Shane Ross (Dublin South, Independent)

The Taoiseach is going to Brussels on Thursday for possibly the most important summit of his career. It could be the most important summit in the history of Ireland's relationship with the EU. Of course he will go there with the goodwill of everyone in this House. He will carry a very heavy burden of debt on his back as he goes. The news that drips to us daily indicates that the debt will be almost impossible to pay off. The Government's spin is that we are on track to pay back that debt. When the Taoiseach goes to Brussels, he must be mindful of the fact that the markets are clearly indicating we will not be able to pay back that debt. I think Irish two-year bonds were at 23% yesterday. It is clear that the markets believe the Government is in denial when it says it will pay back that debt. The Taoiseach will face a choice when historic decisions are being made at Thursday's important summit. He will have to decide whether to face the issue of default or to be in denial about it. It is a question of denial or default for this Government.

I ask the Government to consider taking up the default gauntlet, in a structured way if necessary. It should say that default is not a negative. Default is a positive because the markets believe it is inevitable. Will the Taoiseach make the point that default will lead to stronger banks? If the debt is written off in a structured way, in keeping and in tandem with other nations, that default will be recognised by the bond markets as a positive and they will be able to start lending to us again. Will the Taoiseach not consider taking that position? The Taoiseach should not come back to us on Friday-----

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