Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)

It is typical of the chaotic approach that has been taken by the EU leadership over a period that this Bill comes before us today in this form. From day one of this crisis, there has been no joined-up and thought-out attempt to deal with the core issues causing this significant social catastrophe for people across Europe. The rule book has been thrown out the window, along with the community method. When the rules do not suit, it seems the EU now ignores them. Britain and the Czech Republic now find themselves half-divorced from the rest of the Union, something we were told for decades would never be allowed to happen.

There has only been one approach tried by the EU with this and previous Governments, which is austerity at all costs, and it has been a failure. It reflects extremely poorly on this Government and once again it has clearly been out-negotiated, allowing itself to accept a blackmail link between the proposed ESM and the austerity treaty. It failed to stand up for Ireland at every point in this crisis, and that performance is continuing as the Irish people are still paying dearly for the failure of the elected leaders. We should be clear that this is a bad way to make law and it is constitutionally questionable.

We call on the Government to publish its legal advice from the Attorney General on this matter. Sinn Féin does not agree with the use of the controversial simplified revision procedure, Article 48.6 of the Treaty on the European Union, to make this amendment. Treaty changes should be arrived at through democratic dialogue and should not be rushed through loopholes. This smacks of backroom dealing and does nothing to inspire confidence among our citizens in the EU and its decision-making procedure. The self-amending clause, as it is called, was inserted into EU law in the Lisbon treaty. Sinn Féin opposed it then and warned it could be used to rush through unpopular and ill-thought out decisions of significant importance without the normal level of scrutiny and democratic debate. We have been proven correct on that point.

Will the Government explain why this route was chosen over the standard approach? Why did it choose the option that allows the least scrutiny and debate? Sinn Féin is in favour of a fund that can be used as a last resort for states blocked from borrowing on the markets. Such an idea ties in with our vision of a Europe which offers genuine solidarity to members when they are in need. We are not willing to support any old stability mechanism. We will not support a bankers' mechanism or one hitched to the train of austerity. Such a mechanism is of no use to the ordinary people of Europe in the medium and long run.

The ESM will inherit many of the failings of its predecessor, the European Financial Stability Facility. There is some hope and time to allow for an improvement in what is being proposed, and the Spanish Government is seeking changes. My colleague, Deputy Pearse Doherty, will outline in detail tomorrow Sinn Féin's position on the ESM so I will not elaborate on it greatly now. Needless to say, it is not Sinn Féin's ideal solution. We would prefer to see the European Central Bank empowered to act as a lender of last resort, with the ability to recapitalise banks where necessary. This is not a realistic political option at this point. As usual, during the crisis, alternatives seemingly are not considered as the system must be protected at all costs.

Greece, Spain and possibly Cyprus, as well as this State, are likely to require emergency funding in the near future. We hope that by supporting this amendment, despite our criticism of how it was arrived at, the EU and our Government will take the opportunity to re-examine the options available and use this facility to create an emergency funding vehicle that matches the needs of citizens. That would be a major step forward in providing stability to the eurozone and the real economy. That is why we are supporting this Bill on Second Stage.

There are two additional items to be added on Committee Stage. I convey Sinn Féin's support for the Croatian accession treaty protocol. It has been a long journey for the Croatian people and in the European affairs and foreign affairs committee there has been a long dialogue dealing with these issues. We have maintained a very active interest in the affairs of the western Balkans. The Tánaiste and Minister for Foreign Affairs and Trade knows our concerns about Serbia and Bosnia. There is an ongoing position in Serbia where homosexual rights activists cannot hold an event to celebrate their rights, which is completely contrary to the progressive culture that is inherent in the European Union. There is also a concern about the approach of the Serbian Government in destabilising Bosnia. Lord Ashdown has been here to outline his concerns, having played a leading role in the region. Croatia is a good news story but before we can see the story replicated by other states in the western Balkans we must deal with certain challenges. Baroness Catherine Ashton, the external affairs representative for the European Union, will have a challenge in that region and although there has been a fair bit of criticism, I hope the issues can be resolved soon.

It was indicated that once Croatia takes up its place in the European Union, there will be access to our domestic labour markets. Ireland should be quite embarrassed about how we have treated the Romanian and Bulgarian citizens, as we have not given them the same rights as other eastern European countries which acceded to the European Union. There was a second opportunity recently for our Government to remedy that injustice and we failed to do so again. I do not anticipate that the Croatian citizens will enjoy those rights but I am hopeful the Government will review the decision it has made on Romanian and Bulgarian citizens. That would demonstrate true European solidarity and give those citizens the same rights as other members of the European Union. It is welcome.

I could comment mischievously about the protocol relating to the concerns of the Irish people about the first Lisbon treaty. I will withhold my comments.

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