I propose to take Questions Nos. 79 to 81, inclusive, together.
The Governing Council of the ECB made a decision to establish Outright Monetary Transaction (OMT) on 2 August 2012, and issued a Press Release on 6 September 2012 which outlined its technical features. According to this ECB Press Release, the purpose of OMT is “Safeguarding an appropriate monetary policy transmission and the singleness of the monetary policy”. In the Press Release, the ECB noted in relation to the coverage of OMT that it “will be considered for Member States currently under a macroeconomic adjustment programme when they will be regaining bond market access.” The Press Release also sets out that a necessary condition for OMT is strict and effective conditionality attached to an appropriate European Financial Stability Facility/European Stability Mechanism (EFSF/ESM) programme.
Such programmes can take the form of a full EFSF/ESM macroeconomic adjustment programme or a precautionary programme (Enhanced Conditions Credit Line), provided that they include the possibility of EFSF/ESM primary market purchases. Finally the Press Release also notes that the ECB’s Governing Council will decide on the start, continuation and suspension of OMT, following a thorough assessment, in full discretion and acting in accordance with its monetary policy mandate. The reply to PQ No 219 of 23 April 2013, to which each of the three questions refers, states clearly that the decision on whether to grant OMT or otherwise in any particular case is a matter for the ECB, which is an independent body.
My recent comments about a further sale of Irish paper were referencing primarily our progress in establishing full market access.
In relation to the NTMA, I understand its comment on clarity in relation to Ireland’s eligibility for OMT to be its assessment of the view of the financial markets that such clarity would be helpful.
All relevant options will be considered in the light of what will be appropriate for Ireland at the time of our Programme exit. The issue of our exit options has yet to be fully considered by Government and accordingly no decisions have been taken to date.