Dáil debates

Wednesday, 6 May 2020

European Council Meeting: Statements

 

1:40 pm

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent) | Oireachtas source

I too thank the Taoiseach for his briefing following the recent European Council meeting which was held by way of video conference. I note the Taoiseach has left the Chamber but I am sure my remarks will be relayed to him. At the previous post-European Council meeting debate on Thursday, 5 March, to which I contributed, there were very serious issues emerging. We did not know then how devastating and serious the pandemic would be. At the time the Taoiseach stated in the House that he had set out Ireland's position on long-established, well-functioning and successful policies such as the Common Agricultural Policy, CAP, and had made clear that those policies need to continue to be funded properly. That could not be truer than it is today.

At the European Council meeting in February the Taoiseach clearly outlined - this is important - that Ireland was willing to contribute more to the budget over the next seven years. In the debate on 5 March, I pointed out that that could not be done. We now know that there is no possibility of Ireland doing that. This means that payments to Irish farmers and important regional and social development programmes such as INTERREG will be cut. This is obvious. We now know that despite the Taoiseach's efforts, on 5 March EU Council members rejected Ireland's position, leaving farmers and the agricultural community, agribusiness and related sectors with deep concerns regarding what the cuts to CAP funding would mean. It was reported after the February meeting that Chancellor Angela Merkel had said that the differences were "still too great to reach an agreement" and "we are going to have to return to the subject of the budget" during the discussions on the multi-annual financial framework, which is meant to be operational from next year. That was simply unacceptable at that stage and it is even more unacceptable now. There are lengthy delays on many issues.

I remember well the financial crisis during which Ireland went broke. I recall that on the evening of my late mother's funeral the Minister, the late Brian Lenihan, telephoned me as he was leaving Brussels. I also recall returning his call and asking him not to accept the deal because it was not a deal. Rather, it was horrible and horrific treatment of Ireland at the hands of the wealthier and stronger countries in Europe, which are the same countries that had shovelled and bulldozed money from their banks into our banks and contributed hugely to our financial crash. The deal was accepted. They threw us out and dangled us on a line. They did not care about Ireland. We were the good boys. We made penniless our families in a so-called bailout, which I described then as a clean out, which is what it was. It was daylight robbery that when we could get money from the IMF for less than 3% we were charged almost 5% for it at European level. At that time, they showed zero solidarity with a country on the periphery of Europe that had been exemplary Europeans. We still are trying to be exemplary Europeans, in my view too much so a lot of the time.

Perhaps the Minister of State, Deputy McEntee, could outline the possible impact of the decision of the German court in regard to the European Central Bank and the German Central Bank.

I wonder why they were not keeping an eye on it when they were shovelling money in here, and giving it to our banks to give it to our people and to anybody who wanted it, literally, and then forcing them to pay it back. A trauma has been visited on our society as a result of the banking crisis. We are now dealing with a far broader and deeper crisis, and we see the different efforts, with funding of over half a trillion euro. I note they are going to be loans or supports and there will not be any grant aid, and I note also that Covid-19 bonds were rejected. Therefore, I see the very same pattern developing among the stronger countries at the centre of Europe and I see the reasons the United Kingdom left the EU, namely, the lack of solidarity and, frankly, the bullying and intimidation of smaller nations. When our need is there, we are not getting the support.

I ask the Minister of State, Deputy McEntee, to redouble her efforts to assess the impact of that judgment. Why are Ms Merkel and the German community so much stronger and why do they wield so much power? When the group of eight, including Ireland, got together to discuss Covid-19 bonds, they got no support and it fell idly by. How serious does this have to be before the European project realises there has to be parity of esteem for smaller countries and there have to be meaningful supports for them?

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