Micheál Martin (Cork South Central, Fianna Fail)

An exactly similar exchange between the former Taoiseach, Brian Cowen, and President Sarkozy happened at the previous meeting and was not allowed to get in the way of the important agreements reached in February.

Grinning about having a so-called Gallic spat and praising one's own toughness against a colleague might be good for polishing the image at home but it did nothing to help get the deal finalised. It shows an interest in media spin taking precedence over building a relationship, and a number of reports have shown that what annoyed President Sarkozy was not the discussion with the Taoiseach but the hyping of it afterwards.

The French demand relating to corporation tax is long-standing and it is unachievable. They know it and they will accept it. As matters progress, it appears that this is more likely to be because of the intervention of others worried about how the issue is dragging on rather than because of bilateral contacts. There will be a lower interest rate for Ireland's borrowings and other terms may also be improved. It will happen because the cost of not agreeing it could be immense for the whole of Europe. The problem for Europe is that it has already agreed that the financing conditions agreed last year are unsustainable. To leave unsustainable financial conditions in place would be a direct signal that the European sovereign debt crisis will get worse. Before the March Council the Government stated that it was seeking changes which would be worth €400 million a year to Ireland. This figure has been halved since then. It is still an important amount which would make a contribution to easing some of the fiscal adjustments planned for the next three years.

The four year fiscal plan prepared last autumn and accepted as the basis of funding from the EU and IMF is credible and provides the foundation for restored confidence in the economy. There is much positive feedback internationally for the decision of Fine Gael and Labour to both implement the plan and claim credit for a budget they voted against. The Tánaiste is right to give speeches about what he terms the many fundamental strengths of the economy just as he was wrong to call it banjaxed three months ago.

Better terms on the international funding will reinforce the idea that we are on a sustainable path to recovery and show that Europe is willing to resolve the debt crisis. The Taoiseach should use the well-established support for Ireland's position by the Presidents of both the Commission and Council to force the issue to a conclusion this week. The change to the status of borrowings from the ESM is welcome and it does have potential benefits for Ireland and others. The efforts to which the Government went on Monday to claim credit for it are, once again, short-sighted.

It has always been my party's position that private sector burden sharing in bank debt should be implemented. The late Deputy Brian Lenihan brought legislation through the Oireachtas to enable this. As is well known, others effectively vetoed this owing to fears about knock-on effects. Given the refusal of the Taoiseach, Tánaiste and Minister for Finance to ask US Secretary of the Treasury, Timothy Geithner, about his role, there is some doubt as to whether he was an important player in this. What is not in doubt is that the ECB opposed burden sharing and continues to do so.

The Taoiseach yesterday confirmed that the Washington announcement by the Minister, Deputy Noonan, concerning burden sharing for Anglo Irish Bank is a continuation of existing policy and will not be raised until the autumn. This raises the question why such efforts were made to push the story last week and why no one thought to brief the main interested parties about it before the Minister did his press events. It appears to have been mainly about manipulating domestic coverage of the 100 days anniversary. Certainly, there was and is no strategy actually to achieve something on burden sharing in the near future.

Much more detail would need to be provided before we can know whether or not a Vienna Initiative style of debt roll-overs can work for Greece. What is sure is that this is the very least that needs to be tried. Over dinner on Thursday night the Council will, according to the President, "take stock of the progress on the various elements of the comprehensive approach agreed upon in March". As I have said, the approach was agreed but the implementation has been stalled. If the leaders fail to take a comprehensive and generous approach to reaching a conclusion tomorrow evening, the next summit may deal with an even deeper crisis, covering more countries and threatening the existence of the euro.

Also scheduled to be agreed over dinner is the appointment of Mr. Mario Draghi to be President of the European Central Bank. It is a great pity that we have not worked with other countries to query this appointment and do not appear to have tabled any measures for the reform of a deeply flawed institution. It appears poised to undertake a series of interest rate increases that could destroy weak economies owing to a flawed targeting of commodity-driven inflation. Its failure to give clarity on affordable medium-term funding is making recovery more difficult for a number of banking systems. Its arrogant and unprofessional approach to the media is denying it the stature which is essential for public legitimacy of its broad powers. As a commentator wrote yesterday:

The ECB's strategy of threatening peripheral banking systems (and the regular coverage this receives in the media) has become one of the destabilising factors that have contributed to worsening the current crisis. It is time for this poorly-thought-out strategy to cease. The ECB's obligations under the European Treaty mean that it cannot help peripheral countries via keeping interest rates low for the next few years. But it can continue to act as a lender of last resort to the banks in these countries in a way that reassures (rather than worries) financial markets.

Mr. Draghi's comments to the European Parliament last week were unacceptably dismissive of the statement by the Minister, Deputy Noonan, about burden sharing. His comments about medium-term funding were actively damaging. We should not be nodding through his appointment over dinner without any sense that he appreciates the failings of the ECB and shows that he has a reform agenda.

The Council is due to spend a significant period discussing migration policy. The papers published to date have a certain air of unreality about them. They talk about the great achievements of the Union in terms of free movement but fail to mention that these achievements are under threat. The unilateral abrogation of Schengen rules by France and Denmark was a dramatic move. It appears that the French move was justified by the scale of its issues on the Italian border. Ireland's non-membership of Schengen is an accident of history due to the common travel area with Britain, but it is also no great issue. It is not clear that any great benefits would accrue from membership. What is important, however, is that the Union sorts out a policy which respects its rules and does not allow a situation develop where members can take a selective approach to constitutional obligations.

The formal closing of all negotiating chapters with Croatia is welcome and overdue. Croatia was put through considerably tougher negotiations than many previous accession countries. The delay imposed by Slovenia was a disgrace. The Croatian Government took a number of stands that were politically tough but mean that its country has implemented important reforms which have strengthened its economy and society. There is a major problem due to the significant change in public sentiment against the Union, particularly because of measures relating to the Hague tribunal. I hope the Council and member states will acknowledge the role they must play in talking to the Croatian people before their accession referendum.

The proposal before the Council to strengthen sanctions against the Syrian regime are welcome and we should support them. It would be a constructive use of the leaders' time if they would also agree to increase Union support significantly for democracy promotion in the countries experiencing the Arab spring. The elections in Egypt and Tunisia have great potential but also carry great risks. The people of those countries and others have expressed their powerful desire for real democracy. Europe should take the lead in helping ensure they get the free and fair elections they deserve. Europe should also move to put in place support for civil society organisations which are essential for the healthy functioning of the democracies after elections. The failure to do this more comprehensively in some post-Soviet countries was a fatal error. I would certainly support the idea of Ireland increasing its allocation to this issue and working in closer co-operation with the Union and other members. This could involve increased levels of joint funding programmes.

President Barroso was wrong this week to talk about this being Greece's moment of truth. This is Europe's moment of truth. The principle of solidarity between members is under threat. The euro is in danger. The institutions are failing to react credibly and comprehensively. The citizens of Europe are looking for a sign that the millions of jobs they need can be created.

This week's summit has an agenda which is low on ambition and devoid of the sense of urgency which is so badly needed. Vital issues are being left to drift long after the need for action has been agreed. Tough talking and media posturing are of no use. We need a summit with a renewed sense of purpose and we need it to agree measures which will help individual countries to recover, protect the common currency and reinforce the vision of a Europe of shared interests.

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