Eugene Regan (Fine Gael)

When I consider the extent of the measures adopted by the European Union in solidarity with certain member states, including Ireland, all I can say is, "Thank God for the Lisbon treaty". The solidarity clause contained in Article 122 of the treaty states the Union can provide financial assistance for member states that are in difficulty as a result of exceptional occurrences. It is upon this essential provision that the package announced at the weekend is based.

International markets do not respect borders or the sovereignty of member states. The European Union has done more to protect the sovereignty of this country than could any measure we might ourselves take. There is not a loss of sovereignty in playing the game in respect of the management of our budget, the public finances and the economy. In 2001, when Mr. McCreevy was Minister for Finance, Ireland was the first member state to break the Union's guidelines in respect of its finances. Despite a reprimand from Brussels to the effect that we were spending too much and that the public finances were getting out of order, the then Minister for Finance confirmed that he intended to continue spending. That was the point at which we lost our way. It was when we considered that we knew best and could, as a result of our high growth rates, go it alone, but we now know the folly of the position we adopted at the time. The former Minister for Finance indicated that he would ignore the Union's censure on the grounds that inflation was already coming down and that the measures he had taken the previous December were necessary in order to maintain social partnership. All we need to do is to play the game and recognise the economic reality, namely, that we must co-ordinate our economic policies with those of other member states. We must also adopt honest, transparent and consistent policies. It was announced in the budget that policy on public service pensions would be reformed. On Friday last, however, we did a U-turn and changed our position in this regard. I do not know whether there is a saving to be made in making such a change, but we must be consistent in the policies we adopt. We must explain our position more fully to the European Union if we hope to avail of the support available.