Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I propose to share time with Deputies Dara Murphy, Liam Twomey, Regina Doherty, Gerald Nash, John O'Mahony, Noel Harrington, Robert Dowds and Olivia Mitchell.

I thank the Leas-Cheann Comhairle for the opportunity to speak on this motion. I wish to focus specifically on the proposal that any treaty changes should include a process that allows a eurozone member state to voluntarily leave the eurozone. It is not in Ireland’s interest to exit the eurozone. The country has benefited hugely from membership of the EU and I doubt any Member of the House could stand up and say Ireland has not benefited from full EU membership. In our early years as part of the euro, we benefited significanty in economic terms and we continue to be a net beneficiary of the EU. It would be worth putting time and effort into looking at some of the issues raised and thoroughly researching and analysing the impact so that we can make informed decisions but this motion is sadly lacking in-depth analysis on the impact of leaving the euro. Instead, it is proposing that we can just leave if we want to.

I was working in the international division of a bank when we broke the link with sterling. This was heralded as a great advancement for our country but I subsequently saw at first hand the struggles and difficulties that Ireland faced as a result. Throughout the 1980s, Ireland suffered economic stagnation while most of Europe experienced growth. Our Irish punt was battered by the speculators, interest rates rose over 20% and the country was crippled. The Central Bank had to step in on numerous occasions to prop up the punt at huge cost to the Exchequer.

Small nations such as ours are at the mercy of powerful speculators and their actions can cause significant fluctuations in a currency, bring uncertainty and make doing international business very difficult. Despite being dead and gone we all remember the Celtic Tiger, from which we all benefited. Our rapid growth initially can be attributed to a boom in exports thanks to the single currency.

The motion is proposing that we go backwards so I want to ask where should we start. Should we return to sterling or go back even further to bartering? The motion is ill-prepared and not at a point of development where it warrants a serious debate. There are no projections or figures to clearly outline the implication of an exit from the euro. For example, what about the physical costs involved in switching back to the old Irish punt? As a member state of the EU, we are obliged to allow free movement of capital throughout Europe. A new currency could well cause panic and most likely speculation that could lead to a run on our banks, with many people wishing to keep their funds in a currency in which they have confidence. Multinationals may view Ireland out of the euro as too high a risk and may decide to move elsewhere. The motion is not properly thought out, with no account taken of the consequences.

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