Paudie Coffey (Fine Gael)

-----when one hears the Deputy Leader of the House and chairman of the smaller party in government make comments such as those he uttered earlier. Political accountability is required for political decisions.

In joining the euro a number of years ago Ireland agreed to a shared monetary union. In essence, we agreed to a loss of sovereignty in respect of our monetary system. Sadly, in the light of the events of the past week and the programme agreed between the Government and the IMF, we are now ceding our fiscal independence and sovereignty. This will tie the hands of future Governments and policymakers to a large degree, which must be a source of some concern. The outcome of the negotiations was extremely disappointing and it behoves all Senators to indicate exactly how they feel in that regard. I am particularly disappointed at the interest rate that will apply. I am also disappointed at the fact that the National Pension Reserve Fund has been raided. Fine Gael had made very solid proposals on how part of the fund could be invested in the economy in order to provide a stimulus. The most important aspect of this matter is that senior bondholders appear to be untouchable. The people cannot understand this and clear reasons must be provided as to why this decision was made.

Our national bank, namely, Anglo Irish Bank, which was bought by the Government appears to be engaging in semantics of late. It appears consideration is being given to rebranding it. We are referring to a zombie bank which has literally sucked up both the economy and taxpayers' money. It cannot be allowed to remain in place. As Fine Gael has continually stated since the start of the financial crisis two years ago, it must be wound down. There is, therefore, a need for a debate on the future of the banking sector. We need to find a banking resolution mechanism before it pulls the whole economy down.