Brian Lenihan Jnr (Dublin West, Fianna Fail)

Ireland has not sought assistance from the European Financial Stability Facility, EFSF, and as the NTMA has repeatedly stated, Ireland is fully funded well into next year. In terms of contacts between my officials and executives or representatives of the EFSF, there have been no contacts other than those made in the context of normal EU business.

The EFSF is established as a limited liability company, a société anonyme, incorporated in Luxembourg of which the euro area member states are the shareholders. In common with other member states, our contacts with the EFSF have related to the establishment of the company, our pro rata contribution to its share capital and representation at board meetings.

I can, however, confirm for the Deputy's information that the terms and conditions generally under which the EFSF may make loans to euro area member states are set out in the EFSF framework agreement which was scheduled to the European Financial Stability Bill 2010, which has been laid before the Houses of the Oireachtas. The arrangements governing individual loans would be determined in the context of specific loan facility agreements. Under the framework agreement, it is envisaged that the EFSF may provide loans during the three year period up to 30 June 2013.

As the Deputy is aware, the Government has taken firm action over the past two years to tackle the deterioration in the public finances. Those actions are resulting in a stabilisation of the underlying general Government deficit this year. We are now preparing a four year budgetary plan which will set out the pathway to stabilising general Government debt and to bringing the deficit below 3% of GDP by the end of 2014. This is part of the wider strategy being pursued by the Government which has addressed the difficulties facing the banking system, will bring sustainability to the public finances and will see ongoing improvements in competitiveness.

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