Chairman, members of the Committee
Thank you for inviting me to address you today on what is undoubtedly a subject of significant importance – the UK’s relationship with the EU.
Let me begin by underlining how much I welcome the engagement of this Committee, and the Oireachtas as a whole, on this vital topic. I think we all recognise, whatever our party affiliation, that the UK’s continued membership of the Union is very important in the context of our own country’s continued economic, political and social well-being. So it’s heartening that we are all working together to identify the issues that arise and to safeguard the interests of Ireland and our people. The hearings you have held in recent weeks have made a significant contribution to this process and I appreciate the hard work undertaken so far.
Given what you have already accomplished, my intention today is not to repeat what you have heard in previous weeks. Instead, I’d like to focus on outlining the Government’s approach to the EU-UK question.
I am also conscious that I have much to learn from you. I know that a delegation from the Committee was in London earlier this week for a series of meetings – including with a number of senior British political figures – on this same subject, and I look forward to having a frank and open exchange after my brief statement.
I want to start though by addressing a seemingly trivial point but an important one nonetheless: the name of the agenda item. We are here to officially consider “United Kingdom: Possible Exit from the European Union”. There is nothing wrong with this, on the face of it. But I’d much prefer if the agenda read “United Kingdom: Keeping Britain in the European Union”.
That’s because our focus, across our political system and across Ireland, needs to be on keeping the UK in the Union, rather than preparing for the consequences of their departure. That’s not to say we can’t do both at the same time – we can. But Ireland should – in my view – be sending strong, positive messages about the benefits of British membership of the European Union, especially in terms of the relations between our two islands. That’s how we can make a constructive contribution to the debate in Britain. And it helps us to avoid lending weight to the negative notion that a UK withdrawal from the EU is somehow inevitable – something which I, for one, certainly don’t accept.
So what is the Government’s fundamental approach to the EU-UK question?
Well, the first point to make is this: British membership of the European Union is absolutely in Ireland’s interests. That conviction underpins the messaging, the diplomacy and the strategy when it comes to addressing this question. Everything we do, quite simply, is predicated on the belief that we want the UK to remain in the Union.
This Committee has already heard evidence in recent weeks as to why this is the case. Instead of repeating much of that, I will briefly outline four key ways in which we benefit from our joint membership of the European Union.
The first is our economy. The UK is, by far, our biggest trading partner, with which we trade over €1 billion worth of goods and services every week. The publication in 2013 of the results of the joint UK-Ireland economic study – the genesis of which is to be found in the March 2012 joint statement of the Taoiseach and British Prime Minister – set out very clearly the nature and depth of that economic relationship. By way of example, the UK is the destination for 16% of Irish industrial exports and is also the largest recipient of service exports with an 18.5% share. Nearly 200,000 Irish jobs – representing 10% of total Irish employment –depend on that close economic relationship, which in itself is partly dependent on the fact that our two economies operate under the common umbrella of the EU’s single market. No matter what the sector – be it agriculture, pharmaceuticals or financial services – Ireland benefits from working with the UK under the EU’s common economic framework. We therefore cannot afford, quite frankly, the potential deep uncertainty that would inevitably result from a fundamental change in the EU-UK relationship, let alone the concrete difficulties which could arise.
The second is the strength of the wider British-Irish relationship. Our shared membership of the EU has played a vital – if often underestimated – role in bringing our two countries closer together. Working together, side by side, within the EU apparatus helps to forge bonds and cement ties between our political systems and administrations. That relationship could not but suffer if we were no longer part of the same European club.
The third is Northern Ireland, where the EU has been a genuine force for good – something which is often overlooked. It has helped to foster peace and reconciliation and provided a framework for cooperation, including between North and South, and between unionists and nationalists. And the EU, as a wider union of which we are all members, has silently but seamlessly buttressed the peace process, something which should not be forgotten.
The fourth is the fact that the UK is an important friend and ally within the EU – in many ways our most important friend and ally. There is no doubt about that. Ireland and the UK – on account of our shared history, similar economic model and common law legal systems – think similarly when it comes to a range of policy areas, such as trade, the digital single market, better regulation, and cooperation on police and justice matters. We are therefore frequently allies when it comes to hammering out agreements at the Brussels negotiating tables and we often rely on each other’s support, along with that of other partners with similar interests. A British exit from the EU would therefore be a serious blow to the protection and promotion of Ireland’s interests in Europe, and thus to our strategic position within the EU.
It is no wonder, therefore, that we feel so strongly about the merits of British membership. The stakes are so high that we need to take a proactive, determined and consistent public approach on this. And that is exactly what the Government has done.
Minister Flanagan outlined our concerns and why the debate matters so much to Ireland in a major speech to the European Council on Foreign Relations in London last November. The Taoiseach has reinforced these points on several occasions, most recently to Irish Ambassadors in Dublin Castle. And other Ministers have outlined our views too, including last Friday when Minister Fitzgerald spoke about the importance of the EU for our relations with the UK at an event organised by the British Irish Chamber of Commerce. And we know – despite the often cacophonous exchanges that characterise discussions on this question across Europe – that our messages are reaching our European partners.
But our diplomatic campaign on this extends to far more than set piece speeches. As virtually ever Minister will attest, the EU-UK relationship figures prominently and regularly in bilateral discussions with international counterparts, whether EU or non-EU. While we are never slow to raise it ourselves, because of our close strategic relationship with the UK, others often look to us as well for insights on the debate in Britain.
The most important partner however is the UK itself. While ultimately the nature of its relationship with the EU is for the UK to decide, we try to ensure that they are fully aware of, and sensitive to, the concerns of their nearest neighbour. To that end, we have already had a number of productive discussions, both at political and senior official level. Most notably, Minister Flanagan had a substantive exchange in December in Dublin with British Foreign Secretary Philip Hammond, where they addressed the intricacies of the debate and the Irish dimension to it. I myself have discussed the matter with my British counterpart, David Lidington, as well as the British Ambassador to Ireland, Dominick Chilcott.
Of course, discussions will only get us so far. That is why we have been examining what further steps we can take to help the UK to remain firmly within the Union.
A starting point, as Minister Flanagan highlighted last week in the Dáil, is continuing to work closely with our British partners – as well as other similarly-minded EU States – on those policy issues where we share the same interests. That’s because the main British political parties have all made it clear that the achievement of common EU economic aims is a key goal and will help to strengthen the case for the UK’s continued membership. For Ireland, this means that we should seek progress on things like the digital single market, the completion of trade negotiations with third countries and the move to a more streamlined approach to EU regulation. These are all goals that we want to achieve anyway: now they have the added bonus of helping to anchor the UK within the Union.
It is the case, of course, that the UK may also soon seek changes to the way in which the EU functions or operates. Much could depend, in this respect, on the outcome of their forthcoming general election in May. It’s fair to say that none of us here today would be surprised if a British agenda for change – in one guise or another – is presented soon after the election. And while I don’t want to engage in needless speculation on hypothetical scenarios, the likelihood is that the outcome of any subsequent negotiations between the UK and the EU on this agenda could be material in determining whether our British friends remain in the Union.
Ireland, for its part, will take a pragmatic approach when it comes to considering any such proposals. We are always open – as we should be – to effecting sensible changes to the EU that could improve the way it works and better equip it to meet the needs of 500 million Europeans. That is only normal – we have a shared collective interest in getting the EU to function as efficiently and effectively as possible.
We also recognise, just as the European Council has done, that the UK has some legitimate concerns that should not be ignored. Ireland will be naturally sympathetic and supportive when it comes to addressing those, especially because – as I have said – the UK is our closest friend and ally in the Union.
This does not mean that we should write blank cheques – far from it. True friendship requires both parties to be fully honest with one another. So if and when we believe a UK proposal would be unrealistic or damaging, either to our own national interests or to the broader functioning of the EU, we will be direct and forthright in saying so.
For example, the Government has already made it clear that it considers freedom of movement to be a cornerstone of the European Union. We therefore could not, and should not, support anything that would undermine or weaken it. That’s not to say that we would reject out-of-hand any reforms – British or otherwise – to this whatsoever. We should always be prepared to consider proposals, once formally presented, on their merits – just so long as this fundamental principle is properly protected and respected.
I can assure the Committee that all the areas I have outlined are the focus of ongoing reflection and analysis within the Government. Government Departments are examining the matter on an ongoing basis and our Embassy in London is also heavily engaged. So there is concerted and significant activity underway to ensure we best understand the issues at stake.
Ultimately, the question of the UK’s future in the European Union can only be resolved by the British people and their government. I am fully respectful of that democratic reality, as I am sure all of you are. There is no question though of us avoiding the debate – we have too much at stake for that –and we will accordingly continue to contribute to it as constructively and strategically as possible.
Chairman, Members of the Committee
Let me conclude by saying it has been a pleasure to speak today on this important subject. I hope I have been able to add some value to the many distinguished speakers who have come before me. I also think that it is essential that this committee and the Government continue to exchange views and ideas as the issue evolves.
I look forward now to answering any questions you may have. Thank you.