Enda Kenny (Mayo, Fine Gael)

That was in respect of its bank debt for €100 billion. The conditions of this assistance remain to be worked out and it is perfectly clear that, contrary to what Deputy Martin said at his press conference, the situation is that Spain must repay those loans at the same interest rate and terms as apply to anyone else and the Spanish sovereign must underwrite the moneys for the Spanish banks. As Deputy Martin will be well aware, the structure of the EFSF and the structure of the ESM - to be introduced in July - in its current position does not allow for direct injection of moneys into banks.

Dr. Ahearne is a respected economist and I am glad to see that on mature recollection and reflection he know says that the deal Deputy Martin's Government did was wrong and that it would have been much better if they had been able to convince the markets to have a split between the sovereign and the banks. I am very glad to see that at least he had the courage to come out and say that the Government which he served loyally and well was wrong in what it did.

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