Micheál Martin (Cork South Central, Fianna Fail)

I repeat that page 3 of the summit communiqué states explicitly that leaders discussed the co-ordination of tax policies and how tax policy can support economic policy co-ordination and contribute to fiscal consolidation and growth. It was discussed. Given that yesterday the Minister of State referred insultingly to many journalists having been too lazy to read the summit communiqué, she should clearly be more careful in future.

The scale of the political damage done at the summit will take some time to work out. The scenes on Friday were a disgrace and reflected a badly prepared summit and a set of leaders who did not seriously try to overcome easily surmountable problems. Mr. Kohl, Mr. Mitterand and other past leaders would not have let this happen. Reports that it was stated at the European People's Party, EPP, summit on Thursday afternoon that Britain would not be able to be accommodated are extremely serious. Will the Taoiseach, who is a vice-president of the EPP, confirm or refute these reports?

It is unprecedented that there would be a formal veto and split on the first day of a two day summit. This is the first time in the history of the Union that leaders failed to find a compromise that all could sign. Whatever Britain's demands and however ineptly they were promoted, it appears that some leaders were eager to have this split. Certainly, this is implied by their actions since then. Commissioner Rehn is a sensible and considerate man and I take his position seriously that existing treaties, even recently agreed directives, cover the issues discussed.

This is, however, irreconcilable with the position President Barroso took yesterday that the changes are so significant and Britain's position so unreasonable that this is the only way vital steps forward can be taken. President Barroso so does not appear to be taking seriously his duty to build bridges between countries rather than helping to tear them down.

Britain is our biggest partner and competitor. We need it to be active in Europe. We cannot afford any risk that our firms will be subject to controls and taxes from which British firms will be exempt. This is not a marginal issue and I am surprised at the failure of the Government to be able to give a coherent account of its position on Britain's demands.

Whatever lies behind this must be tackled immediately. President Sarkozy should be told unequivocally that he is not the spokesperson for the 26 countries. He might believe there is a new era of deep integration on the way, but he has no right to speak for us and act as if it is a great victory that Britain is becoming, at best, a semi-detached member of the Union.

Friday's breakdown was a betrayal of the spirit in which the Union was built. It reflected a group of leaders who have not systematically engaged each other. They have not built alliances or shown the imagination or generosity required to work effectively together. In the weeks leading up to a vital summit, the Taoiseach held his only proper bilateral meeting with a eurozone leader since he was elected and had a telephone chat with Prime Minister Cameron. According to his reply to questions yesterday, that was the sum total of his diplomacy before the summit.

He was clearly not alone in effectively standing on the sidelines of the summit. I know from my conversations with Prime Minister Rutte and others last week that governments throughout Europe are extremely uneasy with developments, in terms of policies and divisions. Many support the agreed approach, but others have serious reservations.

From August onwards the Government's main strategy has been to try to avoid anything which would require a referendum. The Taoiseach, Tánaiste and Ministers went through hoops to avoid telling us exactly what their positions were on key issues. The letter to President Van Rompuy was withheld from this House in spite of repeated requests for a discussion on the Taoiseach's proposals.

Reinforcing the Government's unprecedented level of contempt for the Oireachtas, it then leaked the letter to RTE in order to try to manipulate coverage of the first day of the summit. There should be no doubt about the position on a referendum. If what has been agreed is significant, there should be a vote. The leaders of Europe have said that these changes are fundamental and will, at a stroke, restore confidence. Therefore, we should take this issue off the table.

There should be a referendum on measures to strengthen the euro. However, the proposals currently on the table will not strengthen it and are weakening the Union. The deal may well have unravelled before any decision has to be taken here. The summit will be recorded as one of the worst in the Union's history. It has reinforced failed policies and cast aside principles of solidarity and respect which builds the Union. For the sake of Europe and its citizens, we should all hope there is still time to undo the damage caused last Friday.

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