Mr. Antoine Mac Donncha:

I will explain what the legislation will achieve. It will enable the ESM to engage in direct recapitalisation. That will only be permitted in particular circumstances. It is true, as the Deputy has pointed out, that the ESM will not be permitted to make that contribution other than in circumstances in which some of the difficulties that have been outlined would result if the State were to do it. The conditionality set out in the treaty would have to be met. The ESM will be only able to make a direct recapitalisation in limited circumstances where these thresholds are met. There is nothing at all in the legislation that imposes any obligation on the State to bail out any bank. The legislation allows the ESM to bail out the bank - not across the board and not without limitations - in certain circumstances.