Lorraine Higgins (Labour)

I welcome the Croatian ambassador to Ireland. I wish her, her government and country the best of luck on the road to accession to the European Union that will happen next year. I also welcome the Tánaiste and thank him for his detailed and informative contribution.

I am delighted to have the opportunity to lead in the Second Stage debate on the European Communities (Amendment) Bill 2012 on behalf of the Labour Party group in the Seanad. It is always welcome in this Chamber to discuss and debate European Union matters as it allows for our full engagement on the issues which, by virtue of our membership of the Union, are of paramount significance to Ireland. It is always of critical importance that this Chamber, in particular, spends time discussing EU matters and it would be of great assistance if we had a enlarged role in this regard. I fully expect that this evening and tomorrow we will have a varied and diverse debate on the matters involved.

The debate is taking place in part as a consequence of the unequivocal acceptance by the people of the stability treaty on 31 May. On foot of that result the European Communities (Amendment) Bill is the necessary legislative facility to allow for an amendment to the domestic law of the State to reflect the decision taken by the people. Throughout the month of May all parties of different creed and views engaged in an energetic and lively debate on the provisions of the treaty and their purported application to this country. I am delighted that the citizens of Ireland, in particular in my constituency and the Tánaiste's former constituency of Galway East, responded in such a clear and unambiguous manner in carrying the referendum. A clear message was sent that they saw the treaty as part of the solution in addressing the economic and financial imbalances that have afflicted Europe for several years.

It always has been and remains part of my party's argument that it is essential the overwhelming result in the passing of the treaty by the people be accompanied by a growth agenda. As the only member country that put the treaty to the people, we must be rewarded with a real plan to achieve economic growth, create jobs and secure a reduction on our bank debt. We must give voters something to be confident about and nothing enhances confidence more than movement on the three issues mentioned. I am glad that the Government has shown a strong commitment to date that it will work hard to gain support for these ideals among European leaders.

In amending the European Communities Act 1972 the European Communities (Amendment) Bill 2012 provides a means of incorporating a number of measures at European Union level into the domestic law of the State. One of the main purposes of the Bill is to provide for legal underpinning of the European Stability Mechanism for all member states the currency of which is the euro. The ESM will open for business on 9 July, which is why the Bill was published on 8 May with the European Stability Mechanism Bill 2012. The Government wanted citizens to be fully aware of the facts pertaining to the stability treaty before they voted in the referendum on 31 May. It believes, without hesitation, that membership of and access to the ESM are in the economic and fiscal interests of the country. The ESM is an insurance policy for the nation such that should we ever again find ourselves in economic turbulent times we will have access to moneys in the fund at favourable interest rates. I say this as a caveat: it is not expected that we will need it, but it is important that we have access to it should we so require it. While we have passed through financially unstable times, the Government can be particularly proud of its role in making Ireland a financially stable location in which to do business. The claim that it is now fiscally stable will be further bolstered by our membership of the ESM that will act as our financial safeguard.

While the primary function of the Bill is to establish the European Stability Mechanism to assist such member states which may find themselves in financial, fiscal and economic difficulty, it will also facilitate the enlargement of representation within the Union in order that a further 18 Members of the European Parliament may be appointed or elected. This is necessary as a consequence of an ever enlarging Union and an essential democratic mechanism.

The Bill will ultimately provide for the protocol to meet the concerns of the people about the Lisbon treaty that was signed in Brussels on 16 May to form part of the domestic law of the State. The protocol recognises and acknowledges the concerns expressed by the people about the treaty with regard to the right to life, family, education, taxation and security and defence matters. My understanding is that it will confirm but not alter the content or the application of the treaty. It is a welcome step to finalise the treaty and legally secure the guarantees the Government of the time obtained on the issues mentioned. I particularly welcome this amendment as a further building block in our relationship with the European Union.

The Bill provides for the accession of Croatia as the 28th member of the European Union and gives us the power to proceed to ratify its membership. Croatia's accession process is not yet complete, but passage of the Bill will go some way towards bolstering its position within the Union. It will be required to satisfy the European Commission on a number of grounds such as reform and the introduction of new laws before it will be fully ratified as a member in July 2013. While there are outstanding issues, its membership plans remain on track and I commend the country and its government for their resilience in this regard. With Ireland holding the Presidency of the Council of the European Union in 2013, I look forward to it playing a prominent role in smoothening the road to accession for Croatia. It is heartening that despite the problems with economic contagion in recent times, this has not acted as a deterrent to new countries in seeking accession to the Union. Membership of it clearly remains an attractive prospect, as there are many benefits to membership. There is freedom for member states to access the open markets of most of the world's economies. It facilitates the free movement of people and investment across the 27 member states. More importantly, it asserts important human rights principles and democratic processes. Unfortunately, in recent times such founding principles of the Union have been jettisoned in favour of economic correction, but I look forward, when the economic balance has been redressed, to reverting to the qualities, ideals and beliefs that brought the founding countries together many years ago to embark on the project of integration. I look forward to further consideration of the Bill on Committee and remaining Stages tomorrow and commend it to the House.