Enda Kenny (Mayo, Fine Gael)

I propose to take Questions Nos. 1 to 24, inclusive, together.

All of the questions relate to the European Council or the Heads of Government meeting. I attended the European Council in Brussels on 8 and 9 December. As I have already made a statement to the House on these meetings, I will confine myself to some brief remarks on their proceedings.

Important steps were taken at the European Council on budgetary discipline within the euro area and firewalls, both of which are issues of importance to Ireland, and progress was made towards taking Europe beyond the current crisis. In particular, leaders agreed to strengthen economic policy co-ordination further within the euro area by way of an intergovernmental agreement to construct a new fiscal compact. Intensive negotiations are under way on a draft treaty to give legal effect to this agreement. Leaders will aim to finalise work at an informal meeting of the European Council scheduled to take place in Brussels on 30 January. Once agreement is reached, the text will then be prepared for signature and subsequent ratification by each of the participants according to their respective constitutional requirements.

The December European Council also took stock of what needs to be done to lift Europe out of the current crisis situation. The need to continue structural reform and fiscal consolidation as a means to secure a return to sustainable growth was agreed. The European Council highlighted the need to adopt swiftly measures with most potential to boost growth and jobs across Europe. There is a real recognition at European level that addressing the need for sustainable jobs and growth is critical. This will also be a focus for discussions at the informal meeting next week, and I will support efforts in this regard strongly. There will be no real recovery in Europe without growth.

The European Council also tracked progress under the euro plus pact and followed up on the issue of energy. In addition, enlargement issues featured, and the signature of the Croatian accession treaty took place in the margins of the meeting. The European Council also agreed conclusions on Iran, Syria and Afghanistan.

Ahead of last month's European Council, my strong view was that the meeting had to address two key issues: the need for strengthened firewalls and the need to strengthen governance structures. The outcome of the meeting represents positive progress in both regards. There is always scope to do more and I look forward to participating actively in discussions in the period ahead.

In advance of the meeting, I wrote to President Van Rompuy and I also had a telephone conversation with him on the eve of the meeting. I set out for him the uniquely onerous burden being carried by the Irish people as a result of the steps we have taken to recapitalise our banks. I said that I believed Ireland should be able to access new instruments available at EU level - for example, new flexibilities within the EFSF - which were not available at the time and which would make the burden more manageable. As the House will be aware, work is being taken forward on this matter by the Minister for Finance and his officials.

Looking forward, I will attend the informal meeting of EU Heads of State and Government in Brussels on Monday, 30 January. As I will make a statement to the House on this meeting later this afternoon, I will again confine myself to some brief remarks on this meeting. While there is no formal agenda, there will be two key issues on the table: the new treaty and the vitally important question of jobs and growth. On the treaty, our primary objective is to ensure an outcome that strengthens the stability of the euro area and that protects Irish interests. We have sought to build support and understanding for our positions and to cultivate alliances with partners across a range of specific issues which matter to us, including the need to reflect Ireland's status as a programme country; the need for an appropriate basis for incorporating a debt brake at national level; the need for a workable application of structural balance rule; and the importance of ensuring that as much of the contents of this treaty as possible are put on a clear European Union legislative footing.

This last point is an important one. Indeed, I would go further and state clearly that I strongly wish to see the contents of this agreement incorporated, at the earliest possible opportunity, into the legal framework of the European Union. We believe that such an approach would serve to lend clarity and would help to prevent any damage to the Union, its institutions and its established processes. The Government and I will continue to work to ensure Ireland's interests are reflected in order that we are in a position to ratify the treaty when agreed, including putting it to the people in a referendum, if necessary. However, I reiterate to the House again today that it is only when a final text is available and the Attorney General studies the legal implications that it will be possible to reach a view on what is required. The House can rest assured that whatever path toward ratification is required, it will be fully involved in the process.

The informal meeting of the European Council is also expected to discuss measures to promote growth and create jobs throughout Europe. I will support these efforts, working with like-minded countries to ensure an outcome which boosts our small and medium-sized enterprises, SMEs, improves conditions for access to credit, investment in research and development, and bolsters key parts of the Single Market which are especially important to Ireland, including the digital agenda. To this end, we have submitted to the President of the European Council two joint contributions from Ireland, the Netherlands, Sweden, the UK, Finland and Estonia as inputs to the preparation of next Monday's informal European Council meeting. The first paper is on growth and focuses on measures such as completion of the Single Market, reducing the regulatory burden on SMEs and better targeting of labour market supports, including a new focus on youth unemployment. The paper also calls for proposals to ensure that all actions at European Union level fully support economic growth and job creation.

The second paper includes proposals on building the digital single market, particularly in the area of copyright. It focuses on measures to improve digital rights management conditions and creating cross-border pan-European licensing schemes.

I had a working lunch with Prime Minister Mr. Viktor Orbán of Hungary in Government Buildings on 1 June last year during Hungary's Presidency of the Council of Ministers. That meeting was an opportunity to survey some of the issues then on the EU agenda, especially economic questions. I took the opportunity to brief the Prime Minister, Mr. Orbán on efforts under way to improve Ireland's economic position, including through implementation of the EU-IMF programme. The Prime Minister, Mr. Orbán touched on some other issues with which the Hungarian Presidency had been dealing, including the negotiations on Croatian accession and the package of legislation on economic governance then being advanced. The House will be aware of the recent Croatian decision by way of a vote.

The Prime Minister, Mr. Orbán and I attended the European Council meetings on 11 March, 24 and 25 March, 23 and 24 June, 23 October, 26 October and 8 and 9 December 2011 and the Eastern Partnership Summit in Warsaw on 29 and 30 September.

I met the Prime Minister Mr. Cameron on 12 January in London. I am also in ongoing informal contact with my colleagues from the European Council. I plan to have a bilateral meeting with the Danish Prime Minister Ms Helle Thorning-Schmidt and the Prime Minister Mr. Jyrki Katainen of Finland while I attend the World Economic Forum in Davos on 26 January. I may have further meetings while there. I spoke this morning to Chancellor Mr. Werner Faymann of Austria and will have further conversations with a number of colleagues ahead of next week's meeting.

With regard to the Commission proposal for a financial transaction tax, FTT, we have made it very clear that such a transaction tax should apply on a global basis. We are also firmly of the view that, to avoid distortions of financial transactions within the Single Market, any introduction of a tax in the European Union should include all member states. The application of such an FTT here in Dublin but not in our closest neighbour in the City of London could have an adverse impact upon our International Financial Services Centre, which is of such critical importance to the Irish economy.

See this speech in context