Áine Collins (Cork North West, Fine Gael) | Oireachtas source

I welcome the opportunity to discuss these matters in the House. There is no doubt the ongoing financial crisis in Ireland and Europe has raised many questions. These include the entire structure of the Union, the democratic deficit, monetary policy and the role of the European Central Bank, new structures to deal with banks, and the difference between the northern European states like Germany and Finland and the peripheral states of Ireland, Portugal, Spain, Italy and Greece. Ireland was the first country to face the banking crisis and, as a result of the bank guarantee, we as a nation face huge debt problems. This was exaggerated to a certain extent by the ECB's stance in not burning bondholders.

However, this Government and the Minister for Finance, Deputy Michael Noonan, in particular, are constantly renegotiating that position. Substantial progress has been made. Interest rates have been reduced and the loan period has been extended. Huge progress is being made in setting up the new Europe-wide bank supervisory roles which will help to ensure bank debt in the future does not become a burden on taxpayer and state. This type of progress will lead to greater stabilisation across the eurozone. In addition, first steps are being considered to broaden the power of the ECB which will make it more like the Federal Reserve in the United States.

Eurobonds, sharing the debt burden and lowering interest rates will benefit the weaker economies in the eurozone in particular. The Germans are of the opinion that this will require treaty change. Ireland will, of course, play a major role in any discussions that may or may not lead to a proposal for treaty change. We are a small, open economy. Remaining within the eurozone is vital to our economic future. We are the only English-speaking nation within the zone, providing a vital link between the United States and Europe. Also of great advantage is our time zone which allows us to provide a linkage between the United States and Asia. Should the United Kingdom decide to leave the Union, the strategic importance of our remaining at the centre of Europe will be even greater.

Of course, it would be more desirable if we had control over our own currency and interest rates. It is interesting to examine what is being proposed here. Is there a suggestion that we revert to the punt or move to sterling or the dollar? A country with an economy the size of ours must stay inside the largest market, and the eurozone represents 40% of the world economy. We cannot be subject to costs involving currency exchange and leave ourselves vulnerable to unpredictable interest rates. Ireland has generally done well out of the EU. Despite the weather, our agriculture and farming sector has a great future within Europe. The Minister, Deputy Simon Coveney, is making great progress in protecting the Common Agricultural Policy from Ireland's point of view in the current round of negotiations. We must continue to engage with our European partners in seeking ways to improve structures, reduce bureaucracy and enhance laws and regulations from a social and economic perspective. Engagement is the name of the game. The aim is to remain firmly at the heart of Europe as one of its strongest supporters.

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