Brian Cowen (Laois-Offaly, Fianna Fail)

——last July, in the October budget and in February. Very little support was available from all sides of the House. We continue to do this and will do so again next week. There is broad agreement in respect of economic discussions that have taken place and a recognition that a structural deficit of the order of 8% has emerged in the public finance position. Over the next five years we must deal with that and satisfy the European Commission regarding the Stability and Growth Pact parameters and requirements regarding the deficit being reduced to 3%. That represents a major challenge for the economy and this House. The Minister for Finance will indicate his plans next week, specifically on how we will deal with the remainder of this year and looking to 2010 and 2011.

Regarding the question on when the upturn will come in the world economy, nobody can give a definitive timescale for that. There are indications, perhaps on the optimistic side, that towards the end of this year the green shoots of recovery may emerge in the US economy. It is too early to say how effective the stimulus plan implemented by the Obama Administration will be. The G20 meeting in London this week is an important event in that it will hopefully see a measure of international co-ordination with regard to how we can deal with this international financial crisis and get a greater degree of transparency into the financial system that would provide confidence.

In our domestic effort, we will continue to examine the next steps for the banking situation. These are not decisions that could have been taken some months ago. They can only happen on the basis of due diligence and expert advice provided to the Minister and the Department by the NTMA, the Central Bank and others. That deliberation continues.

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