Jim Daly (Cork South West, Fine Gael)

It is an interesting debate with many angles but one must look at the bigger picture and view everything in a European context. For the past 30 years we no longer have the luxury of discussing countries on their own and examining their individual merits and attributes. We must see the bigger picture. I was in Brussels at the beginning of last week. One of the interesting things I learned there is that it is not possible for Greece to exit the euro without exiting the Union. The scenario of breaking up the Union bit by bit is a scary one and one that cannot be lightly contemplated.

Many are complaining about the austerity that is being implemented in this country and how we have, collectively, as a nation reduced our living standards. Comparatively, we are in or around the standards we enjoyed in 2005. One can only imagine what we would have to return to if we were to take the Union apart, forgo the currency and return to the living standard we enjoyed in the 1980s. What we would have to do is unimaginable.

A total of 23 million people are unemployed across the Union. Unemployment is the single greatest threat to the European Union. It was interesting to hear our colleague members of other parliaments compare their experiences. Our Spanish counterparts have 5.3 million people unemployed, which is almost a quarter of the workforce. Up to 60% of people under the age of 25 years are unemployed in certain regions and the rate is 40% and 50% in other regions. There is no doubt the issues and the challenges they present are stark. Without a shadow of doubt, unemployment is the single greatest challenge we face.

It was also interesting the note the divide in ideas and ideologies in Europe. In particular, I noticed that our colleagues in Britain are divided among themselves on the approach the EU should take on the future of the Union, the currency and on the future of Greece. The experience provided much opportunity for learning.

One of the solutions proposed was obvious, namely, that while there are 23 million people unemployed there are 23 million small to medium enterprises in the European Union and if each one of them was facilitated to create one single job it would provide a solution to the unemployment crisis. One could ask how we would go about that. It is important that with a 10% budgetary deficit and 190% debt, we have strong trading partners surrounding us in the Union. It is important for our viability and future that there is strong Union. That is why the debate brings a focus to the Greek situation but it also introduces the bigger picture of stability across the Union if we are to trade our way out of the current difficulties.

In bringing growth we must also deal with austerity. I said previously that austerity is not a dirty word; it is not a word that should have negative connotations. Austerity is merely cutting one's cloth according to one's measure. It is a pity we did not have austerity in this country in the decade preceding this one. Austerity is needed across Europe. People must stay within budget and deal with deficits, which has absolutely nothing to do with the banking debt. It is a question of bridging our income and expenditure on an annual basis.

See this speech in context