Déanaim comhghairdeas leis an Choimisinéir Máire Geoghegan-Quinn atá anseo sa Dáil inniu, iar-Theachta agus iar-Aire, tá fáilte mhór roimpi.

This Government came into office 61 days ago facing many challenges and with a promise: to strive in everything we do to fix the economy, to heal our society, to reform our systems and to bring hope to our people. We committed our absolute resolve to a process of transformation, laying the foundations for a new Ireland and a better future. Rebuilding Ireland's relationship with our partners in the European Union is also a critical part of this work.

When I was first elected to this House in 1975, Ireland was finding its feet as one of the newest members of the then European Economic Community. Now, almost 40 years since we joined, we again find ourselves navigating new waters. It is a good time to take stock.

Our relationship with Europe, like any partnership of 40 years, has had its ups and downs. Over time, it has matured and become more complex. We have seen the Union family grow from nine Member States when we joined to 27 now, with more expected in the years to come. We have seen our fundamental economic position improve. Even if recent years have seen us suffer the most profound shock and setback, we are still in a better position than we were before we joined. Our economy is more diverse, more open to trade and exports and more developed. We are better equipped to overcome the difficulties we face. We have been able to couple our native strengths, not least our people, with our access to one of the world's largest single market places to attract the type of inward investment that will help to see us through these most difficult times, and put us on the path to national recovery.

We have used the benefits the Union offered wisely, maximising the impact of receipts under the Union's regional funds to accelerate our process of development and modernisation. Under the CAP, our agricultural sector has been transformed beyond recognition. We have made our membership of the Union work for us because we have been prepared to work constructively with others to achieve common goals. That is what the Union should be about; that is what the Union is about.

We have made a real contribution too. Every day Irish officials sit around meeting tables in Brussels sharing ideas, shaping policy and making a difference. We have a record of achievement in the Parliament and in the Commission, and I am glad to welcome the members of the European Parliament elected by the people of Ireland to the House today. We have successfully held six Presidencies, and look forward to our seventh in the first half of 2013. Some of our brightest and best people have served, and still serve the Union and its institutions at the highest levels. Irish personnel have served with distinction in European Union-led civilian and military missions, including in the Balkans and Africa, bringing Ireland's proud record of peace-keeping into new places and under a new flag.

We have welcomed new member states as they have joined and it was during the Irish Presidency in 2004 that we welcomed ten new states to the European Union. We have also welcomed their citizens when they have chosen to make lives for themselves and their families in Ireland. I hold in very high regard the contribution they have made to our national life. We are the better for having them here. I have seen Ireland grow and mature, casting off the sense of isolation and inferiority that coloured too many of our early decades of statehood. As someone who cares greatly about the well-being of this country, I have never wavered in my support for the Union.

We are now in receipt of a programme of support from the IMF-EU. The pressure on our economy is immense and we are dealing with the downstream effects of the most severe banking bust. We are engaged in an unprecedented effort to get our fiscal position back on track. We have promised to bring our deficit back in line by the end of 2015 and we will get there. We are implementing strategies to generate growth in our economy, to restore confidence and to get money moving and most important, to get Ireland working again. As part of our efforts to recover, this Government is continuing in its efforts to secure a reduced interest rate on its loans as part of the EU-IMF agreement. We remain fully confident that we will be able to reduce the current rate.

We should also not lose sight of the seriousness of what was involved for people in Brussels and Frankfurt and for our partners in capitals around the European Union. There was, and in some quarters still is, genuine concern for the future stability of the euro, the shared currency in which we have all invested so much economic and political capital and on which the economic security of so much of the Continent rests.

However, just as there are lessons for Ireland and Europe as a whole to learn from what has happened, there must also be scope for improving how things are done at European level. For example, the independence of the ECB is, quite rightly, closely guarded and firmly entrenched in the treaties. There may, however, be ways in which to improve its accountability and thus underpin the legitimacy of its actions without in any way infringing on this core principle. It is certainly, in my view, a matter worthy of some serious consideration.

It is also surely worth reflecting on whether a more flexible approach could have delivered a more custom-made and effective solution to the different problems faced by member states. We are not alone in finding ourselves in serious difficulties and it is increasingly clear to me that each set of problems requires its own distinct set of solutions. A one-size-fits-all approach risks fitting nobody.

I am greatly saddened when I hear that the shine has gone off Ireland and that we are no longer regarded as good team players by some of our European colleagues. Sometimes, difficult and unwelcome things have to be said and when that need arises, I have shown that I am more than prepared to say them. However, I believe our fundamental interests will be damaged if we stand on the margins or allow ourselves to be isolated. Ireland needs to play a positive and constructive role in the life of the European Union because it is the best way to promote and defend this country's national interests. That is what this Government will continue to do.

I am also concerned that the recent course of events will take the shine off Europe for Irish people. We in this country have consistently shown ourselves to be strong supporters of the European Union, but this cannot be taken for granted. While the overwhelming majority of people continue to believe that Ireland has, on balance, benefited significantly from its membership of the European Union, this is a view that is losing ground. The most recent Eurobarometer polling shows a decline of 8% between 2009 and 2010. Part of this drift, in my opinion, stems from what can be perceived as a wide gap between the making of law in Europe and its implementation on the ground. That is why the programme for Government sets out a significant package of measures aimed at bringing about greater accountability with an enhanced role for and contribution on the part of the Oireachtas. This includes, for example, briefings and engagement with the Dáil prior to EU-level meetings, Oireachtas responsibility for full scrutiny of EU draft proposals and the regular attendance by MEPs at Dáil committees.

I expect the Minister of State, Deputy Creighton, will have more to say about these plans later in the debate. However, this is not the full picture. The lustre can also be tarnished in this complex relationship when others do not appear to have full respect for the rules of the European Union, as laid out in the treaties and protocols that govern it. We in Ireland are taking very difficult decisions to get our economy back on track and we deeply appreciate the support of our partners in this effort.

Under the treaties - underpinned by commitments secured by Ireland on the Treaty of Lisbon - member states retain the right to determine the tax mix most suited to their economic circumstances, whatever those circumstances might be at any given moment. For Ireland, our 12.5% rate of corporation tax is, and will remain, a cornerstone of this country's economic policy. It cannot be changed without our consent and to put things as plainly as possible, that consent will not be forthcoming. It does nobody credit to call it into question or to seek to link movement on this issue to relief elsewhere. In my strong view, it does damage to Europe's standing in the eyes of the Irish people.

It is clear from the recent review that our EU-IMF programme is on track. However, as everyone knows, we are carrying a very heavy burden of debt. Without strong growth, questions of sustainability will remain. There is no doubt that a reduction in the interest rate on the moneys we are borrowing from Europe would be a meaningful and appreciated measure, on its own merits, and as already stated, the Government is continuing in its efforts to secure the agreement of partners in this regard.

In Europe, as in any private household, economic stress can result in relationship strain. It is important at such moments to take a step back and to remind ourselves of all of the good and positive things we have achieved and which we will continue to achieve together in the future. There is a bigger picture and we should not lose sight of it. The European Union today is a very different place from the EEC we joined all those years ago. It is a much more complex and diverse place. It is more deeply integrated and more widely coordinated.

Over the next 20 years, Europe will face many challenges and as a European-wide family we must plan how to tackle these challenges. Many reports indicate that in the next 20 years, the growth will be in countries such as China, India, Japan, Russia, South Africa, Brazil and the United States. If Europe does not make a political decision to play its full part then we do not want it to be side-lined. Looking forward, we have to set out a vision beyond 2020 as to where we see the European Union will be. The countries I have referred to will power ahead and we must ensure that European Union progress adapts to the challenges it faces in a global sense.

I refer to the growth potential of the European Union Single Market. With a European population of 500 million which generates €12 trillion a year in that marketplace, we must prioritise the growth potential of our Union and ensure that, politically, the necessary policies are in place to capitalise on this.Looking to the future, the European Union should consider the potential of free trade with the United States of America in particular and to opening up this market further in the next ten to 15 years. The scale of trade across the Atlantic both ways is very significant and generates a very significant proportion of world trade in its own right.

Red tape continues to strangle business both here in Ireland and across the European Union. As pointed out by Prime Minister David Cameron, it costs an average of €593 to set up a business in Brazil while it is an average cost of €644 in the USA, but it costs approximately €2,500 in the European Union. I ask why this should be so. This is an issue that must be addressed in order to promote new business set-up and entrepreneurial initiatives which will create jobs and get our economies moving again.

The EU has correctly identified that innovation will be central to the development of the economies of the member states. The former Lisbon strategy was the starting point for turning the attention of member states towards making their economies flexible enough to embrace innovation. Ireland, as a small and flexible country, should be leading that agenda within Europe. However, we cannot unleash the potential of innovators if they do not have the financing tools available to them. That is why we must make it a priority, in addressing the banking problems and working out new schemes, to get credit to entrepreneurs and innovators.

The European Union needs to implement a more co-ordinated immigration policy that reflects the realities of modern immigration and the labour market but which addresses the challenges of illegal immigration. Statistics show that in the next 20 years, the population of Africa will double and if even 10% of young males from the African continent were to decide to emigrate to Europe, no individual country could withstand such scale of pressure. Therefore, the EU needs to undertake a serious analysis of its policy on immigration into the Union. There has been a decline in population in a number of countries. A serious number of personnel is required to run services in many of those countries in the years ahead. In times of humanitarian crisis, Europe must co-ordinate its aid provision to ensure the effective and co-ordinated dispersal of emergency aid to those who need it most. It is obvious that Europe has a massive series of humanitarian aid projects in place. Everybody is concerned about the effectiveness of the expenditure on and delivery of that. Europe needs to take a more proactive role in international and humanitarian affairs, for instance in the Middle East. Obviously, this is a matter of serious concern for many representatives across Europe. A first step was taken in this regard when the post of High Representative of the European Union for Foreign Affairs and Security Policy was created.

Values will remain the same and Europe will remain a place where we can be comfortably at home. Even in its current difficult circumstances, Ireland should never allow itself to become an unquestioning and uncritical member of the family. When we offer our views - critical or otherwise - we should do so in a spirit of shared interest and mutual respect. Europe is not perfect, but neither are we.

I welcome our distinguished visitors to the House. Some of them have given long service to their constituents and parties over many years I particularly welcome the EU Commissioner, Máire Geoghegan-Quinn, who represents Ireland at the Commission table and retains a keen interest in the development of her country at home. I look forward to the debate and to hearing the views that will be expressed by many Members.

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