John Halligan (Waterford, Independent)

Will the Taoiseach consent to the view that the vast majority of Irish people see this EU deal as a transfer of a significant amount of power from this House to the European Commission, the European Council and the European Court of Justice? At the same time, it will condemn the Irish people to years of further austerity measures. We are conceding more of our power and sovereignty to what is, in essence, a non-elected government. The tighter fiscal rules that are being agreed at European level will not solve the debt crisis. The draconian deficit ceiling of 0.5% of GDP will block economic growth and lead to greater poverty and unemployment. It is clear that any deal that is based on austerity measures and bows before the greed of the bank markets defies logic. It cannot work and it will not work.

The intense focus on the fiscal reform agenda is utterly marginal to the crisis in Ireland. People's debts are continuing to rise while their incomes and the value of their properties are falling. How will it solve anything in Ireland at a time when debts are rising while property prices and incomes are falling? Does the Taoiseach accept that any deal based on austerity measures will not work? It will fuel what is being called the age of austerity. If the Government keeps imposing cuts and increasing taxes, our economy will continue to contract and our deficit will grow. I am not an economist but I imagine that if we continue to reduce spending in our economy, which is exactly what we are doing, the economy will be unable to grow. All the evidence suggests that the economy is not growing. It is certainly not growing at the level at which we expected it to grow over recent years. The measures that have been set out for the next few years will further deflate the economy. It will not grow in such circumstances.

I disagree with those who say they are concerned that there is more in this deal than meets the eye. On the contrary, there is less in the deal than meets the eye. A number of major issues that threaten the shared currency have not been addressed in the deal. They have not been resolved. The agreement does not tackle the core of the crisis. It does not give certainty to the marketplace. Can the Taoiseach say he is confident that the deal that has been worked out will give certainty to the marketplace? I do not think he can. Many top economists would agree with me. The deal fails to specify where the money will come from next year. It is possible that another bond crisis is imminent. The deal does not mention what will happen in such circumstances. Where will the money come from?

The agreement is being guided by a limited and narrow-minded belief that the problems of the euro area stem from excessive levels of debt and default. I suggest the lack of growth and the inability of countries to generate sufficient nominal income and service their debts are equally as important. Those matters are not dealt with in the deal. I would say much more about this if I had time. Given that we are signing up to an agreement that rules out debt forgiveness, is it not the case that the recovery must instead come from rapid economic growth? If the Government continues to pursue austerity measures, where is the growth supposed to come from? The Taoiseach should listen to what economists and real people are saying. There has been a reduction in spending levels. People recognise there is a serious economic problem. They are beginning to get wise about how an economy runs and works. To put it simplistically, I agree with the many people who are saying that if we continue to reduce spending in the economy, there is no chance on earth that our economy will grow.

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