I will focus on the competitiveness element of the European Council and Ireland's Presidency of the Council of the European Union because this may become one of the most important parts of our Presidency. Europe is at a crossroads. We face an uncertain geopolitical environment, slower growth, pressure on households and businesses and a technological transformation that is moving faster than our institutions are used to and what they have been built to do. In that context, competitiveness is not just an economic issue; it is about Europe's security, resilience and ability to shape its own future. Two reports have helped frame this debate. Enrico Letta's report asked Europe to complete and deepen the Single Market, particularly in areas such as capital, energy, digital infrastructure and telecommunications. Mario Draghi's report is even more direct. It tells us that Europe is falling behind on productivity, innovation and scale and we need to act with far greater urgency. Ireland should use its Presidency not just to manage that agenda but to help shape it. Indeed, the Taoiseach has mentioned the focus on the one Europe, one market agenda. Artificial intelligence is a good example of the opportunity and the challenge. AI can support healthcare, education, research, public services and small businesses. It can help improve productivity and help Europe compete but we have to be honest as well. It raises serious questions about jobs, creative work, journalism, young people, copyright, democracy and the energy required to power these systems. Europe's task is not simply to embrace AI blindly; it is to shape AI in a way that serves its citizens in their best interests. That means investing in skills, digital literacy, worker protection and innovation. It means ensuring that creative workers, journalists, young people and ordinary citizens are not left behind. It is also means recognising that AI is now an energy issue. Data centres and AI infrastructure require significant electricity. We cannot allow the digital transformation of Europe to come at the cost of higher bills for households or less capacity for communities. Affordable, clean and reliable energy must be treated as central to European competitiveness. If Europe wants to lead on AI, advanced manufacturing and innovation, as outlined in the Draghi report, then energy policy is linked with industrial policy. Europe needs to think more seriously and strategically about sovereign AI capability. That does not mean trying to build an EU version of every major American or Chinese model. That is simply not realistic or within our means. However, Europe should not be wholly dependent on models built, controlled and governed elsewhere. As we have seen with Anthropic, such models can be switched off at the drop of a hat. There is a strong case for Europe to work with trusted, democratic partners, such as the United Kingdom, Canada and Australia, to develop AI systems that reflect our values. While these models may not compete with the newest frontier models from the United States or China, they could deliver the majority of the AI benefits to European citizens, businesses and public services. A trusted European AI capability could support SMEs, public administration, translation across European languages, healthcare, education, research and democratic resilience. It does not need to be the biggest model in the world to be useful. It just needs to be secure, trustworthy, affordable and, most importantly, aligned with our values in the European Union. Digital sovereignty should not mean isolation, however. It should mean choice. While Europe does not need to build every AI model, it should not find itself, as it has in the past, in the position where it cannot choose, or is dependent on, systems not under its control or remit. That is where the Letta and Draghi reports come together. The Letta report tells us that Europe must remove the barriers that stop businesses and ideas from scaling across the Single Market. The Draghi report tells us that Europe must invest, innovate and act with far greater urgency. AI, energy and innovation sit right at the centre of both reports. I will mention enlargement and the accession of Ukraine and Moldova to the European Union. This issue is not entirely separate from the debate around Europe’s future; it is actually part of it. As we are all aware, Ukraine is defending not only its sovereignty but the security and democratic values of our Continent against Russia. Moldova has shown real courage and commitment on its European path. Of course, its future membership will be contingent on a merit-based process and the required reforms being implemented. Its accession would strengthen Europe strategically and politically. Ireland has always understood that the European Union is more than a market; it is a community of values. However, if those values are to endure, Europe must be strong, innovative and competitive. During our Presidency, Ireland has an opportunity to help make the case for a Europe that, in Enrico Letta's lines, completes the Single Market and, in Mario Draghi's lines, invests in innovation. Ireland should make the case for a Europe that leads in human and value-centred AI and in our overall values, and one that delivers affordable and clean energy and remains open to those who share our democratic future and values. That is the type of competitiveness agenda Ireland should champion. I see that a lot of it is being championed already with the One Europe, One Market roadmap. It should not be a race to the bottom, particularly when it comes to artificial intelligence. Rather, we should build a stronger, fairer and more confident Europe where our values always ring true.

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