Ireland’s EU Presidency “hits the right notes”
Echoing the findings of the Draghi Report, Ireland’s EU Presidency is shining a light on the need for a more unified and competitive European Union, writes Judy Dempsey
The small countries in the European Union matter and Ireland intends to prove this during its six-month Presidency of the Council of the European
Union, which began on 1 July. It won’t be easy. This is Ireland’s eighth such presidency since joining the European Union in 1973, and much has changed in the intervening years.
The world has become more complex, more fragmented, more unstable. Wars and conflicts abound alongside nuclear proliferation.
The post-1945 order and post-1990 Cold War era are no more. The Western status quo is no longer a given.
This is why Ireland – a neutral country as dependent on the EU for trade as it is on the US for investment and security – understands what’s at stake: Europe’s ability to be competitive, defend its values and make progress on agreeing a new EU budget for 2028-2034.
Ireland’s presidential slogan, “strength with unity”, is difficult to promote when the EU’s political map is so far from reassuring, however.
There is the rising popularity of the far right in France and Germany and the polarising politics of Britain, Poland, Czechia and Slovakia.
And then there are the divisive migration issues we are seeing in a number of EU countries, and Russia’s continuing war against Ukraine.
How then to promote “strength with unity”?
The Irish presidency holds no delusions: “The current global environment is unstable…There are many external factors we cannot control. But in vital areas, Europe has the means to take determined action”.
This should involve strengthening the EU’s foundations – in particular, its competitiveness.
What stands in the way of the EU moving beyond the single market to become a strong integrated trading bloc? Is it national interest? A lack of political will?
Mario Draghi, the former Italian Prime Minister, spelt it out in a major assessment of the EU’s competitive malaise in 2024.
In the Draghi report on the future of EU competitiveness, he warned that without swift, unified action, the EU faces an unprecedented existential challenge.
Addressing this challenge will mean closing the innovation gap, getting rid of complex regulations and unifying the EU’s fragmented capital markets to help startups scale.
Ireland’s EU Presidency more than echoes these recommendations.
Regarding climate issues, Draghi called for greater decarbonation and lower energy costs to spur climate action and boost industrial competitiveness.
In practice, this means integrating energy networks and aligning climate policies with industrial strategy.
As for security and dependency issues, Europe must reduce its reliance on external suppliers for critical materials, technology and defence. The bloc needs a joint industrial and defence strategy.
Ireland’s presidential agenda echoes Draghi’s widely praised proposals. Yet so few of these proposals have been implemented – about 15 percent, according to analysts.
The Irish Government harbours no illusions about the likelihood of tackling these issues in the coming months.
For now, however, it has hit the right notes: “the need for a single market, to eliminate barriers, to tackle regulatory burdens, boost internal market trade, drive digital transformation and ensure a level playing field for businesses operating across the EU”.
Ultimately, however, Ireland needs Germany – Europe’s largest economy – to realise these ambitions, particularly regarding competitiveness. This is the Achilles Heel of any EU Presidency.
Bigger countries wield influence. It is also true that most Member States are out to defend their national interests.
Maybe the fundamental question facing both the EU and the Irish Presidency is: can national interests cede to European interests at a time when European unity is so critical to the future of the European Union?
*Disclaimer: The views expressed in this column, published in the August/September 2026 issue of Accountancy Ireland, are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.
