Crisis shows need for increased discipline in EU, says Martin

THE CRISIS in the Greek economy showed the need for greater transparency, closer examination of national statistics and increased discipline within the European Union, Minister for Foreign Affairs Micheál Martin has said.

He told the Association of European Journalists in Dublin yesterday that the Government was examining various proposals arising from the Greek crisis and would be contributing to the debate on these at European level.

The EU needed to acquire the capacity to see “from a far earlier date where someone is clearly in trouble and where some member State is clearly not in conformity with the guidelines and the parameters”.

These issues were being examined, along with, “the idea of creating a European Monetary Fund so that the taxpayer wouldn’t be the first port of call in a future crisis of this kind”.

“Certainly, you can’t continue as was. There will have to be changes that allow for far greater conformity with the rules, greater discipline,” he said.

Mechanisms would have to be put in place to allow for the day when a similar crisis could occur, ensuring that the taxpayer would not be the first port of call.

Commenting on public perceptions of the Irish contribution to the Greek bailout package, he said: “People in Ireland get the big picture and the big picture is the protection of the currency and the protection of the euro. It’s as simple as that.

“Also, of course we are providing a loan and we will get a return on that loan. That should not be forgotten.”

Asked to assess the risk involved in advancing loans to Greece he said: “The Greek situation is difficult and the Greek government will have to do, obviously, what is laid out in the plan. I am very confident that will happen.”

Commenting on the role of the International Monetary Fund he said: “There are a whole range of sensitivities, historic and otherwise, as to why one European country may not want to be perceived to be the country that’s telling  another country that it must do x, y and z.”