EU gets ready for Government's 'terrible twins'

European Diary: When the Taoiseach addressed the European Parliament last week, he was greeted with a remarkable outpouring of goodwill, with even Mr Ian Paisley welcoming Ireland's EU presidency.

The Taoiseach has acknowledged Ireland is viewed by some in Europe as increasingly cool about the EU and he seems eager to use the next six months to alter that perception.

Towards the end of his speech, the Taoiseach praised the vision of the Union's founding fathers and placed himself firmly among those who shared that dream of ever-closer union.

"The founding fathers dreamt ... of a Europe in which ever-closer co-operation would deliver greater security and prosperity for its people. I stand before you as a firm believer in that dream. I come from a country where membership of the European Union, a Union which we have helped to shape, has enabled us to develop and to flourish to our fullest potential," he said.

Mr Ahern promised to make every effort to find a compromise that can revive negotiations on the constitutional treaty but he has indicated that, if no agreement is in sight by the end of March, he will leave the search for a deal to the Dutch presidency. If the treaty is agreed during Ireland's presidency, the Taoiseach will be able to claim much of the credit; if no deal is possible, few will blame him for failing.

Despite a sure-footed start, there is much that can go wrong during the Irish presidency, which experienced its first hiccup last week when Germany threatened to block agreement on pay and expenses for MEPs. The presidency hopes to face down the German objections, which centre on the high salary to be paid to MEPs, but few observers in Brussels are betting on a deal when foreign ministers discuss the issue next month.

The Taoiseach and the Minister for Foreign Affairs, Mr Cowen, cultivate a cautious political style that is ideally suited to the mediation role of the EU presidency. The same cannot be said for the two ministers some in Brussels regard as the Government's terrible twins - Ms Mary Harney and Mr Charlie McCreevy.

Mr McCreevy's candour and his colourful use of language, which can be refreshing in normal political life, could be a liability in his role as president of Ecofin, the body where EU finance ministers meet. Off-the-cuff remarks can have a dramatic effect on financial markets, particularly at a time when exchange rates are as volatile as they are now.

Mr McCreevy's refusal to consider an early reform of the Stability and Growth Pact has put him at odds with many EU finance ministers, with whom his relationship is brusque at the best of times.

Ms Harney, who believes that her famous "Boston and Berlin" speech has been widely misinterpreted, maintains that she is a committed European who is pleased to acknowledge the central role the EU has played in Ireland's economic success. She has many admirers in Europe, particularly among economic liberals and within the business world, but also among political adversaries who respect her forthright, articulate style.

Some EU politicians have been irked, however, by what they regard as her bossy, superior tone in advocating economic reforms of a kind that are politically unacceptable in many European countries. Ms Harney will have an opportunity to commune with her fan base this week when she attends the World Economic Forum in the Swiss ski resort of Davos.

All that mountain air can be intoxicating but as the Tánaiste soaks up the compliments of international business leaders, she would do well to remember that the attitudes that win plaudits in Davos are not shared by many European citizens or their political leaders.

As the Taoiseach sat through more than 40 speeches in Strasbourg last week, he will have noticed that almost all of those called to speak were from the conservative European People's Party (EPP) or the Socialist group, with a smattering of Liberals and Greens. Only one speaker was called from the tiny Union for Europe of the Nations (UEN), in which Fianna Fáil's six MEPs form the largest bloc.

Some in the Government have long wished to take Fianna Fáil out of the UEN but, after months of flirting with bigger groups, no deal was possible before the Irish presidency. If Mr Ahern chooses to build on the boost to Ireland's reputation among EU integrationists offered by the presidency, Fianna Fáil could well take a further step in that direction by joining the EPP after the European elections.