Micheál Martin (Cork South Central, Fianna Fail)

I have a supplementary question which I signalled. I acknowledge that Davos represents a very important networking event. I had the privilege of attending it and I know that some of the events there broaden the mind and broaden the horizons if one is prepared to be open and listen to what people have to say. It is a good networking event with people who can create many jobs in the country.

There is a big debate globally on whether capitalism is in crisis and whether the financial model that has governed in recent decades is in crisis. The Financial Times has been running a series for some time on the topic. There was considerable debate at Davos on the big issues. The origins of this crisis, which has been called the great recession, are much more profound than people sometimes care to admit in the domestic political arena for obvious political reasons. Mistakes were made here and I have acknowledged those and so on. However, the fundamentals of the crisis go back some time, particularly to the establishment of the euro and the flawed nature of the euro design. There were also the events after 11 September 2001 in the US and what the Federal Reserve did. Essentially in the developed economies across the world cheap money became available, which fuelled bubbles across Europe.

At Davos, with the exception of Chancellor Merkel and a handful of other European leaders, everybody agreed that Europe had not adequately addressed the economic crisis and particularly the eurozone crisis. That was the general consensus external to Europe and in many European areas as well. Economists, journalists, business executives and world leaders at Davos all said that the core flaws in the eurozone have not been addressed and there is a great threat to the international economy as a result.

See this speech in context