Seanad debates

Wednesday, 1 July 2015

Commencement Matters

Eurozone Crisis

10:30 am

Photo of Paul BradfordPaul Bradford (Independent) | Oireachtas source

I thank the Cathaoirleach for allowing me to raise the matter of the ongoing crisis in Greece, and the impact and knock-on effect it has on all the eurozone countries and the entire political consequences for the EU and beyond.

A few days after the Greek election last January I tabled a Commencement matter with the Minister of State on the aftermath of the election in Greece. At the time, we were at one in pointing out that much of what had been promised and offered by way of a political manifesto, by the incoming Greek Government, would be difficult to fulfil and that there were no easy answers to the Greek problems. If there were easy answers then the matter would have been solved a long time ago. We agreed that it was a developing situation and it was one that could become very dangerous from an economic and political perspective. Sadly, that has all come to pass.

As I said in the House last week, it is fair to say that for the vast majority of politicians and political parties, in this House and in the other House, Mr. Tsipras and Syriza would not be our chosen political cup of tea. However, we must respect the fact that he and his party have been elected to govern by the people of Greece and that they have a mandate in that regard. In politics we must accept that political factors always impact on decision-making. From a Spanish perspective, the Podemus party offers a variation of Syriza. From an Irish factor, the Sinn Féin party has presented the Syriza election as some sort of new dawn. Therefore, we must be cautious in our dealings with the new Greek Government. We should not cave into the thinking and ideology that has been put forward by Syriza. That is the politics of the short term. I urge Members to look beyond the short term to the medium term and beyond. We must see the impact of what is happening in Greece, not just from the politics and economics of today, but from a long-term European perspective.

As of now the failure of Greece to make its IMF repayment has marked it down as the first developed country, in almost 70 years, to fail in that regard. There is a crisis on the streets of Greece, people are unable to obtain cash, pensioners have found it difficult to access money and a huge level of human misery has been created. I would be the first to acknowledge that much of the crisis in which Greece now finds itself stems, not just from decisions made by the current Greek Government, but from a lot decisions that were taken and not taken over the past 20 years in Greece. Those problems will not be resolved overnight.

Speaking of the medium and long term, it is only 70 years since there was a civil war in Greece. At that time it was communists versus colonels and the military. A referendum may be held next Sunday and a similar ideological divide appears to be gearing for battle with a rather simplistic left versus right. Any further division of Greek society at present is very unhelpful. I believe eurozone finance Ministers will participate in a conference call this afternoon which was postponed this morning. I hope that means some degree of talking is going on in the background and that some solution, even at this late stage, can be found.

Ireland is geographically removed from Greece but we must accept that, as a member of the European Union and the eurozone, we are equal partners on the field of play. If Greece leaves or is forced out of the eurozone then such a development will come with very significant negatives. It will clearly show that the eurozone is not a fixed project. It will clearly show that countries can either opt out or be forced out. It would also be a major blow to the concept of a strong and united European and financial Union. If it happened then it would come months ahead of a referendum in the UK on its relationship with Europe. It Greece left the eurozone it would pose serious fundamental questions about what the European Union is and what it wishes to be and to become.

The European Union is a great political project that united a divided continent and was built from the blood of millions of people. This fantastic project will be at risk if problems such as Greece continue to be unresolved. Obviously the first and longest mile must be walked by the Greek Government but Ireland must try to walk with it in a spirit of co-operation and unity. Over the next crucial few days our political priority must be to ensure that a fair and balanced solution is reached. Even if Ireland must swallow a little bit of political pride I ask the Minister of State to convey to the Government that we should look at the bigger and longer picture, and at the great vision of what Europe is and what it can become.

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