Micheál Martin (Cork South Central, Fianna Fail)

No, I am talking about the study on what was agreed. The Taoiseach, along with others, adopted a tough series of commitments relating to structural deficits and the reduction of debt.

The enforcement procedures are such that these rules will effectively set the entire economic framework for the future of this country. Not one person in the Council chamber last week could say what would be the impact of these rules. This is madness.

We want to be supportive of the new measures but early examinations of the new target figures are deeply worrying. It would appear that they will significantly undermine growth and hold back employment, while reducing government debts to a far lower level than the 60% mentioned. Analyses of the impact of the deficit limit suggest that it will lead to countries having almost no debt in the long run. In other words, it would involve significant austerity on effectively a permanent basis. In the name of saving the European sovereign debt market, these rules would end up closing it down.

Before there is any move to finalise agreements on these new fiscal control rules, detailed studies must be carried out and made publicly available. Many of the current troubles arose from politicians 20 years ago taking decisions about the euro without detailed evidence or discussions. This cannot be allowed to happen again. A decision of such magnitude, with such a profound impact on the social and economic future of Europe, should not be taken on the basis of plucking figures from the air because they sound tough.

The rush to enact these rules is being done in the name of showing resolve, which would supposedly restore confidence. This is nonsense. The idea that Italian debt is under pressure because the government has not enacted a strong enough law about future budgets would be laughable if it was not the policy signed up to by the Taoiseach and his colleagues last Friday. The real issue remains the uncertainty about the ability of governments to refinance existing debt. This uncertainty can only be dealt with if Europe has a significant lender of last resort. It is almost shocking that the Council spent hours reaching an agreement on fiscal rules and did not even discuss addressing the central role of the European Central Bank in inflating this crisis.

Mr. Draghi is right when he says the bank's agenda is narrow, clear and independent. It is, however, not as narrow as he is interpreting it, and there is an urgent need to reform its work. It remains a mystery why the Taoiseach agreed to Mr. Draghi's appointment without discussing these issues with him. This is a bank that raised interest rates after a recession had started.

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