Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

On PESCO, we have not yet made a decision, either as a Government and as a country, regarding whether we want to participate. We want to see the full details before we make that decision. It will require a decision at Cabinet followed by a decision of the Dáil, so there will certainly be consultation with the major Opposition parties before a decision is made. We are favourably disposed towards it. I strongly believe that countries need to work together to respond to the new security threats we face in the modern world. I refer to; international terrorism; cyber attacks, which nearly brought down health IT systems just across the water; uncontrolled mass migration; and trafficking of drugs and people. All of these things require co-operation across the Continent. They are not something that any nation state, even a big one, can manage on its own.

We are not going to join a European army, however, or sign up to NATO and neither will we agree to a mutual defence pact, so we shall remain a neutral country. The triple-lock mechanism will remain in place. We think that is in our interests as a country. Ireland is never going to be a military power. The fact that we are not part of a military alliance gives us more influence in the world for a number of reasons. However, I do not agree with the assertion that increasing military spending necessarily conflicts with neutrality per se. Lots of other neutral countries spend far more on defence than we do. In the years ahead, we will need to upgrade our equipment and modernise our Defence Forces. This is something they very much want. The impact of pay restoration for members of the Defence Forces will require an increase in spending. As a result, I do not agree that increasing spending is a bad thing or that it undermines our neutrality.

We affirmed our very strong view that the setting of taxes is a sovereign matter. While there are a number of European taxes that fund the European budget, national taxes should fund national budgets and it is up to parliaments such as this one to set taxes. We also reaffirmed our commitment to tax transparency. Tomorrow, with the Minister of State, Deputy McEntee, I will launch a public consultation on the future of Europe. This will be led by the Minister of State. I would particularly welcome a debate - either in the Dáil or at the Joint Committee on European Affairs - on what should be Ireland's position on the future of Europe debate. I will indicate my views on the matter in more detail tomorrow but I think I have already done so quite extensively in the House, if people wish to check the record.

It was asked whether I would commit to use or threaten to use the veto. No, I will not. I do not think that would be in our interests. To use the veto would be to set ourselves apart from other countries and to stand alone. At present, our strength is that we are one of 27 countries and have the support of 26 other countries. Negotiating as one of those 27 puts us in a much stronger position in our dealings with the UK. The Sinn Féin nationalist "ourselves alone" position whereby we should set ourselves apart from our European allies, stand alone and threaten to use the veto would be a really big mistake strategically. The best way to get the best outcome for Ireland is to continue to part of the 27 ensuring the 27 incorporate into Europe's negotiating position our needs. If we choose to isolate ourselves, which is very much the Sinn Féin political philosophy, it would do us serious harm.

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