As the Deputy is aware, the European Commission took a case against the State regarding the VHI's derogation from the EU Non-Life Directives. In September 2011, the European Court of Justice (ECJ) found that Ireland had failed to fulfil its obligations under the Directives by exempting VHI from being regulated (i.e. holding authorisation) by the Central Bank of Ireland.
The Government has agreed that the VHI should make an application for authorisation to the Central Bank. The Government will make a decision on recapitalisation of the VHI when the Central Bank has determined the amount of any capital requirements and the EU Commission has approved a capital injection under State aid rules.
Officials from my Department and the VHI have been engaging regularly to progress issues relating to VHI's authorisation and have also met with Central Bank officials.