Ivana Bacik (Independent)

I welcome the Minister of State, Deputy Joe Costello, and wish him well on his appointment. We look forward to him bringing his customary enthusiasm and expertise to this important portfolio.

I also welcome the opportunity to contribute to this debate. We had our first discussion on the stability treaty on 14 March with no Minister present. I found that debate extremely useful in refining arguments and engaging to and fro with colleagues. I welcome Senator Thomas Byrne's comments. Fianna Fáil's support for the treaty amounts to a very responsible and pragmatic approach and the Senator has put the arguments fairly.

We are having this debate in the context of the preliminary results of the first round of the French presidential election which show Mr. François Hollande in a strong position. He has changed his call for a renegotiation of the treaty to an emphasis on the need for a growth agenda within the treaty, something that has been emphasised by Irish negotiators and is already referred to on page 1 of the treaty in the reference to the desire of the contracting parties to promote conditions for stronger economic growth in the European Union. Growth is an integral part of the provisions of the treaty.

I spoke earlier about the need for clarity of language and join other speakers in highlighting the need for an informed debate. We are all pleased that every household will receive a copy of the treaty. As the Minister of State said, it is a relatively straightforward document. However, the language in which we describe it is critical. The "stability treaty" is the most accurate summary of the much longer title of the treaty. However, people have got into the habit of referring to it as a fiscal compact, which reflects only part of what the treaty is about. There has also been an unfortunate tendency by those opposed to it to describe is as the "austerity treaty", but to do so is to confuse cause and effect. My colleague, Senator Lorraine Higgins, put it fairly when she said it was utterly wrong to point to the treaty as somehow causing austerity. Rather, it seeks to deal with the causes of austerity, the economic difficulties we are facing and the crisis in the eurozone. Others have described it as a jigsaw piece or component of a larger solution. It is certainly not a panacea. Nobody who supports it is suggesting it will somehow cure any flaws in the euro overnight. I listened carefully to what Senator Sean D. Barrett had to say about the flaws inherent in the euro from its inception. However, we are where we are. One can point to these flaws in hindsight, but the question now must be how to shore it up. That is what the treaty seeks to address.

The trade union leader, Mr. David Begg, put the case honestly when he said that while he did not like what was in the treaty, the alternative was worse. That sends a clear message to trade union members throughout the country. It is unfortunate and unhelpful that SIPTU is taking a conditional support approach. The bottom line is that we are not in a position to impose the conditions that organisation has suggested. We are being funded by outsiders, thanks to the profligate economic policies of the previous Government, and are in a bailout programme. It is critical that we continue to maintain an open door or route back into the European Stability Mechanism should it be necessary, notwithstanding that the Government is working hard to ensure it will not be required. As the Minister of State said, one of the key arguments in favour of the treaty is to ensure access to that safety net. The Irish Farmers Association has given clear and unconditional support and emphasised that it is in the interests of its members that the referendum be approved.

There are some substantive reasons for voting "Yes". First, there is very little that is new in the treaty. As previous speakers indicated, it builds on measures already agreed at EU level, particularly the six-pack reforms to reinforce the Stability and Growth Pact. One assessment indicates that approximately 90% of what is contained in the treaty has already been agreed at EU level. Clearly, it is not an EU treaty but rather an intergovernmental one and, therefore, we have no veto in respect of it. Regardless of whether we vote "Yes" or "No", the treaty will proceed and will enter into force. We will, therefore, be left behind if we do not support it.

The goal of balanced budgets and sustainable economic policy is extremely important and we should put forward a very clear and positive argument forward in respect of it. This goal does not, as some on the left contend, run contrary to Keynesianism. Keynesian economic policies do not require the building of excessive or reckless deficits, rather they advocate prudent investment and intervention in the markets. This can be seen in the Nordic countries, where the model of a social Europe has really been pioneered. Those on the left can take comfort from the goals of the treaty in respect of sustainable economic policies. Short-term deviations are permitted under the treaty. In addition, provision is made for exceptional circumstances. From the point of view of Ireland, the treaty's terms do not override the troika programme to which we are already party. The specific goals contained in the treaty will not apply to this country until after our exit from that programme. There are quite a number of positive reasons to vote for the treaty.

The treaty involves trying to maintain a level of stability across the eurozone and not just in Ireland. The alternative to it for those who are advocating a "No" vote is uncertainty and instability. It is important that those of us on the "Yes" side should not scaremonger, that we should not be complacent or that we should not overstate the case. I have not heard a clear argument from those advocating a "No" vote as to the alternative to the treaty and what will happen if it is rejected by Ireland. We know it will come into force in any event for the other states which ratify it but what we do not know what the position will be with regard to this country and its economy if the people reject the treaty. External investors are watching with great interest to see whether they will feel secure in the context of continuing to invest money in Ireland.