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

I do not see a crossover into other areas. It is obviously very complex but the essential idea about monetary financing is that the central banking system in Frankfurt or any of its components like the Central Bank in Dublin could not financially assist the Exchequer because one would then get involved in monetary financing of a fiscal position. If money was owed to the Central Bank by the Exchequer and the Minister had discretion not to pay it, that would be deemed to be monetary financing and contravene the Lisbon treaty according to the ECB. There is merit to that argument. That is where we are. If there is a liability, the obvious thing is to levy the banking system to make good anything the Exchequer loses in the process.