Enda Kenny (Mayo, Fine Gael)

The IMF is perfectly entitled to make its proposals. It has been very considerate of propositions put forward by our Minister for Finance in respect of the renegotiation of elements of the memorandum of understanding. It is perfectly in order for Chancellor Merkel and President Sarkozy to meet, as it is for any other leaders. I expect to go to Germany to provide an update on the progress we are making here. I also expect to meet the French President when it is appropriate. Both countries are enormously influential. Germany, in particular, sets the base rate here. The Chancellor has made it perfectly clear that Germany will continue to support the euro and that the eurozone has to work together to get out of these difficulties. For the first time ever, a measure of economic sovereignty has been removed from this Parliament. We are not in a position to determine all the things we would like to do now. If we comply with the conditions of the bailout deal and get back to borrowing in the bond markets, the Government will be able to work with the people to determine our future as a country.

The IMF is perfectly entitled to put forward its plans and make known its views on the future of Europe. The Lisbon treaty has been signed off on. I do not see any prospect of further treaties up ahead. We have to work together. I want Deputies to understand that the Government will continue to put forward propositions at ECOFIN meetings and leaders' meetings. Those propositions will not just be based on the narrow individual interests of Ireland, but will also be based on the interests of Europe. An element of that was accepted when we made our argument about the interest rate reduction. We made the point that other countries within the EU were getting moneys at a much lower interest rate. That argument was accepted and became the norm. That is part of the reason the interest rate reduction has been applied in the way it has been.

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