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

What has been agreed to so far is not a banking union. The single supervisory mechanism, the single resolution mechanism and the deposit guarantee directive under discussion will not create a genuine banking union. Risk will not be shared across the eurozone and there will be no uniformity in regulation. The biggest problem with this is not that it will precipitate a new financial crisis but that it will embed a level of caution and restriction in the system. This will keep undermining vital lending. A genuine banking union would rapidly restore confidence and begin to open up lending for cash-starved businesses, particularly small and medium-sized enterprises. The communiqué calling on the Eurogroup to finalise ESM recapitalisation guidelines was no more than a way of avoiding the topic. The summit's generic call on members to strengthen the co-ordination of economic policies is meaningless. The statement that there will be a "shared analysis" of economic policies would be positive if leaders were willing to speak up for a change to the damaging policy of universal austerity. In particular, the large structural surpluses being run by some economies cannot continue to be ignored.

I welcome the fact that the Minister of State, Deputy Paschal Donohoe, last week decided to reverse government practice and begin at least to talk about developing specific Irish policies relating to the future of Europe. Like many others I am still not sure about his linking of a Korean pop star to the issue, but his speech was a half-step forward. I hope he will build on it by producing specific proposals.

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