Michael Noonan (Limerick City, Fine Gael)

I thank the Deputy for his questions. I have said on numerous occasions, both in the House and outside, that when the euro was put in place the architecture to defend it in times of adversity was not put in place. What has been happening for the past couple of years is an attempt to retrofit the defence mechanisms for the euro and this continues. The Deputy will know the flaws in the original design and he will know about the current attempts to put the architecture in place.

Deputy McGrath referred to remarks by eminent economists. The debate in Europe is not unique as there is an even hotter debate in the United States about whether to stimulate the economy or to balance budgets and reduce expenditure. Views are divided strongly on political lines in the United States where there are very eminent economists on both sides of that argument. We have to rely on authorities nearer home and take cognisance of their advice.

In my view, the euro was an excellent project. There is not a lot wrong with the euro but the problems are in certain areas of the eurozone. For example, the level of the euro relative to the dollar at which the euro was introduced has been exceeded and despite all the difficulties, it is still at a higher value than when it was introduced. Second, inter-country trade in Europe since the introduction of the euro, has grown by 50% and the euro is still being held as a reserve currency by many countries outside the euro area. The euro is pretty sound but it has to be underpinned by actions which are now being taken.

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