Enda Kenny (Mayo, Fine Gael)

-----I discussed tax harmonisation with Chancellor Merkel and the answer is that we did not discuss tax harmonisation. Question No. 30 concerns the role and mandate of the ECB within the eurozone and the answer is "Yes". I made the point that the institution is a credible backstop with unlimited economic potential to deal with contagion. Chancellor Merkel has a different view and she expressed that.

We are not the same as Iceland as Iceland is not a member of the eurozone. Even Deputy Boyd Barrett is aware that the European Central Bank is run by 17 governors of different banks and they have a range of views on how the eurozone and the ECB should be managed, its role and its remit.

Regarding Deputy Higgins's belated interruption, Chancellor Merkel said that her view of limited treaty change was to set out the conditions under which countries sign up for assistance and participate in the eurozone and that these should be enforceable, that there should be regulations that can be enforced and that there should be recourse to sanction through the European Court of Justice if countries that sign on do not measure up. I pointed out to her that we have gone beyond that for the main part because a forensic analysis is carried out by the troika in respect of how this country is run, how money is being spent here and the requirements of measuring up to the troika conditions. In respect of the issue she mentioned, limited treaty change, I explained to her that in this country, where the issue of competency or sovereignty is involved, the Attorney General is asked for formal legal advice by the Government in respect of whether there needs to be a referendum. I pointed out to the Chancellor my view that changing something in the treaty is very different to the entire process of opening up the treaty change process, which can be very long. What is being considered by the German Government is an amendment to an existing protocol. These matters will be central to the discussion that takes place on 9 December and the paper to be produced by President Van Rompuy.

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