Robert Dowds (Dublin Mid West, Labour)

My points indicate that we have a considerable amount of footwork to do to rebuild the bridges badly damaged in recent years. Like the Minister of State, I welcome the Tánaiste's diplomatic initiative to explain our case in Europe. This is how we can begin the job of working with as opposed to against our European partners to help solve this crisis. Every Deputy should give his or her full backing to this work.

Undoubtedly, there is a degree of European responsibility for our debt and banking crisis. For example, how many European institutions lent money to Anglo Irish Bank? However, this argument if used on its own will not sway hearts in Europe. As a country, we must persuade our European neighbours that it is in their interests as well as ours that bondholders accept some burden sharing. We may need to soldier on with the current plan, but it will undoubtedly be shown down the road as not working adequately. I hope I am wrong, but the evidence may take the form of rising unemployment or long-term unemployment.

Unfortunately, Ireland will need to wait until Europe sees that we cannot cope with the burden placed upon us. If we cannot pay our way, it is likely that the losses will fall on other national central banks or the European Central Bank, ECB, which is locked into their exposure for the foreseeable future. It is our job to ensure they are made aware of this fact as soon as possible and arrange an arsenal of arguments to put to the ECB and our European partners, namely, that a renegotiation of the deal is in their national interests. We must make this case as soon as possible. The sooner that point is arrived at, the better for Ireland and the whole of the European Union.

Like my colleague, Deputy Keaveney, I would appreciate it if the Minister of State could demonstrate how the money being pumped into the banks will be made available for lending to small to medium-sized businesses.

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