Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The possibility of retroactive recapitalisation is in the guidelines, which are agreed. The legal possibility is in place and this has come through the Council. The European stability mechanism, ESM, has been established, but the part which will involve the recapitalisation of banks is not in place yet. It should be in place at the end of 2014 or at the start of 2015. All decisions on the ESM require unanimity. Putting in place the €55 billion or €60 billion fund and having guidelines which allow retroactive recapitalisation is only the first step. What will be difficult is getting the agreement of other member states to do it. The commitment made at the Heads of State and Government meeting in June 2012 stands and Ireland is certainly not taking it off the table.