Enda Kenny (Mayo, Fine Gael)

I thank the Deputy for his question. As a former Minister for Foreign Affairs, he will appreciate how these discussions and negotiations take place. I very much welcome the very strong, clear and decisive decision of the Irish people last week in respect of the referendum on the fiscal stability treaty. I thank Deputy Martin and his party and all of those across civil society who supported it. Were we meeting in this House today with a negative impact from the putting of that question to the people, we would be in a very different position.

I have always said that the banking situation was a separate question from that which the people were asked last week in the referendum on the fiscal stability treaty. After the decision in the referendum became clear, I spoke to Prime Minister Monti, the President of the European Parliament, Mr. Barroso, the President of the European Council, Mr. Van Rompuy, Chancellor Merkel, President Hollande and Prime Minister Rajoy, to whom I made it perfectly clear that this was the decision of the Irish people following a vigorous campaign in respect of the fiscal stability treaty, both for and against. I emphasised that the people were very clear in their view as to their positioning in so far as the euro was concerned, in terms of being a member of the eurozone and the European Union. I also made it clear to the leaders that it was perfectly obvious that a resolution needs to be brought about in respect of the banking situation. This is a tortuous and complex process and there are no simple, quick-fix solutions. I remind Deputy Martin that named officials quoted in newspapers are not politicians. I made the point last week, standing on the steps of Government Buildings with the Tánaiste, that this is a situation which requires consideration, assessment and decision by political leaders, not technocrats or officials, notwithstanding the important role they play. It is a question for politicians and political leaders to decide.

I happened to be one of the first to make the point, in Dublin Castle some weeks ago, regarding the possibility of licensing the European Stability Mechanism for direct injection into the banking situation. I am glad this position has gained credence with a number of countries and leaders. I am also happy to note that Europe is now having a proper debate, and the construction of a proper debate, on the question of a separation of the sovereign from bank debts. This is the start of a strategy which I hope will bring a political conclusion to the issue. As Deputy Martin is well aware, an assessment is going on in Spain in respect of the liabilities of Spanish banks. I note the comments yesterday by Spain's budget Minister, Mr. Montoro, in this regard. An election will be held in Greece on 17 June and the French national elections will take place this month. The ratification process in regard to the fiscal treaty is ongoing in several countries, as well as the process of the European Commission presenting its medium and longer-term proposals to deal both with the banking situation and longer-term issues.

In my talks with European leaders I clearly stated the reasons, from my perspective, that the Irish people gave a resounding and decisive answer to the question they were asked. I also pointed out that the question of the banking problem in the eurozone must now be dealt with, and dealt with politically. In that regard, I am writing to all of the leaders today and we will continue to negotiate as we have done, both with the troika and leading on to the question as to what can happen in respect of possible changes to the ESM. That is an issue I intend to pursue vigorously with leaders as appropriate.

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