Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context

Question 5: To ask the Taoiseach if he will report on the meeting of the Eastern Partnership in Warsaw; and if he will make a statement on the matter. [27356/11]

Gerry Adams (Louth, Sinn Fein)
Link to this: Individually | In context

Question 6: To ask the Taoiseach if he will report on his attendance at the Eastern Partnership meeting in Warsaw. [27366/11]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 7: To ask the Taoiseach the policies in relation to the European Union's Eastern Partnership and Neighbourhood Policy which he proposed at recent EU meetings. [28453/11]

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 5 to 7, inclusive, together.

On foot of an official invitation by the President of the European Council, Mr. Herman Van Rompuy, and by the Prime Minister of the Republic of Poland, Mr. Tusk, I attended the Eastern Partnership Summit in Warsaw on Thursday and Friday, 29 and 30 September. The Eastern Partnership initiative aims to enhance economic and political relations between the European Union and six neighbouring partners to the east - Ukraine, Moldova, Azerbaijan, Armenia, Georgia and Belarus. On Thursday evening I attended a working dinner for the heads of delegations where we discussed the future prospects for relations between the EU and its eastern partners.

I participated in the plenary session on Friday morning, intervening in the discussions on economic integration and trade. I welcomed the fact that the Eastern Partnership is preparing for new association agreements between the EU and the six eastern partners. Deeper engagement and gradual integration in the EU economy will require a high degree of commitment to complex and broad-ranging reforms from our eastern partners, and we appreciate that this presents them with enormous challenges.

I also used the opportunity to outline Ireland's approach to its upcoming chairmanship in the office of the Organisation for Security and Co-operation in Europe, which starts in January 2012.

On the margins of the summit I met a number of my counterparts from the European Union. I had bilateral meetings with Prime Minister Mark Rutte of the Netherlands, Chancellor Faymann of Austria and Prime Minister Jyrki Katainen of Finland. I also spoke informally with several other EU leaders. Our discussions focused on financial stability in the eurozone and prospects for economic growth. I briefed them on the decisive action that the Government was taking to address our financial and economic situation and the progress being made to deliver in full and on time on the commitments set out in Ireland's EU-IMF programme.

I also had bilateral meetings with certain eastern partner countries. I met President Yanukovych of the Ukraine, Prime Minister Vlad Filat of Moldova and President Mikheil Saakashvili of Georgia. I referred to Ireland having declared its candidature for a seat on the UN Human Rights Council and said we would be very grateful for support from our eastern partners in securing this position. We discussed regional issues, including the progress made in the Geneva talks relating to the territorial integrity of Georgia. I said Ireland would be nominating a special representative to the southern Caucasus for the duration of our chairmanship of the OSCE who would participate in the Geneva talks. We also discussed the regional issue of Transnistria and I gave assurances that Ireland would pay close attention to this issue during our OSCE chairmanship.

Following the summit I attended an Irish business community reception at the Irish Embassy to demonstrate my strong support for the Irish business community in Poland and to emphasise the shared objective of restoring a strong and sustainable economy to Ireland.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context

Given the deteriorating situation in the eurozone, did any of the leaders of the eastern European states and other EU member states have any questions for the Taoiseach on the policy of continued austerity and bailing out banks, the detrimental effect this was having on growth in the European economy and how it might affect them? Did the Taoiseach have any discussions with the leaders of the eastern European states about the impact of the sale of State assets? These countries would be very familiar with the process of rapid disposal of state assets. The Taoiseach may be aware that this is something which led to the massive enrichment of a tiny minority of oligarchs in eastern Europe who gained control of these assets but which has led to major job losses for working people in these eastern European states. Did their leaders have anything useful to say about the experience of the wholesale privatisation of state assets and the effect this had had on society and the economies of these states?

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

Yes, they did have questions for me. They were related to the reasons the reputation of the country had changed so radically in six months. The leaders of the eastern European states wanted to know how the Government could work with people in making difficult decisions that pointed in the right direction in getting the country back on a trajectory towards prosperity, where jobs could be created and we could again be in charge of our economic destiny. They were well aware of the changed attitude in business and politics here and the international economic commentary on Ireland. I pointed out on a couple of occasions that owing to the troika deal, there was a requirement that we raise certain moneys from the sale of State assets and they understood this.

They focused on the fact that Ireland would hold the chairmanship of the OSCE for a calendar year, with the Tánaiste performing this role. It may well be that one of the regional conflicts constantly on the brink of war - the conflict in Transnistria - will be sorted out during that period. I cannot confirm this, but it would provide a great boost. They understood, given that we had a desperate situation in the North for 30 years but which resulted in peace through the Good Friday Agreement, that the Irish chairman of the OSCE would understand that conflict and how a resolution could be brought about.

President Yanukovych gave a dissertation on the pending trial of Yulia Tymoshenko. We heard about the focus of Georgia being on its territorial integrity. There were strong reactions to the human rights issues arising in Belarus, on which the entire meeting took a strong view. They asked how and why Ireland was able to make progress in the midst of global economic turmoil and looked forward to the Tánaiste chairing the OSCE in 2012.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context

I notice references in the declaration to the human rights situation in Belarus, the deteriorating position on media freedom and the call for the immediate release and rehabilitation of political prisoners. Why did the declaration make no mention of the human rights situation in Ukraine? As the Taoiseach is aware, the former Prime Minister was recently convicted and sentenced to seven years in prison in what the European Union has described as a political trial.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

This is a matter of concern to people in the European Union. Former Prime Minister Tymoshenko attended quite a number of meetings of the European People's Party which I also attended and she made her case in respect of the difficulties being encountered in her country at the time. For his part, President Yanokovych said he had decriminalised a range of issues on the basis that the former Prime Minister might not face a jail sentence. He gave briefings to other leaders on what the problem was from his perspective. The European Union has made a strong case that if there is an appeal against the seven year jail sentence handed down to the former Prime Minister, it should clearly be seen to be conducted in an entirely independent and fair manner. I support that view very strongly.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Did the Taoiseach table any particular proposals or ideas for the meeting of the eastern partnership? Did he raise the issue of what most observers would see as the political show trial of former Prime Minister Tymoshenko? There is a difficulty in progressing with the eastern partnership if regimes, either in Belarus or Ukraine, continue with practices that are not acceptable to the democratic norms to which we adhere in the European Union. Some steel needs to be shown in this relationship.

As the Minister who brought the proposal to chair the OSCE to the Cabinet, can the Taoiseach assure us that the resources will be made available to the Department of Foreign Affairs and Trade to chair this prestigious forum adequately in 2012?

In the bilateral meetings between the Taoiseach and the Prime Ministers of Austria, the Netherlands and Finland on the margins of the meeting, did he talk to them about the emerging proposals concerning bondholders, in particular the Greek sovereign bondholders who are likely to lose up to 50% of their money? There will be widespread recapitalisation of European banks, following on from the sovereign debt default in Greece. This is a very important opportunity for Ireland because the two consistent roadblocks to burning the bondholders in Irish banks will now be removed. We were told all along that sovereign debt default, bank recapitalisation and contagion would be the key issues for us. We are now on the cusp of a major opportunity, perhaps the first and only one for Ireland, to force bank bondholders to share the burden. Did the Taoiseach tease that out with the Dutch, Finnish and Austrian prime ministers? If so, what response did he get from them as regards Ireland having an opportunity - particularly in terms of Anglo Irish Bank - to burn those bond holders?

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

In respect of the meeting with President Yanukovych, we discussed the fact that the ongoing negotiations with the DCFTA could be concluded in time for the EU-Ukraine summit in December. He looked forward to the development of trade links between both countries and he mentioned the important contribution that the Ukrainian community makes here in Ireland. He also said he was confident that compromises would be reached shortly on the small number of outstanding bilateral issues between Germany, France, Italy and Spain.

He recognised that the case of the former prime minister, Yulia Tymoshenko, was an obstacle to completion of negotiations with the EU. He said that the action against Ms Tymoshenko was not a political trial - he insisted on that - and that it had not been initiated by his current government. He said the matter was very complicated; it has dragged on for a while and would now have to be brought to a conclusion. He also said he had decriminalised certain matters. We talked about that for a while and it was part of the EU's response that if there is an appeal it should be conducted in an entirely independent manner and be seen as such.

I also had discussions with representatives of the Netherlands, Austria and Finland. In respect of each of those, we talked about the difficulties facing the eurozone. As we speak, discussions are going on in preparation for the heads of government meeting on Sunday. The Deputy will be aware that ministers for finance will meet on Friday and Saturday. It is hoped that the major issues under discussion can be decided in a way that brings some certainty for the future. I discussed this with Prime Minister Rutte of the Netherlands. I outlined for him our concerns in that Ireland was seen to be a country making progress with confidence towards dealing with our problems. The Dutch have a particular view in respect of discipline and fiscal regimes being able to adhere to their commitments. Prime Minister Rutte has a strong view about that which he has articulated at several meetings.

In respect of the meeting I had with Austrian Chancellor Faymann, we discussed the question of a financial transaction tax. I made the point that this could not apply in sporadic areas and that one could not have a situation where such a tax applied in Ireland but not in London, or vice versa. The Minister for Finance has already pointed that out. We also discussed the EU-IMF programme, growth prospects, economic governance and his rejection of treaty change.

I also met Prime Minister Katainen of Finland who mentioned the collateral issue raised by his country, which has since been resolved. He believes there should be a competitiveness index for Europe because many countries have very different competitive rates. As a triple AAA country, looking at their projected growth figures for next year, they are concerned that Europe would do much better if it had a competitiveness index. I pointed out to him that our Competition Authority reports every year. In many cases the competitiveness report was not acted upon, although it contained some very good suggestions. We discussed the fact that Ireland's competitiveness has improved. Obviously, the collateral issue has been resolved. Mr. Katainen referred to the need to avoid bailout fatigue in Finland. He also said he was inviting speakers from abroad to address issues of EU governance on a public platform in Finland. He invited me to attend in Helsinki sometime towards the end of spring 2012. If we can do that, there might be other opportunities for a number of other areas to be discussed.

Mr. Katainen agreed that it would be difficult to envisage a treaty change at this juncture. There is a crisis here that needs to be dealt with now by using the full flexibility of what was agreed on 21 July. He did not rule out treaty changes sometime in the future but making a comment like that now is not a solution to the current problem. I hope that when we get to Sunday, following the finance ministers' meeting on Friday and Saturday, this can actually be achieved.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Did the Taoiseach discuss the bondholders?

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

It was not mentioned in any great detail.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context

In discussing Ireland's economic and financial situation, the Taoiseach made much of Ireland's improved reputation but that was not really the question I asked. One cannot eat reputation and it does not provide jobs or services. I asked whether various leaders at the conference recognised that there is a major problem in terms of the impact of austerity strangling economic growth in the eurozone. That will have an impact on human beings who hope to get jobs and hope that they will not lose their homes. They also hope for some way out of the current economic crisis.

Although the Taoiseach did not respond, I further asked whether he learned anything useful about the rapid process of the disposal of State assets and the sale of natural resources in eastern European states. As I understand it, the result of that process was the creation of a tiny coterie of multi-billionaire oligarchs who now preside over those formerly State-owned assets. Meanwhile, the people who worked for those State enterprises now face high levels of unemployment and social misery as a result of the privatisation process in those states. Did the Taoiseach learn anything useful that might be beneficial to us, given the demands of the Troika to sell State assets here in a similar way?

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

I learned quite a number of things from the meetings I held. One was that people look at this country in terms of its reputation being changed. The Deputy might say that does not create jobs but it creates a sense of confidence, solidarity and progress. It all leads to an understanding that where a country acts on the decisions taken by the European Union and is able to comply with the conditions, it can and does make progress. I recognise that many people here have difficulties, anxieties and concerns. The problems the Government and our country face will not go away unless somebody does something about them. In many cases, countries in Eastern Europe and members of the EU have taken really difficult decisions. They are in a very different position to Ireland, the most extreme case being that of Greece.

The Deputy can take it that we have no intention of setting up multi-billion euro oligarchies out in Dún Laoghaire or places like that.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context

We did it with Denis O'Brien and Eircom, did we not?

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

Under the IMF-EU deal, the Government is required to raise €2 billion in the programme for Government from the sale of State assets at an appropriate time. For that purpose the Government has set up the NewERA facility in the NTMA, which will determine the economic impact, as well as evaluating it and reporting to the Department of Public Expenditure and Reform and to the Minister. In due course, if the Government sees fit, it will make a decision about the sale of a State asset, or part of a State asset, in the best interests of the people and of the country. We have no intention of having a swift sale of State assets that creates "multi-billionaire oligarchs", as the Deputy calls them, in the country.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context

It was done before.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I am somewhat surprised by the response on the discussions with the Prime Ministers of The Netherlands, Austria and Finland on the most fundamental issue facing the world, the future of the euro. This is bound up with the Greek default that is on the cards and the likelihood of sovereign bondholders losing up to 50% of their money. Are we bringing any proposals to the table at all? Are we outlining to the Prime Ministers Ireland's demands that we believe should be met in the context of a Greek default and the recapitalisation of French and German banks, which is likely to happen subsequent to a Greek default? Should Ireland not now seek the opportunity to do so in respect of bank bondholders? An opportunity has been created that did not exist heretofore. There is a new set of circumstances. Surely we should put this to the leaders of Europe. The Taoiseach should have put this to the Dutch, Austrian and other Prime Ministers. At bilateral talks, we should push our agenda to them in respect of the debt position.

I agree with the Taoiseach's statement to President Barroso that we do not envisage sovereign default in Ireland. We certainly do not but there are opportunities in respect of bank bondholders, and so on, that present themselves in the context of the Greek circumstances. I am surprised this was not discussed substantively at all with the three European Prime Ministers whom the Taoiseach met.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
Link to this: Individually | In context

That is a very detailed question.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

I outlined the issues we discussed, including governance, restructuring, recapitalisation and the crisis within the eurozone. They were discussed with all three Prime Ministers. What we undertook at the negotiation table at Minister for Finance level was a phased renegotiation of the memorandum of understanding and the agreement we found on entering government. This has been done in phases in terms of the jobs initiative and the changed reflection of the Troika in respect of issues such as the minimum wage. Following this were discussions about interest rate reductions.

What we really want is to be able to prove that the decisions taken this weekend will be fair across the board. We want every opportunity to reduce the debt burden on Ireland reflected and encouraged by the European Union and eurozone in decisions made here. One does not want decisions that produce future problems for Ireland. They should apply across the board.

We have made representations constantly in the case of the opportunities that exist for a reduction of the debt burden on Ireland, and we will continue to do so. Some of the issues may well arise on Friday, Saturday and Sunday. The Deputy can take it from me that, in so far as Ireland is concerned, we will contribute cohesively and comprehensively to the discussions. I do not want to lose an opportunity to reduce the debt burden.

The discussions will-----

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The Greek crisis drove the interest rate-----

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

-----centre on the Greek crisis, restructuring, recapitalisation, continued governance, and so on. We are central to this process. When I met President Barroso last week, he made the point that Ireland should and will speak from a position of having a bailout arrangement that involves its having moved away from Greece entirely towards a point where it is making progress, albeit with a very long way to go. Clearly, Ireland is required to move the agenda constantly for Irish debt reduction, such that it will be more advantageous for it to move out of its bailout arrangement and enter the bond markets itself and be in charge of its economic destiny. These points are all part of the central agenda.

I cannot give the Deputy an up-to-date account of what is happening between the major players but papers are being discussed as we speak. Over the next day or two, we will be kept fully informed and make our best assessment as to what we must do at the meetings of the Ministers for Finance on Friday and Saturday and of other leaders on Sunday. We will not be found wanting in terms of opportunities to state the case of Ireland and Europe where we see it moving ahead of the curve and where there is ability to deal with responses from markets. The meeting was postponed last week to allow more time for the progress that is being made in these major areas. We will discuss these when we come back next week.