Eamon Gilmore (Dún Laoghaire, Labour)

The bailout deal will be signed by the Government and the other EU Governments some time next week. However, despite the reply of the Minister of State, Deputy Andrews, yesterday, neither we nor they know what its legal status will be. It is clearly not done under the EU treaties or necessitated by membership of the Union. It seems the Government does not regard it as a treaty. Is it an ordinary contract, binding in its terms, or just a statement of intent?

The Government, in its response, seems to be trying to have it both ways. Although the bailout is a legal agreement and legally binding, a future Government, according to the Minister of State, is not obliged to draw down any funds and so the actions of a future Government are not fettered. His argument ignores the point that the memorandum of understanding setting out economic policy conditions and a fiscal adjustment programme applies from the time it is signed and the conditions attached to the loans apply from the very first draw-down. It is entirely specious to argue that the Government can walk us down this fiscal cul-de-sac, sign us up to these disastrous terms and conditions, impose on us a ruinous four year plan and then insist its successors have complete freedom of action to deal with the mess they have created. One might as well argue that a child dropped into the polar bear's pit at the zoo is free to find his or her own way out. It may be that this is the best deal Fianna Fáil can get but it is not the best deal that Ireland can get. That is something which must be pursued by the incoming Government which, I hope, will succeed the current Government sooner rather than later.

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