Statement of the Taoiseach, Following Special European Council meeting, Dáil Éireann

Issued by the Government Press Office

Check Against Delivery

A Cheann Comhairle,

I attended the special meeting of the European Council held in Brussels on Thursday 20 and Friday 21 February, the first meeting of EU leaders this year.

The meeting was convened by President of the European Council, Charles Michel, following our request at the December European Council for him to take forward negotiations on the post-2020 Multiannual Financial Framework.

When we last met in December the MFF was discussed but as part of a longer agenda. This included Climate Action - and we endorsed the objective of a climate-neutral EU by 2050 – and, of course, Brexit

Following our request, President Michel presented a revised budgetary proposal or ‘negotiating box’ on 14 February.

This proposal was informed by a series of bilateral meetings he held with leaders in the preceding weeks. I discussed Irish interests and concerns with him on 12 February.

It also built on extensive consultations at official level.

As the House will be aware, the Commission published its proposal for the next MFF in May 2018. This proposed an overall level of 1.11% EU27 GNI. Sectoral proposals covering 37 EU funding programmes were also presented by the Commission.

Negotiations intensified in the latter half of last year under the Finnish Presidency.

These discussions revealed marked divisions between Member States. Some considered the level of spending proposed by the Commission as too high – including a group strongly of the view that spending should be kept to no more than 1.0% GNI – and those who believed that continuing to support existing successful programmes, while also equipping ourselves to meet new challenges, required a higher ceiling.

The European Parliament – which must give its consent to the new budget – shares the view that a larger budget is required.

For our part, the Government has always stated our openness to increased contributions, once existing policies such as CAP are properly resourced and added European value is demonstrated.

The Finnish Presidency proposal ahead of the December Council set out a ceiling of 1.07% GNI.

In his revised Negotiating Box, President Michel proposed 1.074% EU GNI, or some €1,095 billion.

As deputies will appreciate, these negotiations are broad and cover many areas of EU policy. Each Member State has its own particular areas of interest and priorities.

As with all budget discussion – especially those involving 27 Member States – it takes time and effort to bring positions closer together, and to find a compromise that all can agree.

The Negotiating Box sets out proposed funding across seven major headings, and these include the Single Market, innovation and digital; cohesion and values; natural resources and environment, including CAP; and neighbourhood and the world.

Reflecting the importance of tackling climate change the budget aims to mainstream climate action and to achieve an overall target of at least 25% of expenditures supporting climate objectives.

A new Just Transition Fund is proposed to deal with the social and economic consequences of reaching climate neutrality by 2050. This fund is open to all Member States and I welcome the inclusion of the Midlands and other peat areas within its scope.

President Michel also aims to increase the capital available to the European Investment Bank to mobilise up to €500 billion of additional investment to tackle issues such as climate change.

There is also a strong PEACE PLUS allocation which will deliver a significant and much needed cross border programme.

While the latest proposal shows an increase for CAP compared to the original Commission proposal, it does not go far enough, and I raised this point with President Michel when I met with him in Brussels.

In this meeting, I set out Ireland’s well-established position on the need to protect the CAP as an important, long-standing and well-functioning policy, and of vital assistance to our rural communities and farming families.

I also set out the many challenges facing our farming sector – including Brexit and pressures in the beef sector – and expressed my strong view that we cannot ask farmers to do more for climate, sustainability, and food security with substantially less funding.

I was unambiguous that this position has widespread support in Ireland.

For his part, President Michel has on many occasions expressed the view that as a result of the departure of the UK – a net contributor - from the EU there is a gap in funding that needs to be filled. As a result, Member States can expect to be contributing more while receiving less. Reaching agreement on such a proposition was always going to be a very difficult task and so it proved.

Those who pay most into the budget have concerns about the size of the budget, with others sharing our concerns about possible funding cuts to priority programmes.

Due to strong economic growth our annual contributions have grown significantly in recent years, and the Department of Finance estimates that our gross annual contribution will increase further in the years ahead.

Our economic success cannot be decoupled from our membership of the EU. As a large recipient of EU funding over many years we got a ‘leg up’ when we needed it most.

As a small trading nation on the periphery of Europe, our economy has also benefited greatly as a full and committed member of the Single Market – the benefits of which dwarfs the amounts being discussed in the negotiations.

It is significant that last week’s discussion of a new budget comes at a time of change and reflection within the EU.

In addition to the departure of the UK, in May last year a new European Parliament was elected, and a new European Commission under the Presidency of Ursula von der Leyen took office in December.

Work is underway to prepare for a new Conference on the Future of Europe.

Irish people are strongly supportive of our membership of the European Union. We want a Union built on values, and this perspective is well reflected in the Strategic Agenda agreed by the European Council last June.

This focuses on protecting citizens and freedoms; developing a strong and vibrant economic base; building a climate-neutral, green, fair and social Europe; and promoting European interests and values on the global stage.

Ireland’s input was informed by a series of Citizen’s Dialogues on the Future of Europe led by Minister McEntee. These were important conversations held right across the country about what Europe means to our citizens.

In recent times, we in Ireland have seen first-hand the value of European unity. The EU is a union of nations, as well as of peoples, one in which small states are protected and respected.

While we should not neglect the costs of EU membership we must also reflect on the benefits and advantages it confers on Members.

Investments made through the MFF are vital for delivering European added value, and for furthering the European ideals of solidarity, partnership and cooperation.

It is important that the MFF is appropriately funded to meet the challenges faced by the European Union.

In addition to discussing the MFF, last week’s European Council also agreed a declaration on the situation in Idlib, in light of the renewed military offensive by the Syrian regime and its backers.

We called on all actors to cease hostilities and to fully respect their obligations under international humanitarian law and international human rights law and to allow unimpeded and direct humanitarian access to all those in need.

The Tánaiste will provide further detail on developments in Syria in his statement.

While agreement on the MFF was not possible on this occasion, I expect the European Council to return to the matter in the weeks and months ahead.

The next regular meeting will take place later this month, on 26-27 March. The agenda for the March European Council typically includes a strong economic element and the provisional agenda provides for a discussion on strengthening our economic base. It is also proposed to discuss digital issues.

Leaders will also discuss enlargement, having agreed in October to revert to this subject before the EU-Western Balkans summit, which will take place in Zagreb in May. As ever, leaders will take the opportunity to discuss external relations and other topical issues. I anticipate we will have the opportunity for a pre-European Council debate here in the House and further detail can be provided on that occasion.

When it comes to European matters there has always been a remarkable consensus in the Oireachtas and support for the Government of the day. While a new Government is being formed - however long that takes - the current Government will continue to represent Irish interests in Europe, as well as make the case for what we believe is better for Europe as a whole.

I welcome the views of other leaders today and in the days and weeks ahead and they will inform our approach in these negotiations. Our strength during the first phase of Brexit was the unity we enjoyed with fellow Member States, and the unity we saw at home. I believe the same approach will be our strength as we begin on the second phase of Brexit, and it will ensure the Irish position is strongly articulated during these negotiations over the MFF.