Enda Kenny (Mayo, Fine Gael)

I propose to take Questions Nos. 6 to 31, inclusive, together.

I attended meetings of the European Council and euro summit, in Brussels on 23 and 26 October. As I have already made statements to the House on these summit meetings, I will confine myself to giving a summary account of the proceedings.

On 23 October, the European Council identified a number of key priorities for internal economic policy to be pursued in the short term to achieve smart, sustainable and inclusive growth. These include the completion of the Single Market; measures to support SMEs; and the reduction of administrative burden. It called for a stronger focus to be given to growth-enhancing aspects of the European Union's external policies to maximise their contribution to growth in Europe, and to shape the conditions to attract more inward investment.

Recognising the pressures on national budgets, the European Council also agreed temporarily to increase co-financing rates for EU funds, which will have a direct benefit for Ireland. In this regard, my colleagues agreed to my suggestion that, in examining the possibilities for boosting investment in Europe, the European Investment Bank should have a particular focus on countries implementing a programme.

The Council also discussed preparations for the Cannes G20 Summit, giving top priority to maintaining financial stability and restoring growth. In addition, it also discussed the preparations for the Durban conference on climate change, stressing the need to take ambitious steps towards a global and comprehensive legally-binding framework for the post-2012 period.

The European Council of 23 October also agreed a set of conclusions concerning foreign policy issues covering developments in Libya, Egypt, Tunisia, Syria and Iran, as well as the Eastern Partnership Summit held in September. We also welcomed the announcement of the cessation of ETA's terrorist activities in Spain.

At the meeting of Heads of State and Government of the euro area on 23 October, which took place immediately following the European Council meeting, discussions concentrated on restoring stability to the euro area. Significant progress was made on a comprehensive package of measures. However, it was not possible to bring the work to a successful conclusion on that occasion.

As the House will be aware, the European Council and the euro summit met again on 26 October. At these meetings, work was finalised on the various elements of the comprehensive package of measures designed to restore stability to the euro area. The agreement reached covers all the key issues: bank recapitalisation; debt sustainability for Greece; firewalls to prevent contagion; and improved governance within the euro area. In each of these areas, Irish interests were fully protected.

First, we agreed measures that, when implemented, should put Greek debt back on a sustainable footing, and will help Greece to start rebuilding its economy. Second, we agreed to extend the capacity of the EFSF, through two basic leverage options, to ensure that there are robust and secure firewalls to prevent contagion spreading to other member states. Third, we agreed measures that ensure that Europe's banks are adequately capitalised and have access to funding. Fourth, we agreed to implement a series of additional measures at national level to drive the growth agenda forward, including the adoption by each member state of balanced budget rules which translate the Stability and Growth Pact into national legislation. Finally, we agreed on ten measures to improve euro area governance. These include regular euro summit meetings, at least twice a year, and regular meetings of the presidents of the euro summit, the Commission and the eurogroup.

We requested that President Van Rompuy, working closely with the presidents of the European Commission and of the eurogroup, prepare a report for the December European Council on possible steps to further strengthen economic convergence within the euro area, to improve fiscal discipline and to deepen economic union. As part of that report, President Van Rompuy will explore the possibility of limited treaty changes. In this, it is important to recall that no outcome is predetermined. I remain convinced that there is considerable scope to go further within existing frameworks and we should exploit that to the full.

As I told the House last week, the issue of Anglo Irish Bank did not arise at these meetings.

With regard to bilateral contacts, I had a telephone conversation with President Van Rompuy on 10 October and I also met President Barroso in Brussels on 13 October ahead of the summits. I also had extensive contacts with colleagues, including Prime Minister Papandreou, at the various meetings I attended. Preparations are at an advanced stage for a bilateral visit to meet Chancellor Merkel in Berlin later this month.

With regard to the manner in which Greece ratifies its new programme, this is a matter for the Greek Prime Minister, the Greek Government and the Greek Parliament.

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