Seán Conlan (Cavan-Monaghan, Fine Gael)

This Bill is an essential instrument of legislation, as it facilitates the establishment of the ESM. Economic and monetary union was always going to call for some element of budgetary discipline among participating states. Originally, this area was regulated by the Stability and Growth Pact. However, that mechanism lost its influence largely by 2005 and collapsed when the Schröder and Chirac Administrations in Germany and France, respectively, proved unwilling to allow the sanctions ordained by the pact to apply to their countries.

A state of inactivity reigned until the EU was faced with the catastrophic events that led to the necessity for the 2010 Greek bailout and the subsequent need for temporary rescue measures to address emerging problems in Ireland and Portugal. These measures relied on Article 122(2) of the Treaty on the Functioning of the EU which in actual fact had only ever been intended as a balance or escape clause to counter the principles as established in Article 125(1) of the same treaty which is known as the no bailout clause.

Events in Germany, where a case challenging the financing of the Greek bailout highlighted deep public opposition to the transfer of funds to less fiscally responsible states, presented a case where such transfers may have become impossible. This, coupled with the possibility of mayhem breaking out in the markets when the current bailout agreements terminated in 2013, led the German Chancellor to address the situation which was beginning to have the capacity to wreck the whole euro project. The current legislation, while having its genesis in the Deauville declaration of October 2010 where the Sarkozy-Merkel team first attempted to confront the worsening situation by regaining control of budgetary disciplines within the euro area, is a more refined instrument. It is aimed at identifying the problems and addressing them in a more pragmatic and less knee-jerk fashion with the endorsement of each participating member required before the amendments take effect.

This legislation before the House is the result of much negotiation and is essential to the economic well-being of the euro area and, indeed, beyond. It is an instrument whereby all participating members can achieve stability in their economies and avoid the excessive fluctuations of both interest and currency rates which adversely affect business, both domestic and international, and, as a result, cause widespread unemployment resulting in large-scale mortgage defaults and misery. It offers to us further affordable funding and protection from excessive interest rates, should they prevail. This is essential to our recovery and to the protection of the very fabric of our society. We must embrace this legislation and identify it for what it is, namely, an instrument of stability, of support in terrible times and of delivery to ensure this catastrophe can never again manifest itself in our national economies.

Regarding the amendments to Protocol No. 36 of the Lisbon treaty, it is clear, as in all matters, that a state of flux cannot prevail. A thing either grows and develops to compensate for changing circumstances or it fades and dies. This amendment is a temporary measure seeking to deliver the provision of extra seats, temporarily allocated to properly selected representatives, to make their representation possible. In doing so, it will cure a temporary glitch which has occurred as a result of the timing of the Lisbon treaty and the European elections. It is correct that we display the flexibility to address such matters and present a vibrant and growing EU.

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