Enda Kenny (Mayo, Fine Gael)

The figures of 0.5%, 60% and 3% mentioned by the Deputy are referenced by the Growth and Stability Pact and have been in existence a long time. I stated yesterday I would check in respect of any works being done by the Department of Finance on the economic impact of the measures. I will return to the Deputy on that.

The leaders from outside the eurozone who attended the meeting the other night stated they would return to their parliaments and discuss the political agreement that was reached. These included the Swedish and Hungarian Prime Ministers. The Dutch Prime Minister has a particular situation in regard to his Government. A number made the point of having to refer to their parliaments. As of now I do not know the outcome of those deliberations. I understand Prime Minister Reinfeldt was to discuss the matter yesterday in his parliament where he relies for support on the opposition parties. I am not sure about the outcome.

On bank recapitalisation and its extent, the decision taken at the Council meeting in the summer was clearly to the effect that what happened in Greece was a once-off situation. The point we have been making in this House is that because of the extent of the borrowing for recapitalisation of our banks, at €63 billion or 50% of GDP, the facilities now available under the EFSF, and to be given under the European Stability Mechanism, ESM, were not available at that time. We clearly registered our concern about private sector involvement, or PSI, being included in the ESM facilities and made a very strong case. A number of other countries did so too but Ireland in particular made the point it should be removed. It was removed and that is welcome. Now we will try to have provided the facilities that are now available under the EFSF and will be under ESM. These are in reference to the extent of the banking recapitalisation debt and the loans we must now repay which were borrowed at high interest rates. If we can get that included in the facilities it will allow for a lower interest rate over a longer period and be of significant saving to the taxpayer. That is where the focus of our political-----

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