Dáil debates

Tuesday, 21 March 2017

European Council: Statements

 

6:15 pm

Photo of Dara MurphyDara Murphy (Cork North Central, Fine Gael) | Oireachtas source

Yes, tomorrow, 22 March. He has been moved back to prison, having spent four weeks in hospital. While this process has been entirely unsatisfactory, we believe the recent hearings in the case have, in general, been more substantive than previously. This may indicate that the trial is finally under way in earnest. The Department of Foreign Affairs and Trade is expressing a cautious optimism that a conclusion might be in sight. This is crucially important because the Egyptian President has consistently advised, including to the House's delegation last January, that he cannot intervene and use his discretionary powers until the trial has ended. The Minister, Deputy Charles Flanagan, had a further face to face discussion with his Egyptian counterpart last Monday week in Brussels and that Minister reiterated the consistent Egyptian line that they are anxious to resolve the matter but cannot intervene. The Irish embassy paid its latest consular visit two weeks ago on 1 March. To date, there have been 55 consular visits. We all share the very strong sense that this is entirely unsatisfactory and want the issue to be brought to a conclusion.

Co-operation between NATO and the EU is necessary to ensure that their mandates are properly implemented. Those mandates are for the safety of our participating peacekeepers.

We also have to be really clear that EU NATO co-operation takes places within the framework of the Lisbon treaty. This is a legally binding specific to Ireland protocol which states the treaty of Lisbon does not affect or prejudice Ireland's traditional policy of military neutrality. EU NATO co-operation does not concern us and has no implications for our triple lock which governs deployment of our military personnel outside the State. As the House is aware, these arrangements, which are set out in legislation, require that operations must be mandated by the United Nations, participation in operations must be approved by the Government and, with certain limited exceptions, they must be approved by way of resolution of the Dáil.

To respond to Deputy Ryan on the new relationship, as I stated to Deputy Donnelly, the simple reality is that the people of the United Kingdom have voted to leave the European Union and the negotiations in the first instance will be to try to establish whether in four specific areas, three areas plus the issue of the two EU agencies, we can come up with agreement on the terms of its leaving. It will be absolutely crucial to have engagement with all Members of the House and members of all the political groupings. Ultimately, a vote of the House will not be able to prevent the United Kingdom leaving the European Union because it will be a majority vote of the 27 to approve the EU side of the deal, and even at that point, of course, the UK could reject the deal, leave the European Union and go to a default WTO-type arrangement or another type of arrangement.

When it comes to the starting point for the new relationship, it is correct to point out that we have common concerns and energy is clearly a very strong element of any trading relationship. We see it with respect to discussions on TTIP, CTIP and Mercosur, and it is correct to say it is not just about tariffs. It is also about standards. Each of these new elements will have to be negotiated within the terms of the new relationship. An orderly process will be exceptionally challenging. Michel Barnier has specific teams dedicated to acquired rights, issues pertaining to cost and discussions on Ireland. If we can see progress in these areas over the coming six to nine months, the potential will arise for us as a House and country to start looking at what the new relationship will be. I accept at this point in time this seems quite a challenge but I hope it can be done with the background of a positive start to the process.

We must be blunt with our friends in London. If we are to have a positive start, we need to see a moderate tone and moderate language, and acceptance that there needs to be goodwill on both sides. The UK has been part of the club for 28 years and there is goodwill in member states, including our own, for the people of the United Kingdom. However, it will not be helpful if some of the language of the referendum is continued in the way it paints and describes members of the European Union of which we will continue to be valued members.

Someone referenced we would all be better off out of the European Union. It is absolutely vital to stress our largest trading partner by some distance, with 34% of all trade, is the European Union separate from the United Kingdom. For us to compound the difficulties we will face as a result of the UK leaving by also leaving the European Union would be absolutely catastrophic and crazy. I am glad this view is not holding any sway in the country and long may this continue.

I will now address some of the issues regarding jobs, growth and competitiveness. President Draghi of the ECB joined the Heads of State and Government for the first part of their discussion. It was noted and welcomed that all member states' economies are expected to grow this year. For us as a small open trading economy, we are exposed if there is prolonged weakness in the euro area. This more positive outlook is very welcome. Growth for the European Union as a whole is predicted by the Commission in its winter forecast to come in at 1.8% and in the euro area at 1.6%. Real GDP in the euro area has grown for 15 consecutive quarters. Of course, these are headline figures and do not give the full story, and we are still aware of the acute need to prioritise jobs, particularly youth unemployment, across the continent. Nonetheless, the figures are going in the right direction. Ireland is doing better than most, with unemployment happily falling to 6.6%. However, throughout the European economy, employment is growing at a fairly robust pace and unemployment generally is, consequently, continuing to fall. Some of the measures with respect to youth unemployment are starting to bear fruit and the Commission published figures showing 1.4 million fewer young people are unemployed now than in 2013.

The European Council meeting formally endorsed the annual growth survey. The Commission has presented a country report on each member state, as it does under its European semester. In Ireland's case, the assessment is again broadly positive. The report points to the decline in public debt and some diminishing elements of our financial sector challenges, and while progress is acknowledged in these areas, the report also highlights the need to resolve the legacy issues which continue to be a burden on our country, particularly non-performing loans, and the need to remain vigilant to potential external shocks - for the past two and a half hours, we have discussed the obvious one of Brexit.

A number of other economic items were also dealt with. The European Council reiterated the need to complete banking union. It also called for structural reforms, such as strength in public finances and investment, including through the swift extension of the European Fund for Strategic Investments, with a particular focus on those member states with high levels of unemployment. Economic issues affect society as a whole, and in recognition of the social dimension the European Council welcomed the plan to hold a social summit, which will take place in Sweden later this year.

There were two other items of particular relevance for Ireland under the jobs, growth and competitiveness heading. These were trade and the Single Market. As was clearly stated in the conclusions, trade remains one of the most powerful engines for growth throughout the continent, obviously supporting millions of jobs. We welcome the EU-Canada CETA and we also welcome the ambition to work towards other agreements with Japan, Mexico and others. Another foundation of European prosperity is the Single Market, and despite all of our progress in the Single Market, perhaps the great success story after the peace process that is the European Union, we have not yet seen the Single Market for services or the digital Single Market deliver on their potential. I hope very much the new initiative from the Commission, with its 16 measures and the 22 legislative proposals which are on the table, will address this as I believe it can. I thank all of the Deputies for their questions.

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