Mary Coughlan (Donegal South West, Fianna Fail)

What we are dealing with are issues that were raised by the media. There were media reports of which I am aware to the effect that the EU was considering the question of reduction in interest rates charged to Ireland, but this is based on speculation. At the December Council, the Finance Ministers were asked to work on a proposal to come forward by March of this year to finalise work on the intergovernmental arrangement setting up the proposed European stability mechanism. That work is ongoing, it is confidential and it would be inappropriate to speculate on it.

It is also true to say that in the negotiations between the Government, the EU and the IMF, it is manageable to deal with the interest rates that are currently available to us. However, at the same time, we would welcome any developments which would give effect to the lowering of rates to Ireland.

It is also important to say that this matter was raised by the media at a press conference yesterday where Commissioner Rehn was asked the question about interest rates being charged to Ireland. The Commissioner pointed out that the interest rates being charged to Ireland are in line with the Council decision last year on the euro area loan facility to Greece and following intensive discussions with member states. There is nothing further that the Government wants to comment on those considerations.

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