Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I regret the loss of a German-registered aircraft today in the French Alps, with a total loss of life of approximately 148 or 150 people. On behalf of the country, I have sent a message to President Hollande and Chancellor Merkel following the tragedy.

Last week's European Council meeting focused on three very important issues for the European Union, namely, building an energy union, the economic situation in the European Union, including the European semester 2015; external relations, including the situation in Ukraine; preparations for the Eastern Partnership summit in Riga in May; and the current political and security situation in Libya. Before the meeting opened, the European Council held a minute's silence out of respect for the victims of the appalling terrorist attack in Tunisia the previous day. We extended our deepest sympathy to the victims, their families and the Tunisian people and confirmed our commitment to intensifying co-operation with Tunisia to counter this common terrorist threat, to strengthen Tunisia's promising democracy and to assist its economic and social development.

Energy union was the first item on the agenda. Ensuring Europe's citizens and businesses have a reliable, secure, affordable and sustainable supply of energy is one of the five priority strands of the strategic agenda agreed by the European Council in June last year. The Commission has described the free flow of energy across borders as the "fifth freedom" of the European Union. In order to promote and harness the full benefits of this freedom, we must move quickly and decisively, not least given instability in the European Union's neighbourhood and the realities of climate change. The European Council discussed a number of concrete and measurable steps to deliver energy union and ensure affordable, sustainable and secure energy for all member states.

There was a positive response to the clear roadmap set out in the recent Commission communication on a framework strategy for a resilient energy union, with a forward-looking climate change policy. Ireland has very much welcomed the framework strategy. In particular, we value its vision of an energy union, with citizens at its core, taking ownership of the energy transition, participating actively in the market, empowered and protected as consumers.

The discussions of Heads of State and Government were focused on two key aspects of the energy union project: enhancing energy security and reaping the benefits of the internal energy market. When considering energy security, it may be natural to think first of those countries at direct risk of interruption of gas supplies from Russia. However, enhancing energy security is also of importance to member states such as Ireland which are on the periphery of the energy union, poorly connected to the wider European grid or heavily reliant on a particular source of energy. Diversifying the routes and sources of our energy and putting in place appropriate infrastructure to support that diversification is critical for us.

At my instigation, a specific reference to peripheral regions was included in the section of the European Council conclusions dealing with infrastructure and inter-connections. This is important as we work to ensure that citizens in the periphery can enjoy the same benefits from energy union as those living in areas which are already well connected. While Ireland's geographic location on the edge of Europe may present particular challenges in terms of integration with an energy union, it is also a source of great opportunity for developing indigenous energy resources. Ireland has potentially among the best offshore renewable energy resources in the world, including wave and tidal energy as well as offshore wind. For this reason, Ireland strongly supported the inclusion of a reference in the European Council conclusions to the development of an energy and climate-related technology and innovation strategy, including next generation renewables.

The European Council discussed in some detail the important issue of transparency in gas markets. There have been concerns that some member states might be incentivised to conclude private gas deals with external suppliers which are either illegal under EU law or could undermine the building of energy union and principles of energy security. This is clearly not in our collective interest. The European Council urged that the transparency of gas agreements with external suppliers would be reinforced and compatibility with EU energy security provisions ensured. lmportantly, it was recognised that this should be done while also guaranteeing the confidentiality of commercially sensitive information.

The European Council concluded its energy union deliberations with a discussion on how best to co-ordinate diplomatic action on energy and climate ahead of the critical climate change conference in Paris in December. We noted the ambitious objective set out in the EU's intended nationally determined contribution, which is fully in line with the conclusions of the October 2014 European Council, and urged other parties to the agreement to submit their own contributions by the end of March.

The European Council also held a wide-ranging exchange of views on the economic situation in the EU. The evidence suggests that Europe is now in the early stages of recovery from a period of deep and protracted recession. The year 2015 is the first year since the onset of the crisis in which all member state economies are expected to record growth. Lower oil prices, the ECB's expanded asset purchase programme and the depreciation of the euro are all having a positive impact. That said, it is clear that much remains to be done by member states to ensure that the current recovery is truly sustainable and not merely a cyclical upswing.

In his presentation, ECB President Draghi underlined the importance of continued progress on structural reforms. The more positive economic data cannot be used as an excuse to take the foot off the pedal when it comes to improving Europe's competitiveness and implementing urgently needed reforms. The importance of boosting investment was also underlined, with the European Council welcoming agreement by finance Ministers on a general approach on establishment of the European fund for strategic investments, EFSI. The EFSI is being designed to provide additional risk-bearing capacity to the European Investment Bank, which will allow them to crowd-in private sector finance for new projects. As Commission Vice President Katainen indicated, there is plenty of liquidity in Europe but it is not currently being translated into investment. We continue to see possible opportunities to develop synergies between the new EU investment plan and the Ireland strategic investment fund and the strategic banking corporation of Ireland. These will be considered carefully over the coming months.

I updated European Council counterparts on developments in the Irish economy. The most recent CSO figures point to growth of 4.8% last year. This is our best performance since 2007 and the highest growth rate in the EU. Unemployment continues to fall month-on-month, now down to just over 10%, and we expect it to be back in single digits shortly. Encouragingly, we are seeing significant reductions in both long-term and youth unemployment. There was significant interest from European Council members in Ireland's approach and our experience was cited by a number of colleagues. The recovery we are now witnessing would not have been possible without the willingness of this Government to take and follow through on difficult decisions. It also demanded very real sacrifices by the Irish people. Our priority, looking ahead, is to ensure not just that Ireland's recovery is strong and sustainable but that the benefits can be shared by all.

In my intervention, I also made the point that in developing Ireland's budgetary plans for 2016 onwards, it is important we work with realistic estimates of both the economy's growth potential and future investment needs. I underlined then, and will reiterate here now, that Ireland does not have a problem with the rules of the Stability and Growth Pact. Our issue lies with some of the methodologies and calculations used in the application of these rules. Simply put, our position is that the Stability and Growth Pact rules should support a budgetary stance for Ireland that correctly reflects the outturn and the prospects for the Irish economy. This depends on the sensible application of the rules, ensuring that results are based on reality rather than the application of older trend information. The issue is currently being discussed at a technical level and I hope it will be possible to agree a solution soon. To repeat, we are not trying to bend or weaken the rules in order to get special treatment. The catastrophic experience of our crash must make Ireland among the strongest supporters of the concept of rigorous rules, applied fairly.

The European Council concluded the first phase of European Semester 2015, the Union's annual cycle of economic policy co-ordination. The conclusions provide strong political reinforcement, as expected, for the three key pillars of European Semester 2015. These are boosting investment, a renewed commitment to both national and EU-level structural reforms and continued fiscal responsibility. Procedural improvements have been introduced for this year's European Semester process to facilitate stronger national-level engagement, including engagement by national parliaments and other key stakeholders. I would encourage Members of this House to support engagement with the process and to welcome the session organised by the Joint Committee on European Union Affairs with the Minister of State, Deputy Murphy, earlier this month.

The European Council exchange on economic issues included consideration of the current position in relation to the negotiations with the US on the Transatlantic Trade and Investment Partnership, TTIP. The European Council called on both sides to make every effort to conclude negotiations on an ambitious, comprehensive and mutually beneficial agreement by the end of this year. Leaders also highlighted the need to communicate the benefits of the agreement and to enhance dialogue with civil society. On the latter point, I would mention that an important seminar will take place in Dublin Castle on Friday. Hosted by the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, Commissioner Malmström will address the seminar. Representatives of trade unions, farming organisations and business groups will also participate. The event will launch a report by Copenhagen Economics on TTIP's potential impact on Ireland's economy. This is the type of open dialogue which is essential to ensuring that there is a broad understanding among all stakeholders of TTIP's aims and benefits. This report was endorsed by Cabinet today.

During my visit to the US for St. Patrick's Day engagements, I had discussions with President Obama and US Trade Representative Michael Froman on TTIP. I also discussed this with Europe's ambassador, David O'Sullivan, and the other representatives. On the basis of these engagements, I was able to convey their positive sentiments to European Council colleagues. It is important that Europe and America do not cancel each other out. We should work together on both the simple and the difficult issues in order to conclude an agreement which has the potential to create a couple of million jobs either side of the Atlantic.

The current situation in Greece was not on the agenda for the European Council. However, the European Council did get a short read-out on Friday from President Tusk on a meeting the previous evening which was held with Prime Minister Tsipras, the Presidents of the European Council, Commission, ECB and Eurogroup and the leaders of Germany and France. Prime Minister Tsipras had sought that meeting and it is to be hoped that it will contribute to a clearer understanding by Greece of what is required now, following the Eurogroup meeting of 20 February. Greece is to present a list of reforms within the next few days that will pave the way for constructive engagement with a view to successfully concluding the programme. The meeting may have been useful in toning down the rhetoric between Athens and other capitals.

I expect that yesterday's meeting between Prime Minister Tsipras and Chancellor Merkel will have also have helped in strengthening some trust and confidence between each other.

I spoke directly with Prime Minister Tsipras in the margins of the European Council meeting and I reiterated Ireland's commitment, and that of the other member states, to working with him and with Greece to resolve the crisis. I told him how, in Ireland, we worked with the institutions to ensure that our programme was aligned with the policies of our Government. We not only successfully exited the programme, but have since become the fastest growing economy in Europe. So, I would urge the authorities in Greece to engage now with the institutions in a constructive and swift manner to meet the deadline and return Greece to a sustainable economic footing.

Let me say a few words about Ukraine and EU relations with Russia. It is just over a year since the illegal annexation of Crimea and Sevastopol by the Russian Federation. The European Council does not recognise, and will continue to condemn, this illegal act. The EU has consistently stressed its commitment to the sovereignty and the territorial integrity of Ukraine and its support, including significant financial support, for the reform programme of its Government and in addressing the humanitarian needs of its people.

At the meeting last week, there was an indepth discussion on the latest developments in eastern Ukraine. There has been a welcome improvement in the overall security situation following the signing on 12 February of a package of measures to implement the September Minsk agreements. The issue of sanctions against Russia was a key element of the discussion. As expected, there was agreement that no basis existed for imposing additional measures at this time, given the recent progress in the ceasefire and the withdrawal of heavy weapons from the front line. There was also agreement that there should be no relaxation of existing sanctions, given the fragility of the current situation and the many challenges that lie ahead.

The question of the early roll-over of existing sanctions, originally adopted in July 2014 and enhanced the following September, was considered. The consensus among Heads of State and Government was that a decision on this should be made and clearly linked to the complete implementation of the Minsk agreements, foreseen for the end of 2015. Necessary decisions in this regard will be taken in the coming months. In addition to that, the European Council sent a clear message that the EU stands ready to take further restrictive reassures if necessary. Many leaders underlined that continued unity in our approach to the crisis remained of paramount importance.

European Council discussion also focused on progress in the implementation of the 12 February agreement. There was broad support for strengthening EU engagement with the OSCE mission to enhance its capacity to monitor effectively and verify the ceasefire. Leaders also reiterated the EU's continued support for Ukraine's reform process.

Concern was expressed at Russia's ongoing disinformation campaigns. The European Council asked High Representative Mogherini to prepare, in co-operation with the member states and EU institutions, an action plan by June on strategic communication aimed at countering this Russian disinformation. I was surprised by the apparent sympathy of some Deputies for a Russian approach that had led to actions contrary to international law and the rights of small nations, cornerstones of Ireland's foreign policy since the foundation of the State. I note that similar sneaking regarders are to be found on the extreme anti-European left and right across the Union.

Let me conclude my statement here. In his wrap-up statement, the Minister of State, Deputy Dara Murphy, will address the other external relations issues considered at last week's meeting, namely, preparations for the Eastern Partnership Summit and the current political and security situation in Libya, which is quite serious.

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