Enda Kenny (Mayo, Fine Gael) | Oireachtas source

European Council meetings are structured in a way that allows the High Representative, Catherine Ashton, to give reports on issues such as the situation in Syria or other incidents and circumstances in that region. Therefore, it is not a case of having a specific debate at European Council level on the Jerusalem or any other report; rather, the structure of meetings is such that Catherine Ashton gives an updated report which has come through the various committees and the Council of Foreign Affairs Ministers with which she deals. I recall that she gave a detailed report on Syria and the considerations involved regarding the difficulty as to whether increased arms supplies should be given to rebel forces. I read reports on allegations of Sarin gas being used by elements in the rebel camp, but whether these are true I do not know. I will update the Deputy on the position in respect of the Jerusalem issue based on Ms Ashton's report.

Nobody in this House condones the use of the much abused term "austerity" which has crept in the same way as "the Celtic tiger", but it is not a term I tend to use. The answer to our problems is not just to sort out the public finances but also to get people working, as the Deputy knows. I was happy to meet him in Dundalk recently on the occasion of the announcement of the PayPal and eBay jobs. That announcement was great for young people who will have a whole new life created for them in that kind of company. The same is true of the announcement made by Glanbia of a major investment in the south east, with the capacity to create 1,500 farm jobs, from County Cork to County Louth, or of the 1,000 jobs that will be created when the contract is finally signed for the N7-N11 project southwards. These announcements are great news for people who will be able to find employment in these areas because it means they will have a life and the capacity to spend in the economy and build homes.

At European level, the extension by an extra two years for France and other countries is a recognition of the particular circumstances these countries are facing in meeting the deficit reduction target of 2015. This is reflected in the warm decision made by the Bundestag to provide for an extension of loan maturities for both Portugal and Ireland, which helps us in having our debt profile flattened out. In the discussion Mr. Mario Draghi had at the European Council he continued to repeat - he has followed it up with action - that whatever it was necessary to do to protect the euro would be done. Obviously, the European Union makes its own decision on interest rates. Mr. Draghi's analysis was focused on competitiveness and he said countries that were prepared to make decisions to make themselves competitive would reap the benefits in terms of economic activity, exports, job creation and economic growth. He defined this by producing a series of relevant slides, showing the differences between countries that adhered to that discipline and those that did not. This was self evident.

As I said to Deputy Micheál Martin, it is critical that European leaders follow through on the decisions they make and these decisions are not made lightly. While it takes some time to deal with a question like banking union, it is something that must happen. I do not want to see a situation where we will get to June and the anniversary of the decision taken last year to break the link between sovereign and bank debt and all we will have in place is a single supervisory mechanism and its architecture. It is necessary to go beyond this. This is a credibility test for the European Union. Citizens want to see a follow-through on decisions made.

The unemployment factor is central to this issue. Who wants to be proclaiming that the unemployment rate is rising to the extent it is in some countries, with a 54% youth unemployment level? Deputy Gerry Adams says €6 billion is only a drop in the ocean, but it was not available before. Getting €6 billion from the paying countries is a recognition of the scale of the problem and the challenge faced. That is why our Presidency does not want to see this proposal drift or to see us end up with annualised budgeting because of the failure to get the multi-annual financial framework, MFF, through. We travelled to Brussels yesterday specifically to remove that road block and deal with a strategy to deal with the deficit for the Union for 2012-2013. Also, in parallel, we wanted to get discussions going on a timescale to conclude the MFF during Ireland's Presidency. This would hep to release the funds in question. While yesterday's meeting was not focused on this issue, countries being able to expedite the release of some of these funds to deal with particular circumstances was raised and is something we support strongly. As President, we will articulate this view today at the budgetary committee, tomorrow at COREPER and during Monday's meeting - the first formal discussion on the MFF. It will be conducted for us by the Tánaiste, with his counterpart, Mr. Lamassoure, from the European Parliament.

I think that is a recognition that there is a blockage that needs to be released so that things can get moving. It is clear that the challenges from the Iberian Peninsula to Cyprus will not sort themselves out. They require political courage. Bigger countries need to support smaller countries. While it has been very challenging for people here in Ireland, I am glad to see the private sector is beginning to move. Some 1,000 jobs a month are now being created there. All of that is to be welcomed; the more the merrier. These discussions are helpful. Obviously, everybody wants to see results. We will be judged on that basis.

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