Dáil debates

Wednesday, 28 March 2018

European Council Meeting: Statements

 

2:25 pm

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour) | Oireachtas source

In the run-up to the EU Council meeting last week the overwhelming focus was on Brexit and the proposals leaders were to discuss on digital taxation. However, as the UK prepares to leaves the Union, we were provided with a symbolic and poignant demonstration on the benefits and power of membership. Prime Minister May addressed the assembled leaders of 27 other member states on the chemical weapon attack in Salisbury. She asked for the EU to stand shoulder to shoulder with the UK on their response to Russia. EU leaders strongly condemned the attack and the use of chemical weapons under any circumstances. They expressed deepest sympathies to all whose lives had been threatened or affected by the attack, lent their support to the ongoing investigation and stressed the Union's unqualified solidarity with the UK. Following that decision, the EU withdrew its ambassador to the Russian Federation for a period of four weeks. That was a strong and clear signal to Russia, and a clear manifestation of European solidarity.

I was alone among the Opposition to support the Government’s stance in Brussels last Friday of standing in solidarity with the UK. I believe it is simply not credible that Ireland would stand alone of the 28 EU member states on this issue, which includes both neutral countries like Sweden, but also those like Greece and Cyprus that have close friendships with Russia. It is a collective tragedy for the UK and the EU that such a shared action will not occur after March 2019. If this happened in a year’s time, Prime Minister May would not have been at the Council and would have to rely on bilateral discussions with countries like Germany, France or others to make the case. It was a clear demonstration that by pooling our sovereignty in the EU, we have actually strengthened our position as individual countries. This has most recently been shown with European support for Ireland on the status of the Border in Brexit negotiations. It is reassuring for Ireland to know that should an attack like this happen here, or a natural disaster ever impact on us, that we can automatically rely on the friendship and solidarity of member states.

There was an expectation that the proposals for a digital tax would dominate the outcome of the Council. It is interesting, as others have commented, that the conclusions of the Council do not include any mention of the proposal. The policy design of the tax, which would allow companies to use the amount paid as a credit against corporation tax, shows that it would be a transfer of revenue from smaller to larger countries. This is a difficult issue for Ireland but large digital corporations should be required to pay more tax on the profits they make. However, in the race and ambition to do that, the position and national competencies of member states should not and cannot be undermined. We have been very clear about our support for the OECD base erosion profit shifting, BEPS, process, which has shown concrete results and will continue to do so if all countries remain committed to it.

Ireland was expected to take a position at the Council arguing that moves to impose such a tax would be viewed negatively in the United States and potentially escalate into a trade war. However, that issue was removed from the table on Thursday when the US announced it would temporarily exempt the EU from President Trump's tariffs on steel and aluminium. As the Taoiseach has told us in reply to questions earlier, this is a temporary measure that will apply until May. Despite this concession we can expect that the Trump Administration will continue to press its case. The EU Council has said that these measures cannot be justified on the grounds of national security, which is the pretext used for moving away from an agreed international tariffs regime. However, it has been reported that Germany wants tariffs reduced on car imports from the US into the EU from 10% to possibly match the US rate of 2.5%. That signals to me that the strong-arm unilateral tactics being deployed by the Trump Administration are having an impact.

On trade in general, as the US retreats from open trading arrangements across the globe, it falls to the EU now to lead. The Council reaffirmed its commitment to an open and rules-based trading system with the World Trade Organization, WTO, at its core, and is working to progress talks with Mexico and Mercosur. The trade agreements with Japan and Singapore also need to be concluded. However, it is important that in any trade talks, the people of the EU can retain confidence in what is being negotiated, that their concerns are heard and that the EU and other member states listen and take on board the legitimate concerns of people in all our countries, including trade unionists and civil society.

The Council was to focus on jobs, growth and competitiveness. Social issues are a part of that and delivering on the European social pillar is a shared commitment of the EU and all our member states. The Council has now been invited to consider the Commission proposals under the social fairness package. This includes the proposal on a European labour authority. This new agency would provide support for mobile workers and ensure that their rights are fought for and maintained across borders. There are 17 million cross-border workers in the EU, and many of them live in Ireland. I asked last week what were the views of the Government on this proposal and I hope this can be outlined in the response of the Minister of State at the end of this debate. It would be welcome if the Government would outline an implementation plan for the European pillar of social rights. Social issues cannot just be seen as a tagged on to general trade discussions or as a general part of trade and competitiveness talks, or as something of a sop or an afterthought. They are at the core of what people who are enthusiastic about the European project want to see achieved. It must be at the heart of what we seek from Europe, to address the genuine concerns of people on issues such as job security, terms and conditions of work, education, health and child care.

On the Paris Agreement, the Council asked the Commission to present by next year a long-term EU strategy to reduce emissions that takes into account national plans. Ireland has singularly failed to show ambition on tackling climate change, and the Government, having published its Project Ireland 2040 plan, must now ensure we meet our greenhouse gas reduction targets.

The Council condemned Turkey’s actions in the Mediterranean and the Aegean Sea over the rights of Cyprus and Greece to offshore oil and gas exploration. I am also concerned at the continued actions of Turkish forces in northern Syria, and the city of Afrin in particular, which I raised earlier today, and the impact that incursion is having on civilians and in particular on Kurds who are under attack.

I ask the Taoiseach to raise this matter again at the EU Council and to ensure that it becomes a permanent focus at EU Council meetings until this matter is resolved. There was an EU-Turkey summit on Monday and relations between the EU and Turkey remain tense. Turkey was once on track actually to become a member state. That is now increasingly unlikely. Future enlargement of the Union has now turned to the western Balkans. There are six possible future members, namely Albania, Kosovo, Serbia, the Former Yugoslav Republic of Macedonia, Bosnia and Herzegovina and Montenegro. While the EU efforts appear most focused on Serbia, it is important that the others are not neglected and I do not believe they will be.

Last week the Albanian Prime Minister urged the start of talks and visited Brussels in advance of the summit to press his case. If the Government has a view on future enlargement, I again invite the Minister of State to set it out.

Finally, under Article 50 the EU agreed to open talks on the future trade relationship with the United Kingdom and the outline of a transition deal was agreed. We have discussed this at length and I know we will continue to discuss it, but I want to reiterate that I am concerned about the ongoing fudge on the Irish Border. It must be resolved and hopefully can be resolved well before the October deadline that the Taoiseach referenced.

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