 Do you have a corridor you wouldn't expect me to continue in Irish, but you could continue in French So I will settle with this other language that is very much Common to ours and a bit of a lingua franca when it comes to talking about economics finance and various other things It's a great pleasure to be here In this proud and remarkable country in this beautiful city of Dublin in these hallowed halls that I've stood witness to the March of History over the course of century I Have to say that walking down the Portrait gallery. I was most impressed by all these gentlemen But I was reassured by you Because you told me that most of them have been forgotten So it's all right. I would like to begin by thanking the t-shock the town of HD and ministers nunan holin Burton Fitzgerald and Craton as well as indeed governor Patrick Honohan and all those who have helped make this visit and the events such gratifying and really Warm moment for me and for my team The special words of thanks to you Michael for your kind words of introduction and for our friendship Both past present and I'm sure future Let me also thank the Institute for International and European Affairs, especially chair Brandon Halligan and Director General Do he or Kali for hosting us today? And let me recognize the ambassadors and the representatives from business trade union civil society and academia who are present here today island has always expect exceeded expectations When you look at the world of culture the world of science and technology Pretty much everywhere including in sports, which the French may have to regret tomorrow Island expects exceed expectations and It's always been a country of great resilience of determination of reinvention and of great humanity Time and time again in the face of overwhelming odds It has bounced back stronger and more confident than before and island actually always reminds me of this lovely Quote by by niche who says that what doesn't destroy you actually makes you stronger and I think that Island obviously epitomizes that principle and this time is no different as Tishock and I can he put it the Irish people have borne the burden of economic crisis with Remarkable courage and patience and quiet dignity And I believe this is testament to the enduring character of the Irish people a character shaped by inner strength and determination Forged by time-honored bonds of trust and solidarity character that the great Irish writer Edna O'Brien once referred to as ferociously tenacious And it's good that in the present circumstances island is presiding over the destiny of the European Union on the theme of stability growth and jobs Because for those three themes to actually deliver into reality There's nothing needed as much as shared Determination towards a shared purpose which clearly a country like island can actually lead So what I would like to talk about In front of you this morning is about three themes one is the Irish dimension What island needs to do to restore stability growths and jobs not in a patronizing way, but in a partnership way second I would like to touch on the short-term European dimension and Despite what the title of the speech could preclude I'm going to also tackle a third dimension which is the long-term European dimension Which I believe must be articulated as early as possible in order to anchor Whatever is taking place in the short while, but let me begin with the Irish dimension You're all too familiar with the rise and fall of the Irish economic miracle and how the the Celtic tiger soon gave way to a fake Tiger's ghost a bubble driven bonanza of lax lending Mounting private debts car rucketing property prices and eroding competitiveness It was excess with little oversight in retrospect. We can say so without pointing the finger at anyone an Island then face the hardest of lending, you know when people ask me about how this Was manifested or there are few numbers that speak for themselves the housing prices dropping by 50% Dead going from about 25% to over a hundred percent and deficit going to virtually zero to above 10% Not to mention unemployment so What responses? Have you found have we found together and what remains to be done? I think the responses to the crisis as far as island was concerned can be summed up in one objective Tenacious maybe ferociously tenacious if one want to add an adverb to the objective But it has been manifested by a sense of ownership a sense of realism and A sense of solidarity and I would like to touch on each of those three Starting with ownership You could see from the outset that there was strong political will to implement the needed policies The government both this one and the previous one Took hold of the reins and never waved in its commitment to get beyond the crisis. I Was a witness to that and I have been a witness to that both as Minister of Finance for my country and Subsequently as managing director of the IMF and this was always the case What can the IMF do in that respect? Well the IMF has been here Was here to help to serve our member and we're doing this alongside the European Union and the ECB How do we help? Well, we help with policy advice based on pretty much 70 years of experience with now 188 countries chairman it used to be hardly 40. It's now 188 and it's pretty much 70 years of experience of crisis We help with our financing and typically we'll lend when others don't To lessen the hardship during times of trouble to help build a bridge into better days Now that sense of ownership which has been obvious in the case of Ireland was doubled with a sense of realism The Irish people knew and their government knew that the past was unsustainable so they pulled together in the national interest and Made the hard choices Let's just look at the accomplishment of the past few years What was at the root of it all both across the Atlantic and here it was predominantly a financial crisis doubled in some countries including this one with a real estate crisis The government begun a route and branch reform of the banking system and the reform plan was based on three key pillars deleveraging recapitalization and reorganization in other words Slim down shed the fat get fit with more equity behave responsibly in the service of the real economy. I have to point out one thing which really Is obvious to me Is that the rigor and the vigor with which that was Tackled was exemplary and the stress test for instance underpinning the recapitalization Has served as a model in other countries That is really to the credit of the authorities The government also made huge strides on the budget During the most difficult of times it introduced deficit reducing measures Amounting to a little over 12% of GDP with the further 5% of GDP Yet to come in the next couple of years But that achievement is significant to reduce deficit by 12 percent of GDP is Pretty much unparalleled by other countries It doesn't really show in the numbers because the situation has deteriorated so much and the denominator has gone down by a big way But the actual reduction of the deficit is actually of that amount and This meant taking tough decisions on pay on social services on taxes and Most recently much to the admiration of other euro area members The government reached agreement with the public sector union leaders on saving worth a billion euros a year By 2015 and that brings me to the third point The sense of solidarity The government took those decisions while maintaining social cohesion Protecting key public services and throwing a life vest around the most vulnerable and Because of this island was able to avoid a large increase in poverty And I believe that this stems from the cherished Irish tradition of social partnership that social contract that are referred to President Michael Higgins put it best when he talked about Nenyeart go core le Kayla people that grasps the deep meaning of The strength in common will Social solidarity Now that's as far as what has been done and what has been achieved both in terms of perspectives principles and actual results Let's now turn to the future and see what remains to be done looking at the Irish situation The efforts are paying off as I said if you look at euro area Members there are not many that actually deliver positive growth Well, our forecast for island this year is of 1% positive growth and double that the following year and if that wasn't enough Clearly island has managed to return to the bond market in 2012 Continues to do so in a smart intelligent Well-tailored way So despite what peg sayers might say The Irish economy does not have one foot in the grave and the other foot on its edge But while island is seeing the beginning of the fruits of success and I forgot to mention the Employment numbers that are also beginning to show some positive numbers first time for many years The harvest is yet to come and people are still swamped with debt household debt is 208% of disposable income 15% of mortgages are in areas Public debt is about 120% of GDP and has yet to turn the corner and begin to go down Banks are making losses and almost one in the four loans has gone bad Not to mention unemployment that is still crippling high at more than 14% and double That rate for young people So we see three key priorities ahead in order to actually move forward and get over those negatives that I've just mentioned Working out private debt one delivering efficient and effective public services to and reducing unemployment three And all of that has to do with Removing uncertainty as much as possible On the private debt front The key here is to work out distressed loans on a case-by-case basis for both households and Enterprises to find a sustainable way forward for those who cannot afford to pay not those that don't want to those that cannot afford to pay and It is especially important for viable small and medium-sized enterprises that we know employ about 72% of the Irish population What does that mean in real life? Well, it means under the Carlman Solid Authority of Central Bank with appropriate supervision and traction encouragement to actually bring banks and borrowers together on a case-by-case basis to find durable solutions to the debt problem and Of course keep bankruptcy and repossession on the table, but not center stage Over there available as a last resource resort When there are no other options Turning to the public sector Ireland should strive to provide high quality public services Admit its social justice obligations to all citizens now That's much easier said than done because when you look at budgetary constraints It's not an easy task to do so What's the option? Well, the option is to focus on the essential and to actually focus on the most important services Like from our point of view because that's where you have the highest multipliers health education and social protection and by focusing on those three categories in particular Ireland Should maintain social cohesion Should do so by sharing the burden fairly and protecting those in greatest needs That is the reason why the IMF actually supports the residential property tax Which we regard as a progressive way of reducing the deficit a progressive way of doing it third unemployment As an urgent priority the government must address the scourge of long-term unemployment 14% is is bad news But as if it wasn't bad news enough when you actually drill down the unemployed you realize that 60% have been unemployed for over a year and 30% of them for more than two years. That's what the economists then kick in where they kick in to talk about hysteresis in other words Workers losing their skills and having been away from the job market for such a long period of time That they actually lose that ability to contribute value and to accomplish their talent So that's where the effort has to to really focus People need to be helped find job What's the best way to deal with it? Well clearly higher growth typically brings higher employment But in the short term to deliver on that growth Accelerating the public private investment projects partly funded by the European Investment Bank can help Employment services also need to be revitalized To focus on the right incentives the right skills for the right job Along with our European partners. We have encouraged the government to redeploy well-trained staff to these critical area And that is something that clearly the government is very focused on and concerned about This is as far as island alone is concerned, but island is not alone Never anywhere actually island is alone island is is a star at bringing people together as at reaching out as enlarging the circle and within that circle clearly The IMF will play its part and will continue to do so But there's another much larger circle within which island is actually the president and that is Europe so let me touch on the European dimension and how The European dimension can actually support the recovery Europe destiny is very much Irish destiny and Irish destiny has a lot to do with Europe's destiny Your t-shirt actually put it so eloquently when he said We dwell best and deepest in the shelter never in the shadow of the others So let me talk about what is required at the European level to again focus on the agenda of island for Europe Stability growth and jobs not just in Ireland, but across the continent Which in turn will greatly help islands efforts Because there are other euro area members. There are other European players Whose numbers whose performance whose unemployed are in a far worse situation than that of Ireland Now a lot has been done and I want to Repeat and reiterate that what the Europeans have done together in the last four or five years exceeds vastly The fears of the expectations that people had about Europe Wherever you turn your eyes to European stability mechanism the ECB outright monetary transactions the agreement to reduce Greece's massive debt burden The six-pack directive the two-pack directives the significant improvements to the financial regulation frameworks that is still not yet completed but that is moving fast All of that are huge achievements of the Europeans and Island with its presidency is on the way to actually delivering more and better than what was expected However These achievements these significant changes that I'm sure my predecessor mr. Von Rompoy has commented upon are not yet translating into higher income Better jobs and more growth So all of this might be helping markets and they're doing fairly well at the moment. Thank you very much But it's not yet helping the people which is what actually matters at the end of the day and The underlying problems at the European level are pretty much similar to what you've encountered lingering high debt of households banks corporations and government and the needed deleveraging and sanitation of Some of those balance sheets and in these circumstances macroeconomic policy can help support demand This is particularly important for Ireland and why is that? because the recovery is Probably going to be essentially driven by exports which can only be sustained by adequate levels of demand in partner countries and clearly The European Union whether it's the UK or partners in the eurozone are immediate and first destinations for those exports What does this mean in practice? Well, there are two levels that can be used essentially one is monetary policy. The other one is fiscal policy In our view monetary policy should remain accommodative and we believe that there is still some Limited room for the ECB to cut rates further as and when it considers that it is needed because it's an independent body as should central banks be but we note we note that That there is a little bit of that limited room Going further and that was Adventurous and Necessary on the part of the ECB the outright monetary transactions Can help monetary policy work better the coined expression is good monetary transmission? number one and number two the principles of that are clearly rooted in actually rewarding encouraging and certainly not Putting additional weight on countries that are actually delivering on their fiscal consolidation and structural reforms programs So we believe that when countries are on the right track They should also receive support to help them regain market access and reduce dependence on official assistance and regain market access at rates that are considerate and that are in close relationship With its economic and fiscal performances That's for monetary policy fiscal policy is trickier With public debt so high in many of the euro Area and European countries the direction has to be has to be down and not up There's no question in our mind about that But how fast should it go down the pace is going to be critical We believe that the pace should be measured and steady Because it will strike the right balance between putting the books in order and supporting the recovery Measured and steady also means coming up with credible medium-term plans with durable measures and sticking to them rather than focusing exclusively and predominantly on the headline deficit targets in other words More structured rather than nominal targets will certainly help out in the current circumstances We believe that the current fiscal framework in Europe has enough built-in Flexibility now to get the adjustment right. There is flexibility in the in the pact as adjusted to accommodate and Facilitate that measured and steady path that we would recommend Another point when we talk about demand We have to consider and we have to accept and we have to actually talk about it the fact that Demand is unbalanced across Europe much stronger in the north than in the south and Much of this reflects relative competitiveness problems Now restoring a sense of balance means what? Not losing competitiveness. This is not the point. It means lower inflation and wage growth in The south but it also means allowing somewhat higher Inflation and wage growth in countries that can afford it that are predominantly in the north This too is an aspect of European Solidarity One more thing we need to make sure that any spark to demand fuel sustained growth This means reforms to boost the supply capacity of the economy The IMF has done some really interesting work here focusing particularly on Europe and you know how growth can be encouraged and We found that large-scale Product markets service market labor and pension reforms across Europe could boost the level of output by about four and a half percent Over a period of five years and of that four and a half percent potential additional output About a quarter of that flows directly from the effort being conducted in a collaborative and cooperative manner So that's European solidarity actually bearing fruit Now you've you've heard me say that Particularly on the fiscal policy. It's not a question of one-shot measures short-term and sustainable decisions, but Durable measures that are actually well anchored into the medium term and the longer term of of Europe That's what I would like to finish with building a stronger eurozone is actually critically important to Optimize and leverage the efforts and the sacrifices that are being made in the short term Because in many ways the European economy crisis was a crisis of incomplete integration of unfinished architecture if you will The eurozone was a close-knit club But not a solid community. It was linked by bonds of Loose or not so loose fraternity, but it was not a family It was a collection of well-functioning parts, but not a harmonious whole We had a single market a single monetary policy within the eurozone but dispersed supervision of banks and Limited fiscal integration. I'm not going to talk a lot about fiscal integration fiscal union because that would require another Good hour of our time. I'm going to focus on banking union, which we regard as a priority But we believe that While some are raising the threats and the spectrum of protectionism and of populism Now is a time when there is actually an opportunity To go the extra mile to move the ball further and to actually deliver on real Solid sustainable architecture for Europe and particularly for the eurozone to bring to mind something noble laureate Simas Heaney once said Apologies for not saying it very nicely because I'm going to apply it then to banking union, which I suppose he would hate But I think it's beautiful and I can't resist it Once in a lifetime the longed for tidal wave of justice can rise up and hope and history rhyme Believe that a further shore is reachable from here as I said Apologies for trying to apply this to banking union To a single supervisory mechanism to a resolution scheme of a European nature But let's look at it with a fragmented system as it is and Governor you I'm happy to be Contradicted by you if you will but the fortune of banks are tied to sovereigns and The fortunes of sovereigns are tied to banks And if one goes down the other goes down too Here in Ireland You've paid the price you saw how failed banks Can actually overwhelm the government Lending to a ruinous sovereign bank real economy death Not death, but very nasty loop a functioning banking union on the other hand Severe as the link and Simmons stability it ends fragmentation and makes monetary union more effective It works against the buildup of concentrated risks. It stops deposit flight because there's no point about this flight If there is a banking union and It makes monetary policy work better. We've seen it in other monetary unions that have worked in the course of history It is also an issue of solidarity Banking union means that troubled bank banks become the responsibility of all not just one You see this in Ireland. Yes, our rich banks borrowed too much and were not as well supervised as there should have been But if they borrowed too much Others lent too much and without the appropriate degree of caution of due diligence of verification So it's two sides of the same coin and we need Corresponsibility starting with What will prevent that from happening which is common responsible supervision on a pan-European basis and particularly on a pan-Euro zone basis It is important to actually implement that single supervision Mechanism centered at the ECB and there must be clarity on its duties on its powers on its Accountability and on the separation between the various functions and it must have the resources to actually do the job that it is tasked to do Will that be enough? No It also needs a single Resolution authority that can actually restructure or shut down Problem banks in a timely manner at the least cost Including by sharing the burden with the private sector where necessary It needs a common safety net Such as a common deposit fund to sustain confidence and it means common backstops to deal with systemic problems across borders If all of that is put in place this package should be able to actually severe Eliminate that poisonous cord between sovereigns and banks But while this makes The future safer we still have to deal with the past that has been left from the crisis Troubled banks that are not systemic can be handled at the national level But what about systemic troubled banks which might be too big for any one country to handle? well here Direct recapitalization by the European stability mechanism the famous ESM Could play an important role that issue is not settled yet Our view is that it would be one of the good users of the ESM It would share the cost across the membership With heavy lifting to be done 17 pairs of hands are better than one This is particularly relevant for Ireland Direct recapitalization of the viable Irish banks can lower public debt By switching some debt owed to Europe with equity and help insulate the government from further potential drain If the economic situation was to get worse This would also help the government and banks access market on better terms Now I have deliberately focused in that latter part of my address to you on the banking union There's also a lot to be done on the fiscal union front but clearly Quite a bit of work has been done and it's a balancing act between prevention precaution and actually intervening and sharing liabilities I will come back chairman to address those issues another day, but ultimately Deeper integration would lead to a stronger safer and successful economic and monetary union and that is surely in the interest of Ireland But it would be in the interest of all in Europe So let me conclude Ireland's strength has always flowed from its openness to the world From the earliest of days this small nation has made a huge mark and This openness to the world is clearly taken on board by the current government in its European presidency Reopening the chapter of the EU-US trade relationship is certainly one Demonstration of this attachment to openness at a time when Europe fell into darkness. It was Irish monks like Saint Columbus who kept the flame of learning alive and From the time of the industrial revolution, it was Irish ingenuity that built the roads the railways the laboratories and the skyscrapers in lands Far from home. I was always told when traveling from Paris to Luav When I was visiting my grandfather That actually the first railroad in France was not built by the French was built by the Irish because I was asking always Why is that my father would always say if they knew better? And after a period of isolation visionaries like take you whiter care paved the way for great reopening of the world as Ireland forged a new destiny within a united Europe The Irish have always been visionaries They've never been afraid to dream big It was William Butler Yeats who said I have spread my dreams beneath your feet treat softly because you treat on my dreams Over the past few decades the dream of a dynamic prosperous confidant nation became reality And today despite grave setbacks This dream is still very much alive except that it can be rooted in more realistic more responsible grounds It was Yeats who also said in Dreams begin responsibilities and those responsibilities are the core responsibilities of Ireland and Europe shared determination towards shared destiny Gora of Mead are more agueve Just before we start the question and answer session just to remind you again about Telephones that they are switched off and Just to say to those who are looking in on the web that we are carrying on the question and answer sessions immediately And that all these proceedings will be on the record I want very briefly on your behalf to thank Madame Lagarde for that address I Can tell you that I will immediately take up the invitation for you to come back here again We have a big agenda And just to say as I mentioned to you briefly before we came in We have a project at the biggest project we've ever known in the institute in 22 years Which encompasses a banking union as a separate project fiscal union separate Economic union separate and political union which in a sense is over over-acting and also looking at the principles and values of Europe So we hope to do this by tomorrow afternoon now, I'm very much open for questions and or comments and You would please stand up for the for the cameras when you do so and please give your name and Also any organization which you may have the good fortune to represent And I will the day being in it. I have to warn you your preference to women I'm gonna start therefore here in this room, please My name is Audrey Dean, and I represent the St. Vincent Paul Society the social justice function It's a Catholic lay organization of nine and a half thousand members And we are based in almost every parish in Ireland and a bourgeois with them was it the bienvenue at the Blancs Matin I'm delighted to hear you speak about humanity and dreams and warmth But I'm very sorry to tell you that on behalf of the nine and a half thousand members who visit homes in Ireland We are seeing increased Stress increased hopelessness and increased despair We understand economic and fiscal Consolidation and we're delighted to hear you say and acknowledge that there has been a lot done But and I'm delighted you talk about very very important critical public services We live in a country where we have absolutely no after-school care and of which we have very shaming health inequalities Related to income and bad access to services So my question to you on behalf of my organization is given the two not reconciling agendas of the social investment paradigm in Europe and Your organization's interest understandable of course in consolidation. How do you suggest that we continue or at least try to? You know work that out because we're seeing a lot of distress and we're here looking for leadership from your organization Well, I would I would Number one recognize what you said about the hardship and the difficulties and the the lines that are getting longer and The people that do not have a job or you know, wonder how they're going to end the month and and You know get by without paying bills because that that is the the day-to-day reality You know equally the problems have to be Sorted out they have to be fixed and I think that the the honest answer on my part is is to fold one They cannot be a degree of fiscal consolidation that strangles growth and Hope to the point where it actually Destroys damage the social fabrics that's point number one and that's the point I was trying to make when I said, you know measured pace of fiscal consolidation No households no company. No nation can live on constant debt and increasing deficits So that has to be cured that has to be addressed It's a question of how fast you do it and how sensible you are when doing it and that takes me to my second point There has to be Enough safety nets so that people that are most in need Actually have the support and have the protection that should be awarded to them And you know more and more particularly in a dialogue with the authorities we try to identify, you know How are you going to reduce pensions because pensions are way out of line compared with the European average? Are you going to hit? Universally across the line, or are you going to design it in such a way that it hurts less the small pensioners? And that's the option that we would prefer But clearly the you know the only answer to all that is to actually Finish That moment of hardship and get on with actually creating value developing Jobs being able to invest and and to you know do that then in a measured Sensible balanced way not not get you know ahead of ourselves yet again and and borrow and and You know have just yet again too much debt too much deficit on on our books Okay Okay, Ronan Ronan time I was cash guarded on a guard He's very good to questions, but he gives very long questions Ronan time and a member of the Institute and co-founder of Esperanza productions I'm delighted that the first speaker to address or to ask a question was from the convince into Paul because I think Anybody watching in from Ireland is suffering To some degree of this a surgery program most of all the disadvantage of when you praise the residential property tax With the political cost of the parties in government I think it's important that you are reminded of the extreme pain This program is causing to people in this country at all levels because when the politicians and the regulars have allowed the banks and the Developers to destroy the economy Everybody was over well most people were over borrowed and their retrenchment is is really caused problems No, my sorry miss chairman and you are ready. It's not a question statement But it just a very brief fundamental question and it really annoys me though the willful failure Of the Ronan Ronan, please. Please. Yeah, please obey the chair. Please a question very brief question. Thank you Well, that'll be a bit no a fundamental question about the misunderstanding of economics by the ECB in surplus countries You've touched on something fundamental if we do not have demand in the economy Deficit countries cannot resolve it. I would put it to you It's your responsibility to lecture surplus countries and reminding them You cannot have equilibrium unless the surface has come down to address the deficit Demand is fundamental and it is one of the big missing factors all of this pain Maybe in vain if we do not stimulate demand. Thank you very much. Thank you Well, I'm not sure there was a question about it I was cash card Brandon, but I think Madame Lagarde They give a gave us the courtesy of saying something in Irish. I just like to say Personnel moment. I just be desolate. You need to pay the candidate don't les election You know, you know, you can't reponder Hey, oh, you're international defam. I just perke savage hongi You don't have to respond to that That's just say say entre nous the question which is short The question which is short and the IMF was founded as arising from a deep monetary crisis You said this crisis is a financial crisis You're ahead of the World Bank effectively a World Bank, but we don't have a world central bank Would you agree that the problem is loose monetary policy? And if I may use one more term of French, we are in a cul-de-sac You say cut interest rates interest rates are already negative the whole problem of this crisis is that central banks spent three decades Lowering interest rates. We are now in a liquidity trap and it won't work. It's question number one question number two We have 56% of GNP going on state spending. That's the same as in France We have nothing like the level of French public services. Would you accept Madame Lagarde the problem in Ireland is the chronic Lack of efficiency of state spending and the chronic pressures. It's putting on the private sector Particularly those of us who do not have secure employment or pensions in the public sector You know, we I think we have different views about that when you you talk about the Accommodative monetary policy and the liquidity trap we take the view that the accommodative Monetary policy is actually a necessity at the moment It in and of itself it would not be sufficient But given the limited space that is available for fiscal policies at the moment we see no option but for the monetary policy to actually take the baton and run with it while Those that are implementing fiscal policies actually redress the situation of public finances and find you know the room with which to actually stimulate the economy and make economic actors Capable of investing capable of hiring capable of creating value So I I'm I'm afraid that I don't I don't agree with you on the issue of monetary policy They cannot do that on a on a on a constant forever Fashion they are really clearly taking the baton running with it for a while until the others can actually do the job and they will have to gradually over time either by mature maturity or by you know attentive subtle releasing of You know by how much their balance sheet has significantly improved over the last two years, which is big for some of them They'll have to come back to a more sort of conservative Monetary policy on on your second issue, you know clearly when There is a significant withholding By the state The government has to make the best use of that resources to actually deliver services that are of value to the population my call was to actually ask that they be a focus on what is the most efficient from our perspective its health education and Employment policies I'm sure that there is a will and a need to actually improve that But I was more talking about the focus of where money should be spent Bearing in mind that spending cuts are also in order and have been in order as demonstrated by the other two governments Okay, there's a lady over here who's been very insistent with her hand And then I'm going to and they're going to go down in jukes and then there's another lady right at the very end of that row Because I'll come back to you. Okay. Thank you very much for your cooperation Shivana Dinhu and I'm Shivana Dinhu from the National Women's Council of Ireland the IMF a number of years ago did some very interesting research Which showed that income inequality was probably one of the causal factors for the the global crisis that we find ourselves in and I'm just wondering about Your priorities and why it isn't maybe a priority to reduce income inequality as a part of the solution of Ireland's recovery and what do you see as essential in reducing income inequality and also I want to wish you a happy International Women's Day from the women of Ireland and I hope that you remember that it's women that's bearing the brunt and most severely for the austerity and the deep crisis we find ourselves in and that it'll be women who will find our way forward as well My my wish is reciprocated to your million times and to all women of Ireland and elsewhere Yes, and I'm very much aware that Women tend to bear a much higher burden in in tough times now the issue of income Inequality is something that we have studied including very recently and certainly the outcome of those research demonstrate that with Better income equality comes more sustainable growth That's the key findings from that study that you probably referred to and and that is clearly something that You know governments in the design of their policies have to take on board if they want more sustainable growth Then certainly better income equality less disparity including you know with the the top of the last And not this ill but hundreds of dissils relative to the lower quantil has to be reduced That that's that's clearly empirically demonstrated by that by that work Alan Duke's hair and the former Minister for finance For president member of the Institute You've spoken madam like out of the need for Fiscal coordination and solidarity in the sense that the stronger the fiscally stronger member states of the eurozone should play a bigger role Stimulating demand you've spoken of the need for solidarity and I think mutuality in the context of Banking resolution where that's necessary That's been I think A late motif in the IMF's approach to the current crisis for some time may I ask if you're making much progress in Bringing Chancellor Merkel around to your point of view You know it's been a tradition of mine to annoy some of the readership I Did it when I was finance minister. I'm still doing it as managing director of the IMF and I think in in the interest of All a more balanced model is Is desirable and I will not renege on that and I will continue say so Until I'm heard The mic is over here this lady in the middle of that particular row. Maybe you perhaps you might stand up again And that is no who it is you are. Thank you. Thank you. My name is no lean black. Well I work with the free legal advice centers illegal rights NGO where we have a big focus on people who are struggling and who are Coming to the end of that ferocious tenacity that Irish people have when they deal with their debt And you mentioned among your solutions the the fact that banks will deal with borrowers in debt on a case-by-case Basis and they must come together But madam Lagarde as you know the power and balance between the borrower and the bank is Enormous and I suppose my concern would be Would be to ask the IMF to ensure that the correct resources are in place to allow people to have Some just solution not just a solution so that there is justice for those who are in debt right now which is Brings me to the second and final point you also talk about the need for solidarity I have read much of what the IMF has written not just about Ireland But about its other countries as well, and I know that the IMF recognizes the fundamental need to preserve human rights as a basis for the rule of law and for stability and solidarity and I would ask again that the IMF would be our anxious scrutineer our ambassador of conscience another phrase of Seamus Heaney and that you would be part of our ambassador of conscience in Ensuring that any reductions in the needs of the most vulnerable are met in a way that is consistent with fundamental human rights Too much and too big a title to be ambassadors of of conscience I think you know we we have a mandate we need to do our job We need to do that as even handedly as we can and conforming with the rule of law now that includes, you know honesty focus Relying on what has worked in the past and clearly having people as the ultimate of ultimate focus of What we are recommending we don't only look at the current account balance We don't only look at monetary policy We try to see how the combination of all policies actually aim at delivering what is needed most which is jobs, which is growth, which is An improved well-being for people, you know, it's it's up to the national governments and the Monetary authorities as well in their supervisory capacity To actually make sure that the right Approach is taken that the right tools are available that they're used with respect with dignity and I have full confidence that that will be the case in Ireland I'm taking words out of you, Michael Yeah, perfect. Okay deputy Thank you Mary Mitchell O'Connor Finnegale TD and one of 25 women elected to the all-air and that comprises of 166 members and all together Madame Lagarde, could you comment today on international women's day on gender quotas and In helping to bring more women into political life and on to public and private boards. Thank you You know, I can be either brief or long on that one I'm all in favor of it I I'll be just a bit longer so that she understands my position When I was young girl out of university. I thought very proudly that we should be hired elected chosen Promoted on our own merits and that quotas were an offense Well, I've learned and I think that to actually close the gap which is far too big Quotas are needed for a period of time. They're not needed forever because I have trust in us And I think that we can convince that yes We deserve to be included to be promoted to be respected to be heard to be elected But that gap is too big not to be closed by the efficiency of quotas Okay Please stand up again My name is Olga Barry, I'm here in a private capacity as a member of the Institute I work in Brussels and Europe really wants Ireland to succeed All the good will in Europe is behind Ireland and there would have you to hoping that we prosper well On an Ireland unfortunately It seems that Irish citizens do not have such a positive view of the IMF and the EU and of the Troika And I'm wondering could you envisage a time where Irish citizens may view your Stop in Ireland for these number of years in a positive way. Thank you. You know, I Hear what you say But you know We are not here. We're not anywhere in the world to be popular We hear to be partners To hold hands and to make sure that together with the country that has asked us to interfere and to help We go across that Moment of hardship of sacrifices of difficult times for all So by necessity because when we step in The situation is not Good what should have been done has not been done or the crisis has impacted Where nobody expected it? So when when we when you know, no country calls the IMF out of pleasure countries call us out of necessity and what we do as professionally as we can as Honestly as we can is Provide the advice provide the support provide the lending that will help that country and its people go through the period of hardship You know, I will tell you something. It's been very interesting to me to actually visit some of the countries that Requested the help of the IMF some 10 years ago five years ago Whether it was in Latin America or whether it was in in Asia and In some of those countries the IMF's role and the recommendations at the time were resented Because of those reasons because it's it's it's hard But subsequently 10 years down the road or five years later the people not just the governments But the people were saying thank goodness you were around boy We didn't like you at the time But thank goodness you were there and we're pleased that you sent the things that you had to say and Really engaged us on on what was a tough road that maybe we wouldn't have embarked on had you not been around And I dearly dearly hope that this is the case with up with island and I dearly hope that my Irish friends colleagues Do not resent me for too long if they resent me at all Second last question to be Martin Martin man sir just here stand up I'm afraid we're going to have a close up Madame Lagarde we met as you probably remember I was a junior minister in finance and greatly respected your role during the 2008 2010 period my question is You spoke of If you like irresponsible borrowing Which was certainly a major cause of our problem, but you also Referred to irresponsible lending There would be a feeling in this country That at least as far as Ireland is concerned the irresponsible Lenders from outside this country, you know have been Protected in the solutions that have been adopted Do you feel there are Any obligations That they face or should face Yes, I do recognize you and and remember you well We cannot rewrite history. I think everybody knows for the record what the position of the IMF was that hasn't changed and I think that the the key now is to look Into the future work forward rather than looking in the Rear mirror and do everything we can to actually make sure that that future is going to be bright and is going to be light Not light in terms of regulations light in terms of burden Okay, last question is going to be placed by this lady here just in the middle day. Yeah, you've been Would you mind standing up so that I can recognize the fact? Yes indeed and I apologize to everybody else because there are so many people offering There's really some possible to conclude on time Thank you. Thank you, Madame Lagarde And I'm a final year student of European studies in Trinity College down the road And when I finished my exams in May I'm facing the high levels of unemployment of youth unemployment that you mentioned So I just wonder could you could you comment on how exactly we can tackle? Youth unemployment both in Ireland and in Europe because it's so high there as well. Thank you very much You know, they're on there is no magic stick And and it's it's a fact that at the moment. It's just hard and I have to you know, 24 ish sons We're in the same position as you and It's hard to get a job and it's hard to enter the labor market I would say that if you have chosen these European studies You probably speak different languages not just your own Well, I would say your own your two owns And That that certainly gives you an Additional asset because you can be probably more mobile than many other people if you've studied European studies you have faith in that much larger environment of ours and There are and there will be countries that will sort of pick up a little bit earlier than others But clearly all European governments together have to Focus on what will actually help young people to access the job market and there are multiple policies in place You know, some of them have been Tried they don't succeed necessarily as as well as one would hope I think we all have to just bind in this together to make sure that growth actually picks up is Better the fruits of growth are better shared and that comes back to the point of income inequalities and the sharing of the fruit of growth and Whatever you can do to actually join the job market I'm talking to you as I would talk as I talk to my sons actually I forget about your diplomas forget about You know hitting that level of that salary just get in there and work your way up There's no alternative to actually, you know hard work and getting stuck with it