Aideen Hayden (Labour)

In effect, they are proposing what is economic isolationism for this country. One of the advantages of having this debate is not necessarily to examine the Bill's specifics, which in the main are not controversial, but to examine the wider issues around the euro and the stability of the single currency. Senator Barrett referred to the 1990s, which I would like to address briefly. I remember studying economics back in the 1970s when Ireland was categorised as a small, open economy - nothing better than a cork floating in mid-Atlantic. I remember the 1990s vividly when the Irish punt went from £1.20 sterling down to £0.80. Mortgages were trading at 17% and the situation was utterly distressing for the vast proportion of Irish people who lived through that era. We should bear in mind the stability the euro has brought to this country, particularly to ordinary people. There are criticisms nonetheless. This Bill is designed to engender stability. If anything, I would have a criticism of the level of the fund. Given what is currently going on in the international domain, the level of the stability fund will be insufficient. That matter will have to be addressed. There are cracks and to some extent Senator Barrett is right to say they are being papered over.

I would like to raise three issues in the spirit of this debate and looking at the wider issues of European stability. First, I have always supported the European project but there have been some fundamental flaws. We all witnessed the failure of European foreign policy during the break-up of the former Yugoslavia. I agree that the eurozone has been too slow and cumbersome in reacting to the current crisis and we need to learn from that. Surely a run on the euro could have been anticipated. There is plenty of international evidence of runs on other currencies and the sharks will always be circling when they can see weakness.

Second, it is a fact that the European experience has not always been in Ireland's interests. It will be an issue for us in future as to how we dealt with the eurozone at a time - I will not engage in bashing the previous government - when it did not suit this country to have euro interest rates at such a low level. They did not suit the economics of this country or, indeed, other peripheral regions. Similarly, as Senator D'Arcy has pointed out, rising interest rates do not suit this country now.

Third, I strongly believe that the weakness of our foreign policy, in the past decade in particular, has weakened Ireland's capacity to engage in supporting our interests. In the past it was beneficial to have a strong relationship with other peripheral countries. Through this we managed to achieve moving European funding away from the Common Agricultural Policy and through the Structural Funds, which were very beneficial. It is in our interests today to engage more with the other peripheral regions to ensure that in future the development of the euro is designed more to favour the needs of peripheral countries, and Ireland in particular.