Michael Noonan (Limerick City, Fine Gael)
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That matter is being negotiated. Ireland is one of the countries that has resolution legislation in place. Deputies Michael McGrath and Pearse Doherty participated in the debate on the bank resolution Bill and will recall that it establishes a fund by means of a levy on the financial institutions. The first step on the European policy of resolution is to have resolution mechanisms in place in all eurozone countries, some of which still do not have the relevant legislation in place. Once this is done, each eurozone member will have a fund. The next step will be to establish a fund at European level. Whether this fund could be used to recapitalise banks as well as resolving them or such a function would be one for the European Stability Mechanism or both funds could be used as a source of recapitalisation, has not yet been decided.

What has happened on banking union is that commitments have been made in principle. Furthermore, the Irish Presidency has succeeded in securing agreement with the European Parliament on a single supervisory mechanism. Having got that bit across the line, we are working on the resolution issue. While most of the detail has been agreed, agreement has not yet been reached on the hierarchy for the bail-in mechanism I have described, starting with the shareholders. Another area on which agreement has not yet been reached is the source of moneys other than those that are internal to a bank, in other words, whether these would come from the resolution fund, if such a fund is established in Europe, or the European Stability Mechanism.