Michael Mullins (Fine Gael)

I join colleagues in welcoming the Tánaiste. I also welcome the Croatian ambassador and I wish her and her people well in future. In voting for the stability treaty in the recent referendum, Irish people made a significant decision to remain at the heart of Europe, and gave the Government a mandate to work with other EU governments to resolve the many problems that are impacting on the lives of so many of our people. Senator Mooney already spoke about that. Our experience has been very positive since our accession back in the early 1970s. We had much debate in the course of the referendum on the stability of the euro, on the availability of funding in the future, on a growth agenda to tackle unemployment and particularly youth unemployment, and the need for more international investment.

This week the Oireachtas will enact some Bills that will underpin the decision of the Irish people. One such Bill is the European Communities (Amendment) Bill 2012, which we are discussing this afternoon. As the Tánaiste indicated, the European Communities Act 1972 needs to be amended to provide for four separate developments at EU level, in order to ensure that these four instruments shall form part of the domestic law of the State. These four elements are the amendment of Article 136 of the Treaty on the Functioning of the European Union, underpinning the legal standing of the ESM, a protocol on the adjustment of the number of MEPs, Croatian accession and the legal guarantees that were given to the Irish people in the Lisbon treaty. Each of these elements is different from the others and each stands on its own. While these elements are separate, it makes good sense and good use of Oireachtas time to deal with all four as a package.

The amendment of Article 136 of the Treaty on the Functioning of the European Union will underpin the legal standing of the ESM. Having a functioning ESM is strongly in the interests of Ireland and the eurozone. This is not because we want to draw from it, but if in the event of Ireland requiring a second bailout, it certainly is an excellent insurance policy. There was much debate on this during the course of the recent referendum. The very existence of the ESM lessens the chances of another member state having to draw on it in the future. The ESM is also part of the eurozone's firewall against contagion. The agreed aim of the eurozone governments is to have the ESM in place in July. The ESM and the instrument to amend Article 136 are both separate and contain their own requirements for entry into force. The amendment to Article 136 will come into force when ratified by all member states of the EU. As the Tánaiste said, the target date is 1 January 2013. It is very much in Ireland's best interests for both changes to come into force as soon as possible, as it is desirable to deal with both instruments in parallel from a policy and efficiency point of view. Not ratifying Article 136 will not prevent the ESM coming into force once the necessary conditions are met.

The protocol on the number of MEPs is a technical, housekeeping matter. The last European elections took place in June 2009, when the Nice treaty was still in force. In line with the Nice treaty, 736 Members of the European Parliament were elected and are now in office. However, the Lisbon treaty entered into force on 1 December 2009, allowing 751 seats in the Parliament. The treaty gives 18 additional seats to 12 member states, while Germany loses three due to the new thresholds in the treaty. Spain will get four extra seats, Austria, France and Sweden will get two extra seats, while Bulgaria, Italy, Latvia, Malta, the Netherlands, Poland, Slovenia and the UK will get one extra seat each.

Croatia is due to accede to the EU on 1 July 2013 provided all the instruments of ratification have been deposited before that date. The accession treaty was signed on 9 December 2011 in Brussels, and the Taoiseach signed on our behalf. Croatia currently holds active observer status and is represented on all Council bodies, including the European Council. Following the situation that developed in Greece, there probably are concerns when a new member state joins the EU. Some safeguards have been put in place and the Tánaiste might like to comment on some of them. I understand that there is a general economic safeguard clause, an internal market safeguard clause and a specific justice and home affairs safeguard clause. There are other issues that are likely to arise in respect of Croatia that might cause some concern, such as judicial transparency, corruption, minority interests, refugee return issues and full co-operation with the International Criminal Tribunal in the Hague.

I am pleased the Tánaiste has confirmed that all 27 members states have signed the protocol on the concerns of the Irish people on the Treaty of Lisbon. Europe is delivering to the Irish people. In 2009, Ireland was given legally binding assurances on areas of importance, such as tax, neutrality and family matters. While these guarantees have legal effect already, it was agreed they should be attached to the EU treaties as a protocol at the time of the next accession treaty. The protocol confirms that nothing in the Lisbon treaty, giving legal effect to the Charter of Fundamental Rights of the European Union or dealing with justice and home affair matters, affects in any way the scope and applicability of the protection of the right to life, the family and education provided by the Constitution of Ireland. The protocol confirms that nothing in the Lisbon treaty makes any change of any kind for any member state on taxation. This is obviously of vital national interest to Ireland, especially our corporation tax level of 12.5%. Investment by multinational companies is critical for our economic recovery, and our tax rate is one of our competitive advantages. The protocol also mentions that the Lisbon treaty does not affect Ireland's traditional policy of neutrality. It confirms there will be no conscription or European army. We all remember the scaremongering about conscription, the loss of our neutrality and the establishment of a European army during debates on the Lisbon treaty.

The European Communities (Amendment) Bill, as the Tánaiste has said, is significant legislation. It is another piece in the jigsaw of our efforts to bring stability and cohesion to the European Union. I take pleasure in supporting it and I commend the Tánaiste and Minister for Foreign Affairs and Trade on his excellent work in the Department. My party will be happy to support this Bill.