Dáil debates

Tuesday, 18 October 2011

4:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)

I propose to take Questions Nos. 8 to 21, inclusive, together.

As I informed the House in my statement last week, the European Council meeting originally scheduled to meet on 17 October will now be held this Sunday, 23 October. This arrangement has provided extra time in which to finalise a comprehensive strategy on the economic crisis facing the euro area.

In practice, there will be two meetings on Sunday, a meeting of the European Council and, following that, a meeting of the Heads of State or Government of the euro area. The draft annotated agenda for the European Council includes discussions on economic policy, including external aspects; preparations for the G20 Summit in Cannes; and climate change ahead of the Durban conference.

On economic policy, I will emphasise growth and jobs and what the European Union, together with the member states, can do to stimulate these, including through implementation of the Europe 2020 strategy. We will seek to identify a number of priority areas that can be expected to boost sustainable growth in the short term. I will seek to make this aspect as specific as possible, with priority given to measures that can make the most significant impact. Completion of the Single Market, including the digital dimension, has great potential in this regard.

We need to ensure that, in its external relations, the EU focuses more on improving its trade performance and attracting inward investment as part of its drive to create new jobs. We need to attach renewed priority to bilateral and regional trade agreements, given that the prize of completing the Doha round remains elusive. As a small, open trading economy, this is critical for Ireland.

More broadly, I expect that we will take stock of progress made in strengthening economic governance, and of recent economic developments in the euro area. We have completed the first phase of the new "European semester" cycle and it is now for the member states to implement the country-specific recommendations made to them.

As already noted, I will also attend the meeting of the Heads of State or Government of the euro area. Between the two meetings, the expectation is that we will bring forward a comprehensive package to address five key areas: the situation in Greece, with particular focus on the sustainability of its debt; preventing contagion to other member states, especially those that are in a programme, including Ireland; addressing any weakness in Europe' banks, bearing in mind that Irish banks have already been tested to very high standards, as the House will be aware; ensuring that we create the right context for growth and job creation; and ensuring we have the right arrangements in place to enhance economic co-ordination, especially in the euro area.

Last week, the European Commission published its contribution to the debate and important contributions from President Van Rompuy and from other member states, including France and Germany, are awaited. I expect that, in his proposals, President Van Rompuy will focus on how to improve our working methods and enhance crisis management in the euro area. While we have yet to see his proposals, I anticipate they will focus on what can be achieved in the short term in addition to looking to possible action in the medium to longer term. These proposals will need to strike a delicate balance.

While I have no formal bilateral meeting planned with Prime Minister Papandreou, I will see him at the European Council. I met the President of the Commission, Mr. José Manuel Barroso, in Brussels last Thursday. Discussions focused on what needs to be done to address the economic crisis in a comprehensive, balanced and credible way, including in identifying means to generate jobs and growth. At the meeting I outlined Ireland's enduring support for the "Community method" and the special role of the European Commission, and also Ireland's strong support for measures that make a contribution to the growth and jobs agenda.

A new integrated European affairs division has been established within my Department. This involved the transfer on 3 October of 19 whole-time equivalent staff from the Department of Foreign Affairs and Trade who now work alongside existing staff from my Department in the new, integrated EU division. This new division supports me in my membership of the EU Council and supports the Tánaiste in his responsibility for overall co-ordination of European policy, including his membership of the General Affairs and External Relations Council. It secures more strategic, effective direction and co-ordination throughout Government in all matters related to the European Union.

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