Dáil debates

Wednesday, 9 May 2012

11:00 am

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)

Over the years there has been little substance to Europe day in Ireland or elsewhere. It is not a public holiday and it is mostly marked by the institutions of the European Union. This is a shame because the great achievements of the Union deserve to be recognised. By agreeing to work together, the nations of Europe made a decisive move to overcome a history of devastating conflict and deep poverty. Even in the middle of a profound economic crisis, much of the progress the Union has enabled remains in place. We must focus on the crisis in hand but the only way forward is to start by recognising that the European Union is worth working to reform. At its best Europe has worked because it focused on the core goal of enabling the growth which could create jobs and raise living conditions. Those on the extreme right and left have spent decades attacking the Union as a conspiracy against the people when in fact it has been the vital factor in facing down vested interests on behalf of the people. With rising unemployment and deep deficits, public confidence in all forms of institutions has fallen. Polls show is that citizens are highly critical of developments in the Union but they have not given up hope. It remains the place where they believe the big solutions to the recession can be found.

Unfortunately, last year saw the leaders of Europe systematically fail in their duty to show resolve and ambition in overcoming this crisis. Where swift action was required they kept kicking the can down the road. Where new policies were needed they kept trying to make failed ones work. Where co-operation was essential they descended into petty squabbles. Thankfully, we appear to have reached a moment where a new approach is underway.

The agreement on the stability treaty did not solve the economic crisis but it appears to have significantly moved the debate about what must be done. Growth measures which were ignored last year are now being proposed with great urgency. Last week the Commissioner for Economic and Monetary Affairs, Olli Rehn, spoke about the need to address investment for growth. Other leaders have backed this up and, most significantly, François Hollande has made new growth measures the centrepiece of his policy. They recognise that fiscal controls in individual countries have to be matched with central growth measures. Incorporating the existing rules into a stronger treaty is a useful means of restoring confidence in basic budget discipline incorporating, as is the establishment of a legally solid basis for creating a permanent fund to help countries in need. These are vital first steps.

On 23 May Europe needs its leaders to formally signal that extra growth measures will be agreed in the coming months. If these are significant new changes, particularly in respect of the mandate of the European Central Bank, a new treaty will be required. It will not be possible to simply add such important changes to the stability treaty because that treaty is between 25 member states whereas the entire membership of 27 must agree bigger changes.

I hope the statements by the Taoiseach and Tánaiste over the past several days signal the end of their reserved and timid approach to European growth measures. Neither of them has undertaken a programme of bilateral contacts with other EU states and Ireland's negotiating position seems to be that we will support anything as long as it does not require a full EU treaty. Next January the Government takes over the Presidency of the European Council with a strong team of officials and a record of Ireland running consistently excellent Presidencies. It needs to abandon the way it focuses European policy on the domestic media rather than our EU partners. The most effective way to prepare for the Presidency is for Ireland to start taking an active role in pushing ambitious measures to support growth and job creation Europe.

The Taoiseach and Tánaiste should stop talking about diplomatic initiatives and actually launch one. During the rest of this year the Union must focus on investment and growth supporting reforms. These cannot be the usual small-scale reform dressed up as major initiative. If this happens, Ireland's Presidency may see an about-turn in Europe's fortunes but if it does not we may face an even more serious crisis.

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