Enda Kenny (Mayo, Fine Gael)

I agree that the European process relates to consolidation and to allowing each of the 27 member states to develop to their best potential, to create employment opportunities and to maintain both a healthy balance of payments and secure financial positions. Ireland and a small number of other countries obviously occupy a particular position in this regard at present. For whatever reason, I detect a certain level of suspicion in respect of Ireland. The degree of trust I would like to see is not evident at present. This is despite the fact that Ireland has always measured up in the context of its European requirements.

The ECB-IMF package is very particular in nature. Representatives from the IMF met Government officials recently and, as a result of the former's analysis, the fiscal targets set out in the programme for Government have been endorsed. The Deputy and I are aware this is a matter of great concern and anxiety to many people. This weekend, the European Council is likely to deal with a number of issues relating to this matter. That will at least lead towards some co-ordination in the context to which the Deputy refers.

The first of the issues to which I refer relates to the reinforcement of the European semester, including the targets and strategies member states will be presenting in their national reform programmes and programmes for stability and convergence that are due to be published in April. The second issue relates to the presentation of the pact for the euro, which aims to improve competitiveness, employment, public finances and financial stability and which will involve member states identifying commitments they are prepared to make at national level and that will, in turn, be reflected in national reform programmes and stability and convergence programmes. Non-eurozone member states will be invited to participate in this process.

The third issue involves a recommitment to the early adoption, by June of this year, of the so-called "six pack" of legislative proposals to strengthen economic governance in the Stability and Growth Pact. The fourth issue relates to the decision to amend the treaty to allow for the establishment of the permanent fund, namely, the European stability mechanism, ESM. There will also be confirmation of the detailed adjustments of the European financial stability facility, EFSF, and the ESM. As already stated, broad agreement was achieved at eurozone level on 11 March in respect of the latter. The Council meeting will also note the ongoing work in respect of the stress tests relating to the banks and will contemplate the measures that are likely to be required to respond to the outcome of those tests.

I would like there to be a much stronger reflection of the problems that exist across Europe at the meeting. I accept that Ireland is the subject of a particular level of focus and our discussions must be based on that reality until we discover the extra flexibility and tools that will permit us to restore our status and reputation and once again place us in a position to pay our way.

See this speech in context