Seán Kyne (Galway West, Fine Gael)

In the early stages of the economic crisis that is affecting almost every nation in Europe and across the world, the EU was criticised for not acting fast enough, and when it did, it was criticised for not tackling the problems effectively. It is now strange to see Europe being criticised by some for putting forward proposals to help tackle the instability afflicting our economies; it seems that no matter what the EU does, it will never be good enough or acceptable to some.

Last week the Irish people accepted the stability treaty, and by doing so they guaranteed Irish access to the European Stability Mechanism if and when it is required. The legislation before the House today gives effect to this democratic decision. Even now, there are Deputies and others who did not support the stability treaty and who are complaining that the treaty has not solved our problems or made a difference. As with all problems, there is no quick fix or a cure-all solution. The stability treaty was never presented as such, and instead it was presented by the Government - honestly and openly - as part of a long-term solution.

As a result of the speed and nature of the financial crisis, the EU and its member states created a short-term solution in the European financial stability facility, EFSF, which was backed by the eurozone countries, as well as Poland and Sweden. It has become clear, however, that a more permanent approach is needed. The ESM, along with the six pack of directives and regulations, forms part of this approach.

Of all the member states in the EU, the establishment of the ESM is of particular importance to us in Ireland, as well as Greece and Portugal. We must recognise that the current gap between national income and spending is filled in no small part by the current EFSF arrangements. We must also recognise that the finance for the EFSF is being provided by other EU nations, including Germany. This support is enabling us to address our deficit, which is only partially due to the banking sector, over a large timeframe, thus affording us time and space that we would not otherwise have.

The importance of growth must also be emphasised, as it has been rightly earmarked as an essential component of any approach to tackling the problems before us. Growth goes hand in hand with stability, and if there is no stability, there can be no growth. A clear result of stability, which this Government has promoted with its policies, is investment. Without stability, the investment which has resulted in over 1,200 jobs in my constituency of Galway West alone over the past year would not have been made. I have listened to other public representatives, economists, academics and journalists, and it is clear that a cohort of people exists that would like nothing more than the euro - if the not the EU itself - to collapse. It saddens and concerns me that people would actively welcome the trauma and strife that a currency collapse would bring.

The euro is our currency and that of the Germans, French, Italians and many others. We have a duty to effect measures to protect and safeguard that collective currency. The ownership we take of our currency must also be matched in our ownership of the solutions required to safeguard it. The effectiveness of the European Stability Mechanism will depend on the support it receives from member states. It is entirely appropriate that Ireland, along with other eurozone countries, makes its contribution to ensure a functioning and feasible safety net. We will contribute 1.6% of the total €700 billion fund, and for that we will be able to rely on a permanent stability mechanism.

I hope the ESM funds will not be needed by any EU member state but its existence will help provide the assurance and confidence required for investment, and in turn, for job creation. By introducing and passing this European Stability Mechanism Bill today, Fine Gael, Labour and Fianna Fáil will not only be respecting the democratic wishes of the Irish people but acting responsibly and practically for the good of our country, currency and the European Union.

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