Mairéad Farrell (Galway West, Sinn Fein) | Oireachtas source

The issue of the ongoing process of EU reform is at the forefront in Europe. When it came to the fiscal rules, for example, Ireland was not vocal enough as a State. It was necessary for the finance committee to help drive a submission on it. Unfortunately, the new rules look a lot like the old rules. Although there are some new exemptions from debt and deficit considerations, mainly in defence spending, there have been calls, including from Sinn Féin, for exemptions in the context of climate and housing. Climate is a massive crisis we are currently facing and it needs to be faced on an EU-wide level as well as worldwide. As regards the exemptions for military spending, we know the impact wars have on the environment. That needs to be considered.

The area of state aid rules and industrial policy is another that has long been in need of reform. At EU level, there has been talk of the need for renewed focus on industrial policy. That is particularly the case following the introduction of the Inflation Reduction Act in the US and the rising risk of deindustrialisation in Europe. Efforts to encourage industrial policy have long had to accommodate a strict focus on competition policy and state aid rules, but in March the Commission adopted the temporary crisis and transition state aid framework, which has loosened the rules to prevent an exodus of green projects across the Atlantic. My understanding is that it grants the possibility to provide investment and even operational state aid for approved aid schemes to encourage a reduction in the dependency on imported fossil fuels. However, it also extends the possibility of member states setting up state aid schemes aimed at the decarbonisation of industrial production. That is welcome if it is used wisely. There are real opportunities here. When it comes to these key reformist discussions, however, the Government simply has not been vocal enough. It needs to prepare for this and get involved.

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