Kieran O'Donnell (Limerick East, Fine Gael)

We must show solidarity with Greece and with all fellow European Union member states. I and my party are very much pro-Europe. However, the first question we must ask is whether the aid package will work. From a short-term liquidity perspective the answer is that, like the Government guarantee scheme of 29 September 2008, it probably will. Will it address the long-term solvency issue for Greece? That remains to be seen. These are the questions that must be asked.

In terms of the financial stability mechanism currently being discussed in Brussels, at a cost of €750 billion, we must have all the details. Moreover, we need to know whether there will be a jobs dimension to the process. In Ireland, half the general government deficit is a result of unemployment, but the Government has no initiative to address this. The markets are nervous that the austerity measures will be so severe that we will have growth in countries' national debts and unemployment will stagnate at current levels. The Government must produce an effective jobs stimulus package.

Section 4 should be amended to change the reporting mechanism from annual to quarterly. The reference in the loan facility agreement to ranking pari passu with existing professional bond holders must be examined. Will the Minister of State, Deputy Mansergh, elaborate on the indication that we will not make a loss from this process?

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