John Bruton has suggested that the Government has adopted a position at odds with Ireland's EU obligations. He is mistaken, writes Mary Harney
John Bruton set up a false dilemma in his comment on our European commitments and national budget policy set out in the Action Programme for Government (Irish Times, June 7th).
It is precisely because budget policy continues to be made at national level that the Stability and Growth Pact was entered into by the EU member-states.
We have a common EU currency but distinct national budget positions. For that reason, in 1997, Ireland made a solemn commitment in the EU Stability and Growth Pact to manage our national finances in a way which safeguards our common European currency, the euro.
That is why the Programme for Government states: "The EU Stability and Growth Pact provides the overriding framework for our budgetary policy." We are making the bedrock EU commitment of keeping a sound budget position "close to balance or in surplus". And we are committed to keeping responsibility for national budgets at the level of member-states.
There is no contradiction between these two positions. They are, in fact, the very essence of the Stability and Growth Pact. The pact was negotiated during Ireland's last presidency of the EU, ably managed by Mr Bruton, who was Taoiseach at the time.
Mr Bruton surely recalls the words of the pact. "Member States remain responsible for their national budgetary policies, subject to the provisions of the Treaty; they will take the necessary measures in order to meet their responsibilities in accordance with those provisions."
The Pact states that member states remain responsible for their national budgetary policies. The Programme for Government says: "we believe that fiscal policy should remain the preserve of national administrations".
Where is the contradiction? There is none. The PDs and Fianna Fáil have stated as central to our agreement for government that Ireland will meet fully our budget and other commitments as members of the EU. We recognise the great benefits to our country that come from the euro, the single market and common EU policies such as agriculture, regional and social policy.
We are convinced that the jobs and livelihoods of our people will be secured by being at the heart of European decision-making. We must never relegate ourselves to a self-imposed second division of influence in Europe.
We have become a premier-league economy, by a lot of hard work and by the right economic policies. No-one can relegate us now, but we could do it ourselves. Mr Bruton will agree, I am sure, that there are some in the Green Party and Sinn Féin who would do just that by scoring own goals against Irish jobs and against our position in Europe.
We must not allow the t public debate on our future in Europe be over-taken by isolationists and fundamentalists in these parties.
There is a common commitment to managing national budget policy responsibly as members of the eurozone - common across responsible parties in Ireland and common across EU Member States. Let us not set up false dichotomies among those us who share that commitment when we have bigger fish to fry together to secure Irish jobs and prosperity in Europe.
Mary Harney is Tánaiste and leader of the PDs