Feargal Quinn (Independent)

I first visited Greece in May 1967. Before doing so, I went to collect my drachmas in the bank in Dublin and the staff asked me whether I was still going. In the week I arrived in Greece there was a coup d'état. The tanks were in the streets and the colonels took over. It was a dramatic time in history and there were very few tourists in the country. My tour was one of the first since the coup d'état. I know Greece comparatively well and this example reminds me that Greece is being targeted. The euro zone is comparatively strong but it is only as strong as its weakest link. It is as if Greece is being targeted. It may be deserved because it may well be correct that the Greeks have not behaved themselves and misled us a little, or a lot, with regard to the figures they produced, even those pertaining to their entry into the eurozone. Therefore, it is understandable Greece is not trusted.

The proposed emergency funding for Greece is extremely serious for the eurozone. Many forget or do not realise this fact. The Greeks cannot continue to produce estimates that suggest a deficit amount for 2009 of more than 12% of GDP, while the level of public debt is above 120% of GDP. Many even believe this is the most serious test of the eurozone since its foundation.

It is very stark. What is surprising is that there is so much indifference to helping the Greeks. A poll in the German newspaper Bild am Sonntag showed that 53% of Germans had said the European Union should, if necessary, expel Greece from the euro zone. The Lower House of the Dutch Parliament has just passed a motion, backed by all parties, prohibiting the use of Dutch taxpayers' money to bail out Greece, either through bilateral aid or EU funds. The Bundestag in Germany has drafted an opinion deeming aid to Greece illegal. The Bundestag indicates that state bodies may not purchase the debt of another state, in whatever guise it is presented. One can only imagine the trouble Ireland would be in if it were in Greece's position and had to face such negativity and the prospect of seeking out such help.

One of the main problems is that Greece is struggling to convince the market, especially investors, that it is tackling its debt crisis. The European Union has also played a part in this, as it has failed so far to outline the concrete steps Greece must take to remedy its finances. I understand today that EU leaders will now wait until March to see whether Greece can implement some measures to reduce its debt. Greece is procrastinating and putting off measures to stabilise its economy. The Greek Finance Minister announced just yesterday that his Government would not be adding new measures to the public sector cuts and higher fuel taxes unveiled last week. In addition, the Greeks are reluctant to reconsider their generous pensions system, despite the degree of relief it could bring to them. It concerns me that there is no clear and unambiguous message issued jointly by both the European Union and Greece. They seem to be pulling in different directions and this lack of co-operation is harming Greece and the eurozone.

I agree with Brendan Keenan who wrote last week, "The crisis in Greece seems to show that reducing the budget deficit — however illogical and harmful in a shrinking economy — is the only option in these unprecedented times". Ireland has managed to escape being the first to be targeted but maintaining this position will not be easy. We have taken correct steps in recent times to help us in this regard.

With all this talk of Greece, it is easy to forget some of the other problems in Europe. Harvard University economist and former IMF chief economist Kenneth Rogoff has warned Germany could face similar problems to Greece. I had not heard this before. He said:

Germany's public finances are not on a sustainable path . . . There will come a time when Germany will have its own Greece problem . . . It won't be as bad as in Greece, but it will be painful.

Latvia has been largely ignored, although it is an important example of what could go wrong. It is easy to be downbeat about our economic circumstances but let us be thankful that we are the controller of our own destiny. The largest economy in the European Union, Germany, could face a massive problem with regard to its finances, while Latvia is on course to losses greater than those accrued during the Great Depression in the United States. Thank goodness, we are now back in the game. I hope everybody in the country can be convinced of the benefits of the tough steps we have had to take. This is comparatively easy when we consider what has happened to Greece. It must be possible to convince everybody in the country that we must tighten our belts and take some tough decisions. It will not be easy, but we must try to come together and make those decision to our current advantage so we can succeed in that.

Last Saturday the OECD pointed out that our labour cost rose at a faster rate in the third quarter of 2009. That is a reminder of the dangers facing us. No matter what we do with the economy, we must ensure in the long term that we become as competitive as we were in the past. On that basis, I urge the Minister of State not only to convince our citizens of the steps we must take but to convince them that in the long term we must be more competitive if we are to succeed.