Michael Noonan (Limerick City, Fine Gael)

Of course, the banks caused the problem as well, but the Sinn Féin and socialist position that Greece might need the money and people might go hungry but, for the sake of a principle, they will not give them €130 billion they need to keep the country going for the next few years is ludicrous.

These amendments will allow for three key changes to the loan facility: a further increase of the grace period of up to ten years for paying back the loan principal, a further lengthening of the loan maturity to a minimum of 15 years, and a further reduction in the margin to 150 basis points to apply from the three-month interest period that ended on 15 June 2011. The Bill provides for the ratification of these amendments to the Greek loan facility agreement.

The timely acceptance of the Bill will allow for the next phase of the Greek loan facility to proceed as planned. These changes to the facility are in conjunction with a number of other changes to the Greek programme, including the provision of additional funding of €130 billion and changed private sector involvement, PSI. In the case of the PSI exchange offer, the closing date is tomorrow, 8 March. Additional funding is also provided for interest rate and banking sector support. Greece and the other euro area member states agree that it is only by fully and strictly implementing the fiscal consolidation and structural reforms included in the programme that Greece will regain competitiveness and be able to return to the markets. These changes are intended to put Greece on a sustainable path. I have emphasised the importance of showing solidarity with it.

We should also note that there is a significant contrast between our position and that of Greece. Our capacity to recover from our current difficulties is well recognised, given the right mix of policies at home and internationally. The economy is estimated to have returned to growth last year and the outlook is for continued growth this year. We have a strong export sector, with multinationals performing well, and a strengthening indigenous sector. We are also seeing a resumption of inward foreign direct investment, which points to the fact that many of the underlying strengths of the economy remain, including a well educated workforce, favourable demographics, an open and flexible economy and a pro-enterprise environment. Moreover, the labour market is showing welcome signs of stabilisation. It is particularly encouraging that we saw an increase of 10,000 in the number in employment in the fourth quarter of last year on a seasonally adjusted basis, the first such increase since 2007. Our programme implementation has been exemplary, as the troika team mentions regularly when discussing Ireland. We have met all of our commitments to date, representing more than 90 actions. We have met and, in some cases, exceeded all of our fiscal targets. For 2011, our general Government deficit, at around 10% of GDP, was well within the 10.6% specified in the programme conditions.

Our strong programme implementation performance and the underlying strength of the economy are being recognised by the financial markets. In recent days the ten year bond yield has moved below 7%, a considerable reduction from the 14.1% peak in July 2011. I also remind the House that the NTMA has successfully re-engaged with the bond markets and extended the payment date of some €3.5 billion of debt which will mature just after the programme ends. This is a significant first step in managing Ireland's post-programme funding requirements.

This is a time for unity among euro area countries to try to ensure stability within the euro area. Ireland must play its part and stand in solidarity with its fellow euro area member states. It is in the interests of the country, the euro area, the European Union as a whole and the broader world economy. Therefore, I urge Deputies to agree to ratify the changes to the Greek loan facility. I commend the Bill to the House.

See this speech in context