Dáil debates

Tuesday, 27 November 2012

Ceisteanna - Questions (Resumed)

European Council Meetings

4:20 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael) | Oireachtas source

I propose to answer Questions Nos. 1 to 55, inclusive, together.

I attended the European Council in Brussels on 18 and 19 October. As I have already made a statement to the House on the outcome of this meeting, I will give a summary of proceedings to the House.

The main focus of our discussions was the strengthening of economic and monetary union. In this regard, President Van Rompuy presented his interim report. It was agreed that he should continue his consultations with member states and others before bringing forward his final report to the December European Council. That report will set out a specific and time-bound road map for strengthening economic and monetary union.

President Van Rompuy will be following up on the possibility of having a fiscal capacity for the euro area and possible contracts between member states and the EU institutions, including covering the country-specific recommendations made in the European semester process. These ideas need to be elaborated on further before we can judge whether they might have a substantial contribution to make. For Ireland's part, the Government will continue to engage in these consultations constructively and with an open mind. The European Council reaffirmed the commitment made last June to break the vicious circle between banking and sovereign debt. In addition, the European Council agreed to move forward as a matter of priority on the single supervisory mechanism for euro area banks, with the objective of concluding its legislative framework by the end of the year. Work on operational implementation is to be carried out during the course of 2013. The European Council has also tasked the Eurogroup of Finance Ministers to draw up the exact operational criteria that will guide direct bank recapitalisation by the ESM, as it termed, "in full respect of " the June decisions.

With regard to the compact for growth and jobs, the European Council reviewed progress on its implementation and set a number of additional orientations to promote growth and employment. This was a welcome follow-up on implementation of the compact.

The European Council also discussed relations with the European Union's strategic partners, particularly China. The meeting further adopted conclusions on Syria, Iran and Mali. Ireland contributed to the conclusions of the meeting of the European Council in October in the usual way, including through the submission of written proposals on the range of issues covered.

While I had no formal bilateral meetings at the October European Council, I met all my colleagues at the meeting. I raised the question of Ireland's legacy bank debts and the specific circumstances that had brought about our current situation.

On Sunday, 21 October, following the European Council meeting, I had a telephone conversation with Chancellor Merkel. On foot of that discussion, we issued a joint communiqué that makes it clear that the commitments made to Ireland at the end of June stand and that the vital work involved in examining the situation of the Irish financial sector will be taken forward by the Minister for Finance, Deputy Michael Noonan, and his colleagues in the Eurogroup, with a view to improving the sustainability of our programme. In Ireland we moved early. We put very large amounts into the banks in the interests of wider stability in Europe's banks and those of our common currency. The Chancellor was pleased to record her recognition that Ireland was a special case and that this would be taken into account during the discussions ahead.

I travelled to Paris on 22 October for a bilateral meeting with President Hollande. Our discussions focused on the outcome of the European Council; negotiations on the multi-annual financial framework and, in that context, the Common Agricultural Policy; eurozone issues; Ireland's forthcoming Presidency; and bilateral relations. Significantly, President Hollande added his voice to the appreciation of the special situation which Ireland faced, an acknowledgment that these circumstances will need to be taken into account as the Eurogroup takes this work forward. While in Paris, I also addressed a business lunch organised by the State agencies. I visited SIAL, the largest food and agribusiness fair in the world, and launched Origin Green at this international forum.

I travelled to Berlin on 1 November for a bilateral meeting with Chancellor Merkel. We had an in-depth discussion about the Irish reform programme. The Chancellor reaffirmed her conviction that Ireland was a special case and should be treated as such in the work being taken forward by the Eurogroup. We both welcomed the recent comments by the troika on Ireland's delivery of its programme commitments and the troika's willingness to look at the various ways in which Ireland could be assisted in resuming sustainable, full market borrowing. We both agreed to work together to ensure dealing with Ireland's unique banking and sovereign debt crisis was given due priority within the Eurogroup.

The Chancellor and I also had a very useful discussion about events in the wider euro area. We agreed to work constructively to bring stability and confidence to the euro area as a whole. In addition, we discussed the strengthening of economic and monetary union; the multi-annual financial framework; priorities for the Irish Presidency; and a range of foreign policy matters. While in Berlin, I also attended the launch of The Gathering in Germany and met Irish community organisations and key business partners.

On 8 November I travelled to Budapest for a meeting with Prime Minister Orban and to Vienna for a meeting with Chancellor Faymann. Discussions at both meetings focused on priorities for the Irish Presidency, in particular, the Single Market; negotiations on the multi-annual financial framework; and developments in the eurozone. These topics were also the subject of my discussions with Prime Minister Gonzi of Malta when he visited Dublin recently. I saw both Prime Minister Katainen of Finland and Prime Minister Rutte of the Netherlands at the special European Council meeting on Thursday and Friday of last week. Prime Minister Rutte's new government took office on 5 November. I am in regular contact with Prime Minister Cameron. I spoke with him by telephone in advance of last week's meeting.

I also spoke to President Hollande in advance of the Council meeting.

I attended the special meeting of the European Council last Thursday and Friday in Brussels. As I will be making a statement to the House on this meeting tomorrow, I will just give a summary of its proceedings now. The meeting sought to reach agreement on the Union's multi-annual financial framework for the period 2014 to 2020. However, following productive discussions, President Van Rompuy concluded that a little more time was needed to bring positions closer together. The European Council mandated President Van Rompuy, together with the President of the European Commission, to continue the work and pursue consultations in the coming weeks to find consensus among the 27 member states. President Van Rompuy believes our discussions at the European Council show a sufficient degree of potential convergence to make an agreement possible early next year. While we did not reach agreement last week, we did move forward in identifying common ground. I remain hopeful it will be possible to build on this in the period ahead.

With regard to Ireland, I put the case strongly for a strong Common Agricultural Policy and also expressed our firm view that Europe needs a budget that, in size and orientation, is more reflective of challenges we face as a union, including in respect of growth and jobs, especially in tackling unemployment. More can and should be done to give a real focus to the budget. Of course, as ever, nothing is agreed until everything is agreed. We need to protect the progress made and continue to work to close the remaining gaps. I have assured President Van Rompuy that Ireland, especially in its upcoming Presidency, will do everything it can to support him in his work.

A copy of the employment contract of the person appointed as spokesperson for the EU Presidency in my Department, which sets out in full the terms and conditions of her employment, was laid before the Houses of the Oireachtas on 19 November and is available for the Deputy's inspection in the Oireachtas Library.

While the costs of my visit to Rome on 21 September are yet to be finalised, I expect the cost to my Department to be €1,011.71. This figure includes official transport, accommodation and travel and subsistence costs. While in Rome, I was accompanied at my meetings with Prime Ministers Monti, Rajoy and Samaras by the Second Secretary General with responsibility for EU affairs and co-ordination, the Irish ambassador to Italy, my chief of staff and an official from the Irish Embassy in Rome. As I had no official engagements in Bucharest, there were no costs to my Department in that respect.

I will attend the meeting of the European Council to be held on 13 and 14 December in Brussels. Discussions at the meeting will focus on President Van Rompuy's final report on strengthening economic and monetary union. The European Council will also assess progress made on the single supervisory mechanism and other key legislative proposals and, if necessary, set further orientations in this respect. With regard to the compact for growth and jobs, the European Council will assess progress made on the priority proposals of the first Single Market Act and set further orientations as regards the second Single Market Act. In addition, the European Council will touch on defence matters, enlargement and foreign policy issues.

I intend to engage positively with colleagues on each of the issues on the agenda to ensure the best possible outcome for Ireland.

Comments

No comments

Log in or join to post a public comment.