Enda Kenny (Mayo, Fine Gael)

As I observed to Deputy Ross, we support the principle of a banking union which is something that could be worked upon relatively quickly by European leaders in order to deal with the banking crisis. That is something I set out in my recent letter to all the other leaders, namely, this is an issue of European crisis and therefore requires a response from European leaders.

The Spanish Government made its case for assistance in the way it thought best for itself. Deputy Boyd Barrett is well aware that even President Obama would be unaware of consequences that have yet to happen in respect of the decision to be made by the Greek people, whatever it might be, and the follow-through election results in France, whatever they might be, and in respect of the scale of figures that will emerge from the final assessment of the liabilities of Spanish banks and also whether there will be further liabilities that may become apparent from the regional governments in Spain.

Prime Minister Rajoy made his call for assistance from the EFSF programme which initially brought a strong response, bringing about a sense of stability because there was a big buffer involved in regard to the amount being borrowed. Clearly, the Spanish Government must underwrite that and pay it at the interest rate that applies to all EU terms but it was content, stating it could deal with its deficit by continuing to borrow ten-year bonds on the international market. These are at higher interest rates but that is a decision for the Spanish Government and not one for me to interfere with in any way.

Mr. Draghi from the European Central Bank has set out his view that there needs to be a clear vision on the part of European leaders, decided politically by them. This has been echoed on a number of occasions by Miss Lagarde from the IMF. I hope that will follow the decision to be made by the Greek and French peoples and the assessment in respect of Spain. It remains to be seen whether Cyprus will seek assistance. I have referred to the concerns and anxieties that have been expressed by Prime Minister Monti. All of these are complex and enormous problems. Political decisions will have to be made around the table in Brussels. I am sure people reflect and understand the views that have been expressed in the United States in this regard.

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