Dáil debates

Tuesday, 28 June 2011

2:30 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)

I propose to answer Questions Nos. 2 to 18, inclusive, together.

I was delighted to welcome President Van Rompuy to Government Buildings on Friday 17 June. This marked his first visit to Dublin in the role he assumed in December 2009 as President of the European Council. We had a very constructive meeting, mainly focused on the economic situation in Ireland and in the wider euro area, and on preparations for the European Council on 23-24 June.

I briefed the President on the progress we are making in implementing the EU-IMF programme, including the steps we have taken on banking, the comprehensive spending review, and the jobs initiative. President Van Rompuy expressed his full support and admiration for the efforts being undertaken in Ireland to deal with the severe challenges we face. We reviewed the discussions underway about the interest rate reduction on our EU-funded loans, and agreed the need to find a solution. I also took the opportunity to remind him that Ireland is looking forward to its seventh EU Presidency in the first half of 2013, and that the planning process is already well underway.

Last week's European Council meeting was a busy one, with a wide range of issues on the agenda: the economic situation, including Greece; migration and asylum; and international issues, including Libya, Syria and the Middle East. I will be making a fuller statement on its outcome to the House tomorrow.

We had a good discussion on economic matters over dinner on Thursday night. The European Council welcomed the near completion of implementing the comprehensive package of measures it agreed last March to put Europe back on the path towards sustainable and job-creating growth, including strengthened economic governance. It welcomed in particular the agreement reached on the future European stability mechanism and the amended European financial stability facility, as well as the substantial progress made on the legislative proposals on economic governance. It also stressed the importance of fully transparent and credible bank stress tests.

The meeting concluded the first European semester, the new framework for economic policy coordination. We endorsed the recommendations of the Commission for each member state, consistent with the goals of the EU2020 strategy for jobs and sustainable growth. Member states taking part in the euro plus pact also agreed to enhance the ambition and precision of their commitments in next year's exercise. The European Council also assessed the situation of those member states with an adjustment programme.

Regarding Greece, the euro area heads agreed on a way forward and called on their Finance Ministers to complete work to allow the necessary decisions to be taken by early July. The European Council welcomed the progress made in Ireland in the implementation of our own programme, and confirmed that this is well on track.

There was no discussion of specific issues relating to Anglo Irish Bank, which the Minister for Finance, Deputy Noonan, has indicated will be addressed in the autumn. I had good conversations with a number of colleagues both at and on the margins of the meeting. They were notably warm in their tributes to Ireland. Through the steps that we are taking, we are establishing our credibility and this was reflected in the room.

I stressed the importance of ensuring that all aspects of support programmes, including the pricing of loans, contribute to the shared goal of returning to the markets as soon as possible. This included a constructive discussion with President Sarkozy. He and I agreed to continue to seek a way forward together, and our officials will remain in close contact in the period ahead. We will continue to work to find a resolution and I remain hopeful of a positive outcome.

Migration and asylum issues were discussed on Friday morning, when we considered the governance of the Schengen area, the control of external borders, the development of partnerships with the countries of the southern neighbourhood and the completion of the common European asylum system by 2012. We agreed that the accession negotiations with Croatia should be concluded by the end of June, confirming the strong commitment that exists in terms of the enlargement perspective of the western Balkans. Discussion on developments in the southern neighbourhood included adopting a separate declaration on this subject.

During the course of the discussion on international issues, I raised with colleagues concerns about the situation in Bahrain where medical staff, some of whom were trained in Ireland, face trial. The language proposed by me on the situation in Bahrain was accepted.

The European Council also finalised the appointment of Mr. Mario Draghi as President of the European Central Bank with effect from 1 November 2011.

Outside the context of European Council meetings and related discussions, the position as regards my bilateral meetings with other Heads of State or Government remains as I set out to the House on 15 June. I met with Prime Minister Cameron in London on 18 April, and in Dublin on 18 May; with President Obama in Dublin on 23 May; and with Prime Minister Orban of Hungary in Dublin on 1 June, in the context of the current Hungarian EU Presidency. As I have already mentioned, I met with Herman Van Rompuy, President of the European Council, on 17 June. Last week, I also discussed with Prime Minister Tusk of Poland the possibility of him visiting Ireland in September.

Other arrangements have not been finalised and remain under review.

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