Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I am very pleased to address the House today at the start of Europe Week and the start of a significant few months for the European Union, its citizens and its institutions. By the end of this month, a new European Parliament will have been elected. Later this year, we will choose new presidents for the European Council and the European Commission, and a new College of Commissioners will be appointed.

This month ten years ago, under an Irish Presidency the European Union celebrated its biggest ever enlargement. Ten member states - Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia - joined on 1 May 2004. Bulgaria and Romania joined shortly afterwards. They have each contributed greatly to the Union since then, and we have been mutually enriched by their membership. More recently, we have welcomed Croatia to our European family. We in Ireland have had a particularly positive experience of strengthening our relations with the newer member states, including through the welcome presence here of many of their nationals. Over the past ten years, the number of EU member states has almost doubled, from 15 to 28, and this is a testament to the enduring attraction of EU membership and our shared commitment to working together for the mutual benefit of our citizens and nations.

In the past few years, the Union has faced what is perhaps the most serious economic crisis since its foundation. Together and individually, the Union and its member states have acted to confront this challenge; we have taken significant and, at times, painful measures but we have made progress. While there is still a way to travel, the Union and its member states are beginning to emerge stronger, more resilient and more confident.

The Union today faces another great challenge, albeit of a very different type. Events in Ukraine represent a serious threat to the hard-won security and stability of Europe, and to the still-fragile economic recovery. EU leaders continue to work together to support the Ukrainian Government and people, to act against those responsible and to bring about an early and a peaceful resolution. This Government remains deeply concerned about the ongoing crisis in Ukraine and has emphasised the importance of seeking a negotiated political settlement. However, we are also ready to take decisive action, if required. The European Council has addressed this issue twice in the past two months, and it remains at the very top of the agenda.

The challenge the situation in Ukraine presents is not just to our interests, but, more fundamentally, to our common EU values. Our Union is founded on respect for the rule of law, in international relations as well as in our internal affairs. We cannot celebrate Europe Day and all that Europe stands for while at the same time simply acquiescing in the illegal annexation of the territory of a European country. Our European values - democracy, respect for fundamental rights and the rule of law - demand more from us than that. We must not forget why we came together as a union and what we stand for. The Union touches the daily lives of most EU citizens, including the Irish, most closely in the manner it effects their economic and social well-being. I refer to the familiar trio of jobs, growth and stability.

Recently, both the domestic and EU economy showed signs that recovery is beginning to take hold. Significant challenges remain, however. Supporting recovery remains a key policy focus for both Ireland and the Union. In particular, we must ensure recovery brings jobs, and therefore that employment remains one of the key priorities of the European semester process.

The European Council will complete next month the 2014 European semester process when it signs off on the country-specific recommendations for each member state, including Ireland, this year. We can expect employment to be front and centre here.

At the end of last year, the Government published its medium-term economic strategy to 2020, which complements efforts at European level such as the guidance given by the March European Council as part of the semester process.

The indicators for Irish GDP growth, Irish public finances and Irish employment growth are all moving in the right direction. The unemployment rate, for example, is projected to average 11.5 % this year. Of course, this is still far too high, and we will continue to spare no effort to redress that situation.

As the House knows well, last December Ireland exited its EU-IMF programme and did so without the assistance of a precautionary credit facility. It was able to exit without a credit facility thanks in the main to our steadfast programme implementation, the continuing support of our EU partners and the acceptance of the challenge by our people.

Modest, but still important, growth is forecast for the EU and eurozone in 2014, and this is expected to strengthen further in 2015.

A slight rise in employment is forecast from this year onwards, with unemployment falling to 10.4% in the European Union and 11.7% in the euro area by 2015. In 2014 deficits are set to fall to 2.7% of GDP in the European Union and 2.6% in the euro area.

Developments in Portugal and Greece provide further encouraging evidence of recovery. Later this month Portugal will exit its EU-IMF programme and indications are that, like Ireland, it will do so without a precautionary credit facility. Last month Greece returned to the markets for the first time in four years, raising €3 billion on foot of bids exceeding €20 billion. The reductions in bond yields for countries such as Ireland, Portugal, Greece, Italy and Spain in recent months confirm that our economies are on the right track.

Real progress has been made in completing banking union, the key to ensuring there will be no repeat of the economic and financial crisis. From November the Single Supervisory Mechanism will assume responsibility for the 120 most significant institutions and the Single Resolution Mechanism will enter into force from 1 January 2015. The effect of these will be that shareholders and creditors should bear the costs of resolution before any external funding is granted and private sector solutions should be found instead of using taxpayers' money. Progress has also been made since last year on direct bank recapitalisation and I remain confident that the commitment made by the euro area Heads of State and Government in June 2012 to break the vicious circle between banks and sovereigns will be respected.

My colleagues and I on the European Council are adamant that sustaining the economic recovery remains the key priority. The conclusions of the March European Council focused on the economy and I expect those of the June Council to maintain this focus. However, we also addressed other vitally important issues. A secure, sustainable and affordable energy supply is an essential requirement for citizens and businesses. The March European Council called for urgent work on fair effort sharing, modernising the energy sector, prevention of carbon leakage and an energy efficiency framework. We also agreed to accelerate efforts to complete the internal energy market this year, including through increased electricity interconnections, and launched a process to reach agreement on the 2030 climate change and energy framework by October. Energy security has become more urgent given developments in Ukraine. My colleagues and I on the European Council will be tackling this issue and the difficult decisions that come with it in the months ahead.

Ireland and the European Union have travelled far since the Dáil marked Europe Week this time last year. Since last May, we completed our successful and well received Presidency. We successfully completed and exited our EU-IMF programme. We re-established our standing and influence in Europe. We worked hard and long with our partners in Europe to meet the challenges facing citizens. While we have achieved much together in the last 12 months, we recognise the scale and seriousness of the challenges still facing us. Some of these challenges, like the crisis in Ukraine, would not have been foreseen this time last year. Others, like climate change and energy, are growing in priority and urgency. Still others such as fighting unemployment and strengthening Economic and Monetary Union have been and continue to be the focus of determined efforts on all our parts.

Of course, in the year ahead we must continue to work together to build on what we have achieved and implement what we have agreed. I look forward to updating the House in that regard in the months ahead. However, we should also take the opportunity of Europe Week to look beyond the challenges and consider what has brought us together. The European Union's 28 member states and 504 million people are bound together by shared interests, shared values and a shared future. Together, we are clearly more than the sum of our parts and together we will make the continent and our world a better place. The European Union is a force for good and the Government is proud to be among its most committed supporters.

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