Eric Byrne (Dublin South Central, Labour) | Oireachtas source

I thank both witnesses for their very detailed and learned contributions to the debate. I do not know whether, being a politician, I see the world through a politician's eyes while they, being economists, see it through the eyes of an economist. I presume we are mutually dependent, one on the other.

If I am correctly interpreting what has happened yesterday and today with regard to the President, Michael D. Higgins, the Minister, Deputy Joan Burton, and the Tánaiste, Deputy Eamon Gilmore, President Hollande of France was elected because of the recognition that austerity on its own cannot turn around the community. We recognise Europe has an important role to play in assisting countries such as Ireland to overcome the austerity trap into which we were locked after the previous Government did its deal with the troika. I reinforce what Dr. Ahearne stated on the importance for Ireland of holding the European leaders to the commitment they gave us on 29 June to break the link between sovereign debt and banking debt. The problem is the previous Government locked us into the circumstances in which we find ourselves today.

I agree absolutely with Dr. Ahearne that it is frightening to consider the possibility of social alienation in Europe. We see the huge numbers of youth unemployment in Spain. It is incredible the Italians seem to think comedians are better in parliament than real politicians. As an Irish citizen I am concerned about growing anti-European feeling. It is interpreted in various countries in various ways, with some going ultra-right and others going ultra-left. We have a substantial ultra-leftist simplistic political band of politicians here. Perhaps the witnesses can explain in further detail European dependence on the German economy and German politicians doing the right thing. Is this something they also feel or am I paranoid that we are so dependent on the decision-making process in Germany that it can make or break the Union?

Will Dr. Ahearne explore in greater detail his warning note on whether the Government really believes its suggestion that we could be out of the programme by the end of this year and whether it is conscious of its ramifications? What are his thoughts on this issue? As he quite rightly stated, a fundamental tenet of the Government is that we want to break out and regain our economic independence, hence the desire to leave the programme by the end of this year.

Both witnesses touched on the Cypriot experience, and I ask them to make general comments on the notion, heretofore unheard of, that savers or small investors would have to pay for governmental or banking indiscipline. Professor McHale reminds us Ireland has a projected debt of 120% of GDP this year, which is a frightening figure. In various ways we have touched on the re-negotiation of the promissory note and the €20 billion which could be accessed. Dr. Ahearne suggests we could dip into this to ease the burden of austerity. Will both witnesses comment on current thinking on the possible extraction of €1 billion from the €20 billion to ease the budgetary situation? Union leader Jack O'Connor stated we are at breaking point and there are other ways to balance the books other than taking €300 million more this year from public pay.