And what freedom we gained; the freedom to move away from almost total reliance on the United Kingdom for our economic well being; the freedom to develop our own unique sovereignty, by breaking the ancient reliance on one nation, by forging new relations with many others – new relations on our terms and as equal partners. What a sense of self confidence and self belief Ireland has gained during those 36 years since 1973.

Over the years the EU, and in particular the common market, has provided a framework through which Irish business has thrived. Ireland has gained confidence and independence by accessing extensive consumer markets. The EU opened up huge opportunities for Ireland’s economy to thrive. New markets opened up to us, which have seen the Irish economy benefit beyond all expectation.

Ireland has also, very significantly, been a major beneficiary of European funds since our accession to the EEC in 1973. Receipts from the EU budget during that period amount to a staggering €60 billion in total, or 3.3% of our GDP. We have received billions of euros in structural funds, which have built roads and railways all over the country, stimulating further growth and improving Ireland’s currency as an international hub. It is estimated that over a million jobs have been created in Ireland since 1973. While there have been frustrations, dealing with the bureaucracy and strict requirements of the EU system, overall it has benefited our country immensely.

Our membership of the EU has been a resounding success story. Without the EU, Ireland’s Celtic Tiger could not have happened. And significantly, without the benefits of our membership of the European Union, we will have little chance of emerging from our current economic distress.

Of course the European project has not been perfect. I would be the first to concede that there have been problems, glitches and disappointments along the way. But let’s be realistic. This is an unprecedented project. Never before have so many independent nation states pooled their sovereignty and worked together in so many fields – political, economic and social or at so many levels – supranational, intergovernmental, national, regional and local. This is not comparable to the full blown federation of the United States of America, nor with the loose co-operation of the African Union. The European model is unique and in many ways evolving all of the time. In a way it is an uncharted process, unlike any that has gone before. It requires of us, the people of Ireland and the people of Europe, a generosity of spirit, in addition to a political understanding, to recognise that sharing sovereignty is an act of benevolence, but also a very strategic act of self-interest.

In the year 2009, we find ourselves at a watershed in the evolution of Europe. The European Union must achieve a number of things. It must respond to the world economic crisis, in a decisive and pragmatic fashion. It must find new ways of winning the hearts and minds of the European people, a challenge which has met with little success to date. It must also adapt to a changed global reality, where regional co-operation is the order of the day, and where the largest economy in the world must respond to the challenges posed by developing economies in other parts of the globe.

Ireland cannot afford to be a passive bystander in any of this. The world is changing and we must change with it.

To quote George Bernard Shaw: “The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.”

I sincerely hope that Ireland will see that its interest is in playing the role of the reasonable, rather than the unreasonable man.

Ireland’s interest will undoubtedly be served by continued engagement with the European Union, but I am calling for a different form of engagement to that which we have carved out in the past 36 years. Ireland has changed dramatically in that period. We joined the EC as something of a poor relation. Our average income was then 60% of the EU average. We have been so called “net beneficiaries” since we joined. In other words we have been taking constant handouts from our EU partners for 36 years. The time has now come for a seismic shift in Ireland’s attitude to the European Union. We need to understand that it is not simply about what we can take. It is time for a national reflection on just how we engage with Europe from this point on. It is clear to me that Europe is a project of the future. The question for Ireland is whether we wish to invest in our own future.

Ireland is on its knees economically, and it is through no fault of the European Union. In fact, since the real depth of our recession was understood last summer, the European hand-out machine has been in overdrive, with the ECB lending more per capita to the Irish than to any other member state, including all of the new central and eastern European members. A total of €39 billion to be precise has been loaned to Irish retail banks. Without the ECB, it is inconceivable that some of our key banking institutions would be standing today. Bailouts and handouts have been key to Ireland’s interest and engagement in the European project since we joined. But it is high time that we moved beyond this short-sighted approach. We need to see Europe as a spring-board for Ireland as a global player, as a tool to project Ireland into that all-important global economy.

The Irish need to become key players in shaping the European economy. We need to start looking at the potential that exists and play our part in shaping the Europe of the future, for the benefit of the Ireland of the future. Take the single market for example. Its potential is huge. Some people erroneously believe that the single market is something that happened back in Maastricht in 1992. That was merely the birth of the venture, which is largely incomplete. In fact the best is yet to come. Over the coming years there will be huge advances in the single market, in terms of growth and competitiveness. We in Ireland can either chose to play a role in shaping these advances, or we can sit on the fringes, sullen-faced, waiting for more and more handouts from our frustrated partners. I know which option I prefer. I want Ireland to be a constructive player, rather than a caustic spectator.

If the Treaty (which I promise not to mention) is passed in the coming months, an exciting opportunity presents itself for the European Union. Some crucial policy areas – energy security, climate change to name but two -, which have been nominally within the ambit of the European Union, will now have a firm legal base. This is essential for the development of these policies for the benefit of all citizens, in Europe and beyond. I believe that Ireland should embrace the challenge in these policy areas. We have an opportunity to develop thinking and become European leaders in these areas. Who better than a country internationally reputed as representing 40 shades of green to become the leading force in the all important green economy. By embracing such change, Ireland has an enormous opportunity to lead these new economic sectors in Europe and in the world. By working more closely with our European partners, by developing the single market in the green sector alone, by cooperating in new investment in R&D and new advances in green technologies, we could pioneer a whole new industry, creating badly needed jobs and opportunities for our young people. On our own we are an island, subject to the vagaries of the various economic storms that may hit. But as part of a regional bloc such as the European Union, our opportunities are immense. It is through active cooperation and partnership, rather than reluctant participation, that our greatest successes will be derived.

One of the criticisms of the European Union is that it has been slow to react to challenges which present on the world stage. This criticism has been particularly vocalised in relation to the economic crisis late last year. There is a deep irony in this. On the one hand, every member state is hankering for the days of yore, where they could behave as whimsically and irresponsibly as they liked, without a thought for the implications for other sovereign countries. On the other hand, they want the rules and institutional structures in place to respond rapidly to the many challenges that we face. It is time that we realise we cannot continue with the sort of institutional paralysis that exists in Europe. Member states will need to engage in greater levels of decision making at EU level, especially in the economic sphere, in order to prevent parochial national and sectional interests grinding the EU to a halt. In my view, Ireland should be the vanguard of this.

I think that now is the time for Ireland, emboldened by our recent economic experience, to start trying to shape the European policies and structures that will equip us for a new and inevitable phase of globalisation. First should be a radical reform of the so-called Lisbon strategy. This is the programme for jobs and innovation in the EU which was established ten years ago and reviewed in 2007. Despite the noble aspirations of this plan, and the massive funds and efforts exerted in trying to implement it, most European citizens have never even heard of it. If you ask 99.9% of Irish citizens whether they are aware of the Lisbon strategy, they are likely to stare blankly. They may well think that it’s a not very popular treaty which they will have to vote on this October! On the other hand, most Irish people have probably heard of the Obama proposals for economic stimulation pushed through Congress last spring. There is a fundamental problem with communication in the EU. One simple measure would be to cease naming strategies and Treaties on the basis of the city in which they are signed. While this may flatter the ego of the President or Prime Minster of the day, it does nothing to relate the objective of such a strategy or plan to the ordinary people of Europe.

So the first task should be to re-brand the Lisbon strategy as the European Jobs Plan or the European Economic Recovery Plan - something straight-forward and comprehensible. Secondly, the focus of such a plan needs to be two-fold. There should be an internal focus (as already exists) on structural reforms within the EU, aimed at adapting the EU to globalisation, but with an added emphasis on the knowledge economy, sustainable growth and in particular strengthened economic governance, to prevent the type of regulatory failures we have seen in recent years. Secondly, there should be a new external focus to such an economic plan, looking at policies such as trade and competition, environmental diplomacy, energy security and immigration, designed to shape globalisation. Such a two-pronged approach would be beneficial for two reasons. Firstly it would allow the EU to develop its capacity to reform structures internally in order to meet the current demands and the challenges of globalisation. Secondly, it would provide a new emphasis on shaping the global economy, thus enabling the EU to have a strengthened role in defining the global economy as it evolves. Ireland has the potential to play a vital role in promoting such an ambitious economic strategy at EU level. I believe we would enhance both our standing in Europe and our national self-interest by adopting such a constructive, persuasive role.

Ireland should also look at promoting some bold and pragmatic Europe-wide solutions to the Europe-wide recession. Our inability to coordinate fiscal policy at European level is both good and bad. One might say we get the best of both worlds. Obviously, in Ireland we are intent on retaining our autonomy in relation to taxation. This is a positive as it ensures competition between Member States and can act as an incentive for foreign direct investors to choose a small country such as ours. However, it can lead to delayed coordination and a failure for the EU to act in a concerted fashion at times of crisis. The institutional structures are simply not there. However, why not advocate greater co-ordination on measures that do not impinge on the national interest. Why not identify some ‘big bang’ measures, which could benefit all member states and would have the added advantage of resonating with all citizens of the European Union. One such measure could be the introduction of a voluntary coordinated cut in VAT rates of 1% across all 27 EU member states. This would be a coordinated budgetary stimulus which could have the temporary effect at least of increasing demand for goods and services across the EU. By virtue of its temporary nature, it would bring spending forward, given that there would be an expectation of a subsequent return to the original higher VAT rates. This would have positive stimulus effects across the entire European Union and would be a popular, tangible measure that the citizens of Europe might well relate to and approve of.

Ireland is on its knees. By the end of this year almost half a million people will be unemployed. Ireland not only needs Europe, but Europe is our lifeline. We cannot afford to continue to entertain the type of begrudging attitude that has crept into our engagement with Europe. We need to realise our future is in shaping and moulding the Europe of the future. It is apt that this is the 20th anniversary of the fall of the Berlin Wall. The collapse of the Berlin wall liberated millions of people, who had for so long yearned for the freedom and autonomy enjoyed by the people of the West. Now is not the time to reconstruct an iron curtain around this island of ours. We need the support, friendship and the cooperation of our European neighbours, now more than ever. This is the only way in which we will truly be free.


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Contact: Feargal Purcell 087 4157150