Fidelma Healy Eames (Fine Gael) | Oireachtas source

I welcome Professor McHale and Dr. Ahearne. It would be remiss of me not to given they are both from NUIG. It is great to have both of them at the committee.

I have a number of questions for both guests. Dr. Ahearne has described the "dizzy" number of schemes we have which is what many people feel about the language used about Europe and how we interact with it. They believe that interface is dizzy and that its rules and schemes are changing. One thing is invented and does not work and then something else comes along. This may be an over-simplistic question. If we did not have the euro would we have the problems we now have, and at such a scale? That question is for Dr. Ahearne. This time last year when we were looking at the fiscal compact treaty he spoke in advance of others about the need for a banking union. How close does he believe we are to that?

There is much talk about our having reached the limits of austerity. The feedback I get from constituents would certainly be that we have. Do the delegates believe that to be the case? Dr. Ahearne mentioned that we might not need as big a budgetary adjustment but I wonder how we can even push for the adjustment we still must make. Is there a case for renegotiation with the troika? When the troika gives money it comes with so many conditions, oversight and intrusion. Some of these conditions are very good in terms of structural reforms given that certain matters had gone completely out of kilter. However, some of it is not so good. We see Mr. Ashoka, one of the architects of the entire plan, saying that perhaps they got it wrong. Why did we not impose similar conditions on our banks when we gave them money? Have we been too lax with our banks? How have other countries done this? We have given money to banks for recapitalisation, mortgage debt, etc. but we are not sure if the money went where it was meant to go. For example, we know some of it was spent on very large pension payouts to failed bankers. Those questions are for Dr. Ahearne.

In his paper Professor McHale stated the problem is not only on the supply side. Perhaps he would explain exactly what he means in that regard. Why is the European area not growing at present? We have some growth in this country but it seems to be negligible because the euro area is not growing. How would a debt redemption fund work and what would be its benefits to Ireland?