Bernard Durkan (Kildare North, Fine Gael)
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Question 159: To ask the Minister for Foreign Affairs the extent, if any, to which any particular diplomatic initiative is planned to address issues in the various EU member states arising from the ongoing economic situation; and if he will make a statement on the matter. [3218/11]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Addressing the very considerable economic challenges which the Union currently faces is a top priority of the incoming Hungarian Presidency of the Council of the European Union, which has identified economic growth, the creation of employment and the enhancement of the sustainable competitiveness of Europe for particular focus during the first half of 2011. Ireland, in common with our EU partners, shares this focus and is committed to realising this goal.

Addressing the economic situation and related matters have already featured on the agenda of the first ministerial meeting of the Hungarian Presidency, the informal meeting of Ministers for European Affairs on 13 and 14 January, as well as at the Euro Group meeting and Ecofin Council earlier this week. Right across the various EU fora, the ongoing economic situation is receiving priority attention. The most recent meeting of the European Council last month agreed on the Treaty change needed in order to establish a permanent crisis mechanism to safeguard the financial stability of the euro area as a whole. A process of consultation is now underway with the European Parliament, the European Commission and the European Central Bank. It is intended that this Treaty amendment will be formally adopted at the March European Council, following this process of consultation.

The European Stability Mechanism (ESM) will replace the existing European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism (EFSM). The December 2010 European Council also called for Finance Ministers of the euro area and the Commission to finalise work on the intergovernmental arrangement setting up the future ESM by March 2011, integrating the general features set out in the Eurogroup statement of 28 November 2010, which were endorsed by the European Council. Work on the elaboration of the ESM will be undertaken in a Eurozone working group.

Furthermore last month, euro area leaders affirmed that they stand ready to do whatever is required to ensure the stability of the euro area as a whole, including through the development over the coming months of a comprehensive response to any challenges to the stability of the euro area as a whole.

At the same time, work is continuing on the roll out of the first European Semester this spring, which is designed to integrate and strengthen various aspects of existing EU budgetary and macro-economic surveillance procedures, and to deliver greater ex ante coordination of economic policies and discussion of national fiscal policy intentions before they take the form of detailed budgetary proposals later in the year. This process sees Member States submitting their Stability and Convergence Programmes, under the Stability and Growth Pact, as well as their National Reform Programmes, under the Europe 2020 Strategy for jobs and growth, both during the spring. The Commission has in turn, earlier this month, published its first Annual Growth Survey for the EU, including analysis of recent performance and prospective developments at Member State level. This will inform subsequent consideration by the ECOFIN Council and the Spring European Council. Based on this work, the Council will identify the main economic challenges facing the EU and provide policy guidance.

Strengthening European economic governance is an issue to which the European Council has assigned very high priority over recent months, including through the establishment of a Task Force, chaired by European Council President Van Rompuy, to address this issue. The report of this Task Force was endorsed by the October 2010 European Council. The Commission also published a set of legislative proposals in September 2010, which complement the recommendations of the Van Rompuy Task Force, designed to strengthen the Stability and Growth Pact and to broaden the scope of economic surveillance.

Across each and every one of these and other EU fora, Ireland is engaging proactively with our EU partners as well as with the institutions, to ensure that the focus of the EU remains on how it can address this most pressing of issues - the ongoing economic situation.