I thank the Chairman. I will begin by paying warm tribute to the Chairman and the sub-committee on the valuable work it has done over the last period. In its work on the referendum in recent weeks, the sub-committee has given a necessary forum in which it has been possible for all views on the treaty to find space and to be subjected to careful questioning and examination. This is a valuable function the Chairman and the sub-committee have fulfilled exceptionally well, and I thank the Chairman for that. I strongly recommend that anyone interested in getting a real flavour of the debate read the various papers and records posted on the sub-committee's website, and I greatly look forward to its report as an important contribution to the national debate in respect of this matter.
There are four key messages I want people to take away from this presentation. First, this treaty is only a part of our journey to economic recovery, both for Ireland and for Europe. It is not the full picture, nor it is intended to be the full picture. We have never argued that, but it is certainly an essential and fundamental part of it. Second, this treaty will make an important contribution to restoring stability to the euro, which is our currency, and this is critical to this country and its recovery. Third, ratifying the treaty will underpin the efforts we are making to build confidence and certainty in Ireland as a place in which to invest and do business. Fourth, it will ensure Ireland has continuing access to external finance should the need ever arise. These are four strong and compelling reasons why ratifying the stability treaty is the right choice for Ireland, and why my colleagues and I in government and others will be campaigning strongly for a positive outcome on 31 May.
It is important we are fully aware of the broader context in which the ratification takes place. During the course of this brief presentation, I want to set the record straight on some of the issues and cast aside a number of red herrings that have arisen in the debate so far. I also want to say something about why I want to use this campaign to call for a more ambitious approach at EU level. This is not new. It is something I have articulated at every meeting of the European Council since I became a member of the council after the general election last year where the Government was formed. This is relevant to today's debate and for the future.
Ireland is on a difficult journey to recovery. We have made painful adjustments to get back on track, and I am aware only too well of the impact of this on Irish families. I see it every day. However, we are making headway. Our reputation is being restored internationally. I have seen this during my recent visits to China, the United States, Great Britain and other places in Europe. People see Ireland as the country most likely to succeed, as a country serious about closing its deficit and returning to the markets as soon as possible. They hear good news about us, and they speak well of us. This is evident from international economic, business and political commentary. The Government has shown how serious we are about closing our €16 billion deficit, and our returns for last year show we outstripped our troika requirements.
Signing up to rules at the heart of this treaty - balanced budgets and sustainable debt levels – in other words, good housekeeping, will provide a legally tight demonstration of our commitment to continuing to run sound and sustainable budgets. It will help to underwrite our good name and our reputation and will underpin the steady progress we are making. The Government was committed to introducing a fiscal responsibility Bill long before the treaty was negotiated. We believe it is good and necessary for Ireland that we put our house in order. As we speak, the Minister for Finance, Deputy Noonan, will make public a general scheme of that fiscal responsibility Bill so that everyone can understand what it means.
That our partners in Europe are now doing the same, adopting more responsible budgeting and sustainable debt levels, will have a reinforcing effect. A full recovery will not be possible without a European recovery, without a wider return to growth driving demand across the Union. Of course, this treaty will not achieve this on its own - nobody claims it will - but it will underpin the policies that are necessary if recovery is to be secured.
My goals when I visit Europe are the same as my goals at home: recovery, growth and jobs. They require balance. I have argued for a long time that the response to the crisis in Europe has not been sufficiently geared towards growth. In fact, the sub-committee should be aware that the talk at every meeting of the European Council last year was about catastrophe, default, the break-up of the eurozone and the demise of the euro, and that has changed because European politicians and leaders made decisions that have changed that argument, and growth, jobs and investment are now a central feature of every agenda for meetings of the European Council. Ireland, along with a number of other countries, has argued that case cogently and strongly and I am glad this feature is recognised as a central feature of agendas from now on.
Recent discussions at the European Council bear that out. There is now a clear shared sense of urgency about mobilising all the policies and tools at European level to help turn matters around. I make no apology for being in the forefront of this argument. Clearly, one needs a balance in the way recovery in growth and jobs is to be achieved. In so far as I am concerned, the people can be assured that I will continue to press for this as hard as I can at every opportunity on behalf of the Government and the people, including in Ireland's term holding the European Presidency during the first half of 2013.
To recover its economic position, Europe also has to put doubts about the euro to bed once and for all. That means demonstrating to the wider world it is a strong, credible and enduring currency. The recent days of uncertainty in the markets show the volatility of this situation. Recovery is fragile and we need to work hard to secure it.
People looking to invest and do business in Europe must be confident there is no risk to the currency or of it collapsing overnight or of the benefits of a single economic and monetary union disappearing. They have to know these things. There are people sitting in boardrooms around the world who are looking to invest in Europe and who will take this as a fundamental issue before they take the decision to invest in the first instance. I am glad to know the list of investment in this country in particular is exceptionally strong.
It may be shocking to find ourselves having to make the case, but we saw a few months ago just how quickly speculation and concern can spread. This treaty should be seen as a strong statement of intent on the part of those countries that have signed up to it, especially those which use the euro. It says we are serious about our currency and about economic and monetary union. We are prepared to take the steps necessary to reinforce and to bolster them in the face of very grave and serious market pressures. We are committed to the euro and we will do whatever it takes to stabilise it and defend it.
The treaty has to be seen alongside the emergency response mechanisms that have been put in place and reinforced since the crisis broke, namely, the EFSF and the ESM. This is part of a renewed and strengthened architecture which underpins economic and monetary union. It goes without saying that a stable currency is critical to a country like Ireland. We rely on inward investment and outward exports. Those doing business here, whether indigenous companies or multinationals, need clarity and a certain and predictable future without erratic currency fluctuations and volatility. Ratifying this treaty will help secure that goal whereas not ratifying it leaves us open to massive uncertainty and unpredictability, which is exactly what we do not want.
We all know that confidence is fragile. It is hard to gain and very easy to lose. During the years of genuine growth in this country, we were regarded as a world class example of how to modernise and build an economy, make the most of membership of the European Union and develop new markets in an active and engaged way. Our workforce was, and still is, rightly seen as highly educated and very flexible. We were, and still are, an attractive place in which to live, invest and do business. We do not want anything to damage that.
The Government came to office last year with a very strong mandate to rebuild this country and its economy. Our efforts to restore our reputation and our good name are working very well. All around the world I hear the same message. Ireland is impressing people with its single-minded focus on recovery and growth and its determination to move on. I recognise that comes from the pragmatism and personality of the Irish people. If there is a problem, they deal with it. We have our problems and challenges in respect of our public finances, which are challenging for our people. We recognise these challenges, including in regard to our place in Europe and our leadership in many ways of the direction Europe can take. For example, we will continue to play a vital role in the direction of growth and future prosperity for all those economies. They look at our confidence in ourselves and in our abilities. They see how we have recovered our competitiveness, which stands on its own merits. They see how attractive an offer we can make to people looking to invest and build their businesses here. They see a country of ideas and ambitions, with a great future in front of it.
Ireland's membership of the eurozone is undoubtedly a key element of our attractiveness to investment. All the companies that have chosen to invest and create jobs here, such as Apple, Mylan, Google, PayPal, Microsoft and Allergan, have voted confidence in Ireland. Indeed, a number of them are now on record as calling for support for the treaty at the American Chamber of Commerce Ireland "Yes to Investment" press conference last week. Endorsing the treaty and keeping Ireland at the heart of Europe and the euro will show them they were right, and it will encourage others to come here too. As one chief executive from California said to me recently, the reason the decision was made to invest in Ireland was not just because of the location, the language, the corporate tax rate or the tradition in Europe but also because of the passion, the creativity and the ingenuity of the talented workforce here, which stands out. Around the world that message is clear. We do not want to do anything to damage the prospects and the excitement or the potential for growth that brings with it.
As I have said, confidence is fragile and we need to nurture and support it. Turning our backs on this treaty would be a very serious blow and setback for the country. We cannot afford to squander our progress, nor can we afford to miss an opportunity to bolster the confidence we have won.
The Government has made clear its intention to lead Ireland out of the EU-IMF programme as soon as possible, which is our firm focus and goal. For that to happen, we need three things. First, we need to continue to make the necessary adjustments at home. Second, we need to see enhanced stability and a return to growth across Europe. Third, we need to be able to convince those thinking of lending to or investing in Ireland that their money will not be at risk.
The situation is very clear. Only those who ratify the treaty will have access to the ESM. That makes the decision we will take at the end of May all the more serious. I do not believe Ireland will need to access the ESM. As I have said, I am determined to exit the programme. Saying that, however, is wholly different from saying we do not need a backstop for unforeseen circumstances. It is wholly different from saying we will retain credibility in the markets with no backstop. Why would Ireland take that risk? Having access to the ESM makes it less likely we will need it. It makes Ireland a better bet and a more attractive option. More substantially, I do not think it is unreasonable to ask those seeking assistance to be bound by the same rules and disciplines as those who offer it. Every person in the country knows that when one signs up for any organisation or club, rules and regulations must be adhered to.
I have said I believe strongly that Ireland should ratify the treaty and why it is entirely consistent with the recovery we are seeking to build for ourselves and our people. I would also like to dispel some of the myths that are being spread about this treaty. Some argue it is a recipe for perpetual austerity. It is no such thing. The treaty is simply an agreement among all countries that have signed it to ensure a balance between the money raised and the money spent in the shared interest of the stability of a common currency area and the wider Union. Twenty-five out of the 27 member states of the Union, with governments of different political orientations and different approaches to public spending and taxes, have signed it. They all believe it has a contribution to make to Europe's recovery. All who have signed up to it have done so after intense discussions in which I participated on behalf of our country. Every one of those leaders, at the end of the day, has made the judgment that, in their people's and their country's interests, this is the way forward. Ireland shares that view. All of them will continue to make decisions about taxing and spending in what they believe to be the best interests of their peoples and their societies.
Most of the rules of the treaty are contained within existing EU treaties and laws. They are given greater focus and more bite, including through the requirement for each country to give them effect in domestic law, but we would have to adhere to them, with or without the treaty.
The argument has also been made this is not a treaty in the interests of ordinary working people. Again, this is profoundly wrong. This is a treaty that will help to deliver stability in the euro and confidence in our country. These are critical if Ireland is to recover, to maintain the jobs it has, to create new ones, including through attracting continued inward investment.
People and jobs are at the heart of politics and the heart of this treaty; it is not simply deficits and budgets. There is nothing of more immediate importance to Irish workers and their families in every town, village and city throughout the country and to those looking for work now than the protection of existing jobs and the creation of new jobs. Protecting the euro in their pocket is critical. The euro pays for schools, hospitals and public services. The euro is our currency.
It has been said that we should hold back and wait to see what others do first. This is surprising and the wrong approach. Ireland must decide on the basis of what is best for this country, its people and our future. In my view this is a strong decision in favour of the treaty and this analysis will not change. Ratification is already under way and the process is complete in several countries, including Portugal and Greece. There are good reasons the process should be advanced quickly. It is clear that while there has been some respite from the crisis in recent months, not least because of the actions of the European Central Bank, storm clouds are gathering. What Europe needs now is more not less certainty, a strong signal that it will implement what has been recently agreed.
There may well be a change of leadership in member states, including France. That is a decision for the French people. It may be that new leaders will seek to enhance what has already been agreed including through an added focus on the growth and jobs agenda. Whatever decision people make in other countries is their business and I have no intention of interfering in it. However, I welcome any reinforced growth focus and I would be interested in any specific ideas brought forward. This is a priority for the Government and one that I have been advancing at European level since last year. Ireland will stand ready to lend its support where new thinking makes sense in this regard. A new agreement on growth would be the much-needed complement of this treaty. It would bolster the treaty's support for recovery in all countries by agreeing a new focus on growth. This can be done whether Ireland has ratified the treaty or whether the treaty enters into force. The train is moving and we want to be on board.
I wish to comment on Europe's future direction. The recent crisis has highlighted several problems with how business is done in Europe. We have not weathered it as well as other parts of the world, including the United States. This is despite the fact that, objectively, Europe has less public debt relative to its GDP and that it has a favourable overall balance of payments with the rest of the world. Why is this the case? There is more concern about Europe because there is less confidence that our integration and solidarity is sufficiently robust to withstand the powerful economic and political forces the crisis has unleashed. The fact that our economic and monetary union is not yet complete leads to internal tensions, including between debtor and creditor countries. In the United States adjustments have been made easier by increases in federal spending and transfers between states. In no case in America have the citizens of one state had to deal with the consequences of foolish choices by their banks alone. In Europe, the insistence that citizens in each member state must stand behind the entire liabilities of banks regulated in their jurisdiction has probably been the greatest reversal in the Single Market since its foundation. Under pressure from national governments and regulators, cross-border banks are withdrawing behind national borders. One possible solution is to federalise the response to the banking crisis in Europe with the European Stability Mechanism to be given the powers to recapitalise systemically important financial institutions directly. I do not propose a united states of Europe but we need new economic tools to give greater substance and credibility to our commitment to a true economic union. I envisage the treaty as a good step in the right direction.
We need to do more and I expect this debate will continue in the upcoming period especially at this sub-committee. The Government announced the date and wording of the referendum one month ago. There are 34 days between today and 31 May when the people will cast their vote. The Government will use the time to conduct a strong and vigorous campaign. A central part of this effort will be to make available all the information that people need to reach an informed decision. We will send the treaty to every house. We will follow up with a further explanatory leaflet. There is a website containing a short video that allows people to get the essence of the treaty in less than two minutes. No one should take the view that they do not have the time or the means to understand what is involved. This will be factual, informed and explained.
A referendum is a serious matter. It is one of the few occasions when we speak together as citizens on a single topic and when we agree whether to change the fundamental laws of the State. A decision on 31 May will present us with a moment of truth and of real consequence for the country and its people. I want our advice to be strong and clear. I want us to send a message about Ireland that will resonate throughout the world, far beyond our shores. I want us to send a message that Ireland is moving forward; that it is confident, positive and engaged; that it is committed to a stable euro and plays a full role in bringing all of that about; that it is a great place in which to do business, where people can invest with confidence and certainty; that Ireland is a country where future Governments will set sound and sensible budgets and where they will not take risks with the well-being of people; and that we remain as we have ever been committed and engaged Europeans. This is what the stability treaty is about and this is why the Government will campaign strongly for it. On my part I will spare no effort in seeking support for it throughout the country.
