Brendan Howlin (Wexford, Labour)

Of course the macroeconomic situation was discussed with the troika. We discussed the specific details of our own economy and also the position of this economy within the European context and in the global context, which is very important. The objective of this programme is to get us back to normal funding. The Government's yardstick is always the question of whether it is working. Deputy Boyd Barrett was not here when I replied to the first questions today and described the disciplines we are required to impose upon ourselves because we cannot continue to borrow at our current rate of borrowing. Even Deputy Boyd Barrett understands this. However, this is not the complete strategy because it requires other elements. We need to work towards a balanced budget and a deficit target of 3% by 2015 and a deficit target this year of 8.6%, as a stepping stone towards that target, with a target of 7.5% next year and so on. Of itself this is important but it is not the only strategy; stimulus is also necessary. The Government has worked on looking at the areas of stimulus, such as the use of the National Pensions Reserve Fund, the establishment of the NewERA entity and the establishment of the Strategic Investment Fund. We have concluded negotiations with the troika for the use of one third of the proceeds of State assets sales for productive job-creation purposes. We have also engaged with the pension funds to see if more can be invested here. A range of initiatives has been devised to stimulate the economy as well as working on the balanced budget approach which we need to do at the same time.

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