Enda Kenny (Mayo, Fine Gael)

The Foreign Affairs Council and the General Affairs Council considered the issue of granting EU candidate status to Serbia earlier this week. The European Council considered this issue in December but deferred taking a decision until further progress was shown in the dialogue between Belgrade and Pristina. I am pleased to report that sufficient progress has been shown in the dialogue, with a number of agreements reached last week which will contribute towards the normalisation of relations between Serbia and Kosovo. The General Affairs Council has therefore recommended that the European Council grant Serbia candidate status. Ireland supports this decision and I would expect to see the Council confirm candidate status on Friday.

I would like to take this opportunity to commend the Governments of Serbia and Kosovo on the courageous steps they have taken in recent months. I also welcome the decision to launch a feasibility study for a stabilisation and association agreement with Kosovo. Ireland remains committed to the European perspective of all the Western Balkans countries.

We may also address the issue of the accession of Bulgaria and Romania to Schengen. We would support the Presidency compromise proposal in order to see a resolution of this matter which has now been outstanding for quite some time.

Another piece of business which this meeting of the European Council will deal with is the election of the President of the European Council for a two and a half year term from the middle of this year. It has had the benefit of the deft and highly effective stewardship of Herman Van Rompuy since his election to the post at the end of 2009, and I look forward to his continued very able guidance for a further term. Similarly, I expect he will also be appointed to the position of President of the euro summit meetings which will from now on take place at least twice a year. I support this step also.

On Thursday morning I will take part in the Tripartite Social Summit for Growth and Employment. It is a forum for dialogue between the EU institutions and the main European employers and trade union organisations, and takes place just ahead of the March and October European Councils. The theme for this meeting is social dialogue as a key instrument for restoring growth and jobs.

The meeting will be co-chaired by President Van Rompuy, President Barroso and Prime Minister Thorning-Smith of Denmark. The Heads of Government of the two upcoming Presidencies are also invited. This will be the first such summit I have attended. Representatives of IBEC and ICTU will also take part. Tomorrow's summit will be a useful preparation for our 2013 Presidency, as I will co-chair this summit before the March European Council next year.

In the margins of this meeting of the European Council on Friday morning, the new treaty on stability, coordination and governance in the economic and monetary union will be signed. I will sign, subject to ratification, for Ireland. Ratification procedures will then begin in each of the 25 contracting parties, according to their respective national requirements.

As I announced in this House yesterday, in light of the advice of the Attorney General, the Government has decided to hold a referendum on this issue in which our people will be asked to authorise the ratification of this treaty. I have every confidence that, armed with appropriate information concerning the contents and implications of this new treaty, the Irish people will endorse it emphatically by voting Yes to continued and sustained economic recovery and stability, and to our continued commitment to the success of the euro. I look forward to the debate ahead. I will naturally brief my colleagues during the forthcoming European Council meeting on the Government's decision to hold a referendum on the new treaty.

I thank the Ceann Comhairle for his indulgence in going over my time. I am satisfied that at this meeting of the European Council, we will be undertaking our business in a considered and workmanlike way. Do not misunderstand me, Europe and the euro area continue to face momentous challenges. As the Members of this House and as the people of our country know only too well, this crisis is not yet behind us, but critically, we are now moving in the right direction. Each time we meet, we are building another stage on the path to recovery. Our new intergovernmental treaty will be signed this Friday and the new programme for Greece has been agreed. The financial markets have calmed, bond spreads have narrowed and growth and jobs are front and centre. While there is more that needs to be done, we are heading in the right direction, getting there step by step.

We are taking the tough decisions necessary to secure consolidation, but we are now taking a balanced approach, including by focusing on the growth and job creation agenda critical to Europe's recovery. Approaching this European Council meeting in a non-crisis mode is a welcome development and the outcome will, I hope, be all the better for it. I will report to the House fully after the meeting.

I thank the Opposition leaders for allowing me an extra few minutes.

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