Duncan Smith (Dublin Fingal, Labour) | Oireachtas source

Leaders meet in Brussels on Thursday and the key issues on the agenda are Covid-19, digital transformation, energy prices, migration and external relations. However, the issue that will dominate coverage is the growing split with Poland and the long-term impact that this will have. There is a dark cloud over the EU. Poland continues to take a confrontational approach to the rule of law and the interpretation of EU law, openly flouting rulings of the European Court of Justice. The latest escalation stems from a court ruling in Warsaw that declared that parts of EU law were not compatible with the Polish constitution. This comes after the Polish Government diluted the independence of its judiciary by taking greater control of the appointment process and making attempts to purge its Supreme Court by lowering the retirement age. It also introduced a disciplinary regime that allows judges to be punished for their rulings. This was targeted at those who criticised much-needed reforms.

The Polish Government's approach strikes at the heart of the treaties that underpin the EU. It is a challenge that must be dealt with. The ongoing row was escalated further yesterday by the Polish Prime Minister when he made an incendiary speech to the European Parliament that was clearly targeted at his home audience. The insistence of the Prime Minister, Mr. Mateusz Morawiecki, that the Polish constitution supersedes EU law has put the Polish Government on a collision course. It continues to stoke tensions by accusing the Commission of blackmail while it dismantles democratic checks and balances at home. The Polish Opposition is warning that this is putting Poland on track for an EU exit.

We cannot have a situation where a country is directly targeting the independence of its judiciary and media by ignoring EU law without us taking effective action. The Commission is responding by holding back Covid stimulus funds, but this plays directly into the hands of the right-wing Polish Government by allowing it to set up a David versus Goliath narrative. Some member states also want the Commission to start a conditionality mechanism to withhold other EU Cohesion Funds, which would cost Poland billions of euro. A legal challenge to the Polish court ruling is also possible. Any action to strip Poland of membership rights under Article 7, which would be the nuclear option, would require the support of all states. We know that Hungary, which is also controlled by a right-wing government, will likely veto that. In Hungary, we have recently seen the targeting of the LGBTI+ community.

At the Council, the Taoiseach must outline Ireland's position clearly. Where does Ireland stand and what will we do about this? Our judges have stood in solidarity against what has happened to Poland's judiciary by joining a silent protest in Warsaw in January 2020. Our Government must also do so. There is an option under the treaties for a country to take another to court. Will Ireland continue to sit idly by while the foundations of the EU are challenged? A country can sue Poland at the European Court of Justice over damage being done to the rule of law and the European legal order. It would be political and risky, but also a clear signal of intent that what Poland was doing does not just damage the EU, but also fellow member states. The Taoiseach might indicate whether this option is under consideration or what action Ireland might take.

The past month has seen dramatic changes in some governments across Europe that may derail efforts to take effective action. The former Chancellor of Austria, Mr. Sebastian Kurz, resigned over an allegation that public funds were used to fund his rise to power through the purchase of adverts in favourable newspapers. Germany went to the polls, heralding a dramatic change in direction, with our sister party, the German Social Democratic Party, winning the election and on track to form a coalition with Alliance 90/The Greens and liberals. This could be Chancellor Merkel's last Council meeting, but we look forward to Mr. Olaf Scholz replacing her.

In the time remaining to me, I will touch on two issues. First, COP26 is on the agenda, as are energy prices. The Greek Government has objected to the EU's carbon reduction plans, as it believes that the goals for maritime transport under the Fit for 55 proposals are not realistic. Shipping is to join the emissions trading system over a three-year period from 2023. This is an issue for Greece, which accounts for over half of the EU merchant fleet. Will the Taoiseach outline whether Ireland has also raised objections to the Fit for 55 proposals?

Second, the Stability and Growth Pact is not directly on the agenda of the Council but will no doubt be discussed. A review of and consultation on the pact are under way. The pact contains the budgetary rules that determine the fiscal capacity of our State. This is an issue that the Labour Party has sought action on since 2016 when it became clear that Ireland needed to ramp up capital investment in housing and climate action but was restricted in doing so by the borrowing rules. We also had the ridiculous situation of Ireland borrowing at near-zero interest rates and, when selling off our stake in AIB, using that to pay down debt.

The rules were correctly suspended during the pandemic to facilitate borrowing to save our economy and to cover increased health and social protection costs. As has been stated many times, the rules, as they stand, are too rigid, opaque and complex. They have stopped us from making investments. It is clear that productive capital investments need to be addressed in the pact, in particular investments that we will need to make for a just transition and a zero carbon society.

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