Joe Higgins (Dublin West, Socialist Party)

The point is that when the Government takes €3.8 billion out of the economy in a single year and when it drives down the living standards of middle and low-income workers, it is achieving precisely the opposite of that to which the Taoiseach states it aspires. Moreover, the Government's labour activation measures, which is a despicable term, are designed to put pressure on people who have been cast into unemployment to go into the lowest-paid jobs the Government is facilitating the bosses to implement legally. This is reprehensible and will not be economically successful.

Does the Taoiseach not realise the crisis in Europe is a crisis of the financial system? The capitalist financial system in Europe is in an appalling crisis because of the craziness of that system. For example, is the Taoiseach aware that the fund of €400 billion to €500 billion made available by the European Central Bank for European banks has been massively taken up but that the week before last, when approximately €450 billion had been borrowed by the banks from that fund, precisely the same amount had been deposited back by the same banks? This is because they are not investing but are on a strike of capital because it is not profitable for them. Against this background, does the Taoiseach not acknowledge it is insane to design a straitjacket for member states of the European Union with regard to the necessity for economic policy that expands the economy and provides stimulus job creation programmes, which are desperately needed at present? The Taoiseach seeks the incorporation of this so-called fiscal compact, which is in fact an austerity treaty, into the treaties of the European Union. Does he not understand that by so doing, he is spancelling the member states from taking action at decisive times, which is critical to kick-start economic life precisely to counteract the effects of the strike of capital and the fact that the markets simply are not working for people?

Does the Taoiseach not realise that borrowing of itself has not been a problem but that borrowing by spivs and speculators for speculation and short-term private gain has caused the crisis here and throughout Europe? Does he not realise that emergency investment in, for example, job creation, which can involve borrowing, can be critical to kick-starting the economy and getting this State out of the mire of deflation and mass unemployment to which the Government's policies are condemning it?

The Taoiseach has stated that he does not know whether a referendum would be needed. I put it to him that he does know or should know that the last version of this proposed austerity treaty of which Members have had sight refers to a balanced budget and an automatic mechanism to take corrective action. Is the Taoiseach aware that a referendum was called in regard to transferring powers of this State to the International Criminal Court because it was formally transferring powers previously vested exclusively in the organs of our national Government? Does the Taoiseach not agree that what the Government proposes to do in this treaty is to transfer over powers now invested in the national Government or the Parliament to outside agencies? Is it not clear this will require a referendum? In any case, if the Government proposes to spancel the people to this austerity treaty with all the serious economic consequences that would have, it should give them the opportunity to have a major debate and to vote on it.

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