Mr. Feargal Ó Brolcháin:

The legislation simply provides for the inclusion of the direct recapitalisation instrument, DRI, among the instruments that can be included in the ESM treaty. It provides a legislative basis for the Minister to agree to this instrument. The figure of €60 billion is the one agreed by the ESM board of governors as the cap on the DRI. There are a number of reasons for this. First, all such discussions are the subject of agreement among the now 18 member states. Second, the €60 billion has a greater than linear impact on the ESM's lending capacity. As such, greater provision must be made. If the ESM fully provided €60 billion by way of direct recapitalisation, the rest of its lending capacity would be reduced.