Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)

I wish to share the final five minutes of my time with Deputy McDonald. Looking forward to this week's European Union summit, we hear the word "co-operation" bandied about. Co-operation is defined by the Oxford English Dictionary as the action or process of working together to the same end. To intimidate means to frighten or overawe, especially to make another do what one wants. There is a world of difference between co-operation and intimidation. One outcome of the meeting of European leaders last week was that Greece secured a lower interest rate on its borrowings. What was the cost? It had to agree to sell €50 billion of state assets. When the Greek economy is gutted completely, when all vehicles of growth have been auctioned off, when there is no mechanism to begin paying back these extortionate loans, what will a difference of 100 basis points amount to?

When Ireland went cap in hand to get a reduction, we were told "No". Angela Merkel said that it was simply fair to say they could only give a commitment when they got something in return. However, Germany and France continue to get something every time we put another €1 billion of taxpayers' money into our banks in order that German and French banks do not take a hit. They get something with each budget when billions of euro is taken out of ordinary people's pockets in order that the Government can adhere to the strict terms and conditions imposed by the EU. They get something each time the prospect of burden sharing is taken off the table.

At this week's meeting, the pact for the euro will be converted into a binding agreement for euro area countries, representing a deep European penetration into national political and policy freedoms without any genuine democratic mandate. The effective lending capacity of the European rescue funds will be bumped up to meet the original goal of €500 billion through higher guarantees and injections of capital, although the precise mix and timing have yet to be spelt out. It will concentrate on actions where competence lies with the member states, constraining somewhat their autonomy to set policy by way of an annual system of setting common targets and national commitments, reporting and evaluation by the Commission and Council. It stipulates that all eurozone countries should put into law a pledge to get a grip on public debt. There are no provisions for compulsion or sanctions on member states. The reliance is on peer pressure. Only those seeking the support of the European Financial Stability Facility, EFSF, and European Stability Mechanism, ESM, will be forced to make policy changes. How can this be co-operation? An IMF-type institution will be established for Europe, the lending of which will be senior to that of private sector bondholders and which will be able to impose restructuring agreements and haircuts. As with all mention of burden sharing in Europe, however, this will only take place after 2013. Is the pact aimed at the right problems? No. How can it be when the German Chancellor is facing into an electoral challenge this week?

One cause of market turmoil is fear of contagion because of the fragility of Europe's banks. However, any sensible debate about restructuring debt in the near term has been completely blocked although, confusingly, Germany insists that bondholders must bear more of the burden in future. The European Commission and French and German Governments' hard-line position on private debt restructuring in the future, whether in the form of haircuts for bondholders or debt-for-bank-equity swaps, merely rubs salt into the wounds of the people.

The Government must inform the people of the measures it intends to pledge to implement this week under the pact for the next year. It must outline the concrete commitments to be achieved in the next 12 months in the name of the people. What is it bringing to the table this week? The people also deserve to know when the timetable for the gradual paying in of capital to the new fund will be established. How much capital must the people put into this fund in order that we may get it out at a later date as a loan at some extortionate interest rate? These are the small details of this pact which escape public attention. We will be paying into a fund that we will most likely access at a later date at a high rate of interest. It is like a burglar robbing one's home and then charging one to take away the loot.

One of the most pressing issues in this pact relates to the European Stability Mechanism whereby any decision to provide assistance will be taken by unanimity on the basis of a debt sustainability analysis of the member state concerned conducted by the Commission and the IMF in liaison with the European Central Bank. Where was this debt sustainability analysis before Ireland drew down the crippling EU IMF loan? Will there be such an analysis? These are the questions our Government must ask and these are the things for which this Government must fight.

The dogs on the street know that the current debt burden is unsustainable. The world and its mother knows that there is no way the people will be able to support bondholders of German and French banks indefinitely while dealing with packages of income cuts, public service decimation and taxes on everything bar the wealth of the State.

During the election the Taoiseach stated there would be burden sharing. He said that no longer would the people carry the debts of private banks on their backs. He said Irish sovereign default was becoming closer to reality because of the strangulation of private debt. Sinn Féin has always said as much. Ours was the only party which rejected the bailout on that basis. Ours was the only party that did not suggest renegotiating the interest rate when in reality the whole deal was rotten. Ours was the only party which held that the people could not afford the terms and conditions of the bailout. Unfortunately, we were right. Unemployment is at a record high of 14.7%. An increasing number of people are making the decision on whether they can afford to feed their families or pay their mortgage. Some 1,000 people are emigrating every week.

The choice is clear. Will the Taoiseach stand up for Ireland and challenge head on the blatant injustice of the EU-IMF package or will he repeat the disastrous policies of the last Government, which amounted to a betrayal of the Irish people? For all our sakes, I hope he makes the right decision.

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