Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I understand from some reports that people have been placedin situaround buildings and are subsequently used as shields around buildings which, unfortunately and tragically, are blown up. There are different reports coming through on that basis which is why I made that comment.

Deputy Ó Fearghaíl raised a question about retrospective recapitalisation. He is aware of the fund that is left aside from the ESM for that purpose. All the different elements and pieces of the jigsaw have to be put in place, including a single supervisory mechanism. This is principally driven by skilled officials from the Department of Finance in co-operation with their counterparts. That was accepted by the Council of Finance Ministers and adopted and approved by the European Council. All those structures have now been put in place. To make it kick in, the mechanism has to be operational which it will be towards the end of the year. That means that Ireland, or any other country that thinks it might qualify, can then make an application.

As I told Deputy Adams, the Eurogroup already agreed that retrospective recapitalisation could be put forward on a case by case basis against any alternative options for realising the value of the State's bank holdings. That requires not so much the support of representatives at various levels, such as the President of the Commission, the President of the Council or the High Representative but - while these are very important positions - the board of the ESM which will, or will not, approve an application for retrospective recapitalisation. It has got to be a unanimous decision. For instance, if the President of the European Commission, the President of the European Council or the European Union's High Representative were to offer support for a recapitalisation application, it does not follow that it would happen. Much more important is the fact that the European Council has already adopted, approved and reiterated on a number of occasions that decision of 29 June 2012, and that there should be the option and possibility of direct recapitalisation following an application made by a country being approved. The point is that all those sections are now in place. When it becomes operational at the back-end of this year, Ireland will then consider lodging an application. For that application to be successful it will require the unanimous endorsement of the ESM board. That is the important point to bear in mind. It has already received the full consent from the European Council which has been reiterated on many occasions.

I am not sure what time the vote is today for the approval by the European Parliament of Jean-Claude Juncker to be President of the Commission. Deputies will be aware that there was an EPP congress in Dublin, including a selection contest and a vote. Mr. Juncker defeated Michel Barnier and thus became the EPP candidate. The Lisbon treaty provides that the outcome of the European Parliament elections must be taken into account. The outcome was that the EPP bloc happened to be the largest grouping in the parliament, so Mr. Juncker became the EPP's nominee and I expect he will be backed by the socialist grouping today to become President of the Commission.

The Deputy asked if the EU committee discussed the appointment of the President of the Council or the High Representative. No, these matters are discussed by the Council of heads of state and government, which will be reflected again this week. It is important that a decision be made on the High Representative this week because that is an important position. It allows the President of the Commission to move on with the appointment and endorsement of commissioners as nominated by the various countries. In this case, the former Minister, Deputy Phil Hogan, has been nominated by Ireland. In consideration of what portfolio might be given to him by the President of the Commission, Mr. Juncker, that goes before the European Parliament for assessment, scrutiny and engagement with the different nominees. From that point of view, the naming of a person to be the High Representative will be dealt with this week because it allows President Juncker to move on with his business.

The whole geopolitics of the Middle East is changing, as the United States becomes more independent in terms of energy. Europe has got to look differently at the Middle East, including Saudi Arabia, Syria, Lebanon, Jordan and all those countries. That issue is becoming prevalent. Clearly, Russia supplies huge amounts of gas to Hungary, Germany and other countries. This issue is of great concern to Europe where energy costs have risen by 60%, while they have dropped by 60% in America.

The supply of water was also mentioned. The former Minister, Deputy Shatter, had an ongoing engagement seeking consent in respect of Turkey, concerning the situation in Gaza and Israel, for the supply of quality water to Gaza. That has become very difficult with the current situation but I hope to take it up again when things, hopefully, improve.

Deputy Adams mentioned diplomatic interventions by the EU High Representative and the member states. Of course it must be asked how can any conflict be ended unless politics works. Who knows better than Deputy Adams the difficult situations that can arise. In so far as the EU is concerned, we will attempt to drive that further this week in asserting peace and the right of people to live without fear of being blown into oblivion.

It was remarked that rockets from Gaza are directed by Hamas, while there is a response from Israel. Some 200 deaths have resulted, so we want to see this ended. People should be allowed to get on with their lives in so far as that can be asserted in Gaza. Of all the places I have ever been, I have to say that I found it exceptionally difficult to see how an economy can function there or to see how people can have a life to live, given the difficulties they have to encounter.

On the other hand, citizens in Israel, whether Jerusalem, Tel Aviv or anywhere else, have the right to go about their business without fear of stray rockets coming from whatever quarter.

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