Eamon Gilmore (Dún Laoghaire, Labour)
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Deputy Timmy Dooley inquired about the situation in Bosnia-Herzegovina. That matter is not on the agenda for next week's meeting. It is true, however, that there has been a regrettable lack of momentum. However, the European Union has, through the External Action Service, been working hard to encourage progress. The most recent reports suggest there may be some positive movement, particularly in the area of constitutional reform. I would certainly encourage progress in this regard. As the Deputy is aware, the path to European Union membership is conditional. The Union cannot impose the relevant conditions, they must be addressed by the countries concerned. We will obviously continue to encourage those involved in this instance to make progress.

Deputies Timmy Dooley, Seán Crowe and Bernard J. Durkan referred to the single supervisory mechanism and the possibility of the ESM directly recapitalising banks. The former must be put in place in order for that to happen. That is the architecture which must be created. There are also two other elements involved in the banking union, namely, deposit guarantees and bank resolution. Matters in this regard are being progressed. The intention is that the single supervisory mechanism will be in place by the target date of March 2014. The issue of legacy or retrospective debt is being considered in the parallel discussions being pursued by the Minister for Finance and the hope is there will be some outcome from the process at the earliest possible date this year. However, the discussions will, as was the case with those which preceded them, take time to complete. All of the relevant issues must be worked through. The direct recapitalisation of banks cannot happen until the single supervisory mechanism goes live.

It is important to place this matter in context. Two years or 12 months ago, the idea of there being a European instrument to directly recapitalise banks or the principle of separating banking and sovereign debt were not even on the radar. There were many individuals who thought that neither would ever materialise. The fact is that agreement on the separation of banking and sovereign debt was secured last June. When that was done, there were those who sceptically stated it had just been agreed on paper and that, for various reasons, it would never become a reality. In October and December progress was made in this matter and now it is being worked through.

Senator Fidelma Healy Eames and Deputy Seán Crowe inquired about the youth guarantee. The position is that under the youth guarantee, young people who are not working or not involved in education will receive offers of employment, continued education, apprenticeship or traineeship within four months of becoming unemployed. There are a couple of matters which must be remembered in respect of the youth guarantee. In the first instance, it is essentially a contract between the European Union and young people. Obviously, it must be backed up with money. That is where the significant sum of €6 billion comes into play. Some matching funds will be required, but the exact details in this regard have yet to be agreed. As it happens, the youth guarantee fits with the reforms we are pursuing in respect of training, further education, Pathways to Work, etc.

The guarantee is not a panacea. Where there are very high levels of unemployment, what one needs to provide is real employment and career opportunities. This is why the emphasis is on achieving stability - which we have now done - in respect of Europe's banks, its finances and the public finances of individual member states. That is the platform on which one builds because it gives investors more confidence to put their money on the line and create jobs. In the work we are doing to complete the Single Market and grow the digital Single Market, there is enormous potential for the creation of employment. Again, I return to the advancement of the trade agreements.