Micheál Martin (Cork South Central, Fianna Fail)

The mandate of the ECB should be reviewed urgently. The bank has shown that the sole role of low inflation as a policy target is increasingly unsuitable in terms of the economic needs of Europe. Targeting inflation is important, but when this leads to an overly-aggressive stance it is highly damaging. The ECB's rate increase in mid-2008 after the recession had already begun was an historic misreading of the available information. Unfortunately, the same mistake may be being made at the moment, with short-term commodity price rises driving rate increases which are not justified by the fundamentals.

The President of the ECB, Mr. Trichet, and his predecessor were rightly eager to establish the bank's independence of political interference, particularly from heavy-handed attacks from French presidents over a number of years. However, this does not mean that the ECB should never be challenged. In this case, the potential impact of further rises could undermine fragile recoveries throughout Europe.

This summit will not be looked back on as a moment when the leaders of Europe showed a shared determination and clarity of vision. It will be seen as a deeply unsatisfactory continuation of a mixture of indecision and rising short-termism. The pact for Europe remains incomplete. There will be progress in the coming weeks. Ireland will get a more sustainable rate for financial support and there will be agreement on fiscal rules for the future. What is as yet uncertain is whether it will take another crisis before this happens.

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