CAB128-94_A1b — Page 54

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as Taoiseach following the recent general election in Ireland which had left him six seats short of an overall majority. It seemed unlikely that he would be immediately successful in this. But, against the background of an unusual constitutional situation, further political manoeuvering would probably result in

general

acquiescence in due course that he should remain as Taoiseach. Mr Haughey had played quite a helpful role to the United Kingdom during the discussions at the recent European Council in Madrid.

The Cabinet

Took note.

ONFIDENTIAL

COMMUNITY AFFAIRS

Madrid

Buropean Council

26-27 June

4. THE FRIME MINISTER said that the first major issue at the Europea Council in Madrid on 26-27 June had been the question d Social Charter. Eleven Member States had indicated at earlier meeting of the Social Affairs Council that theuld be prepared in principle to support such a proposa making clear our objections to this approach it had been possible to point to United Kingdom adherence to the parter of the Council of Europe, which three Member States had not themselves adopted. A document had also been prepared setting out the employment and social security arrangements in the United Kingdom. This was made available at the meeting. Against this background the argument had been strong advanced that the Social Charter did not represent aitable way forward in a Community whose members had different histories and had developed in different ways. approach in the Charter was inconsistent with the doctrine of subsidiarity. If adopted it would also mean that the Community would price itself out of world markets. Other Member countries appeared to be under the impression that signature of a Declaration would have no practical implications. reality was that it could be made the basis of some 33 new Directives. The account given of the wide ange of social security benefits in the United Kingdar had been well received and had proved effective in stashing the United Kingdom's credentials in this area.

The

the

In discussion it was noted that the conclusions f Madrid Council had themselves included the point that in the achievement of the Single Market top priority should be given to job development and creation. There had also bea explicit recognition that in the further discussions in social area the role to be played by national legislacion and contractual relations had to be clearly established

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7

CONFIDENTIAL

ENTIAL

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