Brian Ó Domhnaill (Fianna Fail)

Like other speakers, I am delighted to have an opportunity to contribute to this important and significant debate. It is also timely, given that the people will shortly be asked to vote in a referendum that will be significant both to Ireland and the European Union.

The EU fiscal compact has been designed to prevent a repeat of the Greek debt crisis, of which we are all well aware, in any of the member states of the eurozone. Much has been said about the referendum. The treaty was signed by the Taoiseach in the last few weeks and the debate on the referendum will continue in the coming weeks. We are still waiting for a date to be set for the referendum; we are not sure whether it will be before or after the summer recess. When the date is set and the Referendum Commission is established, it is important that the commission inform the people in a clear and concise way about what is contained in the document. Sometimes in the past the commission could have been accused of not providing enough clarity in the information provided. It is, therefore, incumbent on the commission, when established, to ensure the information is clear, concise, to the point and explains what is contained in the treaty in the most simple way possible.

There is a major financial crisis in Europe which the ECB, with the European Commission playing a central role, is trying to control. We are obviously concerned about what is happening across the eurozone and within the European Union, but we are particularly concerned about what is happening here, especially with regard to Ireland's debts relating to the banking sector, including the promissory notes for the former Anglo Irish Bank. It would be wrong to expect that we will receive any guarantees of a write-down of any part of the debt if we vote in favour of the treaty, but the European Commission and the ECB should look with favour at the steps the country is taking to meet all the targets set in the EU-IMF programme. There should be some respite with regard to the banking debt being borne by the country which is so significant and will be paid for with funds either available in Ireland or borrowed.

The major question concerns the manner in which the treaty has been formulated. The country has a deficit of €15 billion in its annual public spending. This deficit is being funded by funds from outside the country under the EU-IMF programme. Some of the money is certainly coming from EU sources in the programme under the two mechanisms in place. The treaty sets out a clear agenda for amalgamating the €500 billion available under these mechanisms with the new European Stability Mechanism. If Ireland opts out or decides not to vote in favour of the treaty, according to how the treaty is structured, we will not be able to access that pot of €500 billion on which we are so heavily dependent.

We should not ask the people to vote for the treaty just for that reason. The issue is much wider than this. The targets, confines and protections attached to the new treaty apply to all member states, not just Ireland. The first two countries to break the terms of the agreement under the Growth and Stability Pact which this treaty is replacing were Germany and France, not Ireland. The treaty, therefore, will also give smaller countries protection. However, it is important that the Government, at every opportunity between now and when the referendum is held, set out clearly to the European Commission and the ECB that we are seeking assistance to try to write-down or provide a respite from some of the banking debts which the country must bear.

Senator Ivana Bacik spoke about Article 8 and some of the changes being made in the treaty. Article 8 sets out the legal action the Commission can take against member states. That is also provided for in the Growth and Stability Pact. However, what concerns me is the fact that the Commission can take a case to the European Court of Justice and the court may impose a penalty appropriate in the circumstances and which does not exceed 0.1% of a country's GDP. Obviously, there is a need to have sanctions, but I hope large member states such as Germany and France would not use this as a wedge with which to attack smaller member states such as Ireland by using their influence at Commission level. While the treaty has been signed and we must accept it, this is something the Government should raise at intergovernmental level with the powers that be in Europe prior to the referendum vote, whether it is in the spring, summer or the autumn. It is imperative and in the best interests of the country that the people vote "Yes" to the treaty, support it and keep open the European Stability Mechanism funds to fund the ongoing programme we entered into with the European Union and the IMF.