Eamon Gilmore (Dún Laoghaire, Labour)

This country has come a long way in the past 12 months. Through the hard work and sacrifice of the Irish people we have re-established political and financial stability and we have laid the foundations for economic recovery. The choice facing us now in the referendum on the European stability treaty is whether we build on what we have achieved or go backwards. Nobody is trying to pretend that the treaty is the solution to the problems facing Ireland or Europe. It is an important part of the solution, however, and an essential building block in our economic recovery.

Ireland is a small and open economy. Our jobs and living standards depend on what we make and sell to others. Our prosperity depends on the stability and prosperity of others, including in particular the stability and prosperity of the eurozone countries. The euro is not an abstract concept. It is the very money in our pockets. It is a simple fact that what is good for stability in Europe is good for us.

Twelve months ago, Ireland was stuck in a profound economic and political crisis. This Government has gotten to grips with the problem, however. We have brought about far greater stability and worked hard to restore Ireland's reputation abroad. We are succeeding in our task but to make further progress we need the instability in the Euro area to end. As Minister for Foreign Affairs and Trade, I recognise that what is holding down confidence and investment is not uncertainty about Ireland but uncertainty about Europe and the euro. We have to overcome that problem and this treaty is an essential part of achieving our objective.

Viewed from the outside, Europe as a whole has often seemed slow in responding to the crisis. There is some truth in that analysis. Europe has been deeply affected by the crisis of recent years, with its institutions and leaders having to navigate through uncharted waters. However, it is also true to say that a lot more has been achieved than is often appreciated and we are now making tangible progress. When the crisis broke, Europe lacked the tools it needed to deal with an unprecedented set of circumstances. Step by step, it has put a response in place and has moved to address the immediate crisis, while learning lessons as events unfolded. It was improvising when the first package of support for Greece was put in place but it has since put in place the temporary mechanism of the EFSF, under which Ireland has drawn down some of its funding, and building on its experience the permanent mechanism of the ESM will come into being in the middle of this year.

The Union has also taken steps to strengthen the rules through which economic and monetary union is built. At the end of last year six legislative measures were adopted and another two are currently in the pipeline, with a shared commitment to their early adoption. Taken together, these measures enhance our capacity to see what is really happening in each other's economies. For example, it will now be easier to spot imbalances, such as the property bubble and over-reliance on unsustainable taxes that contributed to Ireland's downfall. They enhance our ability to enforce the rules by ensuring that all member states, whether big or small, live up to the responsibilities that come with a shared currency. In the European semester and Europe 2020 processes, Europe has put in place systems that can ensure the structural reforms vital to a sustainable return to growth are delivered. These will be at the heart of the discussions that will take place at the European Council tomorrow and on Friday. Ireland has strongly supported this work as vital to our national recovery and investing in our future.

The stability treaty is another part of the solution that Europe is putting in place. The new treaty has to be seen as an important part of this overall picture. It responds, in particular, to a desire on the part of the countries of the euro area to deepen their commitment to each other in recognition of the responsibilities and obligations they share. It is a signal to the wider world that the problems which have undermined confidence in the currency cannot be repeated and that the necessary lessons have been learned. It is simple logic that if one asks people to fix a problem, one must make sure the mistakes that caused it are not repeated. Other elements of the picture include the measures being taken by the ECB to provide liquidity to the European banking system and the new firewalls that have been put in place to protect countries from the effects of contagion in financial markets.

Financial discipline is part of the solution but growth is another part. This Government has consistently called for the drive for discipline and reform to be matched by an equal commitment to growth and job creation. We have argued that any other approach is lopsided and doomed to fail. It is clear that our analysis is being taken on board. The Government is working with like-minded colleagues to drive the agenda forward. At the end of January the European Council identified priority areas for action. Tomorrow's meeting will build on this and in June the European Council will return to the matter to ensure that commitments are being honoured. The Taoiseach and I have engaged with our colleagues and are helping to shape the agenda in Europe. Matters are progressing and repairs are underway.

What will it mean for Ireland to ratify the Treaty? In a narrow sense it will commit us to implementing budgetary rules and procedures to which we are already substantially committed. Voting for the treaty also has far wider implications, however. It will send a message to our partners that we recognise and accept the fact that our fates are locked together. We are ready to shoulder the responsibilities this brings. It will send a message to those looking to invest in Ireland that we are deeply serious about restoring the stability and security of our currency and helping to provide the certainty that investors seek before they can commit their money with confidence. It will enable us to hold our partners to account in a way that has not been possible heretofore. The larger member states will no longer be able to use their weight to escape the rigour they apply to others. It also puts in place a set of rules about how future Governments will manage the public finances. The Government was already committed to this approach regardless of whether our partners in Europe were minded to do likewise.

We were already committed to a fiscal responsibility Bill containing many of the provisions now set out in the new treaty. As a small and open economy, we have to learn the lessons of this crisis and ensure that our national finances can endure the buffeting of future shifts and changes in the global economy. Ratification of the treaty will also mean that Ireland will continue to have access to emergency funding under the ESM should it ever be required in the future. We have made plain our determination to exit the EU-IMF programme of support as quickly as we can and without resort to the ESM. That remains the Government's steadfast intention but we should also recognise that having the ESM available as a backstop is a sensible and prudent precaution which will further enhance international confidence in Ireland.

I have no doubt that some people will seek to distort the truth about this treaty for their own ends. They are already doing so and we heard some of it earlier today. I believe the Irish people will see beyond such self-interested arguments and will recognise that the treaty is part of a package of measures at national and European level to restore stability, underpin confidence and support a return to growth and job creation. It is absolutely in our national interests to ratify it, as a step towards a more secure and sustainable future. In seeking that support, we are asking the people to cast their votes for economic and financial stability. In the end, this treaty is about providing a foundation of stability, on which we can build a sustainable and real economic recovery.

As I said to the House yesterday, the Government was elected to office in the face of the gravest political, economic and financial crisis the country has faced. Before that, the people had looked on in horror as the economy went into a nose-dive and as the economic crisis was followed by a political crisis. In the past year, the Government has taken a grip of the problem and we have been successful in restoring political, economic and financial stability. We have worked diligently in the slow and painstaking task of restoring our reputation as a country and our standing among the member states of the European Union.

Our efforts have been widely recognised, and they are showing results. As a country we are making progress together, step by step. Our cost of borrowing has fallen and we have improved the terms of our EU-IMF programme, saving the country €10 billion in interest payments. We are once again, as we were in the past, held in high regard internationally. Our credibility is being re-established and confidence in Ireland is growing. Investment is returning and with it jobs as we have seen in jobs announcements in recent weeks. We know where we are going and we have shown that we have what it takes to get there. Thanks to the hard work and sacrifice of the people, we are now in a far better position than we were a year ago. We now need to build on that stability, achieve economic recovery, create jobs and make existing jobs more secure.

However, we cannot take that stability for granted, and we must also recognise that we can only do so much for ourselves. We are part of the euro currency union. For Ireland to succeed, Europe must also succeed. For there to be stability in Ireland, we also need stability in the euro area. People should not listen to those who try to make cynical use of the debate to advance narrow partisan interests to the detriment of the interests of the people. The situation is too serious and the issues involved are too important. In the face of the worst crisis we have weathered together, the people have shown their mettle. In doing so, they have gained the respect and confidence of our partners in Europe and beyond.

We now have an important opportunity to take a decision that will help to secure all that we have worked hard to achieve with a positive step towards our national recovery and a vote of confidence in our capacity to recover and regain control of our own affairs. I look forward to a full and respectful debate, to a clear and positive outcome and to moving forward together.

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