Mr. John Moran:

It is difficult to know what more could be done, but we certainly know that a significant weight rests on the State’s shoulders as a result of recapitalising the banks. How much of that will remain is unclear. Were an increase in AIB and Bank of Ireland shares to bridge the gap of €6 billion, we could find that the bailout of the three pillar banks – permanent tsb, AIB and Bank of Ireland – had not cost the State anything. As such, the only issue to be discussed would be Anglo Irish Bank.

Given policy decisions around Europe, it is clear that Europe has moved into a space that is consistent with the way we started the debate in 2011, in that senior creditors of banks should in certain situations play a part in the rescue of the banks, which was not an available policy option even at the beginning of 2011. There has been an understanding and recognition across Europe that the resolution of banks requires an element of contribution from creditors and that this option was not available at the time.