John Paul Phelan (Carlow-Kilkenny, Fine Gael)

I compliment the Technical Group for putting down this motion and I listened to most of the contributions earlier. I used to find myself agreeing much of the time with Deputy Ross when we were both in another place, and I share his view on most of the points he raised. The Minister of State, Deputy Sherlock, has outlined the position quite clearly.

There are two issues being discussed in the Chamber, including the nature of our relationship with the European Union. We need a full discussion on the shape of that relationship into the future. We also a need, over this weekend and in the coming weeks, to bring some sort of resolution and certainty to the difficulties which surround the single currency at present. That is why this weekend's discussions are vital.

I oppose any moves that would lead towards fiscal union and surrendering the right of any Irish Government to set its own rates of taxation. I know I do not contradict Government policy because the Taoiseach and the Tánaiste, in an earlier strong contribution, outlined the Government's view on that position. As part of any potential agreement that might emerge, we will see increased co-operation between the member states of the eurozone, and we should have a full discussion at the earliest possible opportunity on that.

With regard to our relationship with the European Union, I agree with Deputy Ross and others - including Deputy Adams, with whom I do not often agree - on what has developed in the past 12 or 18 months. The French President and German Chancellor have had private meetings which almost dictate the direction of the European Union. That is not the Union to which I or the majority of Irish people want to belong. There must be consideration of such actions, and Ireland is one of 27 states. The European Union which the Irish people want to develop into the future is one of co-operation rather than directives from the most powerful member states within that Union.

Some of the earlier contributions were interesting. Deputy Mattie McGrath managed to state that a budget which took €3.8 billion from the economy was inflationary but even by a stretch of economics, the comment was strange. It is important to have this discussion and I ask members of the Opposition to support the Government amendment and give the Taoiseach a strong hand in negotiating on our behalf this weekend.

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