Oireachtas Joint and Select Committees

Wednesday, 29 July 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Ms Mary Harney:

No. I think, to be fair, the Council was taking a view towards Ireland that it didn't take towards other larger countries. I think the point I was making about the euro was a different one. I think if we had put the effort in post-joining the euro that we put in to the preparation of joining the euro, we might have been able to identify the risks earlier and to have mitigated some of the difficulties, and I regret that we didn't do that. And can I just reflect back on the question you asked, if it's in order, Mr. Gormley? From the time Chancellor Merkel and President Sarkozy made their comments at Deauville that peripheral countries' bondholders ... bonds would not be fully honoured, we were on a hiding to nothing, quite honestly. The momentum after that was just incredible. And Olli Rehn came to Ireland. And in relation to trying to get a better deal, I think the IMF were supportive, the ECB weren't, and that was our difficulty. We sought the write-down of senior debt in the banks and, to the best of my knowledge, the IMF were very supportive of that but the ECB weren't. And by the time it happened, we didn't have an alternative, quite honestly.

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