Enda Kenny (Mayo, Fine Gael)

I reported to the House on 28 and 29 June on the meeting of the European Council that took place in Brussels on 23 and 24 June. While there was no detailed discussion of the economic situation in Ireland, in its conclusions the European Council welcomed the progress we have made in implementing our programme and agreed that it is on track.

In discussions with partners, I stressed not only the need to ensure that all elements of a programme, including pricing, contribute to a positive outcome, but also the need to ensure that measures taken to address the situation in one member state do not have negative consequences for another. That is especially necessary in the case of countries in a programme.

The point was well-taken by colleagues, and is reflected in last night's statement by eurogroup Ministers which states that "Ministers stand ready to adopt further measures that will improve the euro area's systematic capacity to resist contagion risk", pointing to a number of possible measures in that regard. These include enhancing the flexibility and the scope of the EFSF, lengthening the maturities of the loans, and lowering the interest rates, including through a collateral arrangement where appropriate. Proposals to that effect will be presented to Ministers shortly.

Ministers have also tasked the eurogroup working group with proposing measures to reinforce the current policy response to the crisis in Greece. This includes the modalities for financing a new multi-annual adjustment programme, steps to reduce the cost of debt servicing and means to improve the sustainability of Greek public debt. The reinforced strategy should provide the basis for an agreement in the eurogroup on the main elements and financing of a second adjustment programme for Greece shortly.

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