Áine Collins (Cork North West, Fine Gael)

I welcome the opportunity to speak to the motion and pass on my best wishes to the Taoiseach in his endeavours to save Ireland's future. I remind the Technical Group that since Ireland's decision to enter what was then the European Economic Community in 1972, each change in our contract of relationship within the Union has been ratified by treaty. Moreover, each treaty change has been ratified by the Government and changes to the existing treaties can only be made either within the parameters of the existing treaties or with the agreement of the people as expressed in a referendum. There never has been, nor can there ever be, use of force and the use of such language is scaremongering.

The issue for discussion at the European summit pertains to the European leaders coming together to work out a solution to calm the fears of financial markets. We need political leadership now more than ever to ensure the stability of the euro and secure Ireland's future. Ireland has been taking part in fiscal co-operation with its partners in Europe for some time. When it signed the Maastricht treaty in 1992, we entered into Economic and Monetary Union, EMU. I remind the Technical Group that the Maastricht treaty was not forced on the people. They voted in favour of it with a majority of 68.7%. The Treaty of Maastricht led to the creation of the euro and by adopting the euro as its currency Ireland agreed to the criteria laid down under the treaty which had a direct bearing on fiscal matters.

In addition, we have an existing fiscal relationship under the Stability and Growth Pact. This is a rule-based framework for the co-ordination of national fiscal policies within EMU. The purpose of the pact was to ensure fiscal discipline would be maintained and enforced within EMU and the real problem is that this did not happen. Warnings given were ignored and available sanctions were not implemented. The former Fianna Fáil Minister for Finance, Charlie McCreevy, ignored warnings from both the European Commission and the European Central Bank with regard to his 2001 giveaway budget which was aimed at nothing more than buying victory for Fianna Fáil in the general election that took place the following year. Perhaps had the Government listened then to the warnings given by its European colleagues all those years ago, we would not now be in this mess. Instead, it opted to introduce a series of budgets that can only be likened to reckless drunken spending.

Other member states have also been in breach of the Stability and Growth Pact, including Germany and France; consequently, closer monitoring and surveillance should not be perceived as a threat. It would, in fact, prevent governments from spending recklessly before elections or at other times. The need to have some checks and balances is crucial. A method whereby someone could shout "stop" is needed, given the manner in which the finances of this country were so badly managed in recent years. We are now paying the price for a lack of regulation. Some fiscal oversight rules must be implemented and they must be enforced to prevent a recurrence of the crippling problems besetting the eurozone.

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