Pat the Cope Gallagher MEP addresses the European Afffairs Committee

Posted on 20/07/10 by Pat The Cope Gallagher

I am delighted to return to the Oireachtas following my election to the European Parliament in June 2009.

I am here today to discuss my role as Chairman of the European Parliament delegation for relations with Switzerland, Iceland and Norway and to the European Economic Area (EEA) Joint Parliamentary Committee.

Following the recent decision taken by EU leaders to proceed with EU accession talks with Iceland, I have further been appointed Chairman of the recently established EU - Iceland Joint Parliamentary Committee. This will comprise of nine members of the European Parliament and nine members of the Icelandic Parliament.

The European Free Trade Association (EFTA) was established in 1960 as an alternative to the European Economic Community, the predecessor of the European Union.

Today, EFTA is comprised of only four member countries, Switzerland, Iceland, Norway and Liechtenstein.

In 1994, three of the four EFTA countries joined the Single Market by signing the European Economic Area (EEA) Agreement. Switzerland declined to join the EEA following a referendum which saw the proposal defeated by a narrow margin of 50.3% to 49.7%.

At one stage, EFTA rivalled the EEC in terms of size and scope. However, this has changed drastically following the exit of Denmark and the UK in 1972 and subsequently Finland, Sweden and Austria in 1995.

The three EEA states are legally bound to implement into their domestic law, EU directives and regulations which govern the free movement of goods, people, services and capital. As a result of this obligation, Iceland, Norway and Liechtenstein have implemented over 80% of all EU legislation.

However, the significant economic benefits of the Single Market comes at a political disadvantage as the respective governments and Parliaments have minimal input or political influence over the formulation of these laws.

Iceland is the latest EFTA country to apply for EU membership.

Ireland has deep political, social and cultural links with Iceland. As a small country in the midst of an economic crisis, I believe that Iceland has much to gain from EU membership.

In July 2009, Iceland presented its application for EU membership to the European Commission. In February this year, the Commission issued a favourable opinion and urged the European Council to open accession talks. At the June European Council, the EU leaders provided the green light despite the Ice-save issue being unresolved.

Iceland is uniquely placed to quickly proceed with negotiations. She has already adopted a significant part of the Community acquis due to her membership of the EEA. She already fulfils the requirements of ten of the negotiating chapters and partly fulfils the requirements of eleven of the negotiating chapters. Therefore, this leaves only twelve chapters which are outside the scope of the EEA which must be fully negotiated.

Policy areas to be negotiated include competition, financial services, regional development, social affairs, agriculture, fisheries, transport, economic and monetary policy, issues related to the judiciary and foreign and defence policy.

I believe that aside from the political negotiations that will now commence, it is of equal importance that we further improve the political and civil society dialogue between the European Union and Iceland.

By tradition, accession negotiations are an open ended process with progress being dependent on the good faith of both sides. That is why for example, it is important that the Ice-save issue remains a bilateral affair.

I am hopeful that the forthcoming negotiations will be conducted in a spirit of good will and friendship.

In two referenda, the people of Norway rejected accession, first to the European Community in 1972 and then to the EU in 1994.

Today, Norway's relations with the EU are conducted mainly in the framework of the EEA. Norway also participates in a number of EU educational and research programmes including the EU Framework Programme for research and development.

Under the terms of the EEA agreement, Norway, Iceland and Liechtenstein provide a financial contribution to alleviating economic and social disparities in Europe by means of the EEA Financial Mechanism.

The funds contributed are intended for use in projects in areas such as the environment, sustainable development and cultural heritage.

Norway is the main contributor. The EEA Financial Mechanism will be worth almost EUR 100 million for the period 2009 to 2014. Under a separate fund, Norway will provide over EUR 800 million for the period 2009 to 2014 so as to support research pilot projects in the area of climate change.

The main beneficiaries of the EEA Financial Mechanism and the Norwegian Financial Mechanism are the Member States who joined the EU in both 2004 and 2007.

The third member of the EEA is the Principality of Liechtenstein located between Switzerland and Austria.

With a population of just over 35,000, Liechtenstein is strongly integrated into the Swiss economy in addition to its participation in the EEA.

Liechtenstein has the highest Gross Domestic Product per person in the world. Its economy while diverse has a significant financial services sector.

Switzerland is located in the heart of Europe.

Whilst geographically located inside the EU, Switzerland is neither an EU Member State nor a member of the EEA.

The Swiss people have a high respect for the European project, which has provided peace, stability and prosperity to the European continent for more than half a century.

However, as a nation, Switzerland has decided to pursue its relationship with the rest of Europe in a unique manner.

There are approximately 120 bilateral agreements between Switzerland and the EU. The agreements cover the free movement of people, road transport, civil aviation, scientific research, technical barriers to trade, public procurement markets and agriculture.

Switzerland is the EU's 2nd largest economic partner with Swiss companies employing more than one million people throughout the EU. For example, Zurich Insurance recently created 120 new jobs in Ireland. The company's total workforce in Ireland stands at over 1,100.

Importantly, the company stated that it had considered a number of options, but chose Ireland as the location for expansion owing to our long standing membership of the EU and the Euro.

Finally, I would like to briefly discuss the policies pursued by the European Union in relation to the Arctic region.

Both Norway and Iceland are members of the Arctic Council. Therefore, I represent the European Parliament on the Standing Committee of Parliamentarians of the Arctic Region.

The 2008 Communication by the European Commission on the Arctic Region touches upon many topics including climate change, energy, transport, environment, fisheries as well as security and the issue of indigenous peoples.

Global warming is rapidly changing the Arctic region. As a result of melting snow and ice, new shipping routes are opening up, new fishing grounds are now available and there are greater opportunities for oil and gas exploration.

Notably, it is estimated that 30% of the world's undiscovered oil and gas resources lie within the Arctic region.

I believe it is important for the European Union to play an active role in Arctic politics. The EU can be a positive influence in introducing good polices for the region as opposed to becoming involved in the race to exploit resources.

In conclusion, I would like to thank the Chair for the invitation to address the Committee today.

The Lisbon Treaty has afforded the European Parliament significant new powers, particularly in the areas of agriculture and fisheries.

As a result, political dialogue and communication between the Oireachtas and the European Parliament must be improved.

In this context, I welcome the recent report on the role of the Oireachtas in European Affairs carried out by this Committee and the Joint Committee on European Scrutiny.

Thank you.