Dáil Éireann Debate, Thursday - 4 October 2012
64. Deputy Thomas Pringle asked the Minister for Finance if he is concerned by the recent statement by the German, Dutch and Finnish foreign Ministers suggesting that the European Stability Mechanism should not be used to provide debt relief for past banking losses taken on by states such as Ireland; the implications that this has for Ireland's campaign for debt relief; and if he will make a statement on the matter. [42285/12]
Amharc ar fhreagra65. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects to garner support amongst fellow EU Eurozone Ministers for a meaningful review of this country's debt repayments arising from the bailout or other conditions with particular reference to the need to ensure that each member state is treated similarly in terms of interest and repayment conditions or requirements and keeping in mind individual members states' compliance with good practice and procedures to date and the agreement reached at the heads of Government meeting in June 2012; if he will further endeavour along with his EU colleagues to attempt to ensure solidarity and unity of purpose by all member states particularly those within the Eurozone in dealing with economic and fiscal instability; and if he will make a statement on the matter. [42281/12]
Amharc ar fhreagraI propose to take Questions Nos. 64 and 65 together.
The statement by the three Finance Ministers from Germany, Netherlands and Finland on 25 September addresses issues already decided upon by Eurozone leaders when they met in Brussels on 29 June. The Heads of State or Government made two important decisions at that time. The first was to “affirm that it is imperative to break the vicious circle between banks and sovereigns.” The second was that “The Eurogroup will examine the situation of the Irish financial sector with the view of further improving the sustainability of the well-performing adjustment programme. Similar cases will be treated equally.” The commitment to equal treatment is very important.
Apart from the various technical meetings with Troika members, Ireland continues to be fully engaged in the process by the Eurogroup and Heads of State or Government on how these commitments will be implemented. Apart from the various technical meetings with Troika members, we are pursuing a diplomatic offensive which has included officials from my Department travelling recently to several capitals; my own visits to Paris, Berlin, Rome and onto the Informal Ecofin in Cyprus; and the Taoiseach’s meeting with several colleagues at the level of Heads of Government. All our interlocutors agreed that the imperative is to move ahead urgently to implement all of the important decisions taken on 29 June.
In advancing our ideas, we are conscious that other member states will also put forward their proposals. In the nature of EU business, there may be differences of interpretation but these must be within the context of the over-arching principles agreed on 29 June. Ireland’s position is clear in this regard and work is continuing in line with the 29 June Summit agreement to break the link between banks and sovereign and the principle that similar cases will be treated equally. We have followed up on that basis as a matter of urgency following the latest developments.
We want to continue to work in a constructive spirit to enhance the sustainability of our debt. We have made strong solid progress in implementing the terms of our EU/IMF programme and have lived up to all of our commitments. The financial markets have recognized this and this is reflected in the reduction of our bond spreads in recent months. Let me be clear, the Heads of State or Government have made a decision on these issues and we continue to work within that framework to deliver the best possible outcome for the Irish taxpayer.
