Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I attended a meeting of the European Council on 29 and 30 June in Brussels. The agenda covered Ukraine, economic issues, security and defence, migration and external relations. The Minister of State, Deputy Burke, will provide further detail on some of the external relations issues discussed, including work towards a new partnership with Tunisia, relations with Türkiye, the ongoing situation in Kosovo and relations between the EU and the African Union. I will deal with all other issues.

In advance of our meeting, members of the European Council held an exchange of views with the NATO Secretary General, Jens Stoltenberg, on EU-NATO co-operation and Euro-Atlantic security. The European Council was joined by video by the President of Ukraine, Volodymyr Zelenskyy. We discussed our ongoing political, military, humanitarian and financial assistance for Ukraine. The EU, including Ireland, has made security commitments to Ukraine through the European Peace Facility. We reaffirmed those commitments, while recognising the unique security and defence positions of member states, like Ireland, that are not NATO members.

Leaders strongly condemned the deliberate destruction of the dam at the Nova Kakhovka hydroelectric power plant.

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The attack has had devastating humanitarian, ecological, agricultural and economic repercussions. We also discussed the security risks to the Zaporizhzhia nuclear power plant. We are ready to assist Ukraine beyond what is already being provided through the European Union civil protection mechanism. We committed to continuing solidarity for Ukraine, including through an upcoming global peace summit. We recognised that a comprehensive, just and lasting peace in Ukraine must be based on full respect for its independence, sovereignty and territorial integrity within its internationally recognised borders. Leaders called for ongoing financial commitment to Ukraine, prioritising urgent infrastructure needs and broader reconstruction priorities. We also called for the accountability of perpetrators and welcomed the work that is under way in various forums to ensure Russia is held accountable for its crimes of aggression. We condemned Russia’s attempts to weaponise food and jeopardise global food security. We called for the safe return of Ukrainian children removed to Russia and Belarus. We also once again condemned the role being played by Belarus and Iran in backing Russian aggression.

Leaders also committed to continuing to work closely with Ukraine as it continues on its path to EU accession. I strongly believe that Ukraine’s place is in the European Union. We also reaffirmed our commitment to Moldova and the challenges it faces as a result of Russian aggression in Ukraine and recognised its commitment to EU accession. We noted the steps taken by Georgia on its European path.

We took stock of the progress being made on enhancing Europe’s long-term competitiveness. The economic outlook is characterised by significant uncertainty about the impact of Russia’s war against Ukraine. The most recent flash estimate from EUROSTAT expects euro area inflation in June to be at 5.5%, down from 6.1% in May. Industrial producer prices have also moderated significantly from the peak levels seen last September. Leaders are agreed on the importance of prioritising structural reforms to boost productivity, including by promoting competition and reviving investment. We are also agreed on the need to secure the green and digital transformations of our economies. We adopted conclusions on the Single Market, including a call for an independent high-level report on its future development to be presented during the Belgian Presidency of the Council in March 2024. This is a welcome initiative from the perspective of those, including Ireland, who want to see the full potential of the Single Market achieved. We want to see an open and ambitious approach to strengthening the Single Market as the bedrock of Europe’s prosperity. This should include the shaping of global standards with like-minded partners. We also looked forward to agreement before the end of the current legislative cycle on the net-zero industry act and the critical raw materials act. The European Council also invited the European Commission to assess the effect of the US Inflation Reduction Act on investment and the effectiveness of measures taken in response to that Act by the European Union and its member states.

We discussed economic security issues and broadly welcomed the recent communication on a European economic security strategy. The four categories of economic risk it identifies are risks to supply chains, risks to critical infrastructure, risks to technology security and leakage, and the risk of economic coercion. Leaders are agreed that Europe’s influence in the world, which is necessary to defend our interests and protect our core values, will depend largely on developing our economic strengths as an open and competitive market-based economy. At the same time, the evolving geopolitical situation may call for proportionate, precise and targeted responses to new security challenges. The Council's conclusions are consistent with aiming to preserve maximum levels of economic openness and dynamism, including through closer co-operation with trusted global partners that share our democratic values. We also discussed the integrated country-specific recommendations under the European semester 2023. These can help to co-ordinate the economic, employment and fiscal policies of member states. The European Council also invited finance ministers to take forward their work on the economic governance review with a view to concluding the legislative process in 2023.

We had initial discussions on the targeted revision of the EU budget that was recently proposed by the European Commission. The proposal aims to reinforce a limited number of priority areas for the period out to 2027. These include ensuring sustainable multi-annual financing for Ukraine and the huge humanitarian, economic and budgetary consequences it is facing. New measures on external action and migration are also proposed along with a new platform to generate investments in strategically important technologies. It also includes provision for managing increased interest rates and administrative costs.

The European Council also called for the prompt finalisation of work on the artificial intelligence act. This is an area of increasing importance and focus. We must ensure we have an appropriate regulatory framework in place. However, we must not lose sight of the opportunity for Europe to become a prime location for innovation-friendly development of trustworthy AI technologies and applications. Our conclusions also reference the need to ensure sufficient production and availability of the most critical medicines and components and for further work to be done on this issue.

On security and defence, the European Council took stock of the progress on implementing our previous conclusions and on the strategic compass, including progress in the cybersecurity, hybrid, maritime and space areas. We called for work to be taken forward on proposals relating to joint procurement of military equipment and on increasing the capacity and resilience of Europe’s defence sector. We welcomed the decision to increase the ceiling of the European Peace Facility and to maintain the Union’s ability to respond to crises and conflicts. Ahead of the meeting, I joined nine other leaders in calling for a strengthening of the EU’s civil protection mechanism to ensure we can better respond to natural and human-made disasters in a strategic, coherent and collective way. The Council acknowledged the challenges posed by cross-border crises and agreed on the importance of strengthening resilience.

The backdrop to our discussion on migration was the recent tragedy in the Mediterranean. The loss of so many lives at sea reinforces the need to deal with migration in a comprehensive and holistic manner. This requires a co-ordinated approach to prevent irregular departures and loss of life, to strengthen the European Union’s external borders, to fight against smugglers, and to increase returns for those refused international protection. As this House will be aware, the situation continues to be difficult for many member states, especially those on the Mediterranean, with increased numbers of irregular migrants arriving at a time when we are also hosting large numbers fleeing war in Ukraine. The European Council received an update from the European Commission on the significant progress made in implementing the conclusions adopted at the special meeting of the European Council in February. Work has intensified with countries of origin and of transit to develop mutually beneficial partnerships. In June, justice and home affairs ministers reached political agreement on the asylum procedure regulation and the asylum and migration management regulation, two important elements of the proposed pact on asylum and migration. Once adopted by the EU co-legislators, this will establish a common procedure for processing international protection requests, mandatory border procedures and a new flexible solidarity mechanism. The European Council did not adopt conclusions on migration on this occasion due to concerns expressed by Poland and Hungary about the approach to the ongoing work on the pact on migration and asylum. However, President Charles Michel summed up our discussion in personal conclusions issued after the meeting. Finding shared ways to manage irregular migration remains a topic of concern to many, and I expect it will continue to feature on the agenda of future meetings.

Leaders continued our strategic discussion on relations with China, underlining our shared interest in a stable relationship and recognising China’s important position as a trade and economic partner. We discussed the need for balance in our trade and economic relationship and in ensuring a level playing field. The EU will retain a consistent and united approach in its relations with China and will continue to work with China on important global challenges, such as the climate, biodiversity and food security challenges. We are clear about the EU’s commitment to respect for human rights and fundamental freedoms and our concerns regarding forced labour and the treatment of human rights defenders and minorities. We remain concerned in particular about the situation in Xinjiang, Tibet and Hong Kong. We called on China to use its position as a permanent member of the UN Security Council to press Russia to cease its war of aggression.

Next week, I will travel to Brussels for the EU-Community of Latin American and Caribbean States summit. The summit will be the first of its kind in eight years. It will be a good opportunity to mark the strengthening of the partnership between our two regions.

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