Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I believe the criteria that are in place for access to the precautionary condition credit line, PCCL, are appropriate. I will outline a number of reasons that is the case.

The first is it is important to be clear about what are the circumstances in which the PCCL could be accessed. They could, for example, apply due to a natural event due to an earthquake. It is all about focusing the availability of this credit line for circumstances that are completely beyond the control of a member state and a government. Therefore, it is possible that you could have a country that is fulfilling the current Stability and Growth Pact conditions and still, for reasons beyond its control, finds itself in need of assistance to meet funding needs in an emergency. That being said, the Deputy is aware now of the review that has recommenced by the European Commission in relation to the future of economic governance within the European Union which is focused on the debate about the fiscal rules. When that debate concludes, and if there were to be a change in the Stability and Growth Pact, SGP, that was to change some of the targets and conditions within the SGP, I entirely expect that the operation and access to this PCCL will have to be in line then with a revised SGP if there were to be a revision in the SGP. In one way, I take the Deputy's point that at present there are very few countries that would meet the criteria of the SGP, but there is a review under way in relation to that. Even while there are few countries that meet the criteria of the SGP, it is possible that you could have a country that meets the criteria, as they are currently defined, and still, for reasons beyond control, finds itself in need of this financial instrument.