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

I welcome the opportunity to speak on the motion. No Member disputes that the initial construction of the European currency was flawed. It was the first time in world history such a huge experiment was undertaken, the coming together of a monetary union with different countries, individual governments and central banks. Countries were allowed to adjust their currencies and interest rates to accommodate their circumstances and, inevitably, it led to the problems we have all seen. The difficulties were not properly anticipated when the currency was created. Low interest rates across Europe, coupled with a lack of regulation, played a huge part in creating a financial crisis. Consequently, there was no European mechanism to deal with them when the crisis arose. This is gradually changing and new systems are continually being put in place to avoid the scenario in the future.

Unfortunately, unsustainable debt burdens were imposed on Ireland but it is how we deal with crisis that is important. The Government has made huge strides, along with others, to stabilise our economy. Initially, the Government worked tirelessly by restoring our reputation with our European partners and across the globe. We first had to prove that the Government has the ability and the resolve to do what was necessary to regain our economic sovereignty. This included having a Minister for Finance who was calm, could see the future and was able to bring European partners with him. Having achieved this, we were in a position to renegotiate our bailout scheme. We renegotiated our promissory note and extended the repayment deadline and a huge reduction in interest payments followed. This success led to a restoration of confidence in our economy by the financial markets to the extent that, on the country's behalf, the Minister for Finance can borrow money at less than 1%.

One of the immediate advantages was that we could pay off the IMF share of the bailout with money borrowed at a hugely reduced rate of interest. From a social point of view, it must be remembered that one of the first actions of the Government was to restore minimum wage levels to pre-crisis levels. We also guaranteed that core social welfare payment levels could not be reduced.

By contrast, the left wing alliance in this House would have taken us in the opposite direction. They hail the victory of Syriza in Greece as a left wing triumph. The minimum wage in Greece is between €500 and €600 per month. Syriza's election promise would raise it to €750 per month. Even if it makes this increase, there is no comparison with the rate that has applied in Ireland since this Government entered office, which is €1,500 per month. We regularly debate property taxes and water charges in this country. In Greece, property tax is tied to the electricity supply and if people do not pay their property taxes they lose their electricity connection. The Greek Government is already seeing that it has to backtrack rapidly. Its plans to nationalise the ports have been abandoned and it is honouring the privatisation deal made with the Chinese. Ireland will continue to work with our EU partners to find new ways of reducing our own debt burden but we will act from a position of strength.

It is important that we work together to resolve Greece's issues. Some 93% of Greece's debt is owed to European taxpayers, and €500 million of this is owed to Irish taxpayers. The ethos of Europe since its foundation has been about working together to resolve issues and that is what we have to do with Greece. However, Greece also has to do its part by working together with Europe to resolve our issues. Greece is very different to Ireland. We have a strong, outward looking economy, with healthy exports to European markets. Greece faces challenges in collecting taxes, building a manufacturing base and creating a sustainable economy. It has an inflated public service. We had some issues in this regard in Ireland but they have been dealt with. Like Spain, Portugal and Ireland, Greece will have to address its issues in the same forums as every other country, namely, in ECOFIN and through the troika, with the help of the IMF. Ireland wants to play its part but we cannot be bullied into doing so. We have shown our ability as a nation to recover. We will have the highest growth rate in Europe this year. Our European partners understand that any further reduction in our debt burden will not be wasted but will instead be used as an instrument to increase our viability and economic activity. This will benefit not only Ireland but also the EU as a whole. I commend the Government amendment to the House.

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