Seán Crowe (Dublin South West, Sinn Fein) | Oireachtas source

Yesterday, at the third time of asking, eurozone finance Ministers and the IMF reached an agreement to reduce Greek debt. They agreed a number of significant changes to the Greek bailout programme, extending the maturities for up to 15 years, reducing interest rates on loans from member states and adding an interest holiday of ten years on loans from the EFSF. While this may provide some short comfort for the Greek Government, it will not make its debt sustainable. That can only happen when the European Union agrees to write down a significant portion of the loans to Greece.

I watched a TG4 programme on debt in Africa last night. This is similar to the situation in which rich countries announced they would cut the debt of starving people in Africa and other parts of the world. Of course, if the debt is unsustainable and beyond the ability of countries to pay, then reductions, however good or well-meaning - even if they are just to make the creditor countries look good - do not have a huge impact on the debtor countries. The Greek situation is similar to this. While the reduction is helpful in the short term, it does not really resolve the problem.

Yesterday's deal once again highlighted the weakness of this Government's strategy in reducing Irish banking debt. While the Greek Government was able to secure an extension of maturities and better interest rates on its debt, the Irish Government appears unable to agree a common position with the EU to deal with our banking debt. The big question being asked in many Irish households is when the Government will stand up for struggling Irish people - people who see their children leaving and who are losing their livelihoods while their personal debts are mounting and their quality of life is being filleted. Most people are talking about this issue and they want the Government to adopt a more aggressive, fighting approach for a better deal on our unsustainable debt. I presume the Taoiseach hears the same in his constituency and when he travels around the country.

A deal that involves only reductions in interest rates and modest extensions of maturities, similar to that given to Greece, will not significantly reduce the burden of banking debt currently on the shoulders of Irish taxpayers. Only a write-down on the capital portion of the debt will achieve this outcome. The Taoiseach came back to the Dáil in June talking about his achievements, which he told us would lead to a deal on bank debt by October. October has come and gone and we seem as far away as ever from a deal on Ireland's legacy bank debt. While the Greek Government made some, if limited, progress at the European Council meeting, the ongoing failure of our Government to make any comparable progress speaks volumes.

The Taoiseach told us he did not raise the issue of bank debt during his recent meeting with Chancellor Angela Merkel on 1 November. I believe that was a mistake, as do many others. Ireland's debt-to-GDP ratio is due to peak at over 120% of GDP in 2013. By that stage, €1 in every €5 raised in tax will be going to pay off interest on the national debt. Approximately 40% of this debt is bad banking debt which the Government, and Fianna Fáil before it, inexplicably placed on the shoulders of Irish citizens. This banking debt is unsustainable and it needs to be removed from the shoulders of Irish citizens. However, this will only be achieved if the Taoiseach changes tack and stops dodging the problem and kicking it down the road. People talk in terms of waiting for a good time to move but the worry is that the longer we wait, the harder it will be to deliver a deal.

While there are many differences between the Greek and Irish situations, the common thread is that our respective debts will become sustainable only when the EU agrees to a debt write-down. In Ireland's case that could take the form of a write-down on the promissory note, while in Greece it would be a write-down on the EU loans. Will the Taoiseach give an update on the progress of discussions on the promissory note? Does the Government expect movement on this issue before the budget? Many people are asking these questions.

The EU summit at the weekend failed to agree a deal on the budget for the next seven years. While the Taoiseach said he is confident a deal can be done, this delay means any deal is likely to be hammered out under the Irish Presidency, on the Taoiseach's watch. The Taoiseach said there were a number of critical issues for Ireland in the budget, including the CAP allocation and Structural and Cohesion Funds, as well as funding for growth-enhancing measures such as research, education, European connectivity and support for the SME sector. I understand that net contributor countries such as Britain, Sweden and the Netherlands have argued for cuts in the budget. Like others, Sinn Féin favours a budget that is fit for purpose and responds to the needs of the Union, particularly those people who are bearing the brunt of austerity and its fallout throughout Europe.

A growing number of people believe that areas of waste in the EU budget need to be tackled and eradicated. People are looking at the bureaucracy of the institution. One issue that is repeatedly raised is the European Parliament's move from Brussels to Strasbourg every month and another is spending on militarisation. We know approximately €180 million is spent on the monthly move to Strasbourg and the spending on militarisation is growing.

There has been much talk from the Taoiseach and at EU level about stimulus and a renewed focus on job creation and growth.

However, the MFF looks set to be slashed by as much as €50 billion. Is there not a contradiction in what is happening? I accept pressure is coming from certain countries to cut the budget - that is understandable - but how can the MFF be used to promote growth when it itself looks likely to be cut? Does the Taoiseach agree that a decision to cut the budget for jobs and growth at this time does not make any sense? Did he raise the need to direct funds into infrastructural and job creation programmes at the summit?

The priorities for this country are the CAP - maintaining the budget for direct payments and Structural Funds including a new PEACE IV programme. What position did the Taoiseach take on those issues at the summit? A cross-party group of members from the Joint Committee on the Implementation of the Good Friday Agreement went to Belfast last weekend. We went to a number of interface areas where we could see the positive work that is being carried out, much of it funded by PEACE III money. Some of the groups said they had not being paid for months. It is important that funding is continued. I would like to hear about any discussions that might have taken place on the matter.

The specific issue of youth unemployment has been identified by European Parliament President, Martin Schulz, as Europe’s biggest problem. The President, Michael D. Higgins, has made similar remarks. In September 2012, a total of 5,520 million young people under the age of 25 were unemployed in the European Union. The rate of youth unemployment is 52% in Spain and 54% in Greece. I mentioned at the meeting of the Joint Committee on European Affairs the fact that youth unemployment is 8% in Germany. It is 30% in this county. At present there is no specific funding stream to deal with the issue. If the budget does not grow then are we to take it that funds for youth unemployment will have to come from somewhere else in the budget? People are looking for answers. They want to know if there will be a stimulus package for youth unemployment. I am aware that the Commission will publish its report on the issue in December. Youth unemployment is a key issue that is affecting people across Europe and we must come up with solutions to combat it.

Farming and the agrifood sector are of vital importance for the Irish economy. These sectors must be protected and developed. They are the life blood of rural Ireland. The Government must get the best CAP deal possible. A prosperous agrifood sector can play a significant part in economic recovery across the island. However, if the sector is forced to sell produce below the cost of production it will only drive more people from the land with a seriously detrimental effect on the general economy. We must get serious about protecting our agrifood sector. A healthy CAP is the way to go about that. Could the Taoiseach outline what approach the Government will take on the negotiations? Does he agree that moving towards a more equitable system of farm payments would help to keep currently struggling farm families on the land?

Before the European Council meeting we raised the issue of Gaza with the Taoiseach. I understand that last weekend’s summit was to focus on the seven-year EU budget from 2014. The EU has a vital role to play in dealing with the Middle East. The Gaza situation should not have been far from any EU leader’s mind. I welcome the recent ceasefire that has been announced, and I commend the substantial role the Egyptian Government played in the process. Despite the fact that Israel broke the ceasefire on Friday, 23 November when its soldiers killed an unarmed 20-year old Palestinian farmer, the ceasefire is holding, but we do not know for how long. On Sunday, the Israeli Prime Minister, Benjamin Netanyahu, indicated the low confidence he has in the durability of the ceasefire with Hamas. He publically told pilots who took part in Operation Pillar of Defence that they could now prepare for the next campaign, and he said that it is likely that reservists would be called up again. A fully inclusive talks process is required. The illegal blockade of Gaza by Israel is causing significant socioeconomic problems within Gaza and the civilian population is facing major hardship. Pressure must be placed on Israel to lift the illegal blockade and to stop building settlements in order for inclusive and productive talks to take place. The EU is a position to place pressure on Israel and to push for talks. Nobody else is exerting pressure. There is a responsibility on those of us who want to see a settlement and an end to the conflict in the region.

Could the Taoiseach indicate whether the issue was raised at the summit, and if he expects it to be raised at future summits? Does he agree that the EU has a vital role to play in this regard? If the EU is serious about creating a durable peace deal for the region it must place significant pressure on Israel to enter into negotiations with the aim of establishing a two-state solution to end the conflict for good. The current actions of the EU not only allow Israel to continue its human rights abuses but, increasingly, they reduce the prospects that a two-state solution to the conflict will ever be achieved.

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