Dáil debates

Wednesday, 30 November 2011

Pre-European Council Meeting on 8-9 December: Statements

 

12:00 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)

Déanfaidh mé mo dhícheall bheith críochnaithe i ndeich nóiméad.

The ESRI has predicted that much weaker economic growth than previously anticipated in Europe will seriously affect the Irish economy's performance this year. Yesterday Italian bonds rose to almost 8%, well in excess of the bond rates applying to this State when it was manoeuvred into a bailout last year. Arís agus arís agus arís, i rith na huaire criticiúla seo, tá ceannairí an AE ag dithering agus ag easaontú faoin ghéarchéim le cúpla mí anuas agus cúrsaí ag éirí níos measa.

At the same time, the crisis has brought into sharp focus the State's relationship with the EU. Do we interact with other member states as equals? If so, why all the talk of core states and periphery states? Is it because, in reality, a small number of large member states is deciding what is to happen and the rest of us can like it or lump it? This Government, like its predecessor, has acquiesced in this. That is particularly evident in the response to recent calls for changes to the EU treaties from the German Government in particular. Last week the French and German Governments indicated that they had reached agreement on the need for treaty changes. While these may be presented to the EU summit by Mr. Van Rompuy, there is little doubt who will be the driving force behind them. It will be a Franco-German initiative.

What is the Government's position on these issues? The Taoiseach said in his opening statement, as he has said before, that Ireland supports the creation of stronger economic governance. He also said that Mr. Van Rompuy is preparing a report which will seek to improve fiscal discipline and economic stability, including the possibility of limited treaty change. The Taoiseach referred to strengthening economic convergence within the euro area. He said this process of engagement includes the Government and that senior Irish officials are actively participating in it. What political direction have these officials been given? Do people here not deserve to know the Government's position on these matters?

The Minister of State, Deputy Lucinda Creighton, has indicated that if changes are agreed which require a referendum, that referendum should take place. However, the Taoiseach has given no such assurance. Whatever treaty changes take place, and the Government appears to have agreed that such changes should be made, it seems the Taoiseach and his colleagues are hoping a referendum will not be required. Perhaps the fundamental question in all of this is not about the advice the Comptroller and Auditor General gives the Government or what Mr. Van Rompuy proposes to the summit. Rather, it is the question of whether the Government believes EU fiscal unity is a good idea. Does the Taoiseach support this concept? We are entitled to know the answer, as are our partners in Europe.

We are moving from crisis to crisis, with every new development heralded as a great breakthrough. There has been one false dawn after another. I notice that the copy of the Taoiseach's script which was circulated to Members states, "We agreed a great deal in October", but the Taoiseach omitted the word "great" in delivering his speech. This suggests a degree of honesty. Perhaps the Taoiseach has engaged in some mature reflection. Earlier this morning he defended the imposition of a guillotine which will deny Members the opportunity to debate and propose amendments to legislation. He blamed the troika for that. An even greater illustration of the cold reality of increased surveillance is that elements of the State's budget were discussed by German parliamentarians before being presented to this House. The Taoiseach keeps saying that the budget has not been decided and that everything is up for grabs, but the Germans were informed of a VAT rate increase of 2%, which was later confirmed. That was a huge embarrassment.

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