Micheál Martin (Cork South Central, Fianna Fail)

We must look at this issue with a degree of frankness, transparency and honesty. Work has been underway for some time, even before the general election, to revamp the mechanisms deployed by Europe, particularly in terms of the EFSF and ESM, focusing on the enlargement of the fund and a reduction of interest rates to enshrine the principles of sustainability and recoverability and to send a strong signal to the markets that Europe as an entity was determined to stand squarely behind the euro as a currency. That work has been underway for some time, the reduction in the interest rate has been on the table and there is a growing consensus among EU member states that the mechanisms must be revamped, mechanisms that were established before Ireland had to avail of any programme. It is important to acknowledge that.

Equally, in response, Ireland has indicated its acceptance of the idea of new fiscal rules for deficits and debt burdens. That was desirable and welcome, not just from an Irish perspective but from a European and eurozone perspective.

It is unacceptable however - this is the real issue - that from the outset of the crisis, the fundamental flaw has been that the major powers in Europe have not dealt comprehensively with the issue. The approach has been faltering and halting. From the onset of the Greek crisis, it has been too slow, with too little, too late. That is what we are now witnessing in the build up to this summit and in the outcome of the last, namely, new attempts to arrive at a comprehensive resolution of the issues.

The danger is that the major powers are again collectively stopping short of reaching the comprehensive resolution required from a Europe-wide perspective. This is not just about Ireland on its own, and there has been a lot of talk about bad deals but that is just politicking. The reality is that these were pan-European mechanisms that were established before Ireland ever had to avail of any deal and before any interest rates particular to Ireland were decided upon. The rates were decided in advance of Ireland availing of such programmes.

The net point is the domestic political situation in some EU member states has informed the situation, such as the electoral concerns of the German Government and the French President and, to a lesser extent, the Finnish Government. Does the Taoiseach agree that we are dealing with different perspectives of different electorates on the core issue? We are giving a lot and are contributing to the resolution of the fundamental issues pertaining to the euro itself.

We showed good faith by introducing a detailed and sustained austerity programme in recent years. I do not believe the French President or the German Chancellor are entitled to the kind of responses they are seeking in respect of corporation tax etc. Does the Taoiseach agree the fundamental issue is that the leaders of Europe must put aside their domestic electoral concerns and focus instead on the wider concerns relating to the European Union and the sustainability and viability of that entity in the coming years?

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