Terry Leyden (Fianna Fail)

I welcome the Minister of State. Deputy Roche, and compliment him on his work in the European Union. He is one of the most experienced senior Ministers in the European Union. I have seen him attending many key meetings.

I am pleased to have an opportunity to discuss the recent European Council meeting. Such meetings are incredibly important both for our country and the future well-being of the European Union, which has been consistently positive for Ireland. Last week in the Dáil, the Taoiseach provided us with a detailed account of what happened at the last Council meeting. There has been some discussion in Ireland following this meeting regarding certain possible new procedures that are being discussed at EU Council level. In particular, people are rightly interested in how Ireland, as a proud member of the EU, can work with our colleagues to ensure the fiscal and macroeconomic mistakes of the past can never recur. It is not a question of attributing blame, but the fact that we are in the eurozone and that interest rates were so low certainly fuelled the building boom here. There is no doubt about that. It has been extraordinarily useful for our exports, but it was abused by many during that period, which brought about the current difficult situation.

A task force headed up by President Van Rompuy, and including my colleague the Minister for Finance, Deputy Brian Lenihan, was asked to examine options to strengthen the Union's framework for economic governance. This task force has completed its deliberations and forwarded its report at the end of October. The main outcomes of this task force were the need to strengthen fiscal discipline in the Union, introducing new macroeconomic surveillance arrangements and setting the principles for a robust crisis management framework. The package of measures proposed by the task force includes a number of key elements. The report proposes a strengthened Stability and Growth Pact, introducing greater financial discipline with an enhanced focus on public debt as well as deficits.

The proposal to reprimand countries by removing voting rights would be very much against the principles of the EU. I do not think it could be countenanced within any of the EU treaties passed by member states.

I am glad the task force has proposed that the Stability and Growth Pact be applied in a better and more consistent way. For too long, larger economies in Europe were able to bypass the SGP rules and procedures, while countries such as Ireland were forced to stick rigidly to the rules and sanctions.

Earlier this year, the European Union and the IMF had to step in to help Greece. An emergency package of measures was agreed over a very short period. We played a role in this regard. It is wise and prudent for the EU to examine this issue in greater detail and to develop a credible, permanent crisis resolution framework for the eurozone. This is essential if the euro is to survive and meet the challenges of the next decade.

As with all changes of this nature, there is concern about the transfer of competencies from the Oireachtas to the European Union. With this in mind, I was heartened to hear the Taoiseach state that he does not envisage any transfer of competencies as part of this new framework and that the required changes will be brought about through the simplified revision procedures. These are exactly the situations that the Lisbon treaty was designed to deal with.

It would be unwise to reopen the debate in light of the new Tory-Liberal Democrat Government in the UK. They may decide that there should be a referendum on any further treaties. The Minister of State may provide the House with his views, having met with his opposite numbers in Britain. This may be an opportunity to open debate in Britain, where there are quite a number of eurosceptics among the Conservatives.

The Minister of State recently attended meetings of the Council of Foreign Ministers and the General Affairs Council. Those meetings dealt with international issues and I know the priority was the fiscal situation, and rightly so. The latter subject concentrated the minds of the Taoiseach and his Ministers.

We should, however, continue to take a deep interest in international affairs. I was concerned, as indeed the world is, about the Israeli Government's decision to approve the construction of 1,200 settlements in east Jerusalem. These will be for Israeli settlers and the construction plans are totally contrary to international law and international agreements. Those plans will not allow the peace talks to proceed, which is a serious development. It has the capacity to destroy the fragile Middle East peace process. The European Union must continue to address this. We are providing enormous resources to the emerging Palestinian state. Ireland has played a proud role in this regard. The late Brian Lenihan senior was the first Foreign Minister in Europe to recognise the Palestinian people's right to self determination. We have a proud record in that regard and our voice must be heard constantly on this matter.

Turkish membership of the EU requires special consideration, particularly in light of the division of Cyprus and the occupation of northern Cyprus by the Turkish military. The division in that region is of deep concern in Cyprus. It is difficult to believe that Famagusta in Cyprus is a ghost city. No efforts have been made at reconciliation in this regard. As a result of the problems we are facing, perhaps these issues are not being given the priority they deserve.

The Minister for Foreign Affairs and the Minister of State have briefed us on the normalisation of relations with Cuba. This is welcome. The removal of sanctions was welcomed by the Joint Committee on European Affairs. I refer to the improvements made under President Raúl Castro who is a more accommodating leader. A European will have influence with the United States of America to have the sanctions reduced.

The Doha Round of the world trade talks seems to be gone from the agenda. Liberalisation of trade is in the interests of Ireland, particularly in respect of intellectual property rights and other exports. This matter should be given priority.

We are going through a difficult period and there is a case to be made for adopting a united approach in the budget on 7 December. I welcome the attendance of Commissioner Rehn and others who have taken tremendous interest in the affairs of the country. They have had useful discussions with the Government and the leaders and members of the Opposition parties. The approach adopted is very refreshing. What happens in regard to elections is another day's work, but in the national interest we must take a united approach, as a budget must be approved on 7 December. As a Deputy and Minister of State in the 1980s, I recall the positive role played by the Opposition at that time. It was unfortunate that an election was called following a Private Members' motion, which should not have happened. Mr. Alan Dukes had given a commitment on supporting the position of the Government, which I had commended. I remind people of the decision he made in the national interest. The main Opposition party will rise to the occasion and postpone elections until we can stabilise the economy. We can have elections in due course. We should show Ireland can bring forward a budget for 2011.

I thank the Minister of State for attending the Chamber. This is the first time I can recall a discussion on the European Council. This is welcome. I also welcome the fact that the Minister for Foreign Affairs and the Minister of State briefed the Joint Committee on European Affairs before attending the Council meeting. This is a new innovation and a useful exercise which is in keeping with the principle of the Lisbon treaty - the adoption of a more democratic approach. Long may this continue.