Brian Lenihan Jnr (Dublin West, Fianna Fail)

No he did not. The Deputy would want to read the report. He said, "may". He cannot preclude his options because he is doing a review of every member state which will be concluded and reported on at the meeting in June of the Finance Ministers. It is not a review which is unique to Ireland, rather, it is a review of all of the member states and that is on what he will be reporting in June, as I understand the position. His comments, while reported in an Ireland-specific way, do not specifically relate to Ireland. He would have given the same answer for any member state at the present time because he will not prejudge the completion of his review and I understand that.

It must be emphasised that he also indicated in the course of his comments broad support for what Ireland had done already. The question of the relationship between the additional funding which was required for Anglo Irish Bank and the Stability and Growth Pact was not referred to by him at all in the course of his contribution yesterday. We should stick to the facts of what Commissioner Rehn has to do. I met him soon after his appointment and he expressed satisfaction with the steps we have taken. He agreed with their broad orientation and he said he is reviewing Ireland in the same way he is reviewing every other member state. Naturally, I will have an opportunity to discuss these matters with him in the context of that review.

On the basis of what Ireland has already done and the stabilisation of our revenue receipts, which was evident in the April returns, and our expenditure, I believe we are in a strong position going into this review, although I accept we would be better to examine the picture at the end of June before we make any more definitive assessments about the current year.

I understand the position, as far as Commissioner Rehn is concerned, is that he is not referring specifically to Ireland at all. His answer in regard to Ireland is the same as he would give in regard to any member state, and that is how I interpret what he said. I welcome the fact that he indicated in the Financial Times interview - his particular remarks were not reported in our local newspapers - that he would be concerned that excessive expenditure reductions would damage the prospects of a European recovery, something with which I agree.

There is, as Deputy Burton indicated in the course of her contribution, a very fine balance to be struck. It is very easy to talk about Hoover economics. Deputy Burton spent a long time last year talking about President Hoover and deflationary economics. In fact, what the Government did last year was correct and has been vindicated by events. The Deputy's reference to Hoover was inaccurate. However, that does not mean-----

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