Pearse Doherty (Donegal, Sinn Fein)
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Some of that relates to the last-minute intervention by Germany. Obviously, there are some important and welcome changes. Many of the arguments Sinn Féin put forward have been vindicated. The idea of a structural balance, which never made sense as nobody could apply it, has gone. Some of the other metrics that were being used in a different way and were countercyclical or procyclical were a problem.

Several counties right across Europe, including many of our key trading partners, have debts above 60%. As Dr. Sweeney pointed out, the 60% metric is not based on any economic analysis but, rather, is where countries were, on average, 20 years ago. The current average across the European Union is that debts are at 85%, with some member states up at 140% or 180%, although they are outliers. That means that under these rules there will have to be a reduction in debt and, therefore, a limit on the potential growth in respect of those member states. What impact could that have in Europe?

My next question is for clarification. Given the fiscal projections of this State, which will be in surplus rather than in deficit for several years to come, our debt-to-GDP ratio is well below the 60% and is not expected to increase. Indeed, it will decrease further. As such, these rules will not apply to Ireland in the short and medium term. Does Dr. Sweeney agree in that regard?

There is a role for the Commission here. Among the criticisms of the fiscal rules were the lack of transparency and workability, as well as how they could be enforced in different member states that use different ways to interpret them. Although there are rules that are transparent, there is also vagueness. A country can look at its adjustment path from four years to seven years, but only with the agreement of the Commission.

It is the Commission alone which will tell the country how it will decide that. There is a kind of closed-door negotiation regarding the fiscal path. Are there concerns about the lack of sovereignty in terms of member states being able to actually decide their fiscal path and any correction they may feel is necessary?