I propose to give the Committee a brief read-out of the key items discussed at these two Councils in June before turning to the items on the agenda for this month. Minister Martin attended the Foreign Affairs Council while I attended the General Affairs Council. Minister of State Power attended a separate session of Development Ministers.

The General Affairs Council was presented by the Commission with its 2010 report on implementation of the economic and social cohesion policy, and the Commission informed Ministers about the outcome of the 2010 Forum for Outermost Europe held in Brussels in May.

Ministers reached agreement on a General Approach on the draft Regulation for the European Citizens Initiative. This general approach represents a reasonable balance between our wish to have a user-friendly system accessible to the citizens and the need to prevent abuse of the system. The agreement at Council will now form the basis for discussions with Parliament which will debate the matter in the Autumn.

The Foreign Affairs Council had lengthy discussions on Gaza and Iran, and on the Western Balkans. With regard to Gaza, the Ministers were joined by Quartet Representative Tony Blair for a detailed discussion of the prevailing situation, in particular given the Israeli military interception of the Gaza Flotilla. Council conclusions were issued following the meeting. Ministers also discussed the Iranian nuclear programme and agreed the European Council Declaration on Iran, as well as short Council conclusions, welcoming the adoption of UNSCR 1929, reiterating their support for a negotiated solution and looking ahead to the steps to be taken at the European Council.

Following-up to their lunchtime discussion with International Criminal Tribunal for the former Yugoslavia (ICTY) Chief Prosecutor Serge Brammertz, Ministers unanimously adopted Council conclusions agreeing to begin the ratification of the Stabilisation and Association Agreement with Serbia. Ministers also had brief exchanges on the situation in Kyrgyzstan, Cuba, Somalia and Piracy, Haiti: Lessons Learned, and the OSCE Corfu Process - at a meeting in Almaty on Saturday progress was made in that there was agreement to an OSCE summit late this year.

In addition, there was a separate session of Development Ministers, attended by Minister Power, which dealt with Millennium Development Goals, as well as Gender Equality and Development and the issue of East-Africa Piracy.

Mr. Chairman, I now turn to next week’s Council meetings. I will attend both the General Affairs Council and the Foreign Affairs Council. The day will begin with the General Affairs Council.

GENERAL AFFAIRS COUNCIL

- Presentation of the Presidency's programme The Belgian Presidency will formally present its Presidency Programme. I had the benefit of discussing this programme at an informal meeting in Brussels hosted by my Belgian counterpart to mark the launch of their Presidency. The Belgian Presidency has identified five broad themes and a number of priorities within each of these areas. I think in the coming six months we can look forward to an agenda that is focussed primarily on implementation and follow-up in regard to a number of important policies and initiatives launched during the first half of this year. Work will continue on implementing the Lisbon Treaty, most notably with a view to concluding work on the Citizens’ Initiative and the European External Action Service.

Exiting from the economic crisis and returning to growth will, rightly, be the first priority of the Belgian Presidency. Implementing the strategy for growth and jobs, Europe 2020 Strategy, as well as continuing work on the suite of legislation on financial supervision will be major elements in this regard.

Another significant area will be climate change and environment, where Belgium will oversee preparations for the COP 16 Summit in Cancún (November 2010). It will also seek to improve legislative instruments related to the environment in areas such as transport, industry, biodiversity and taxation. Other thematic priorities include poverty reduction, external relations and enlargement and the implementation of the Stockholm Programme.

The recent informal meeting of Ministers for Europe in Brussels provided an early opportunity to exchange views with my European colleagues on EU priorities in the coming six months. In addition to the thematic priorities highlighted in its Programme, it was noted that Belgium will manage negotiations on a number of significant dossiers, including the EU Budget for 2011 and the mid-term review of the Financial Perspectives.

- Preparation of the Accession Conference at Ministerial level with Iceland - opening session of negotiations In February, the Commission published a largely positive opinion on Iceland’s readiness for membership and recommended that a date should be set for the opening of accession negotiations. In light of the Commission’s opinion, Iceland’s application was considered by Foreign Ministers at the General Affairs Council on 14 June and by Heads of State and Government at the European Council on 17 June 2010. The European Council decided that accession negotiations should be opened and invited the Council to adopt a general negotiating framework.

The negotiating framework, which sets out the broad principles, parameters and procedures governing the talks with Iceland, is being finalized and will be submitted to the July General Affairs Council for approval. No substantive discussion on the text of the framework is anticipated at the Council. An intergovernmental conference with Iceland, scheduled for 27 July, will mark the formal opening of negotiations, with substantive talks expected to commence in September.

As in any negotiation, the eventual outcome and timeframe cannot be predicted. Ireland welcomes the opening of accession negotiations with Iceland and would regard its possible accession to the EU as a positive development.

- Follow up to the European Council on 17 June 2010 One of the items on the agenda of this month’s General Affairs Council (GAC) meeting will be consideration of the necessary follow up to the orientations provided by the June European Council. To assist and structure this discussion, the Belgian Presidency has prepared a detailed information note on the elements which will be taken forward over the coming semester.

Implementation of the Europe 2020 Strategy One of the key outcomes from the June European Council was the adoption of a new European Strategy for Jobs and Growth - the “Europe 2020” Strategy. Following on from the agreement on the five EU headline targets our attention now shifts to the substantial body of work which must be undertaken, both at national and EU level, to ensure that this Strategy is implemented. We have work to do in agreeing national targets, identifying bottlenecks and drawing together our National Reform Programme.

We understand that the Commission will brief the GAC on the overall implementation of the Europe 2020 Strategy. As this process is to be conducted in “close dialogue with the Commission”, a further round of bilateral contacts between Member States and the Commission are envisaged, beginning in September. The Commission is also expected to brief on the roll out of the seven EU Flagship Initiatives as well as the Commission’s communication on the “Single Market Act”, following up on the Monti report, each of which are intended to support the new Strategy. As well as taking forward necessary implementation work across the relevant Council formations, the Belgian Presidency plan to present to the December GAC a report which will take stock of progress achieved.

Economic Governance President Van Rompuy’s Task Force on future economic governance in the EU has now met three times since May and continues to make good progress. He presented a progress report on the work of the Task Force to the June European Council and conclusions were agreed on enhancing economic governance which adopted a first set of orientations concerning budgetary discipline and macro-economic surveillance. President Van Rompuy will provide a further progress report to the September European Council, before presenting the Task Force’s final report at the October 2010 European Council meeting.

Financial Services and G20 The June European Council adopted conclusions concerning various aspects of regulating financial services in the EU, including in relation to the European Systemic Risk Board and the European Supervisory Authorities. The Presidency now intends to ensure that work is rapidly taken forward on a number of important legislative proposals on the regulation of financial services, including hedge funds and private equity funds. On the issue of the possible introduction of a Union-wide bank levy, the European Council agreed that “Member States should introduce systems of levies and taxes on financial institutions to ensure fair burden-sharing and to set incentives to contain systemic risk”. This issue will now be discussed in ECOFIN, which will prepare a report to the October European Council.

The G20 Toronto Summit, held at the end of last month, recognised that there is a range of policy approaches in the area of bank levies, and agreed that individual country’s approaches would be based on principles reflecting the need to protect taxpayers, reduce risks from the financial system, protect the flow of credit in good times and bad, taking into account individual country’s circumstances and options, and helping promote level playing field. The October European Council will set the EU’s position for the next G20 Summit in Seoul in November.

Millennium Development Goals The European Council’s Conclusions looked forward to the UN High Level Plenary Meeting on the Millennium Development Goals, stressed the Union’s determination to support the achievement of the Millennium Development Goals globally by 2015 and reaffirmed its commitment to achieve development aid targets by 2015 as set out in its June 2005 Conclusions.

Climate Change The June European Council took note of the Commission’s communication which analysed options to move beyond 20% greenhouse gas emissions reductions and assessing the risk of carbon leakage. The European Council will revert to the climate change issue at its October 2010 meeting, in advance of COP16 in Cancun (29 November – 11 December 2010).

Iceland The European Council decided that accession negotiations with Iceland should be opened and invited the Council to adopt a general negotiating framework. As I mentioned earlier, the Council is expected to do so on Monday.

Estonia and the Euro The June European Council congratulated Estonia on the work it has done towards joining the Euro area. Since then, ECOFIN has adopted the necessary legal acts to allow Estonia to adopt the Euro as its currency from 1 January 2011.

- Preparation of the European Council on 16 September 2010 Ministers will have a short discussion on the format and agenda for the informal European Council which will take place in September. The main focus of the European Council, convened by Council President Van Rompuy, will be on the EU’s relations with strategic partners, in particular China and India.

For the first time since the entry into force of the Lisbon Treaty, Foreign Ministers will also attend the European Council. Officials have commenced work on preparations for the Council and there will be an initial discussion by Ministers at next week’s General Affairs Council. This will be followed by more substantive discussion at the Informal Meeting of Foreign Ministers (“Gymnich”) which will take place in Brussels on 10-11 September and at the General Affairs Council on 13 September.

- European External Action Service The Council is expected to adopt the Council Decision on the organisation and functioning of the European External Action Service. The Council had agreed a general approach to this matter in April and this formed the basis for consultations between the Council, the Commission, the European parliament and the High Representative. The European Parliament approved the text of the proposed Council Decision by an overwhelming majority on 8 July. Work is continuing on the necessary amendments to the Staffing and Financial Regulations. It is hoped that the EEAS will be up and running by 1 December.

FOREIGN AFFAIRS COUNCIL

Sudan In relation to Sudan, the EU’s policy will be discussed and it is expected that the Council will agree conclusions which look to the implementation of the Comprehensive Peace Agreement. This is of particular importance in advance of the referendum on self-determination in South Sudan, which is due to be held early next year. I also expect the Council to express its readiness to send an EU Election Observer Mission to Sudan in time to observe all steps of the referendum process.

Iran On Iran, the Council is likely to finalise the relevant measures allowing for implementation at EU level of UN Security Council Resolution 1929, adopted on 9 June last and which provides for further sanctions against Iran in light of the continuing serious concerns over its nuclear programme. The Council is also likely to agree additional, complementary EU restrictive measures, called for in the Declaration adopted by the European Council on 17 June.

Discussions on finalising the new EU restrictive measures have been continuing in Brussels for a number of weeks and are close to agreement, in which case there may be no need for a substantive discussion by Ministers at the Council. Ireland supports the overall emphasis in the new EU measures on penalising those within the regime driving forward the nuclear programme rather than punishing the Iranian population as a whole. This is the approach which we have been advocating in the official discussions underway in Brussels.

The sole purpose in imposing new EU restrictive measures against Iran is to encourage a more cooperative attitude on the part of Iran and persuade the Iranian authorities to finally engage seriously with the international community in addressing and removing the long-standing and serious concerns existing over its nuclear activities. In that regard, there are some indications that Iran may now be contemplating a return to the negotiating table which would obviously be welcome. In particular, High Representative Ashton has recently exchanged letters with the chief Iranian nuclear negotiator, Dr. Jalili, an exchange which has given some grounds for hope that it may be possible to convene a meeting between the E3+3 and Iran in the autumn.

Gaza/MEPP Turning to the Middle East Peace Process, the focus of discussions will primarily be on the situation in Gaza and the impact of the recent changes in Israeli policy which have led to some easing of the blockade. Ministers will hear from High Representative Ashton who visited the region from 17-19 July, including a further visit to Gaza last Sunday following her initial visit in March. It is likely that the Council will adopt Conclusions on Gaza, reflecting the outcome of the High Representative’s visit and discussions in the region.

The Government remains seriously concerned at the ongoing humanitarian crisis in Gaza. While the recent measures to ease the blockade in Gaza announced by the Israeli government, including the move to a shorter negative list of banned items, have been welcomed by many in the international community, ultimately the effectiveness of these measures can only be judged by their actual impact on the ground in improving basic living conditions for the people of Gaza. The evidence, to date, is that any such resulting improvement is modest, to say the least.

A particular concern relates to urgently needed building materials needed for reconstruction and which continue to be restricted to specific UN-operated or PA-approved projects. Minister Martin, on behalf of the government, has already clearly stated our view that there should be no restrictions on construction materials required for the building or repair of schools, homes or hospitals. There also needs to be greater movement by Israel on ending restrictions on movement and allowing exports from Gaza since this is an essential step to enable the private sector economy in Gaza, what is left of it, to recover.

We look forward to hearing High Representative Ashton’s assessment of conditions in Gaza and what further contribution the EU can make to ensure that the new arrangements are being fully and effectively implemented on the ground. Ultimately, the only durable solution remains a complete lifting of the blockade and the opening up of all crossings to normal commercial and humanitarian traffic and movement of people and we must continue to exert pressure on Israel to bring this about.

High Representative Ashton will also report on her discussions with President Abbas, Prime Minister Netanyahu and US Special Envoy George Mitchell, among others, on the ongoing proximity talks between Israel and the Palestinian Authority and the prospects for moving in the coming weeks and months to direct, substantive discussions on final status issues. Moving to such direct negotiations is obviously greatly to be desired but it is far from clear that sufficient confidence yet exists on both sides to allow this to happen.

In particular, reports of further house demolitions in East Jerusalem and continuing settlement expansion directly work against all the current efforts to achieve political progress and undermine confidence in the Israeli government’s commitment to engage in genuine peace negotiations. Continuing doubts over Israel’s willingness to renew the partial moratorium on settlement expansion in the West Bank which expires in September is also a clear obstacle to progress in the short term. These are areas where the EU will need to continue to pressure the Israeli government to make greater movement.

India/Brazil It is expected that Foreign Affairs Council will have an initial discussion on India and Brazil as strategic partners for the EU. Thereafter, consideration will be taken up again as part of a more general discussion on strategic partnerships at the Gymnich meeting in early September. Strategic partnerships will also be discussed by Heads of State and Government at the European Council on 16 September.

I very much welcome the fact that Foreign Ministers will discuss Brazil and India as strategic partners at the FAC next week. It is important, particularly following the adoption of the Lisbon Treaty, that the EU should now begin to streamline and consolidate its external relations, for the mutual benefit of both Europe and its international partners. Given their geographic size, their immense populations, their growing economic clout and the political weight which this has brought them, both Brazil and India can be considered as very significant partners for the EU. This is the right time to carry out an assessment of our relationship with them as well as the great potential which this relationship offers for the future.

For Ireland, it is important that the EU should continue to work together to develop even better and closer relations with both Brazil and India. Members of this Committee can be assured that we will avail of every opportunity to encourage and support efforts in this direction.

Kyrgyzstan Given the heavy agenda, there are indications that discussion on Kyrgyzstan may be deferred. Draft conclusions have been prepared. These could be taken as an “A” point, if required. If discussion does take place, it would cover recent developments.

The overall conduct of the constitutional referendum of 27 June, which is viewed as an important step in establishing the legitimacy of the current Government and of Interim President Otunbayeva, has been generally welcomed and the Commission has moved to provide assistance to the Kyrgyz authorities in the implementation of their reform programme. A Development Forum (Donor Conference) will be held in Bishkek on 27 July organised by the World Bank. There has been some progress in Vienna on an OSCE Police Advisory Group. Concern has been expressed at the fragile security situation and there are reports of continuing threats to human rights defenders and those belonging to the Uzbek minority. The situation of displaced people, including those who fled to Uzbekistan and have since returned, is also a cause for concern. The UN High Commission for Refugees estimated on 16 July that the numbers of displaced was 75,000. The Kyrgyz authorities have indicated that they may establish an inquiry into the recent violence. There are also suggestions of establishing an international inquiry.

Georgia Georgia will be an item on the Council, although no conclusions have been prepared. HR Ashton will brief the Council on her recent visit to Georgia where she was present at the launch of the negotiations for an Association Agreement between Georgia and the EU on 15 July. She is also likely to raise the Action Plan produced by the Georgian authorities recently as a way of reaching out to the population of the two breakaway areas of Abkhazia and South Ossetia. The EU is on record as strongly supporting the territorial integrity and sovereignty of Georgia, but has been urging the Georgian authorities to adopt a less confrontational approach to the two entities. The Action Plan has already been welcomed by the EU and the US. Ireland has encouraged the Georgians in this endeavour, seeing it as essential to demonstrate that Georgian territorial integrity, which we fully support, is more than just a land issue, but also involves reconciliation. The Action Plan centres around seven “instruments “which are practical steps to promote cooperation”. Discussion is likely to focus on what the EU can do to help with the success of the Action Plan. The initial reactions of the Abkhaz and South Ossetian leaderships to the plan are not encouraging. However, that may be an initial response and we should press ahead with helping Georgia in its reaching out to the minority areas.

Western Balkans: Bosnia Herzegovina and Kosovo It is expected that the Western Balkans item at this month’s Foreign Affairs Council will focus on Bosnia and Herzegovina and Kosovo. The discussion on Bosnia and Herzegovina will be in the context of the elections to be held there in October. In particular Ministers will consider the role which the EU can play in moving the political situation forward in the aftermath of the elections and helping Bosnia Herzegovina make the reforms necessary to, inter alia, advance its European perspective. Ministers will discuss the nature of the EU’s involvement in Bosnia Herzegovina. This will have to be considered in the light of possible developments post the election. It is possible there could be a delay of a couple of months before a Government is formed.

On 22 July, tomorrow afternoon, the International Court of Justice will deliver its advisory opinion on the legality of Kosovo’s declaration of independence. It is not clear how the judgment will go. Ireland, along with 22 other EU Member States, has recognised Kosovo. Ministers will discuss the Court’s judgement and the reactions in both Kosovo and Serbia. The EU, despites its differences on recognition, plays a key role in the international community’s efforts to build on the progress towards stability which is underway in Kosovo. The EU is also committed to working closely with the governments of Serbia and Kosovo to seek pragmatic solutions to allow them both to move forward towards eventual EU membership and enhanced regional cooperation. It will fall to the EU to take a lead role in the aftermath of the ICJ decision, regionally and perhaps at the UN. This will require delicate handling.

AOB – Cuba Spain has requested that Cuba be added under Any Other Business. Spanish Foreign Minister Moratinos wishes to brief colleagues on his visit to Cuba earlier this month and the subsequent announcement by the Catholic Church in Cuba that the 52 remaining prisoners from the group of 75 detained since 2003 would be released. I very much welcome the Cuban Government’s decision to resolve this divisive issue in a comprehensive and positive way, and I want to also acknowledge the efforts of the Catholic Church in Cuba and the role of Foreign Minister Moratinos in achieving this outcome. Eleven prisoners and their families have travelled to Spain already and it is my hope that the remaining prisoners will be released in the near future. Following this development, I think that relations between the EU and Cuba can move forward, and that we should work towards an early agreement on arrangements for a more structured political dialogue and enhanced social and economic cooperation.