Kenny welcomes EU approval of reform initiatives

TAOISEACH ENDA Kenny has welcomed European Union leaders’ praise of Ireland’s reform progress, but said he would not, in return…

TAOISEACH ENDA Kenny has welcomed European Union leaders’ praise of Ireland’s reform progress, but said he would not, in return, back crisis-fighting measures requiring treaty change.

He was speaking after an EU “eastern neighbourhood” summit in Warsaw overshadowed by tensions with Ukraine and Belarus.

“The leaders whom I met here are very complimentary of reform progress that Ireland is making, in particular some of the bigger countries contributing to the financial bailout are happy to hear their monies are being well-spent,” said Mr Kenny.

Asked if Ireland would follow recent calls from Brussels and Berlin to back treaty change allowing closer fiscal union, Mr Kenny replied in the negative.

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“I’ve made this known to other leaders. It’s very important that having put the Lisbon [Treaty] in place that the governments of the EU work that treaty in the way that it was intended,” he said. “I think we have to get on with what we have now, and focus on the potential of the Lisbon treaty to put Europe where we believe it should be, right up there at the very top.”

Mr Kenny spoke at the summit to leaders including German chancellor Angela Merkel. She agrees that the Lisbon Treaty should be exhausted but that it is time to “drop the taboo” of seeking further treaty change.

According to Mr Kenny, Greek prime minister George Papandreou said Athens was “confident it can keep its end of this particular bargain”.

He added: “It’s very difficult on any country in a bailout situation; we know that from our own experience.”

At a meeting with Finnish prime minister Jyrki Katainen, Mr Kenny said he would back Finnish proposals for a new EU “competitive index” for states and business.

“What he wants to do is look at the question of labour costs and what can be done to increase competitiveness and drive down costs,” he said. “We can see the impact of increased competitiveness, of our firms being able to do more business.”

Mr Kenny said this index should not simply compare labour unit costs across Europe but also transport and energy costs. He said he was not proposing a joint initiative, but said the Republic would back Finish efforts to “feed into the European structures”.

In talks with Polish prime minister Donald Tusk, he said the Republic was anxious for progress on payment for Irish construction companies working on large infrastructure companies in Poland.

“I did raise the point about undue bureaucracy regarding drawing down of payments for work completed,” he said. “I offered to assist if we can through the commission . . . for work carried out under structural and cohesion funds, that payments should be made.”

He said the “short, effective visit” to Warsaw was useful for talks with Moldova, Georgia, Ukraine and other countries with which Ireland will engage during its OSCE presidency next year.

Mr Kenny said he was hopeful that the Republic’s own peace process experience would help it bring fresh momentum to the ongoing dispute between Moldova and the rebel Transnistria region.

TAOISEACH ENDA Kenny has welcomed European Union leaders’ praise of Ireland’s reform progress, but said he would not, in return, back crisis-fighting measures requiring treaty change.

He was speaking after an EU “eastern neighbourhood” summit in Warsaw overshadowed by tensions with Ukraine and Belarus.

“The leaders whom I met here are very complimentary of reform progress that Ireland is making, in particular some of the bigger countries contributing to the financial bailout are happy to hear their monies are being well-spent,” said Mr Kenny.

Asked if Ireland would follow recent calls from Brussels and Berlin to back treaty change allowing closer fiscal union, Mr Kenny replied in the negative.

“I’ve made this known to other leaders. It’s very important that having put the Lisbon [Treaty] in place that the governments of the EU work that treaty in the way that it was intended,” he said. “I think we have to get on with what we have now, and focus on the potential of the Lisbon Treaty to put Europe where we believe it should be, right up there at the very top.”

Mr Kenny spoke at the summit to leaders including German chancellor Angela Merkel. She agrees that the Lisbon Treaty should be exhausted but that it is time to “drop the taboo” of seeking further treaty change.

According to Mr Kenny, Greek prime minister George Papandreou said Athens was “confident it can keep its end of this particular bargain”.

He added: “It’s very difficult on any country in a bailout situation; we know that from our own experience.”

At a meeting with Finnish prime minister Jyrki Katainen, Mr Kenny said he would back Finnish proposals for a new EU “competitive index” for states and business.

“What he wants to do is look at the question of labour costs and what can be done to increase competitiveness and drive down costs,” he said.

“We can see the impact of increased competitiveness, of our firms being able to do more business.”

Mr Kenny said this index should not simply compare labour unit costs across Europe but also transport and energy costs.

He was not proposing a joint initiative, but that the Republic would back Finish efforts to “feed into the European structures”.

In talks with Polish prime minister Donald Tusk, Mr Kenny said the Republic was anxious for progress on payment for Irish construction companies working on large infrastructure companies in Poland.

“I did raise the point about undue bureaucracy regarding drawing down of payments for work completed,” he said. “I offered to assist if we can through the commission . . . for work carried out under structural and cohesion funds, that payments should be made.”

He said the “short, effective visit” to Warsaw was useful for talks with Moldova, Georgia, Ukraine and other countries that Ireland will engage during its OSCE presidency next year.

Mr Kenny said he was hopeful that the Republic’s own peace process experience would help it bring fresh momentum to the ongoing dispute between Moldova and the rebel Transnistria region.

CALL FOR STABILITY UNION: GROUP WOULD INTERVENE IN STATE BUDGETS

GERMAN FOREIGN minister Guido Westerwelle has called for a “European Stability Union” with powers to intervene directly in member state budgets and, if necessary, impose “automatic” sanctions.

Mr Westerwelle said states in receipt of EU bailouts should have to accept “binding interventions” by Brussels authorities in their budgetary policy.

This should be made possible by treaty change, he said.

"Despite all the demands of the crisis we cannot limit the perspective to crisis management," he writes in today's Süddeutsche Zeitungnewspaper.

“Under the pressure of the crisis, many things are possible that a year ago were considered unthinkable.” He presented a four-point plan for greater economic co-ordination, a “financial constitution” for Europe, a competitiveness strategy and tighter controls of indebted nations.