Seán Sherlock (Cork East, Labour) | Oireachtas source

I would like to move the conversation onto macroeconomic policy, specifically the Stability and Growth Pact. We are looking at the eurozone growth figures for the fourth quarter of this year and they are being revised downwards to something like 0.4% from 0.5%. I understand that letters have been issued to something like seven countries, although not to Ireland thankfully. Increasingly what we are seeing in respect of the Stability and Growth Pact is that there is a lot of focus on the stability but very little on the growth. I would like to get a perspective from the Minister as to where Ireland stands on, for instance, recent comments by the German finance Minister that there may need to be a review of the Stability and Growth Pact and where the politics of that rest at present within the EU.

If we are looking at growth in our own economy and capital spending, obviously there is going to be a turf war on the capital spend. The Minister and I both inhabit the great province of Munster. We would be looking at regional economic development between Cork, Limerick and Galway and that Atlantic corridor. People representing the eastern side of the country would be looking at metro north, the M50 and other such projects. If we are to be realistic about proper investment in projects of this nature, there needs to be some degree of flexibility built in to, or a revision of, the Stability and Growth Pact because I think it is actually impeding the potential for growth. There cannot be growth without proper regional infrastructure.

I would welcome the Minister's perspective on that and on whether that conversation is being had by ECOFIN Ministers.