Eamon Gilmore (Dún Laoghaire, Labour)
Link to this: Individually | In context | Oireachtas source

The issue the Senator has raised relates back to Deputy Donohoe's questions regarding banking recapitalisation. It is important to take stock of how far we have come in this regard. When the Government came into office 18 months ago, shortly after the agreement of the EU-IMF-ECB programme, the State was unable to borrow money from any private source. That is the position in which we found ourselves. It is vital that we meet the troika targets in order to continue borrowing the money we need to run the country. We are in an exceptional set of circumstances where, regrettably, we were obliged to approach the lender of last resort, namely, the troika at the end of 2010. When a bank manager sets out the conditions of a loan, the borrower is obliged to meet them or the loan instalments will cease. That is the exceptional scenario in which we are operating.

The immediate reward for meeting the targets set by the troika is that we continue to receive the loan money we require. Our success in meeting those targets - in fact, we are ahead of target in some areas - means we will be able to exit the programme on time and recover our economic sovereignty. Our achievement in this regard has restored confidence in this country among international investors. That can be seen in our continuing strong performance in the area of foreign direct investment, with several major jobs announcements since the beginning of the year. As a consequence of some of those investment announcements, we are now beginning to see resumed activity in a range of sectors, including construction. These investment decisions are translating in immediate terms into construction jobs.

We have attained several important objectives in regard to the implementation of the troika programme. We successfully secured a reduction in the interest rate, for example, and achieved a flexibility in the programme which allowed the Minister for Public Expenditure and Reform, Deputy Howlin, to announce a stimulus programme during the summer which allowed for the construction of additional schools, primary care centres and so all. All of this will translate into jobs. While there is no immediate solution to the problem of our bank debt, we have had several notable successes in securing a deal more favourable to us. We have, for example, obtained an agreement on the separation of sovereign and bank debt. We secured a specific commitment at the June Council meeting that a dedicated arrangement for Ireland would be agreed. In fact, the conclusions of that meeting included a specific reference to Ireland's success in meeting its commitments under the programme.

This is where the issue of European solidarity is hugely important. The bottom line is that there is a strong desire throughout Europe to see Ireland succeed. Europe needs a success story and this country is probably the best candidate for that honour. Ireland's successful emergence from its programme will, in turn, facilitate a broader European recovery and restore confidence in the European project. Without wishing to oversell or overstate the case - such matters are not resolved overnight - this will translate, over time, into investment, job creation, improved living standards and ultimately an improved financial situation which will enable us to take the type of action that is not currently possible.