I attended the European Council in Brussels on 16 and 17 June. I was accompanied by the Minister for Foreign Affairs, Dermot Ahern T.D. and the Minister of State for European Affairs, Noel Treacy T.D.
The Presidency’s Conclusions have been laid before the House.
The European Council had a challenging agenda. Firstly, it had to deal with the setback to the ratification of the European Constitution. While ten countries have approved the Constitution, voters in France and The Netherlands rejected it.
Secondly, the Council sought to reach agreement on the future financing of the Union for the years 2007-2013. Agreement on the funding package would have given the Union a much-needed political success.
This was a difficult and ultimately very disappointing European Council. At a moment when the EU needed a strong demonstration of solidarity and unity, the European Council had a bad tempered and unproductive negotiation about future funding.
The failure to reach agreement on the Financial Perspectives was a further setback for the European Union at a time when it is still coming to terms with the result of the French and Dutch votes on the European Constitution. While I do not want to exaggerate the implications of the breakdown in these negotiations, I believe that the EU is now facing one of the most challenging periods in its history.
I indicated after the meeting that the outcome was a bad one. I also indicated my confidence that the European Council and the European Union will weather this particular period of turbulence as it has done many times before. The Member States seek a strong and effective European Union and I will be devoting my own personal efforts to ensuring the earliest possible resumption of smooth and forward looking business relations.
While the outcome of last week’s Council might not at first sight encourage optimism, I believe the Union will find the strength to move forward in a united and determined way.
The new Member States made a particularly important contribution to the discussions last week. In their interventions, many of the Prime Ministers in the ten States showed a deep understanding of how the EU works and a deep commitment to its future development. Their willingness to compromise and their support for the concept of a Europe based on solidarity was striking and encouraging.
While the discussions on the future Financial Perspectives were difficult and robust, the European Council had a positive exchange on the European Constitution. The discussion was serious and amicable. There were no recriminations. There was an overwhelming sense that the European Constitution was in Europe’s interest and that it should not be renegotiated.
The discussion at the Council confirmed the fact that there is no Plan B. The European Constitution remains on the table.
The Council adopted a Declaration on the European Constitution that helps chart the way forward.
The Council agreed that that the ratification process should continue. At the same time, there was an appreciation of the particular situation of the Member States committed to holding referendums. Obviously, these countries will now need more time to engage in debate and dialogue.
Therefore, the Council agreed to have a period of reflection and debate in all of the Member States. It is accepted that the timetable for ratification may be altered in some Member States and there is a general understanding that the original target date of 1 November, 2006 for entry into force is now almost certainly not tenable.
Each Member State will determine, in the light of its own circumstances, how best to proceed. The European Council will assess the situation in the first half of 2006 under the Austrian EU Presidency.
The Government remains committed to ratifying the European Constitution. Obviously, following the discussion at the European Council, we will not at this stage be setting a date for the referendum or progressing the Referendum Bill.
We will, however, continue to prepare for a referendum. We will use the period of reflection to intensify our engagement with the European Constitution and Europe generally.
The National Forum for Europe has already done much to promote debate and the Government will continue to support it. It will obviously play a key role in facilitating in Ireland the broad debate envisaged by the European Council. The Oireachtas will, of course, also have an important role to play in this debate. The Government will consult with the opposition parties on the scheduling, at an appropriate time, of a full debate in the Dáil and the Seanad on the situation in the EU.
In September, we will publish the Government’s White Paper on the European Constitution. This will ensure that comprehensive, accurate and factual information is made available to the public.
I strongly believe that the ratification of the European Constitution remains a valid and important objective for Ireland and for the Union.
The pause in the ratification process will allow the Governments of the Member States to listen to the voters, to communicate the importance of the EU and to revitalise public engagement with Europe and its role in the world.
The second key issue on the European Council’s agenda was the negotiation of the future Financial Perspectives. In the months preceding the Council, the Luxembourg Presidency managed through great skill and determination to narrow the differences between the Member States. The package on the table at the Council contained all the elements for an agreement, however, the political will was lacking and no agreement was reached.
Ireland’s overall approach throughout the negotiations was to ensure that the Union is fully equipped to meet the challenges of the years ahead and to enable it to meet the expectations of our citizens.
I believe that the final package tabled by the Presidency would have been a good result for Ireland and for the Union. I indicated at the Council that in the interest of compromise and solidarity, Ireland could have accepted the final proposal of the Presidency.
Our particular national concerns were to safeguard the October 2002 agreement on the funding of the Common Agricultural Policy; to ensure adequate cohesion arrangements for our regions in transition; to ensure as fair a deal as possible with regard to our contribution to the EU budget; and to secure future EU support for the Peace Process.
On the CAP, the Presidency’s proposal would have ensured that the funding was sufficient to cover both the commitments made to our farmers under the October 2002 agreement and also the costs of the extension of the CAP to Bulgaria and Romania on their accession.
In the discussions on CAP funding at the Council, I emphasised that the October 2002 agreement on CAP funding by the European Council was a milestone. It had resulted in a fundamental overhaul of the CAP and paved the way for a decline in the CAP’s share of the overall EU budget. Our farmers accepted the deal on the basis that it had been agreed by the European Council and provided certainty for the years up to 2013. Efforts to re-open the deal called the credibility of agreements reached at the European Council into question. Efforts to link the CAP to other issues, such as budget rebates, did not take into account the very far-reaching and significant reforms already made to the CAP.
Subsidies have been decoupled from production. The CAP’s share of the overall EU budget has significantly reduced over time. The European model of agriculture makes an important contribution economically, socially and environmentally to European society. I regret that many of those who are, of course, perfectly free to take a different view on the future of the CAP than the one I would take, also feel free simply to ignore the facts.
The Presidency’s final package also included €200 million in support of the Peace Process over the coming period. The funds would have been spent in Northern Ireland and the border counties on a range of cross-border and cross-community projects.
The continuing commitment represents both practical and symbolic support by the Union in the cause of peace and reconciliation in Ireland.
The issue of the British budgetary rebate was one of the main stumbling blocks to reaching a final agreement on the Financial Perspectives.
I strongly argued that the future cost of all rebates should be kept within reasonable limits.
Following the failure to reach agreement on the Financial Perspectives at the Council, the issue will now be taken forward under the incoming British EU Presidency and possibly the Austrian Presidency in the first half of 2006. The European Council will return to the matter. Ultimately, the EU will find the political will to craft an agreement on the Financial Perspectives. It is important that such an agreement be achieved sooner rather than later, not least to allow the new Member States the time to prepare for the receipt of structural and cohesion funding.
I made clear however that Ireland’s acceptance of the Presidency compromise last Friday night was on the basis of agreement at that time. The Government will rigorously resist any attempt to use that compromise as a starting point for further negotiations or a platform for further concessions.
While the negotiations on the EU budget are strongly influenced by national interests and objectives, the budget is also a concrete expression of the solidarity and cooperation between the Member States that underpins the Union. It can only be agreed in a spirit of compromise and political goodwill.
Short-term national political and economic interests have to yield to the collective long-term interest of the future stability and credibility of the Union.
We must return to the negotiations determined to reach an agreement which respects the common policies and the earlier agreements of the European Council, but which also looks to the future and the global challenges now facing the Union.
The Conclusions of the European Council reflect the EU’s support for future enlargement and to implementing the commitments it has given to accession and applicant States. The European Council welcomed the signing of the Accession Treaty with Bulgaria and Romania. These countries will now participate, as active observers, in the proceedings of the European Council, the Council and its preparatory bodies. Ireland looks forward to their full membership of the Union in January 2007.
The European Council also highlighted the need to implement in full the commitments given to Turkey and to Croatia at the December 2004 European Council concerning the opening of their accession negotiations.
The process of globalisation will not stop while the Union deals with its internal agenda. In the coming months, it is important that the Union continues to focus strongly on economic and social issues. It is clear from the debate in the Member States on the European Constitution that the challenges of globalisation are now making themselves felt across the Union and at all levels of society.
This is why the revitalisation of the Union’s Lisbon Agenda, launched in March 2005, must be implemented and pursued with great determination.
The European Council approved the Integrated Guidelines for Growth and Jobs 2005-2008, a key component of the Lisbon Strategy. The Integrated Guidelines must now be translated into national reform programmes to be established by Member States.
The Commission also presented a Lisbon Community programme, which covers all action to be taken at Community level. The national reform programme in Ireland will be developed in response to our specific national needs. The social partners and the Oireachtas will be included in the consultative process for its development.
In the coming months, the EU must also continue to work hard on dealing with a range of internal issues that affect the daily lives of our people. The fight against crime, terrorism and drugs is an area where strong cooperation between the Member States is essential. The European Council’s Conclusions, therefore, noted the adoption of both the Hague Programme Action Plan strengthening the area of freedom, security and justice and the EU Drugs Action Plan. The Conclusions also review the implementation of the action plan to fight terrorism and set out the priority actions that must be undertaken in this area.
While the European Council was dominated by the discussions on the European Constitution and the Financial Perspectives, the Council also adopted Conclusions on a wide range of external relations issues. The Council’s Conclusions reflect the key international role now being played by the EU as it works to prevent conflicts, fight poverty and support the effective working of key multilateral bodies.
It is essential that as the Union works to overcome its current internal difficulties that it remains engaged on the international stage and continues to promote its interests and values in a turbulent world.
The European Council wants to have a balanced and considered outcome to the September UN Summit which will enable the UN to be reformed and to respond more effectively to the threats and challenges facing the world.
The Conclusions of the European Council on the UN Summit include a new commitment to increase EU Overseas Development Assistance, including a sharp increase in the EU’s ODA to Africa. The new EU ODA agreement should result in an additional €20 billion per year in EU ODA by 2010.
The Conclusions set out the EU’s views on a range of key Summit issues such as disarmament and non-proliferation, human rights including the establishment of a Human Rights Council, the reform of the main UN bodies, sustainable development and trade.
Ireland participated actively in the preparation of this comprehensive EU position on many of the issues that will be at the centre of the UN Summit. The Minister for Foreign Affairs, in his role as a UN envoy, is continuing with an intensive round of discussions on the issues arising at the Summit and is promoting and encouraging agreement on the proposals of the UN Secretary General for UN reform.
The European Council also adopted important Declarations on Kosovo and the Middle East Peace Process. The Declarations reflect the important role the EU is playing in regions where international efforts to prevent and resolve conflict are entering into a critical phase.
The European Council Conclusions also cover other important external issues such as Iraq, Iran, relations with Russia, Asia and Africa.
Overall, the Conclusions present a picture of a Union that is deeply engaged across the globe in support of the UN and other multilateral bodies, such as the African Union, in dealing with many of the great issues of our time. We need to ensure that the external role of the Union is fully supported by a strong internal Union that is clear about its objectives, clear about its funding and is operating on a foundation that facilitates decision-making and action in a Union of twenty-five or more Member States.
The past month has not been good for the European Union. The rejection of the European Constitution in two of the founding members of the Union has delivered a shock which will take some time to absorb.
We are all still reflecting on the full implications of these votes and will require time to assess how best the Union can move forward. The disagreement on the Financial Perspectives reflects this state of uncertainty.
The launching of a debate on the European Constitution and on Europe generally across the Union should help clarify our thoughts and help us to take the necessary decisions to put Europe back on track. Now is not a time for division and dispute among us. It is a time for coming together in support of a Europe that serves the interest of all its people in a rapidly changing world. For its part, the Government will support and contribute to the national debate. We will also continue to work with all our EU partners, particularly in the new Member States, in a joint effort to ensure that the EU emerges strengthened and revitalised after the setbacks of the past weeks.
Let me say to those who are now making dire predictions about the future of the EU that I am certain they are wrong. The European Union is not some wilting violet that will fade away over night. It is a strong plant with deep roots, roots that are nourished by the common prosperity of its peoples, by its track record of unprecedented success and by the common desire of its peoples and Member States for a Europe united, peaceful, prosperous and free.
We must all of us move forward together. I intend to play my part in ensuring that we do so.
Thank you.
ENDS