Speech Barroso - Ireland and Europe: geared up for growth

European Commission

[Check Against Delivery]

José Manuel Durão Barroso

President of the European Commission

Ireland and Europe: geared up for growth

University College Cork

Cork, 5 March 2014

Deputy Lord Mayor, Councillor Kelleher;

Tánaiste, my friend Eamon;

Dr Manning, Chancellor of National University of Ireland;

Dr Halpin, Registrar of National University of Ireland;

Dr Murphy, President of University College Cork;

Allow me also to recognize the presence among us of my compatriot Professor Maria Elena Nazaré, President of European universities association;

And allow me also to recognize the presence among us of your compatriot Catherine Day, Secretary general of European Commission that comes with me today to Cork.

Distinguished guests,

Ladies and gentlemen,

Let me start by thanking you all. I am deeply grateful to be awarded this honorary degree from such a prestigious and dynamic university. Dr Murphy, thank you very much for your kind words. I was really impressed by the investigations you have made. I know you are a professor of medicine, but listening to you, I think you have the qualities of a historian of political science. I would even say a lawyer. This shows that this university is very committed to interdisciplinary studies. But in fact, I was very moved by some of the points you made. You even discovered some sources in academic papers about my political biography. Afterwards, I would like to have those quotes because I did not know them. The best thing I can say to you, after listening to such kind remarks, is that if my mother could be with us today, she would be very, very happy. Thank you very much for your kind words.

Some time ago, I was informed about the honour that you decided to give me. And I am glad tonight to be able to keep my promise and come back to University College Cork.

And speaking of Cork, I am delighted to be back in the “People’s Republic”! I am told by some, that this is the real capital of Ireland. I know that the city has had more than its fair share of successful sportspeople, from Roy Keane - I remember well Roy Keane and I am told that some consider Dennis Irwin as even a comparable player - and also Sonia O’Sullivan and, of course, former Taoiseach, Jack Lynch.

And I've heard of the luck of the Irish. Personally, I still believe that if you want the right results - in sport or in anything else in life - nothing replaces hard work and keeping your eye firmly on the goal. But you'll be pleased to hear that just to make sure this evening goes smoothly, I was careful not to cross the quad. I have not even set foot on the grass!

When I was last here, in April 2008, it was for a debate on "Why young people should be interested in the European Union".

Since then, so many things happened. And today, I would like to share with you some reflections: on the sweeping changes we are going through across Europe, and on the important role that knowledge, education and innovation must play in our future economy; on what the future holds for Ireland as a country which has turned the corner on the crisis and can play a key role in the wider European recovery; and on why it matters today, as never before, that people of all ages make their voice heard on how they want Europe to evolve in the future.

Ladies and gentlemen,

The European Union is fundamentally about providing good jobs, higher living standards, and a better quality of life for all Europeans - for today and for the future. It is also about upholding European values in the world.

Today, we are emerging from the worst financial, economic and social crisis since the start of European integration. And that has clearly put our European model to the test. Many people even predicted that the euro area would break up. But we have proven them wrong. We stuck together and supported each other.

Europe chose the right path - responding to the crisis by stepping up the structural reforms needed to get on in today's modern, global, digital, competitive world.

And then, when you see what is happening in Ukraine at the moment, you realise the powerful attraction of the European model. While we are very self-critical - and we need to be - millions outside our borders want what we take for granted, in terms of standards of living, freedom of speech, freedom to protest, the rule of law, free and fair elections.

And speaking about Ukraine, let me tell you that I am happy that just today European Commission was able to approve a financial package of at least 11 billion euros for that country. I hope that, tomorrow, there will be a strong and united response of all the Heads of State and Government of the European Union to the problems of Ukraine. We will demonstrate our solidarity to the Prime Minister of Ukraine, who will be in the meeting with us tomorrow in Brussels.

Ladies and gentlemen,

Europe has been through testing times, but I believe the fundamentals are right and we know what we have to do. We have to correct the imbalances of the past and lay sound foundations for healthy and sustainable economic growth. Our aim is a job-rich future for young people here at this university and all around Europe.

We have learned painful lessons from the crisis. We learned that growth fuelled by debt, public debt or private debt, is artificial and unsustainable; that latent internal competitive imbalances make the European Union - and the euro area in particular - vulnerable to deep economic shocks. And we saw that a common currency has to be backed up by strong coordination of economic and budgetary policies if it is to survive.

So we have worked for a safer, sounder financial sector that should better serve the real economy's needs in a way that is both responsible and fair. We are delivering on the promise that the taxpayer will not be called upon in the future to bail out banks that get into difficulty.

Now, for countries in the euro, we have effective tools to act against budgetary irresponsibility, to target macro-economic risks, to push for profound structural reforms - with the threat of strict sanctions if countries fail to follow sound policies and risk creating problems for their neighbours.

And we have stuck together. It was thanks to European solidarity that we could help the most vulnerable countries inside and outside the euro zone.

All these decisions would simply have been unimaginable five years ago - and, Ireland, through its successful Council Presidency last year, very ably steered by Enda Kenny and Eamon Gilmore, has played a leading role in delivering many of them.

Today, our efforts, based on a renewed sense of shared solidarity and responsibility, are starting to pay off. The latest Commission economic forecast points to a strengthening of economic growth across Europe as the recovery gains ground. And no need to say that Ireland is clearly a case in point.

2013 was a good year for Ireland: First of all, a great Presidency of the Council, which was universally admired for its professionalism and effectiveness. And then, a successful exit from the economic assistance programme.

Economic growth has returned. In 2011 to 2013, Ireland grew faster than the euro area as a whole. We predict that Ireland’s GDP will increase by 1.8% in 2014 and by 2.9% in 2015. And we have been lately made revisions upwards of our former predictions. There has been a significant decline in unemployment; although 12% is still too high, there has been a sharp fall from the peak of 15% in 2012. Private households have saved more and are less indebted, and house prices have started to recover.

I know very well it has not been easy. Let me tell you that I really admire and respect the courage and resilience of the Irish people. I know that families have made big sacrifices. But Ireland has shown it can be done - if there is a determined effort across all parts of society and politics. And you had precious solidarity and financial support from the European Union and its Member States, always with very committed institutions advocating the case for Ireland.

Because, whilst some like to portray Europe as being obsessed with austerity, in fact budgetary responsibility has always been accompanied by solidarity. I would like the word solidarity to be the word that spontaneously comes when people speak about the European Union. Over the past seven years, Ireland has received nearly 14 billion euros in European Union direct budget support - for agriculture, but also for social and infrastructure investment, as well as research. Given Ireland's legendary ability to secure good outcomes from European funding - in fact Ireland is almost always the first among the Member States in term of effectiveness of European structural funds absorption - I am sure that Ireland will continue to perform strongly in drawing down funds under the new programming period that has just started.

And since 1994, the European Union has contributed 1.3 billion euros to supporting ongoing efforts to build lasting peace and reconciliation in Northern Ireland and the border regions of Ireland. The Task Force I set up in 2007 has been successful in helping the region to engage more fully with the European Union and to reap the benefits of European policies, of European funding and networking. Because the European Union is not tied together by treaties alone, but by solidarity and day-to-day cooperation across borders, and between communities and regions. That is peace at work, and I remain indeed very proud that in 2012, the European Union was awarded the Nobel Peace Prize. It was probably one of the most emotional moments of my life, when representing the European Union together with my colleagues, I received in Oslo on behalf, of course, of the Union, that most distinguished prize.

As a Portuguese citizen, I have seen first-hand in my own country the difficulty of working through a crisis and the personal and social hardship that comes with it. But I am confident that both your country and mine will emerge much stronger from these key reforms, more competitive, more prepared to face the very tough global competition.

Ireland is now well placed to pick up on this recovery. Over the past forty years, membership of the European Union has opened markets for Irish business and created jobs for Irish citizens. Ireland has been influential in shaping European policies - from the single market, to trade, from enlargement to employment.

And today, Ireland's experience and expertise can directly benefit other European countries who are still working through their programmes. They are interested in the way you helped bring about an effective turnaround. The OECD is increasingly citing best practice examples drawn from the Irish economy including, by the way, also in the field of science, education and innovation.

Ireland has returned to "normal" in EU terms and I really expect it to engage and to use its influence in Europe to help us shape the right policies for the post-crisis era.

Ladies and gentlemen,

I've talked about the progress that has been made, here in Ireland and right across Europe. We are on the right track but we still have some way to go. Indeed, we cannot say that we are out of the crisis when we still have such high levels of unemployment. It is crucial that we stay the course and keep up the pace of structural reform to ensure our future competitiveness, sustainable jobs, and the well-being of our societies.

There is no room for complacency, when so many people, especially young people, have been looking far too long for a job and are struggling to get better living conditions.

Tackling unemployment is a matter of urgency for the sake of our future, of our prosperity, of our social cohesion.

It is, of course, the Member States who are in the front line here. Just today, the Commission has published an in-depth review which identifies the need for labour market reforms and more progress with further education, training and reskilling as priority areas for Ireland.

But Europe can, and is, helping. The European Commission has taken action to help ensure that all young people under 25 are offered a job, apprenticeship, traineeship or continued education within four months of leaving formal education or becoming unemployed. This Youth Guarantee was adopted by all Member States during the Irish Presidency, in record time.

Youth unemployment currently accounts for 24% of all unemployment in Ireland. So I am pleased the Irish government has recently issued a detailed plan to implement the Youth Guarantee here, and I'll follow progress closely. And to support this, we have made 6 billion euros of European money available to target, specifically, the regions most affected by youth unemployment in Europe, including in Ireland.

Then, looking at the mid- to long-term, we have to get ready now for tomorrow's jobs and new sources of growth. We live in a knowledge-based global economy - which is why universities like UCC are so important. All the three elements of the knowledge triangle - education, research and innovation - must be combined if Europe is to maintain a competitive edge.

We want the next big internet platform, e-service or mobile device to come from Europe. This is why education, research and innovation are at the very heart of the Europe 2020 strategy, our European blueprint to gear up Europe's economy for sustainable growth and jobs.

We are working to create an environment of academic excellence and foster the necessary links between the world of education and the world of work. We have to get better at matching the supply of skills with labour market needs. We have to step up our investment in the skills of the future.

We know that many of the jobs that will be generated over the next two decades do not exist today. The digital economy offers huge potential. I'm reminded that the first professor of mathematics here - at what was then Queen's College Cork - was George Boole, who laid the foundations for the digital age. But although the number of digital jobs is growing by 3% each year, the supply of qualified workers is shrinking. At a time of such high unemployment, how can it be right that Europe faces a gap of 900,000 unfilled ICT jobs in the coming years?

I am pleased that many companies have made pledges to provide new opportunities for digital skills and training within the Grand Coalition for Digital Jobs, which I launched precisely during the Irish Presidency of the Council.

And looking a little closer to home, public institutions and private companies in and around Cork are on track to have received more than 77 million euros in European research funding since 2007. This money is supporting some 253 projects and many more jobs, including in local businesses. University College Cork alone is involved in 183 projects, bringing some 65 million euros to its laboratories and research facilities. And I congratulate you for that.

As part of this successful operation, the Tyndall National Institute for ICT research really stands out. It has secured 42 million euros in funding by taking part in more than 81 projects.

I am pleased that the EU will continue to support research and education in Cork. The new Western Gateway Building, which will shortly be opened, has benefitted from 25 million euros in European Union funding. And I know that those of you involved in research and innovation are now working hard on your proposals for funding under our new Horizon 2020 programme, one of the jewels of the crown in the new MFF, the Multiannual Financial Framework (and the European Commission had to fight hard to get the necessary consensus from all our Member States for this very important programme, Horizon 2020).

Ladies and gentlemen,

Over these last six years the European Union has been in the eye of the storm. We are emerging, I believe, stronger - better placed to manage interdependence and with economies that are gearing up to provide future growth and jobs. And I think we can say that we are emerging together, united. And I believe Europe will remain united, but also open and strong.

In this regard, I would like to make one thing clear: the European Commission has always been on the side of Ireland, one could even say, one of your best friends. During the European Union/IMF programme, I personally made the case to other European leaders for lower interest rates and longer maturities on Ireland's loans. I can tell you that sometimes, at least one of the phone calls took about one hour. It was also about Portugal, but I would have done it also just for Ireland.

And I have always said that the commitments euro area Member States made in June 2012 should be fully respected, not just in terms of the letter of the agreement, but also in terms of the spirit. This is a message I am happy to repeat here tonight. The European Commission will continue to stand by Ireland, now that you have exited successfully the programme.

And let me conclude on a crucial point: Europe is not something that happens despite the wishes of European people. No. Europe has to be built in partnership, with and for the Member States and European citizens. That is why I am so keen that there is a real debate on European issues from a European point of view with European citizens.

I've been constantly saying, including in many other places like this one, in some of the most prestigious universities of Europe, but also addressing other audiences, that Europe is not just Brussels or Strasbourg or Luxembourg. Europe is also Cork, Europe is also Ireland, and I think a point that we have to agree is to have this responsibility together, not speaking of the European Union as a kind of a foreign power. No. We are all members of the Union, we have all our responsibilities, including, of course, the politicians, the political leaders.

Sometimes they tend to recognise that - in other cases, this is not the case in Ireland - it is very common to say when things go right it's the merit of national politicians, when things go wrong, it is the problem of Brussels, the so-called nationalization of success and Europeanization of failure. This is a very important idea of responsibility. All of us, and I not only mean political leaders or policy makers, I mean citizens, civil society, the universities. And I can tell you that Ireland is a country that is clearly punching above its weight in the European Union.

So, my appeal to you, and to all our fellow citizens in European Union, is when there is a disagreement, please engage, never turn your backs on Europe. I think it is extremely important to engage in that debate.

In Dublin last year, I took part in a lively and engaging dialogue with people from around Ireland - the Tánaiste was there with me - the first in a series of debates taking place across Europe over the past year. And I hope that the discussion will intensify as we approach May's European Parliament elections.

We know from our European history that it is always important to hold on to our dreams and ideals. Nothing worth having is easy to get. And we know from the epigraph Yeats chose for his 1914 collection of poems that - and I quote - "in dreams begins responsibility".

As we are in a year of European elections, it is the moment for each of us to take our responsibility. Democracy is about active citizenship of people of all ages. You hold Europe's future in your hands. You have a key role to play in building a vibrant society, a vibrant Europe, a better Europe.

In the past, the Irish people have sometimes expressed specific concerns about one or other aspect of European integration. Your voice was heard. Changes were made.

Because the European Union certainly is not perfect. There are things that we can - and are - changing for the better. There are some things we should do more of, and other things in which Europe does not need to meddle.

So, whatever you think about Europe, speak up. Don't stay indifferent or silent. You can make a difference in Europe and contribute to driving change and building a brighter future.

So I would like to make, through you, to Europeans, an appeal to use your vote in the May European elections. Decide that you will influence your own destiny and not leave it to others to decide for you. This is your opportunity to get the Europe you want and deserve - so I hope you will not miss it! I think this is important for Ireland, and, I would say, it is important for us in the European Union.

I thank you for your attention and, of course, for the great honour you have given to me today.