Enda Kenny (Mayo, Fine Gael)

We must look at the longer-term view for our country and reduce the overall debt burden by alternative methods. That is where we are making progress. It would not have been possible to have a €10 billion reduction in interest rates if we had been acting the mick with our European partners. Of the four Heads of Government meetings I have attended, this was the first at which there was a focus on the real issues - the state of the Greek debt and what we could do to prevent this contagion from spilling over into other countries with potentially catastrophic consequences not just for Europe but globally - and a decision to provide the vehicles to leverage that and deal with it in a comprehensive fashion. Stability and confidence are necessary for this.

I hope as much as anyone that stability and calm will return to Greece as soon as possible. Now, we move from this debate to the question of the eurozone with which the Minister, Deputy Noonan, will deal. However, I was asked a question earlier by Deputy Ross, who is not present. He asked why Anglo Irish Bank did not buy back bonds when they were at a cheaper rate. The answer is that Anglo Irish Bank and the State did not have the cash reserves to engage in buying back bonds because every cent the bank had was on loan from the European Central Bank. To engage in buying back bonds at an earlier date would have involved even more borrowing from the ECB and it is not in the business of lending to the State or banks to buy back their own bonds. That is the answer to the question which I forgot to answer when he put it to me.

See this speech in context