Enda Kenny (Mayo, Fine Gael)

With regard to the Greek private sector initiative, PSI, it was made perfectly clear by the European Council that this applied to Greece only. It is not a case of looking for write-downs here but one of looking for a re-engineering of the promissory note system to bring about a longer repayment period and lower interest rates which will make it easier for Ireland to deal with its deficit and pay its debts.

The Deputy is correct that the eurozone is not out of the woods. It is in a fragile position and great concern has been expressed about Spain, given the size of the country's economy and its unemployment rates. Earlier this was reflected in the great anxiety about Italy when the new Prime Minister, Mr. Monti, was appointed. Obviously, decisions were taken by his Government on how to deal with the structural challenges there. Likewise, the Spanish Prime Minister, on taking up office, examined the situation, and some revisions in respect of Spain's targets were put in place.

It is true to say the eurozone is not by any means out of this particular challenge. Deputy Martin is correct that the road to travel here is the one of certainty and guarantee of access to a permanent funding mechanism, were that ever to be required. When the treaty is ratified and moves on, the question of the future role of the European Central Bank, eurobonds and these other issues will become the focus of attention and proposal. If we cannot understand that, like every household in the country, we must live within our means, then there is a problem. That is the problem many countries have now which is why we have this enormous frustration at European Council meetings about decisions being taken that people, in some cases, knew in their hearts were never going to be followed through.

The question of organising this in a way that countries can have a clear target to get their houses in order while, parallel to that, having a specific growth agenda where investment and opportunity can take place is something I strongly support. Article 1 of the treaty, dealing with sustainable growth, employment, competitiveness and social cohesion, can be fleshed out. This agenda was taken up anyway with the small and medium-sized enterprises part of the recent European Council summit. The question of a youth unemployment rate above the 29% European average, which also includes Ireland, was addressed. There are 23 million small and medium-sized enterprises in the Union. At the same time, there are 23 million people unemployed. In theory, if each enterprise could take on one person, then the problem would be dealt with. However, that is not reality.

It has taken some time to force the growth agenda onto the overall agenda. It can be developed as a larger platform which, as Deputy Martin said, provides certainty, a guarantee for the future and an opportunity for every country to develop their economies for the benefit of their people, workers, jobs and opportunities.

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