During a meeting of the Joint Oireachtas Committe on European Affairs on Reenforcing Economic Policy Co-ordination, I said: As Senator Leyden stated, we have been given much information. I come from a business background and I am used to competition, rather than co-ordination. Ms McCarthy used the word “competitiveness”, but the European Union is the world’s largest economy...

If we are to succeed, we must avoid too much co-ordination such that we damage competitiveness. The great benefit of the euro is that it stops nations devaluing their currencies in the way they used to, but some countries have used low interest rates to spoil themselves through provisions for earlier retirement ages, shorter working weeks and so on. There is a clear need for control.

Ms. McCarthy referred to incentives but then used the term “carrot and stick”. In listening to her I only heard her talk about the stick. Perhaps there is a carrot also. Senator Donohoe discussed the giving of a reward to those who behaved themselves, but I am not sure I understood him. I understand there are limits - a 3% deficit and a debt figure of 60% under the Stability and Growth Pact - but are there carrots also, or do we just receive the blame when we misbehave?

Are we referring to the imposition of a tax on those who do not behave? A Stability and Growth Pact that works is necessary, but, if we attempt to co-ordinate to too great an extent, we will reduce our competitiveness in world markets. I am concerned that, whenever the European Union becomes involved in discussions on national budgets, it seeks co-ordination. 

It is good that the delegates did not discuss harmonisation of the corporation tax rate, but at the back of everyone’s mind is the thought that someone is waiting to harmonise or do something else that will lead to co-ordination rather than competition.

One of the eurospeak words I had difficulty with over the past year and now have come to use is “actor”. I heard the word being used and I had assumed an actor was someone who went on stage and played a part. However, in European terms an actor is a doer. The European I meet use it all the time. I used to correct it but then discovered I had to give way. There are terms in eurospeak that we must learn.

For a record of the full debate, please click here.