Enda Kenny (Mayo, Fine Gael)

This matter concerns every citizen across Europe today. The ECOFIN meeting clearly focused on the question of Greece and the deepening awareness of the potential for a real challenge in Spain. The Minister for Finance and the Minister for Public Expenditure and Reform met representatives of the European Investment Bank today to discuss flexibility issues. There is a blockage in the system in the case of PPPs and a release is required. AIB is the main funder of that process. This is a time not just for assessment of the challenge but also for imagination and ingenuity about what can be achieved.

From the comments made by Christine Lagarde recently, it is evident that the IMF is actively pursuing a number of options for Spain. There is an understanding that what happened in Ireland should not happen again. That means if a situation was to arise for Spanish banks and an assessment had to be carried out in the immediate future of whether they were solvent or bankrupt, given the size of Spain and its economy, it would have enormous implications. As has been pointed out by the Minister for Finance, in the event of action being taken there, Ireland's interests would be an issue. There is no stomach to allow a second run similar to what happened in Ireland where the sovereign had to borrow from the banks to bail them out and the taxpayer had to pay for it. I note Christine Lagarde's recent comments. This matter concerns everyone. Clearly, the Government will monitor the situation closely. That is why both Ministers are there.

The Deputy is aware that the French President is being sworn in today and that he is to travel to Berlin. We hope there can be clarity on the range of what he is talking about on the growth agenda. On 23 May the focus will be on the first European summit in the context of the growth agenda. Ireland will prepare its own case and contribute to the debate, as appropriate.

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