Brian Stanley (Laois-Offaly, Sinn Fein)
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Question 8: To ask the Minister for Finance if any staff from his Department or within the National Treasury Management Agency, Central Bank of Ireland or other agencies have assessed or are currently assessing the impact of a collapse of the euro on the Irish economy. [27671/11]

Michael Noonan (Limerick City, Fine Gael)
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There are many risks in the broad economic environment at present, which I must take into account in conjunction with my Department and the agencies that report to me. The euro is a firm and solid currency currently trading well against all the other major currencies. There is clearly no market expectation, and there is certainly no Irish Government expectation, of any collapse in the euro.

Pearse Doherty (Donegal South West, Sinn Fein)
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I thank the Minister for his reply. To be clear, has anyone in the Department, the Central Bank or the NTMA looked at the possibility of the collapse of the euro? Obviously, it is something we would not like to see happen as it would have devastating consequences for the Irish economy. I assume, given the level of debate among many economists throughout the world who do not have a vested interest in those matters who are talking about the potential or the possibility, it is not an issue that is as alien as it was a number of years ago. Has any analysis whatsoever been done in terms of what would happen if such a scenario were to unfold? There has been much talk about Greece and how the European Financial Stability Fund has been structured and some of the flaws within that. It is not talk to the effect that the euro is going to collapse tonight or tomorrow but if such a scenario were to arise it would have devastating consequences for the economy. I hope the Minister for Finance, his officials or someone within the NTMA or the Central Bank is at least looking at all the scenarios and possibilities that could occur regardless of how remote they are. Could the Minister confirm that nobody in the Department, the NTMA or the Central Bank have looked at such a scenario?

Michael Noonan (Limerick City, Fine Gael)
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If the Deputy will accept the distinction, the problem is not with the euro, the problem is with the eurozone. The euro is a solid currency. Since it was established 12 years ago it has gone up in value against all the main currencies of the world. It has increased trade in Europe by 50%. It has kept inflation below 2% for 12 years in a row. When the Swiss had difficulties a fortnight ago and they decided to benchmark their currency, they did not benchmark against the yen or the dollar or go back to the gold standard, they benchmarked it against the euro. If one wants a vote of confidence in the euro one should think of the clever people in Zurich making a decision to benchmark against the euro.

The euro is as solid as a rock. The issue is who is in and who is out and whether everyone can stay in. That is what the debate is about. Everyone has to get their economies into shape so they can continue to participate in the eurozone and this strong currency. Of course we think, talk and look at possibilities. An issue we must examine is what to do if there were further contagion from Greece. Every time I go to Europe I tell the authorities that if there is further contagion from Greece that Ireland must be protected, as indeed bigger eurozone countries would have to be protected, by some form of firewall that would stop contagion from spreading.

Pearse Doherty (Donegal South West, Sinn Fein)
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I take it from the Minister's response that these matters have been examined. Could he satisfy me that there is a plan sitting on a desk somewhere that would protect Irish interests if we were to see a scenario unfold such as I have outlined where the euro would collapse or this country, for example, could be pushed out of the euro or we could have a two-pronged euro with a stronger euro in Germany and other peripheral countries left with a different currency? It is not unique for a currency to fail or to be remodified. A number of scenarios could evolve. We are trying to prevent that from happening but we must also consider what could happen in the future. Are there plans somewhere drawn up by someone that will protect the interests of the Irish economy if such a scenario were to arise?

Michael Noonan (Limerick City, Fine Gael)
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As well as the difficulties individual countries have, there are speculators in the market that are targeting banks and sovereigns. To say too much about these things would make one a softer target than one might be. The Deputy can take it that we are aware of his concerns and that we will take them into account.

Mick Wallace (Wexford, Independent)
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Does the Minister not agree that it would be more sensible for the Swiss to benchmark themselves against the euro rather than the yen or dollar because they are worried about their currency being too highly valued? If, for example, the euro goes to €1.25 against the dollar, for example, the Swiss would not be bothered by that. It would not be a problem for them. If the euro floats down a little more it certainly would not be a problem for them because they were not very happy with the over-inflation of their currency.

Does the Minister not agree that most of the experts in Europe and even the German and French finance Ministers are of the opinion that the euro in its present form will not survive unless we have total fiscal union? It is debatable whether that is in our interests. Does the Minister not agree that fiscal union would signal the end of our financial sovereignty?

Michael McGrath (Cork South Central, Fianna Fail)
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What I want to know, and what people would like an assurance on, is that the Department and the authorities do contingency planning on an ongoing basis on all possible eventualities in the eurozone crisis, including a Greek default and a Greek exit from the euro.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Print a few punts up in Sandyford.

Michael McGrath (Cork South Central, Fianna Fail)
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It would not be helpful for us to go into any more detail, except to ask the Minister for an assurance that the Department looks at all eventualities and plans accordingly.

Michael Noonan (Limerick City, Fine Gael)
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We do not plan against all eventualities but we have some contingency planning against what might be probable rather than what is improbable.

Deputy Wallace is right on the money when he speaks about Switzerland. His analysis is absolutely correct.

It is also true to say that it suits Ireland to have the euro weakening at present because our main customer countries are dollar countries and sterling countries. If the euro comes down, that will restore some of the growth that we are losing in our export markets into the UK and into the United States, our two biggest customers.