Eamon Gilmore (Dún Laoghaire, Labour)

I thank the Taoiseach for that considered reply. I wish to pursue the issue a little further. The Taoiseach is right. It is in all our interests that the credibility of the country is protected and the very worrying levels of interest rates and what is happening in the bond markets, and so on, are narrowed. Clearly, there are a number of elements to that. We can argue the toss in this Chamber about the domestic measures to be taken but I believe the Taoiseach will acknowledge that in arguing that toss the Labour Party has been very careful not to communicate anything that would be in any way damaging to the country's reputation. I acknowledge the Taoiseach accepts we have committed to the target.

However, in spite of all that we have done, the various reductions in public expenditure, the austerity measures, the acceptance of the size of the bank problem and the announcement by the Minister for Finance, Deputy Lenihan, about the new targets made in budgetary adjustment, interest rates continue to rise. I know the Taoiseach will respond by saying we are not in the market at present. It is the case, however, that some, at least, of this is happening because of the extent to which Ireland is perceived to have its fate bound up with a number of European Union member states which are seen to be in the same territory.

My specific question relates to how we are dealing with this at a European level. I understand and see the necessity for the stabilisation fund and the putting of crisis measures on a permanent basis. Is it not also the case that when countries fall victim to being perceived by the world as a group of European Union states in difficulty there is a necessity to address that issue at EU level and it may be necessary to address it in a way that goes beyond merely the putting of the stabilisation fund on a permanent basis? That is why, for example, regulation of rating agencies and so on are issues we should pursue with more urgency. There is a collective need for the EU to ensure that for member states exposed to this kind of international pressure, that are suffering as a consequence of the way in which interest rates are going, measures be taken at a European level which are not concerned only with the stabilisation fund but are about supporting those states to get beyond the problem. Obviously, that would include policies in regard to jobs, growth and regulation of both financial markets and rating agencies.

See this speech in context