Enda Kenny (Mayo, Fine Gael)

I propose to take Questions Nos. 5 to 8, inclusive, together.

I reported to the House on 22 March on the meeting of the Heads of State and Government of the euro area that took place in Brussels on 11 March. That meeting agreed that pricing of the European financial stability facility, EFSF, should be lowered to better take into account debt sustainability, while remaining above funding costs with an adequate mark-up for risk and in line with IMF pricing principles. It was agreed to reduce by 1% the interest rate applying to loans to Greece, which did not take place under the EFSF.

As I have previously told the House, it was not possible to secure a reduction in the rates applying to loans to Ireland at that time. Some partners sought a commitment from Ireland on corporation tax to which I was not prepared to accede. There were difficult exchanges and discussions. Partners made various suggestions, none of which were acceptable to Ireland. No text was formally tabled at the meeting by President Van Rompuy or anyone else.

The Government will continue to press strongly for an interest rate reduction but on a basis consistent with improving the prospects of successful implementation of the EU-IMF programme. As the Members are aware, resolution of this issue is being taken forward by finance ministers. The Government remains fully engaged in an ongoing, constructive dialogue with our European partners in both capitals and institutions and I remain hopeful of a positive outcome. There is now a greater understanding of the Irish position on corporation tax and its significance to our economic recovery than was the case last March.

My programme of bilateral meetings during the second half of the year will continue to be guided by ongoing assessment of strategic priorities. It will include a meeting in Dublin with the President of the European Parliament, Mr. Buzek, on 12 July; and most likely with Prime Minister Mr. Donald Tusk of Poland in September in the context of the Polish EU Presidency. It remains my intention to be in a position to travel to China later this year, subject to final agreement with the Chinese authorities.

The most recent meeting of the European Council confirmed the appointment of Mr. Mario Draghi as President of the European Central Bank with effect from 1 November 2011. This was on foot of a recommendation by ECOFIN, the Council of finance ministers, and following consultation with the European Parliament and the ECB. There was no substantive discussion of the matter at the meeting.

The European Council noted that the situation in Gaza remains of concern. Colleagues agreed that humanitarian assistance delivered to the population in Gaza should be in accordance with the relevant framework and decisions of the UN and should take care not to endanger human lives.

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