Brian Cowen (Laois-Offaly, Fianna Fail)

No. The primary means to establishing and maintaining growth in the European economy is to show determination in reducing deficits because public debt is far too large. Unless this is done, then the prospect of capital being provided to Europe or it being seen as a good location for investment will be compromised.

We have to see a consolidation in the public finances of all member states. The financial markets have been volatile in this regard. A determination by member states to address issues such as bringing deficits under control and public expenditure, which come under their control, is a critical factor in avoiding a strong rise in interest rates that would occur if such action were not taken. That itself would be a major break in growth.

The task force on economic governance at its first meeting set out four objectives to which Mr. Van Rompuy referred. The first is the need to achieve greater budgetary discipline and not to provide for stimulus packages, which would strengthen and make the Stability and Growth Pact more effective. The second priority is the need to find the means to reduce the divergences and competitiveness between member states, at least when these divergences are too large. This is necessary for more even economic development in the Union and, in particular, the eurozone. The third objective is the need to have an effective crisis management mechanism to deal with problems such as the current ones in the eurozone. The fourth objective, linked to the third, is the need to strengthen institutional economic governance to act quicker and in a more co-ordinated and efficient manner in dealing with problems when they arise.

The conclusions are not about providing further fiscal stimuli packages. They are about the need to show a determination to consolidate budgets in the interest of member states and European growth. Otherwise, the prospects of growth will recede.

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