Brian Lenihan Jnr (Dublin West, Fianna Fail)

There are at all stages ongoing discussions with the Commission. Naturally, there were intensive discussions between the Commission and myself prior to this morning's important announcement. I made clear at that stage that we are embarked on such a course, following Government decision. There was no request from Europe for such a plan although Europe is happy to endorse it, as has been made clear by the euro-group. I participated in the euro-group meeting this morning by telephonic contact.

The following is an important point. The reason we need a four-year plan is not because anyone in Brussels believes we need it but because the crucial element in the stability and growth pact is meeting the 3% target by 2014. To do this, and to demonstrate this can be done, a credible pathway must be shown. I accept we have made substantial progress. I mentioned that we have already executed a 7.5% correction in GDP terms. Clearly, meeting a quantitative target in a given year is not sufficient to establish the credibility of the plan.

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