Séamus Healy (Tipperary South, Workers and Unemployed Action Group) | Oireachtas source

Write-off of debt is a major issue for the people of Europe. It is a life and death issue for Ireland and our people, particularly middle and lower-income families who have been absolutely savaged by cutbacks and increases in taxation and are promised more of the same in a week’s time. The matter of debt should be raised at every opportunity. It is wrong, and a significant failure of this Government, that a summit should go ahead without this matter being raised.

This week saw the Greek deal but it is one that will not solve the Greek crisis. At best it will keep the Greek Government and people on a life support machine. However, it is better by a long shot than what we got. Up to now, the Greeks had a deal of €100 billion write-off of debt. This week’s deal continues that process. Some of the details of the deal include the write-off of some Greek debt for the years 2016 to 2020, the reduction in interest rate on some of its loans to 0.5%, or virtually nothing, the scaling back of interest rate on loans and a ten-year deferral of interest payments which will save approximately €44 billion for Greece. Greece will buy back its own debt from market investors at below-face value. Eurozone countries will also forego their profits on Greek bonds, held by national central banks. A doubling of Greek rescue loan maturities to 30 years will send the country on a path towards 2040.

The entire issue of write-off of debt is still there to be dealt with. To reiterate, the Greek deal is by a long shot much more than we received. Why did Ireland not achieve the equivalent of that deal? After all, the principles of debt write-down, reduction of interest rates, extension of loans and extending bond maturities have been accepted by the EU. The reason we have not got the same deal is that the big EU powers know they will not and cannot get their money back from Greece.

The debts of private banks here and the corresponding investments of European banks and finance houses should not be repaid by Ireland. Only when the EU powers know they cannot get their money back from Ireland will they consider applying the principles of the Greek deal to this country.

To paraphrase James Connolly, it is time we started the reconquest of Ireland for the Irish people. In order to do this, we must begin by stopping the repayment of the promissory notes. We should also stop other banks procuring or paying them at a cost to the State, which is what happened last March. If we did as I outline, it would concentrate the minds of those in authority in other European countries. We should also stop all repayments on the outstanding €36 billion in bonds held by Irish banks. This is not an extreme proposal. In fact, it was put forward by Deputy Peter Mathews of Fine Gael. In an interview with the Sunday Independentsome weeks ago he stated Ireland should stop trying to be the best boy in the class and called on his own leadership to play hard ball, including by refusing to pay the remaining €36 billion to bank bondholders. We should also freeze all payments to the ESM. If the latter can only be used to recapitalise banks which fail in the future, why should Ireland be paying it €1.2 billion? Some €254 million of this money is to be paid before the end of the month.

The measures to which I refer must be taken in order that we might stand up to the larger European powers and obtain a write-off of our debts. If we do not take action, the social and economic devastation being visited on the country - more of which is promised in next week's budget - will continue.

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