Alex White (Labour)

At the time the bank guarantee was provided in September 2008 the Minister for Finance said in this House that a compelling argument in favour of the Government's actions was that it would protect our economic sovereignty. In truth, our economic sovereignty and room for manoeuvre have been steadily eroded since. In a radio interview yesterday the Taoiseach was asked about the Government's budget strategy for next year. He said the Government had "received no formal or informal indication from anybody [in the European Commission] that a particular course of action would be expected of us". It is all about what the European Commission expects of Ireland. A Government has a greater role than simply carrying out the instructions of the European Commission, although I believe in the European project and pooling sovereignty in the greater interests of the people and people across Europe. However, I do not believe in our sovereignty being wrestled from us, which is essentially what has happened. By our own actions, inactions and policy failures in the past ten years, especially regarding the banks, we have greatly limited the economic independence of this country. I accept it is not peculiar to Ireland. A major debate is coming in Europe in the next few years about what level of economic independence any member states will have. The hand of the Irish Government and people will be very considerably weakened as a result of what has happened in recent years. All the debates about tax harmonisation and the economic independence this country has will all change radically in the coming years. It will be extremely difficult for this country to maintain any serious level of economic independence. I really regret the Taoiseach appears to be almost exhibiting a defeatist attitude towards this.