Our nearest and dearest

The British assume the presidency of the EU on January 1st and we Irish, more than any others, are most keen to stay on their…

The British assume the presidency of the EU on January 1st and we Irish, more than any others, are most keen to stay on their side. Not only are they our nearest neighbour and biggest trading partner, but the vital decision on what countries enter EMU on January 1st, 1999, and at what exchange rate, will be taken during their term of office, in May. If we don't succeed in negotiating the rate we want, or indeed if we get what we want wrong, there will be a limp in the prance of the Celtic Tiger. Tony Blair is not anti-Europe but the British themselves are distinctly iffy, so Britain will not join the single currency during the present parliament. We will. Most of Europe cares little what they do, but it matters desperately to us. Hence the friendly overtures from Bertie Ahern and Charlie McCreevy towards their British counterparts at the Luxembourg summit last weekend. If Blair's government is alienated from Europe, the consequences for us could be grave indeed.

On Europe, we Irish and the British are allies. Our main friction has been on CAP and we can only hope that no decisions on agricultural reform arise until Austria, which has similar views to us, (i.e. dear, as opposed to cheap, food) takes over in July.

The British priority is for a "People's Presidency" which will make the EU more relevant at home, and their main business will be to open negotiations on the enlargement decisions taken last weekend.

We have different problems. The Government is in a quandary over the referendum on the Amsterdam Treaty, which implements policy on employment, citizens' rights, foreign affairs and police cooperation - the referendum may not be held in March with the by-elections after all. Under the McKenna judgment, a government can't use taxpayers' money to fund a one-sided campaign and a high-powered committee is working out what to do.

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Unlike the issue of cabinet confidentiality, which scraped through, the Government has to succeed on this one and has the support of the entire Dail, bar three or four deputies, in its efforts. Current thinking is that it should give equal funds to the pro and anti-lobbies and let them at it.