Dáil Éireann Debate, Thursday - 29 March 2012
5Deputy Pádraig Mac Lochlainn asked the Tánaiste and Minister for Foreign Affairs and Trade his views on whether there is divergence of opinion across the EU on the issue of the Treaty on Stability, Coordination and Governance, particularly within core countries such as Germany, France and the Netherlands; and, if so, his further views that this division could undermine efforts by the European Council to proceed with the treaty [17432/12]
Amharc ar fhreagraThe Taoiseach joined with the Heads of State or Government of 24 other EU Member States in signing the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, subject to ratification, as recently as 2 March.
In signing the new treaty, the governments of the 25 contracting parties have indicated their support for the treaty as a demonstration of a shared commitment to sound and sustainable public finances and as a means to promote conditions for stronger economic growth in the EU. Each will now work to ensure ratification in accordance with their respective constitutional requirements.
As our European partners respect our ratification procedures, it would not be appropriate for me to comment on what this might entail in the case of other contracting parties, nor would it be proper to comment on the internal politics of another member state. What is clear, however, is that while the new treaty is an important step in re-establishing confidence in economic and monetary union it will not, on its own, answer all the challenges faced by the euro area. A great deal has already been done in that regard, including through strengthening the Stability and Growth Pact, reforming banking and putting the EFSF and ESM in place.
The Government has consistently argued that Europe also needs measures to generate growth and to get people back to work, particularly young people, and I am pleased to announce there is now agreement on this balanced approach. This will be the most important and urgent issue facing the Union in the period ahead.
I refer to the Tánaiste's sister parties throughout Europe which have serious concerns about this treaty, most notably from the possible next president of France, François Hollande, who has expressed significant concerns about the treaty and its implications, its anti-jobs and growth agenda. He has stated he would seek to renegotiate it. This is a very interesting position. The Dutch Labour Party approach is that it does not believe this insane focus on targets without any real plan for recovery, jobs and growth. The social democrats in Germany and the European trade union confederation have expressed concerns. All the traditional brothers and sisters of the Tánaiste's party in the struggle for a social Europe are deeply alarmed at this treaty. I ask the Tánaiste in that context how he can have any passion or vigour when he is campaigning for this treaty in the time ahead. He will be out of kilter with the views of those who have worked with him over the years in Europe.
My sister parties in Europe respect the right of the Irish people to make our own decision in respect of ratification of this treaty, just as we respect the right of other countries to make their decision on ratification in accordance with their own constitutional provisions. This is fundamental. We all must understand that fundamental cornerstone of how Europe does its business, to respect the right of each country to make its own decision and to respect on this occasion the right of the Irish people in a referendum to make our decision.
This treaty is necessary in order to provide stability and security for the euro. Everybody in this country understands the importance of the euro and particularly in light of our experience in the latter part of 2011, understands the difficulties posed for our economy, for investment, for maintaining jobs and for creating new jobs, if there is uncertainty around the euro. That is the reason this treaty is necessary. Nobody is claiming this treaty is the be-all and end-all of what is required to make the European economy recover and that is why the Irish Government has pursued a strategy in our discussions, successfully, so the jobs and growth agenda form part of what is agreed at European Council level. Regarding the approach the Taoiseach took at the European Council meeting in January, the issue of jobs and growth has been firmly placed on the European agenda, particularly issues relating to the completion of the Single Market, problems of small and medium-sized enterprises and especially the issue of youth unemployment which is now at the top of the European agenda and of course it must form part of the discussions.
The Tánaiste also said at the initial stages of this debate that this treaty is merely a continuation of existing approaches at European level and I cite, for example, the six pack. I could read into the record of the House - I will not do so - what his own party colleagues, the three Labour MEPs, said in response to the six pack. They voted against most of the measures. The one measure they did not vote against was one containing a social clause and that social clause is not part of this treaty. Apparently the Tánaiste plans to lead this campaign with passion and vigour but he will be out of kilter with the Left, those in the social democracy movement across Europe, those who are deeply alarmed that this treaty will only strengthen the nature of the crisis. Ireland is being asked to insert the implications of this treaty into constitutional law when we do not see the full solution. We are told this is part of an overall strategy and solution but we are being asked to take such a draconian step without the full picture or any real indication of how we are to address the banking crisis with justice, with full disclosure of all the mess across all of Europe, how we are to address the sovereign debt crisis - the announcement today will certainly not do that for Ireland - and how we are to look at the issue of growth, of investment and how to tackle the European unemployment crisis.
The only uncertainty is what is Sinn Féin's prescription if the treaty is rejected. What is the Sinn Féin position on the euro? Does Sinn Féin support the euro? Is Sinn Féin in favour of the euro? Does it want Ireland to return to sterling? What is its position on the euro? If we want to have the euro, then the rules governing the euro must be implemented and enforced and that has been one of the difficulties which the euro has experienced in recent times. The treaty will provide for a repetition of those rules and the means by which they are enforced and enshrined. The only uncertainty is what happens to Ireland's access to funding if we reject this treaty. The policy of this Government is that hopefully with the policies we are pursuing and are succeeding with that we will be out of the programme and hopefully will not need to have access to the ESM. If at any stage in the future we needed access to the ESM, how does the Deputy intend we get the money? These are the unanswered questions that, frankly, on this occasion, the Deputy will have to provide the answers. The Government is arguing that the treaty be ratified because it provides security for the euro. If the euro is secure and stable, this will increase the confidence of investors to invest in Europe and increasingly in Ireland and that is part of what Ireland needs in order to bring about economic recovery.
