Brian Cowen (Laois-Offaly, Fianna Fail)

Ní raibh dúshlán eacnamaíochta riamh roimh Éirinn mar atá sa lá atá inniu ann. Tá cúlú domhanda oll-mhór ann faoi láthair, cúlú eacnamaíochta atá chomh dona le haon cheann a chonaic an tír seo fós.

Socróidh na cinntí atáimid ag déanamh anois an dtréigfimid an dul chun cinn atá déanta againn go náisiúnta nó an dtabharfaimid saol eacnamaíochta níos fearr dúinn féin agus na glúinte atá ag teacht fós. Ní raibh an oiread tábhachta riamh ag baint leis na roghanna cearta a dhéanamh maidir le polasaí eacnamaíochta.

Just before Christmas, the Government published its strategy, Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal. Its primary objective was to outline a pathway forward for the Irish economy which acknowledged the severe short-term challenge, while focusing on how we could return to sustainable growth in the medium term. At that time, the Government committed to engage intensively with the social partners on how we could develop and implement that framework, beginning with the need to devise a credible timeframe in which to close the gap in the public finances. We decided to work together, with a specific focus on agreeing an approach to managing those challenges we now face.

Those challenges are immense. As we pointed out last week, we are experiencing the most profound global economic crisis in 70 years. In addition to the effects of an international financial and banking crisis and a worldwide recession, the economy is suffering from the aftermath of a large housing and construction boom and a loss of cost competitiveness after a period of sustained growth. This is being exacerbated by the decline in the value of sterling relative to the euro, which is placing extreme pressure on Ireland's base of exporting companies.

Intensive discussions with the social partners on these challenges resulted in the agreement last week of a framework for a pact for stabilisation, social solidarity and economic renewal. In this framework, the Government and social partners agreed that we would only achieve the prosperous future that the people deserve if, during these extremely difficult times, we take urgent and radical action to restore stability to the public finances, to maximise short-term economic activity and employment and to improve competitiveness. This approach is rooted in the belief that stable public finances are essential for the future of our economy. Every action that we take in the period ahead must be motivated by that objective. Without stable finances, there will be no economic recovery.

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