Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

Europe Week prompts us to reflect on the original Schuman Declaration and, in particular, its observation that Europe would not be made all at once or according to a single plan. It is stated it will be built through concrete achievements which first create a de facto solidarity. The reality that the integration of nation states is a process rather than an event remains as true today as when the Union took its first steps. While Robert Schumann's initial plan was to create an entity that would oversee coal and steel production in France and Germany, much more than that was envisaged. He was laying the foundation for an economic union that would be open to all countries that agreed to be bound by its values and rules. That foundation, reinforced by the Treaty of Paris a year later in 1951, has been followed by a series of further treaties that have progressively shaped the common institutions necessary both to respond to and shape deeper European interdependence. The accession of Croatia in July will bring to 28 the number of member states from the original six that took the first important steps. This enlargement process is perhaps the strongest testimony to the success of this unfolding project.

It is also clear that the union has been severely tested by the ongoing economic and social crisis. It is to this particular challenge that the Union, including Ireland, both as a member state and President of the Council, must now rise. Last week's spring economic forecasts from the European Commission pointed to a further economic contraction in 2013, with a contraction of 0.1% in the European Union and 0.4% in the euro area.

Unemployment remains at unacceptably high levels. There are now more than 26 million people out of work across the European Union, representing an increase of 2 million people on a year ago. Unemployment rates this year are now forecast at 12.2% for the euro area and 11.1% for the European Union. These figures mask dramatic disparities across member states, with unemployment running at 27% in both Greece and Spain. These figures represent real hardship for people and they demand our urgent response. Doubtless, we have recently experienced a period of relative calm in financial markets, and Europe has made important policy decisions that have helped to restore a measure of stability. However, stability, while important, is not enough. Stability must be a platform for what comes next, and Europe must now intensify its focus on growth and employment creation. As I stated, too many Europeans are without jobs and too many young Europeans are without prospects and opportunities.

As the House is aware, we set a clear course for the Irish Presidency of the European Council - it involves stability, jobs and growth - and we are determined to see that through. This determination builds on the very significant steps already taken since the onset of the crisis, particularly in terms of strengthening the rules underpinning the single currency area. We have already accomplished much, including a permanent firewall, the European Stability Mechanism to support member states in financial distress; stronger economic governance arrangements, supported by the new stability treaty; decisive and painful fiscal consolidation measures by member states to close gaps between public spending and revenue, supported by ongoing structural reforms; commitment to breaking the vicious circle between sovereign and banking debt; effective lender-of-last-resort support from the ECB; and further work towards a stronger EMU being taken forward by President Van Rompuy, on which he will report to the June European Council.

Pressing forward and banking union remains of overriding importance. Speedy progress is important in its own right but also as a test of our credibility and ability to deliver. This means sticking to the ambitious programme of work and timetable agreed by the European Council in December. Since January, we have worked intensively to drive forward this vital work. Thanks to good co-operation with other member states and the European Parliament, we have reached a positive outcome on the capital requirements directive that will ensure Europe's banks are built on a more solid foundation and which also provides for checks and balances on bankers' pay. We have also secured agreement on the single supervisory mechanism for European banks, and we look forward to its entering into force.

The next phase of this work – agreed bank resolution and recapitalisation arrangements – is a crucial one. It will strengthen the progress we have already made. Our goal remains to reach agreement with the Parliament on this by June. This will allow discussions to reopen on deposit guarantee schemes. The timelines are tight but, for our part, it is clear that the political engagement and commitment expressed by partners last year, including the solemn undertaking to break the toxic link between the sovereign and banks must be fully implemented. Therefore, we are building financial stability but we must also work to stimulate growth, not simply growth for its own sake but also for the jobs it will bring for our citizens.

The Union has a shared strategy and approach, the European Semester. In March, the European Council endorsed the five headline priorities of the annual growth survey: differentiated growth-friendly fiscal consolidation; restoring normal lending to the economy; promoting growth and competitiveness for today and tomorrow; tackling unemployment and the social consequences of the crisis; and modernising public administration. These are the Union’s agreed pathways to growth but we need to add the specifics, targets and deadlines. The Single Market remains the cornerstone of the Union but its full potential is not yet realised. We have developed strong emphasis on creating the right environment for successful businesses. This means lowering SME transaction costs, making it as easy as possible to grow and scale internationally.

The agreement we reached on the accounting directive will simplify financial reporting requirements for millions of European micro and small enterprises. The unified patent court will bring protection of intellectual property rights within their reach. Finalising the public procurement package will streamline SME access to markets accounting for nearly one fifth of EU GDP.

We are also laying important foundations for the digital single market, coherent market rules that will support new growth areas, recognising that most job creation comes from fast growing firms. We remain hopeful that it will be possible to reach agreement at the Council on the main elements of the data protection package before the end of June, and we are making solid progress on the collective rights management and e-identification files.

Trade beyond our borders is another vital tool for growth. That is why the external trade agenda is a major Presidency focus. We are working to advance trade agreements with key EU partners, with particular emphasis on the vital EU–US trade relationship. Our ambition remains to secure a mandate for the start of negotiations on a trade-and-investment partnership with the United States during the term of the Irish Presidency.

The economic potential it represents is immense. Most importantly, we have focused on tackling unemployment, particularly the scourge of youth unemployment. In February we secured agreement on the youth guarantee, ensuring that all under-25s without employment will receive an offer of meaningful work, training or education. Implementation will be supported by the decision of the European Council to allocate €6 billion from the multi-annual financial framework to a new youth employment initiative. We want this €6 billion in funding released as soon as possible and are working to reach a final agreement on the MFF with the European Parliament and the Commission, which we hope to bring to a successful conclusion in the coming weeks. The MFF essentially amounts to a €960 billion stimulus for Europe and we are doing everything we can to bring it over the line.

I emphasise that the European Union's response to the unemployment crisis is by no means a purely economic matter. The Union has clear social objectives, namely, the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion, and a high level of education, training and protection of human health. The cohesion policy, for which some €450 billion in EU spending is provided in the MFF for the next seven years, and its component European Social Fund is a very concrete expression of our commitment to that objective. There are important social policy legislative priorities also. Last February, the Commission produced its social investment package, which highlights the interdependence of economic and social goals and the crucial role of investment in people. The Irish Presidency is working to secure adoption of this package before the end of June. Last week, the social investment package was the focus of a dedicated Irish Presidency conference in Leuven.

The compact for growth and jobs is the European Council's blueprint for future work on jobs and growth. A full review has been lined up for the June European Council one year on from its adoption. The financing needs of the real economy are a crucial focus here. This means restoring normal lending conditions and unlocking productive investments. The spring European Council noted that the €10 billion increase in the European Investment Bank's paid-in capital agreed last year will help co-finance up to €180 billion worth of projects over the next three years. Successful mobilisation of these resources will be key to underpinning the recovery that is now in sight. It is clear that Europe will have recovered from the current crisis only when its economies are growing again and creating jobs.

This year marks the 40th anniversary of Ireland's membership of the European Union. Despite recent setbacks, our experience has been hugely positive. We have developed our economy, modernised our society and widened our horizons. The experience has seen Ireland grow and mature, leaving behind the sense of isolation that undermined our early decades of statehood. The economy is more diverse, more open to trade and exports and better equipped to overcome the difficulties we now face. Access to the world's largest single marketplace and membership of the bodies that govern it enable us to attract the type of inward investment that remains key to our successfully emerging from current difficulties. EU membership has brought high standards to our workplaces. For example, it has catapulted to a higher level the proportion of our youth gaining a third level qualification. Effective use of EU funding has helped us to develop our infrastructure and modernise our agriculture sector. We have benefited from the solidarity of our EU partners and also contributed our solidarity to the Union.

The whole experience over decades is one which has taught us the importance of working constructively with others towards common goals rather than pretending there is some insular alternative. Such processes involve compromise and change, which is often difficult. One of the lessons of Europe is that those who engage in the round are those who benefit most. Ireland has truly engaged from the outset as a member state determined to see the Union succeed. Since 1973 we have been active participants, not observers, in this process. It is this perspective that has shaped our Presidency and will endure beyond it.

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