Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

-----with his more pragmatic approach to the European Central Bank, ECB. This has changed the atmosphere across Europe and the external perception of it. Last year's existential crisis in the eurozone has eased considerably. It is not out of the woods yet, but it is in a significantly better position than it was.

The banking union was agreed last June. It has been a significant development, although we await the actual realisation and meat on the bone of that proposal. GDP growth has been slower than expected, making our debt dynamics more worrying and concentrating minds within European institutions, including the ECB.

Ireland is sticking to the bailout programme plan despite all of the condemnation of same in an earlier period. The Irish people have taken a great deal and proven resilient in the face of the additional taxes, cutbacks and so forth with which they have been confronted. We would welcome any easing of that debt position. Although we have not had time to analyse the full details of whatever deal has been announced, we look forward to a deeper and more independent analysis and closer scrutiny of same. From what the Taoiseach has stated, it appears that the deal will improve our cash flow and funding positions in terms of how much the National Treasury Management Agency, NTMA, must borrow in future. This is to be welcomed.

The deal gives greater certainty to our capacity to leave the bailout programme. In realistic and broader terms, however, this will not make a significant difference to the everyday life experience of people on the island. It just means that we will be borrowing on the markets as opposed to borrowing at good rates from the ECB. This will be the only difference after moving out of the bailout programme, as the disciplines of the market will continue to exist in terms of one's fiscal position.

From what the Taoiseach has stated, the deal represents a modest easing of the budgetary situation to the tune of €1 billion. We have €5 billion to go if we are to reach the 3% deficit target. This seems to have been eased by €1 billion. In this respect, what is the situation as regards compliance with the deficit target, does the Government have the flexibility to apply the €1 billion to reducing, for example, the €3 billion plus correction anticipated in next year's budget and will the deal mean fewer taxes than would otherwise have been imposed in the next budget? Will the deal have a direct impact on the €5 billion adjustment that is due in the next two years? Will it lessen the correction? People on the street and at home would like to hear that it would. They are concerned about the amount of taxes that they must pay, the various cuts in education, health and so on and the challenges facing a range of sectors in society. We need more clarity on this issue.

On the basis of all reasonable economic, social and equity concerns, Ireland has a significant right to debt relief in this regard. We were the first to take a hit to prevent contagion in the eurozone. Our country was dealt with unfairly.

We acknowledge the work of the Minister for Finance, Deputy Noonan,-----

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