Paul Bradford (Independent) | Oireachtas source

I thank the Cathaoirleach for allowing me to raise the issue of the political and economic situation which flows from the Greek election result. I am glad the Minister of State, Deputy Harris, is here to deal with this question and I look forward to hearing his initial observations. I heard him being interviewed on a radio show yesterday morning on which he gave a comprehensive analysis of the situation as it was then and I agree with most of what he said.

However, I disagree with one comment he made, which I have also heard from other Ministers and commentators, both domestic and international. This was the phrase, "We are not Greece". I appreciate the social, economic and political problems of Greece may be different from ours, but we should stop using the phrase, "We are not Greece". Greece is one of the most ancient civilizations in the world and Greece, the home of democracy is a cultured, learned place. It is part of the European Union and of the eurozone. The Greeks are our brothers and sisters in the European project and it is in our interest and theirs that we try to progress and move forward together. Greece is much more than feta cheese and post cards. It is an ancient democracy and we all have an obligation to try to ensure its continuation, economically, socially and politically and to work with the Greek people and the new Greek Government in that regard.

That said, we must reflect seriously on the election result. To change the emphasis, I would say we should beware of Greeks bearing political gifts. Not just in Greece but throughout Europe, there is a great welcome from both the hard left and the hard right for the election result in Greece on Sunday, an election result where 36% of the people - not 50%, 90% or 100% - voted for a political party made up of former communists, Maoists, Trotskyites and people with a view of society and politics the majority of us would not share. We must respect the result of the Greek election, but we must also see the dangers as much as the opportunities.

We must add a note of caution for people who believe some magic economic formula has been delivered by the Greek people on Sunday and urge a degree of calm. We must do so, because where the extreme left is politically successful, not just in Greece but across the European Union, be it in Spain, Italy, or Ireland, this is mirrored by the extreme right. Both extremes will thrive on chaos, confusion and fear.

We all know what the problems in Greece are - a huge lack of structural reform, a taxation system which does not appear to work and which certainly is not bringing in the required tax revenue, a complete lack of political reform and a welfare system that does not provide for those most in need. All of these problems will not simply disappear overnight.
The issue I am addressing relates to Greek debt. That was the focal point of the elections. The new Prime Minister sent the message, although it appears from his article in the Financial Times last week that he is slightly back-tracking from it, that there was a magic solution, that one could simply wipe off debt and expect to go to the same people three, six or 12 months later to seek to borrow more money, even though one had refused to repay one's loans. That is fantasy land economics and we cannot allow it to go unchallenged. We must also appreciate that the people of Greece, the majority through no fault of their own, are burdened with a massive national debt of 175% to 180% of GDP. That is a challenge that must be tackled and it must be tackled with creativity and imagination but also in a commonsense fashion. We must refute the idea that there is a simple solution, that one can simply make a national debt disappear. However, we must also co-operate with the Greek Administration.
I am a little surprised and disappointed at the general lack of enthusiasm for some type of debt conference. Bringing people around the table to talk frankly about the reality of politics and economics and the fact that one cannot wish or write away debt would be helpful, rather than a hindrance. Every country in the European Union, particularly those such as Ireland that have debt issues, could only benefit from further frank exchanges in that regard. I am disappointed at the dismissal of the idea of holding a debt conference, but I look forward to hearing the Minister of State's observations. I appreciate that it is only 48 hours since the elections and that the current position is not static, but we must be vigilant about both the economics and politics of Greece and the broader eurozone and the European Union.