Brian Cowen (Laois-Offaly, Fianna Fail)

I am sorry. The proposed amendment states:

The Member States whose currency is the euro may establish a stability mechanism to be activated if indispensable to safeguard the stability of the euro area as a whole. The granting of any required financial assistance under the mechanism would be made subject to strict conditionality.

As Deputy Gilmore indicated, a strong political view is held by Germany that this is a matter of last resort. It is about keeping the focus on what states themselves are doing to correct their public finances rather than being prepared to allow things to drift and then move into the mechanism. It is a fundamental position of the German Republic and from Chancellor Merkel's point of view that this can only be activated if it is indispensable. As Deputy Gilmore is aware, ultima ratio means as a last resort. The change in text does not do damage to the basic concept. The concept is that it is the indispensability of the use of the mechanism that would trigger its use rather than it being available without it being pursued to the full what national authorities can do to avoid using the mechanism. The biggest contributor to the mechanism is Germany as it is the biggest component of GNP within the Union. That is the context. The concept has not been changed. It was a drafting issue that arose for the purpose of strengthening the view of the Council that this is only used as a very last resort.

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