Paschal Donohoe (Dublin Central, Fine Gael)

There is far more to Europe and the European Union than the eurozone but, for many people, the most concrete manifestation of the European Union is the euro in their wallets or purses. There is no doubt that what happens to the eurozone will have a seismic impact on the health of European political project. As we survey where matters stand after the past few weeks, the eurozone is facing a grim vista of challenges. The most recent developments include what happened in France, where one in five people voted for the Front National Party, which is anti-euro and anti-globalisation. It espouses views and philosophies not held by any Member of this House. It is now a mainstream political party.

Other speakers have referred to youth unemployment in this country and across the European Union. The figures show that between one in three people under the age of 25 is unemployed in certain states of the European Union. The results of the recent Greek election demonstrate that it is very difficult to imagine that this result will contribute to an alleviation of the current crisis in that country. The response of some member states to date puts me in mind of the words of William Butler Yeats, "Things fall apart; the centre cannot hold". He wrote those lines in the aftermath of the First World War and in the years prior to the Russian Revolution.

I contend that Europe is facing the battle to preserve the eurozone, the battle to preserve the political identity of the European Union to which everyone can subscribe. In addition, in many ways this is also a battle for the future of centrist politics within Europe. I do not mean whether one sits on the centre left or the centre right. Regardless of one's position in that spectrum, we have far more in common than divides us. I note the ability of parties and movements who sit outside that centre to gain momentum and more support within Europe. I am fearful that if this happens, the prospect for Europe and the European Union is very grim.

Europe needs to recognise this possibility and to act upon it. The situation is evolving rapidly. We need to commence a discussion about how to facilitate the orderly exit of a country from the eurozone. We need to consider what this would mean for the country concerned but also we must facilitate a process for countries which want to remain in the eurozone to allow them to do so. Otherwise, forces will be set in motion which could lead to an unravelling beyond the power of anyone to control.

We must regard the eurozone and the current economic difficulty as a balance of payments crisis. I differ somewhat from the views of my colleague, Deputy Ross, in this regard. It is not a question of a balance of power but rather a crisis of a balance of payments. If peripheral countries are deflating, it is essential that countries in the core are inflating. If this does not happen, there will not be the balanced adjustment needed.

In conclusion, I wish to make two political points. I agree with my colleague from Sinn Féin regarding the role of politics. There needs to be an infusion of democracy into the resolution. If the price we pay for dealing with an economic crisis results in a further distance between the people and their rulers, we prolong the inevitable.

When growth returns, as it will, we must ensure that the fruits of that growth are distributed equally and fairly. Those dividends must not be concentrated at the top. I refer to a recent article in the Financial Times by Niall Ferguson and Pierpaolo Barbieri writing on the prospects for Europe, where they state: "Today, the biggest threat to its survival is no longer the economic consequences of austerity, it is the political consequences". We need to take steps to recognise them.

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