Shane Ross (Dublin South, Independent)

The Greek people are on the streets today, Italy's credit rating has been downgraded and there is a threat of further downgrades. Deputy Boyd Barrett is absolutely right. In the meantime, this Chamber is given one and a half hours to discuss an issue which has rapidly become totally out of hand. I do not have time to indulge in a critique of Government policy. Will the Minister, based on his perception of the situation and his meetings with Ecofin Ministers in recent days, indicate if any crisis management mechanism is in place in Europe because I do not see any substantial procedures or structure for tackling the incredible problem facing the Continent?

While I will not argue that it his entirely his fault, the Minister has again returned from Europe empty-handed. Moreover, the Greeks have been told again they will have to wait and, once more, no decision has been made. This is very alarming given that daily events are getting out of hand.

I note the German Chancellor, Ms Angela Merkel, stated today that €200 billion may be required almost immediately to recapitalise the banks. Neither the Commission or anyone else appears to have a plan indicating from where this money will come. Deputy Boyd Barrett is correct that it will come from the taxpayers of the nations which will have to pay and they will include us. While the spotlight has temporarily moved off Ireland because of developments in Dexia Bank, Italy and Greece, there is no cause for congratulations as the problem of Greek, Portuguese and Irish debt remains. Although superficial figures suggest the economy will achieve growth this year and next year, Irish growth is threatened with destruction. As an IMF spokesman stated today, the Irish recovery, for what its worth, will be destroyed if there is another contraction in Europe. Such a contraction is taking place. Let us not congratulate ourselves because we are at the mercy of growth elsewhere.

I read in the Financial Times today a shocking and truly terrifying figure that half the sovereign debt in the eurozone is on credit risk. I do not wish to debate the Irish perspective tonight. I want to know whether, from a European perspective, any plans are being made for a write-down of debt across Europe, in particular, in Ireland, Greece and Portugal. Such a write-down will almost certainly take place. Will a default occur by accident or by design and plan?

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