Finian McGrath (Dublin North Central, Independent)

I thank the Ceann Comhairle for the opportunity to speak on this urgent debate on the European fiscal compact treaty. It is important to have a debate on it and on the facts. I am entering the debate with an open mind and will listen to all sides, after which I will make an informed decision on the facts and what I believe is in the best interest of the people of Ireland. I urge all Deputies to do so.

When one considers the details of the treaty, one will see the new fiscal compact imposes fines and will have repercussions for countries that break the agreement. This is a new departure. The treaty does not affect our current bailout arrangement and nothing will be changed by accepting or rejecting the deal. The treaty covers all future deals. If Ireland does not sign up to the deal, it cannot apply for a second bailout at any stage. Ireland may have other options, such as arranging unilateral loans from the United Kingdom or other countries and the IMF. However, people understand that this could be messy. Each country would impose its own conditions on any loan.

The treaty gives strong powers of oversight to the European Union. It removes the Dáil as being the final arbiter of budgetary policy. As such, the treaty signs away Irish sovereignty and freedom and admits there are powers above the Irish people that can determine what happens. These are concerns the people will raise and I would like to hear the Minister's response.

Governments will no longer have a free reign on wide economic policy and when to spend to stimulate the economy. The treaty marks the first genuine step towards a federal state, in which national governments are subservient to the European Commission or European Central Bank.

Owing to the current world crisis, Germany is the only country in a strong negotiating position, and this moves the entire European Union into the German model for the future. Corporation taxes will be placed on the agenda and they will come under threat. We should deal with this in a sensible way. The treaty opens the door for the European Union to decide exactly how money is spent in Ireland. The current troika arrangements may become a standard in the future.

The treaty carries no easing of the debt burden for Ireland and commits it to a very large task in order to repay. In such circumstances, it seems both unreasonable and unfair, and the burden will cripple Ireland as an entity, making it no more than a footnote to the European Union. These concerns are important and I would like them to be addressed in the debate.

Deputy Durkan raised major concerns over stimulus packages. Everybody wants to balance the books, stay within budget and sort out the economic crisis. Nobody differs on that but some of us in the Opposition benches see the way forward as being able to propose constructive policies on trying to stimulate the economy and generate growth.

The fiscal compact treaty is designed to improve the strength of the European Union in dealing with the financial crisis. It strengthens the so-called bailout arrangements and imposes new conditions for countries' participation. In short, it makes a stronger fund available to countries that need it. In return, they must commit to tighter oversight by the European Union. Since the Maastricht treaty, the European Union has had oversight powers. Guidelines were set out for all countries as regards borrowing and spending.

I have an open mind on the issue. I will listen to all sides and then make a decision.

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