AGREEMENT ON a fiscal compact across the European Union is regarded as a necessity by all political parties in Germany, according to Alex White, chairman of the Oireachtas finance committee.
Speaking after a meeting between a delegation from his committee and the budget committee of the Bundestag in Berlin yesterday, Mr White said there was unanimous agreement across the political spectrum in Germany that financial stability was essential.
He described yesterday’s meeting with the Bundestag committee as “genuinely fruitful” and said both sides had learned a lot from it. “The budget committee was very engaged and receptive beyond the normal diplomatic courtesies. The German politicians were very well informed about the nature and scale of the financial crisis in Ireland,” Mr White said.
He added there was a general acceptance by the committee that the financial crisis here arose from the property bubble and the collapse when it burst.
“They were aware that for most of the time Ireland was well within the limits of the EU Stability and Growth Pact and were anxious to make the point that we appreciate the need for fiscal discipline.
He said there was some difference of opinion in Germany as to whether fiscal discipline on its own was enough to deal with the crisis or whether other positive actions were required as a follow-on.
Mr White paid tribute to the other members of the Oireachtas delegation, which included Opposition TDs, for taking a concerted and constructive approach to the discussions in Berlin.
He said the committee members told the German politicians about the impact the economic crisis was having on Irish citizens in terms of unemployment, welfare cuts and extra taxation.
“We made the point as graphically as we could that ordinary people were suffering in a variety of ways as a result of the crisis, as it was important that they understood what was happening.”
He said that, for its part, the Irish side recognised the German concern about fiscal discipline. “There are no gaps between the parties in Germany on this point. They are immovable on the need for stability.”