Brendan Howlin (Wexford, Labour) | Oireachtas source

-----the decision was a finely balanced one and we were obliged to give it careful consideration. Following on from it, as the democratic Government, we took a decision that we were as well positioned to exit the programme as we could possibly be in a year's time. Our first action following the taking of the decision was to inform the people through the House of their directly elected representatives, but even that drew scorn from those who had caused our problems.

The economic environment in which have we made this decision is good. Our bond yields are low and have remained stable since the announcement last week. The public finances are now under control. Our targeted deficit for next year is 4.8% of GDP which will deliver a small primary surplus. We have met every fiscal target required of us by the programme thus far. As the Minister for Finance informed the House, we met in excess of 260 targets.

The banking challenge is a pan-European one, but unlike others, our banks have already been significantly recapitalised to a higher level than that required by the European wide stress tests. In addition, the Irish taxpayer will not be the first port of call for any future findings in the European stress tests for the Irish banks due next year. The Irish banks have a number of options open to them if they need to raise capital in the future. On that point the House might be aware - if those opposite were evenly marginally interested - that today both Allied Irish Banks and Permanent TSB successfully concluded significant funding transactions in the international debt markets, raising a combined total of €1 billion of long-term funding. Both transactions which were heavily oversubscribed represent another significant step forward in the rehabilitation of the Irish banking system.

Deputy Michael McGrath asked about the conditionality that would attach to a credit line. The reality is that the Government decided, for of all the reasons set out, that there would be no application for a precautionary credit facility once we exited our programme. In view of this, we did not get into the issue of what conditionality might arise. I reiterate a point made by the Minister for Finance this morning, that applying for a precautionary credit line would not actually cover the risk should a wider problem emerge in the euro area.

Both Deputies Michael McGrath and Pearse Doherty sought clarification on aspects of outright monetary transactions, OMT. In relation to OMT, it is important to be clear on one fundamental aspect, as the Minister for Finance outlined this morning. The September 2012 press statement outlining the ECB governing council's decision to establish OMT outlined its technical features. According to it, the purpose of OMT is: "Safeguarding an appropriate monetary policy transmission and the singleness of the monetary policy". It is, therefore, aimed at addressing systemic risks for the euro area as a whole and is not country specific in that regard. Having a credit line does not of itself guarantee access to OMT. The critical point about OMT is that its activation is a matter for the ECB acting with full independence.

On this basis the Government concluded that the time was right for a clean exit, and I am pleased that decision has been endorsed by our friends and allies across Europe and elsewhere. It has been understandable over the past few years that we, as a people, have reflected on the catastrophe we have endured. However, while not disregarding the challenges that still lie ahead, we must acknowledge that exiting the programme is a national achievement for which we should all take credit. It has contributed further to our international standing. Without gainsaying the real challenges that still lie ahead, we should, as a country, perhaps for the first time in a quite a while, be proud of what we have achieved and confident of our future.

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