I should like to put some supplementary questions in regard to Question No. 2.

The two questions were taken together.

I can only ask supplementaries one at a time. My supplementaries so far related to unemployment, which, as the Chair will appreciate, is a crucial area. Question No. 2 deals with interest rates. Is the Taoiseach aware that the official growth projection for the EEC is about 1½ per cent for the next year compared to about 5 per cent for the United States? Considering that and the need for investment — investment, as the Taoiseach will be aware, is something we do not get unless interest rates come down — will the Taoiseach agree that what is holding back employment and growth in Europe is the high level of interest rates? Will the Taoiseach ask his partners at the meeting of Heads of State to tell the United States that they will have to stop this lunatic interest rate policy they are adopting and try to bring down interest rates in America which will have a direct effect on us here and boost the economies of Europe?

The Deputy asks a question and then goes on to put flesh or feathers on it to built it up. He cannot do that.

I am availing of the generosity of the Chair. Considering the importance of interest rates to a recovery in Ireland, will the Taoiseach ask the Heads of State at the forthcoming Summit to tell the United States that they will have to change their interest rate policy which is a direct result of military spending in the US?

I do not think I need to ask my colleagues to press this issue because it has been a preoccupation of all member states and one raised consistently and persistently by the Governments of the Community countries with the United States over the past year or, indeed possibly two years. On this there is unanimity within the Community. Nonetheless we have to face two facts; one is that there is a connection between interest rates and the scale of the American deficit and that action to deal with the deficit could itself affect American growth. There is an interaction there of which we cannot be unaware. Secondly, we have to be and are aware of the fact that the United States at the moment is in the throes of one of its prolonged presidential election campaigns and that such election campaigns can have an impact on policy in the short-term.

Interest rates are of the order of 13 per cent base rate. Inflation is only 9 per cent. It is a ridiculous situation.

I am surprised at Deputy Brennan insisting on continuing to make speeches.

It is a very important matter.

It may be but there is a time and a place for everything. This is not the time for making speeches.

Could I ask the Taoiseach to ask the American Government to bring down interest rates because it is the people of Europe and, therefore, the people of Ireland who are paying in lost jobs for those high interest rates?

Deputy McCartin with one final supplementary.

We are badly placed from the point of view of asking the Government of the United States to change its policy.

The Deputy is making a speech.

I am asking a question. The policy pursued by the United States which is creating the problems we have is precisely the same policy we pursued ourselves of a budget deficit and a balance of payments problem——

That is not a question.

I am asking the Taoiseach if he will agree with me that we are particularly badly placed to preach to the United States. Secondly, if interest rates here are high because of American policy why are interest rates in Germany not high as well and have we not got in real terms much higher interest rates?

I am sorry, Deputy, but that is stretching the agrument.

If I may answer the point made, interest rates are not determined by one single factor but by a number of complex factors. One of these is the level of exchange with the United States which exercises a great influence. The other is the domestic inflation rate of the country concerned and disparities in interest rates within the Community reflect fairly accurately disparities in inflation rates. If we are to reduce interest rates here to as low a level as is practicable in the light of the American situation then we have to tackle the problem of inflation. That is what the Government is presently trying to do.