Paschal Mooney (Fianna Fail)

It is timely that all sides of the House are addressing the economic issue, having had our minds focused by the visit of the European Commissioner. The main challenge facing this Government is to convince international markets, those who lend us money, that we will be in a position to pay it back. The uncertainty created by the Germans primarily, in alliance with the French over recent months, has resulted in the bond rate increasing to an unprecedented 8% and is the other major challenge facing the Government. We do not have to borrow on the international markets until late spring or early summer but notwithstanding that, the message coming from bond markets is that they do not believe Ireland has the capacity to pay back the money. Members on all sides of the House agree that the attempts being made and the consensus arrived at in terms of broad parameters will get us out of this difficulty. The problem is that uncertainty must be addressed. I am not sure that speaking in this House will get as far as the German Bundestag or to the chancellery in Berlin but Chancellor Merkel should end the uncertainty and come out with proposals. It is not enough to leave statements hanging in the wind alleging default by countries on the periphery of the EU and stating that harsh sanctions will be imposed on countries that default. That is what has caused the bond market yields to go up and what has led us having to look at the possibility of borrowing at these high rates. In that context, I welcome much of what Senator Boyle said and what he believes about consensus. Consensus is about trying to agree on those parameters. I have no doubt the Opposition will rise to the patriotic challenge when the specifics of the plan are announced over the next few weeks.