Kathryn Reilly (Sinn Fein) | Oireachtas source

I would like to thank Professor McHale and Dr. Ahearne for their presentations and especially for providing the information beforehand. There is so much information to digest that it is nice to be able to examine it beforehand and then structure questions accordingly. Given their expertise, I have a few questions to ask both witnesses. Knowing the Irish domestic and political terrain as well as both witnesses do, do they think the levels of economic, fiscal and monetary integration proposed by the Commission are likely to secure political support?

The President of the European Commission, José Manuel Barroso, has said that for a policy to be successful, it not only has to be properly designed but it also has to have a minimum of political and social support. How do the witnesses think that smaller member states, such as ourselves, will fare in this genuine Union?

In the years leading up to the creation of the single currency, many economists warned that political compromises at the heart of the euro were going to create real economic problems further down the road. Do either of the witnesses see any potential economic problems that may arise from the political compromises that will inevitably emerge as the Commission's proposals make their way through the European Council?

Given the witnesses' expertise, it would be remiss of me not to mention the topic of austerity. There have been a number of recent interventions from Ashoka Mody, the Minister for Social Protection, Deputy Joan Burton and, indeed, President Barroso yesterday. In his commentary, Professor McHale said that the new disciplines reinforce and make more credible a direction that we have no choice but to go in, in any case. Yesterday, President Barroso said that while he thought the austerity policy was fundamentally right, it has reached its limits. I would like to get the witnesses' comments on that.

In advance of the budget, do both witnesses think it would be in the public interest to shift the policy away from such austerity? Do they think that policy has reached its limits and that we now need to begin making greater investment?

In his comments, Dr. Ahearne said that Ireland must ensure that European leaders deliver on their 29 June commitment to break the toxic link between banks and the sovereign. Does he think that they can actually do this and, if so, under what conditions will we see this happening? It has been under consideration for nearly a year, so under what conditions does he think we will finally see the breaking of that link?