Enda Kenny (Mayo, Fine Gael)

I understand that. Deputy Martin should know that the issue of contagion is there because the European Union and the eurozone want to prevent contagion spreading from Greece. Surrounding that element of the debate, all the issues the Deputy raises - debt write-downs, the sustainability of debt, restructuring and recapitalisation - come into the discussion. This is a central issue.

Deputy McDonald asked me about another element. As has been pointed out, we have consistently pushed the agenda of a reduction in the cost of the promissory note in respect of Anglo Irish Bank. If agreement could be reached on that issue, it would yield substantial savings to the taxpayer which would be far in excess of a write-down of debt for bondholders remaining in Anglo Irish Bank. As we pointed out, such a write-down would achieve savings in the order of €100 million, whereas many times that figure would be saved if agreement could be reached on a reduction in the cost of the promissory note. Central to this, the question of contagion has been raised by Ireland, with many other issues.

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