Lucinda Creighton (Dublin South East, Fine Gael)

I commend the Government amendment to the House. The Minister for Finance, Deputy Noonan, has set out the logic and urgency of ensuring the Oireachtas plays its part in putting in place a viable stability mechanism to succeed the European Financial Stability Fund, EFSF, in order that EU member states have a clear and tangible insurance mechanism to restore stability to the markets and order to the eurozone.

I draw the attention of the House to a statement by the leader of Sinn Féin in the House on 29 February last when he said the European Council must ensure the European Central Bank, ECB, which has a responsibility in this, takes all necessary action to stabilise sovereign bond interest rates and ensure market access for all member states. I could not agree more. What Deputy Adams was advocating is precisely what the Government is doing. Although he is sadly alone in the Sinn Féin Party, I am glad that he, at least, understands the need for the Government, along with other member states and the ECB, to take all necessary action to stabilise the eurozone. That is precisely what we are doing. It is incredible, however, that three weeks later Sinn Féin puts this motion before the House, advocating that we do the very opposite.

It is important to set out what the European Stability Mechanism is. The ESM is the new eurozone rescue fund of €500 billion that has been put in place to protect countries from market speculation. The agreement to establish this mechanism, combined with the other measures at EU level, including the agreement of the six pack in particular, and the recent long-term refinancing operation, LTRO, undertaken by the ECB, has already brought greater stability to the eurozone.

Sinn Féin Members are speaking out of both sides of their mouths in this regard. On the one hand, their leader says he wants to stabilise sovereign bond markets. Either they have changed their minds or they are entirely inconsistent, because on the other hand they say they want to prevent the cornerstone of this stabilisation process from coming into force. Those are entirely inconsistent and contradictory positions. Perhaps, during the course of this debate, Sinn Féin Members might like to clarify what their leader had in mind. If it is not the stability mechanism that is proposed by the European Council and by the Government, what exactly does Sinn Féin propose to stabilise the markets and ensure access to the markets for Ireland and other countries currently in financial programmes?

The actions taken within the eurozone since last summer to minimise the crisis are beginning to work. Across the House, Members may not like to hear that, but it is a fact. The various stages that are clearly set out in the Government amendment and which have been adopted by the European Union are working. Yesterday, for example, we saw Spain sell €5 billion worth of six-month bills at the lowest interest rate achievable in two years. Demand was boosted by ECB lending which happened directly as a result of Europe's Governments implementing the structures and safeguards to protect the currency which culminate in the European fiscal compact. Across the European Union, bond yields are falling. Irish yields are, in fact, the best example of that. They have fallen to the lowest rate in over a year. This is envied by other member states. All yields across the eurozone are falling. The situation is stabilising because European Governments, including the Irish Government, have taken decisive action and joined together in a common purpose to try to resolve the eurozone crisis. The European Stability Mechanism will offer Ireland protection from market movements, the very movements against which Deputy Adams says he wishes to see the ECB and European Governments take action.

Theoretical access to the ESM will ease our return to the markets. That is a vital insurance policy and safety net, not just for Ireland but for all members of the eurozone, including those who are not in financial assistance programmes. Our exit from our programme is dependent on the existence of the ESM as a safety net. That cannot be disputed by the Opposition.

Not having access to external assistance would put the country into extreme austerity and would have severe economic and social consequences for all citizens. So, it is apt that Sinn Féin refers to the fiscal treaty as an austerity treaty because were we not to ratify it, the austerity the country would face would be quite grave and serious. It is important that Sinn Féin be honest about it. I hope Sinn Féin Deputies will be so, in the interests of transparency and of having a full and frank debate on the issue.

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