Colm Brophy (Dublin South West, Fine Gael) | Oireachtas source

The agenda for this week's meeting of the European Council is being discussed by EU affairs ministers at the General Affairs Council meeting today at which the Minister of State, Deputy Byrne, is representing Ireland. The Minister for Public Expenditure and Reform, Deputy Michael McGrath, has outlined his expectations for the discussions around Russia's aggression against Ukraine, security, defence and Covid-19. I will address the issues of energy, economic issues, and Euro summit and EU external relations.

At the informal meeting at Versailles the members of the European Council discussed how to ensure the security of energy supplies and agree to phase out dependency on Russian gas, oil and coal imports as soon as possible. This can be achieved through a strong focus on accelerating the development of renewables, promoting energy efficiency and improving the interconnection of the European electricity and gas networks. Reducing overall reliance on fossil fuels, diversifying supplies and routes and improving levels of gas storage and enhancing the EU contingency planning will all support increased security of supply.

The European Commission has been invited to propose a REPowerEU plan by the end of May, building on its recent communication of a joint European action for more affordable, secure and sustainable energy. EU leaders will also discuss soaring energy prices that have reached unprecedented levels across Europe, including here in Ireland. There was already an issue of significant concern and it is one that has been exacerbated by Russia's invasion of Ukraine. Energy prices are at record highs and remain volatile. The Government is acutely aware of the social and economic impact of these increases on the whole of our society. The Government has utilised the tax and social welfare system to counter the rising costs of living of which energy costs are one of the biggest drivers with a number of measures implemented in budget 2022. Earlier this month, we announced a temporary reduction in the excise rates for auto fuels. This is in addition to the extensive supports already announced, including the €200 energy credit, public transport fare reductions, fuel allowance increases, an enhanced drug payment scheme and bringing forward the working family payment. In February, the Government announced a new national home energy upgrade scheme providing increased grant levels up to 50% of the cost of a typical deep retrofit. Unfortunately, in these exceptionally difficult times, governments cannot fully shield society from the impact. The best medium- to long-term approach to insulate consumers from volatility on international wholesale energy markets is to accelerate our efforts to deliver on the green transition.

Leaders will also return to economic issues and this week's meeting. This will include endorsing the political orientation of the Versailles declaration insofar as strengthening Europe's economic basis is concerned while unlocking the full potential of our Single Market to underpin the green and digital transitions. It is expected that leaders will also endorse the strategic priorities of the Commission's annual sustainable growth survey and invite member states to reflect them in their national plans, national reform programmes and stability programme updates to be submitted in April as part of this year's European semester process.

The annual sustainable growth survey produced by the Commission in November identified four key dimensions of competitive sustainability as guiding principles for Europe’s economic revival: environmental sustainability, productive productivity, fairness and macroeconomic stability. These four dimensions are closely interrelated, mutually reinforcing and fully consistent with the strategic direction established by the recovery and resilience facility, forming the core component of the historic next generation EU budgetary package. The Government agrees that they continue to provide the right emphasis at this time, including having regard to heightened economic uncertainties. Leaders will also meet in Euro summit format this week joined by the European Euro group President, Deputy Pascal Donohoe, and European Central Bank President, Christine Lagarde. It is expected that the leaders exchanges on the economic outlook for the single currency area will be informed by the most recent monetary policy decisions adopted by the ECB and the statement on fiscal guidance for 2023 adopted by the Eurogroup finance ministers on 14 March.

Given renewed uncertainties and risks, the Government’s view is we need to remain agile and flexible in our political response to current circumstances. The Taoiseach looks forward to further constructive exchanges with leaders to this end.

The European Council will also prepare the EU-China summit to be held on 1 April 2022 and exchange views on relations with China in the new global context. The events of recent weeks will have systemic effects on world geopolitics, including on the EU's relations with China. The EU-China summit is an opportunity for an open and frank discussion on Russia’s aggression on Ukraine, on the EU’s and China’s response to that aggression and on what that might mean for EU-China relations and wider global relations.

The European Council will also discuss the prolonged political crisis in Bosnia and Herzegovina. The Government is a strong advocate for the western Balkans. This will be a useful opportunity to discuss how the EU can further engage in order to buttress stability. Leaders will also meet on Friday for a Euro Summit. They will discuss the economic situation and review progress on banking union and capital markets union.

Before I conclude, I thank Members again for their active participation in this debate. The Taoiseach will report to the House early next month following this week’s European Council.

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