Brian Cowen (Laois-Offaly, Fianna Fail)

I cannot comment on unattributed statements by anyone. We need a more stable exchange rate. It helps people to plan better and allows investors to make long term decisions. It is a far better situation than the fluctuations we are seeing at present. That volatility is not helpful. It does not allow for orderly progress in developing trade and increasing prospects for everyone. We want to see a more stable exchange rate situation develop. That can best be achieved when the worldwide currency imbalances are rectified. That, in turn, requires work at global G20 and other forums outside our direct control. We are supportive of anything that would assist in bringing overall global stability and the prospects for world growth to be maintained.

Chancellor Merkel was speaking of a matter that is within the remit of the German Federal Government itself, that is, how the rules of the German stock market were impacting adversely and in an improper way on German financial arrangements. The question of stopping short selling is a matter for the German Government without reference to anyone else. I was not given advance notice of the Chancellor's comments. In matters as sensitive as this one would not expect advance notice in any event. These are matters within the regulation of each domestic financial market.

With regard to the other remark made by Chancellor Merkel, it is important that people read both the full content and context of what she had to say. She spoke in the context of a political debate in the Bundestag, where she was seeing support from the German Parliament and taxpayers for collective action to support the euro. She was making the point that the absence of collective action in these matters can lead to speculators seeking to identify weakness or diversity of opinion in order to destabilise the currency against the common interest. She was emphasising the need for collective action. Germany, as we know, is the main contributor to the mechanisms that have been devised to assist the euro. To portray Chancellor Merkel as in some way less than supportive of the euro is very wide of the mark. There is obviously concern in Germany over the over the way in which German taxpayers view their country's contribution. That is obviously a domestic political consideration that the Chancellor must deal with herself. Germany and Chancellor Merkel have been very supportive of the need to act collectively on behalf of the currency.

See this speech in context