Michael McGrath (Cork South Central, Fianna Fail)

We want our voice heard and an opportunity to advocate the reasons we want our supporters and the wider population to vote in favour of the treaty. My party also recognises the shortfalls in the treaty. I note from the Tánaiste's contribution that the Government also recognises the treaty does not provide a panacea for all of the European Union's ills. Nevertheless, it is a step in the right direction.

The fact that the fiscal compact is not a full EU treaty makes it a tricky issue. It also means unanimity among member states is not required. As a result, only 12 eurozone countries need to ratify the treaty for it to proceed. The fiscal rules in the treaty are, by and large, enshrined in various regulations and codes to which we have already signed up. It would be highly disingenuous, inaccurate and dishonest of those who oppose the treaty to suggest that if the people vote against the treaty, the country will not be required to balance its books over time or that we will find an easier or less painful way of achieving the fiscal correction we all agree is necessary. Do we really believe that in the event of Ireland failing to endorse the treaty the international markets will demand a smaller price from us than our European partners and the IMF which are funding us under the programme? That is manifestly not the case. On the contrary, it is inevitable that if Ireland rejects the treaty, the costs of borrowing will dramatically increase by virtue of the fact that we will no longer have access to the backstop of the European Stability Mechanism. Without this backstop being available, the insurance policy, as the Taoiseach described it, and the costs of borrowing will inevitably increase. That is a risk we cannot afford to take.

The requirement to reduce the structural deficit to 0.5% or less is onerous. We need absolute clarity on the definition of the term "structural deficit". Furthermore, each member state must have an input into the determination of the timeframe within which it must achieve the 0.5% target. Having engaged with the Taoiseach on this issue, my party has been assured the Government will have a significant input into any such determination for Ireland. This is very much to be welcomed.

People must consider who is lining up on the "Yes" and "No" sides of the referendum debate. The opponents of the treaty have opposed every European treaty placed before the people. While Fianna Fáil is critical of the Government on many issues, we recognise that the opponents of the current treaty would have opposed any deal the Government had secured in Brussels, irrespective of its contents. They opposed membership of the European Economic Community and on every single occasion a question concerning our engagement with the European Union has been put to the electorate, they have opposed it.

The Fianna Fáil Party has been critical of the Government's decision to sign up to a measure that will remove the insurance policy of access to the ESM from countries which do not endorse the treaty. This outcome marked a failure of the negotiating strategy of the Government. The fiscal stability treaty, as constructed and with all of its conditionality, stands nonetheless. It has been signed by the Government and awaits the approval or rejection of citizens in its current form.

One intriguing aspect of the debate is the backdrop of the French presidential election campaign. It is noteworthy that François Hollande, the socialist candidate, and Nicholas Sarkozy, the incumbent, are calling for the role and mandate of the European Central Bank to be broadened from its current narrow definition focused on price stability to include growth. As the Tánaiste is aware, my party has been advocating this position for some time and welcomes that it has moved centre stage in the French presidential election. I hope this will result in changes to the mandate of the ECB because we will only be able to reduce our debt to GDP ratio to 60% over time through economic growth. We will not be able to cut our way to the 60% target without growing the economy. I hope that message will be listened to throughout Europe.

I am somewhat concerned by reports that the socialist candidate in the French presidential election hopes to reopen the debate on the fiscal stability treaty if he is elected. He should clarify precisely what he means in this regard. Some of the speculation suggests this may result in a protocol being attached to the treaty. It is unfair on the Irish people to vote on the treaty when the candidate most likely to become the next French President is indicating he wishes to reopen the debate on it. This is regrettable as it introduces an element of uncertainty. I hope that in the course of the next six weeks the muddied waters will clear and people will learn exactly what M. Hollande is seeking and precisely what they are voting on.

I urge the Government not to rest on its laurels. With the referendum hanging in the balance, a full and vigorous campaign will be required on the "Yes" side to ensure its passage. We, in Fianna Fáil, will play our part.

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