Dáil debates

Tuesday, 14 July 2015

3:10 pm

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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95. To ask the Minister for Foreign Affairs and Trade if he has spoken to the Greek Minister for Foreign Affairs, Mr. Nikos Kotzias, since the results of the Greek referendum; and if he will make a statement on the matter. [28399/15]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Tomorrow workers in Greece will commence a 24-hour general strike and there will be mass protests all over Greece against the shameful bullying by the troika and EU governments in attempting to shove another austerity package down the throats of the Greek people who will be protesting against the tragic capitulation of Alex Tsipras’ Government to the austerity agenda. How does the Minister respond to the allegation, made by the former Greek Finance Minister, Yanis Varoufakis, in the article in New Statesmanpublished in the last day or two, that Ireland was one of what he described as the major opponents of the Greek Government in seeking a debt writedown and real relief from the austerity package the troika was trying to impose?

Photo of Charles FlanaganCharles Flanagan (Laois-Offaly, Fine Gael)
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To address the question as tabled by the Deputy, I have not spoken to the Minister, Mr. Kotzias, since the referendum was held in Greece on 5 July. The Deputy and the House will be aware that, following the referendum, Finance Ministers of the euro area member states and Heads of State or Government have met on numerous occasions. The leaders have agreed in principle that they are ready to commence negotiations on an ESM financial assistance programme for Greece.

In response to what the Deputy has just said, the euro area has an obligation to Greece in these difficult times, but Greece also has an obligation to itself. It needs to reform its economy and return it to a measure of sustainable growth. I have not read the article to which the Deputy refers. However, Ireland, together with the other member states, understands and empathises with the difficult situation being faced by the Greek people. That is why there has been a willingness to negotiate a way forward which takes account of the realities of the situation in Greece and the political priorities of its new government, while also respecting the commitments it has already entered into.

Greece is a sovereign state. It is for it to decide whether it wishes to accept the financial aid offered by its European partners. It is in all of our interests that Greece remain firmly in the euro area. However, as a member of the euro area, each member state continues to have its obligations. It is no different for Greece. That is precisely why, following a request by the Greek authorities for a third programme under the ESM, leaders of the euro area member states have agreed in principle that they are ready to commence negotiations on an ESM financial assistance programme for Greece. For recovery of the Greek economy to take place, a number of difficult and challenging reforms have to be undertaken - these are inevitable. In that regard, we continue to urge the Greek authorities to keep to their commitments and legislate without delay for the first set of agreed trust-building measures which I understand will be under way in the Greek Parliament in the next 24 to 36 hours.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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The so-called bailout is conditional on the acceptance of further pension cuts, savage spending cuts, VAT increases, €50 billion worth of further privatisations, more repossessions of homes and foreclosures on small businesses. This is in a country in which the level of poverty has increased by 98%, the child mortality rate has increased by 42%, pensions have been slashed by 45% and salaries have been cut by 40%. How can the Minister and his friends in the troika honestly say the Greek people must take more pain when they are being crushed?

How does the Minister respond to the allegation from the former Greek finance Minister that Ireland, along with a few other countries, was foremost in insisting that Greece and its people must accept more vicious austerity or get no assistance from Europe? That is a shameful betrayal of people who have been crushed. Mr. Varoufakis says that the reason Ireland took this position was fear of political embarrassment if the Greek people got any relief on debt and austerity.

3:15 pm

Photo of Charles FlanaganCharles Flanagan (Laois-Offaly, Fine Gael)
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I do not accept that Ireland has been placed in the position alleged by the Deputy. Ireland continues to have great sympathy for the people of Greece. My colleague, the Minister for Finance, has expressed that view publicly on several occasions over the past few weeks, which have been a very challenging period. It has been reported directly that the Minister had been most helpful to the Greek authorities in moving to a position whereby negotiations of a realistic nature were taking place up until the end of June. Reports over the weekend show a similarly important role played by our Minister in ensuring that the talks and negotiations were kept on track. Ultimately, the reforms that are appropriate and necessary for a further bailout are a matter for the Greek Government and authorities.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Does the Minister not actually mean that the Minister, Deputy Noonan, has assisted in what is effectively a coup d'état in Greece? There is a deliberate attempt by Chancellor Angela Merkel and the troika to split the Greek Government in order to ram more unconscionable austerity down the throats of people who are on their knees. Does the fact that there is going to be a general strike tomorrow not prove that Tsipras's Government, in its shameful capitulation, does not enjoy the support of the Greek people? They are on the streets yet again tomorrow because they cannot take it.

Why has our Government sided with the euro bullies against the wishes and needs of the Greek people, instead of standing up for a Europe of democracy and solidarity? The European project as a notion of solidarity and co-operation is dead in the water. It has exposed itself now as a bullying, corporate, bank-dominated austerity juggernaut that cares nothing for democracy.

Photo of Charles FlanaganCharles Flanagan (Laois-Offaly, Fine Gael)
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I do not accept that at all. The agreement concerns the matter of fundamentally rebuilding trust between the authorities in Greece and the 18 other member states of the euro area. In this regard, I urge the Greek authorities to keep their commitments and to legislate without delay - as I understand they are doing - on the first set of trust-building measures. I believe it is important that this Parliament and other parliaments in the eurozone and the EU acknowledge a fact with which the Deputy seems to have a difficulty, namely that Greece is a sovereign state. It is for Greece to decide whether it wishes to accept the financial aid package offered by its European partners or take another course. I believe there has always been a willingness to negotiate a way forward which takes account of the realities of the situation in Greece and the political priorities of its new Government. I note that the new Greek finance Minister has received no mention from Deputy Boyd Barrett. The Deputy was obviously very much a fan and supporter of his predecessor.