Enda Kenny (Mayo, Fine Gael)

I recall the Deputy saying not one comma of the memorandum of understanding agreed with this country would be or could be changed. There is a difference between what people might want to have in a European context and what is actually achievable. The issues raised by the Deputy are all part of speculative discussions.

The agenda for the European Heads of Government meeting has not yet been determined by President Van Rompuy. I assume that following the meetings of the G20 and G8, there will be further analysis of what is going to be Europe's response. It is important to understand that the situation which has unfolded in the recent period has probably gone against the head - from some perspectives - for Europe. Ireland gave a very strong and clear decision in respect of the fiscal stability treaty, the people of Greece made a very clear decision in respect of their view on the kind of government which should hold power in their country and the people of France made a clear decision in the context of bestowing an overall majority on President Hollande. In addition, we had the first movement in a bailout for Spanish banks amounting to €100 billion. Obviously, this did not solve the problem. The Deputy will be aware that €3 billion in Spanish 12 and 18-month bills issued this morning at 5.07% and 5.1%, respectively. In comparison, the rates achieved at the auctions in May were 2.98% and 3.30%.

The issues that have been raised here are extremely serious and sensitive in nature. Questions are being asked, not only by the United States but also by Canada, India and China, as to what is going to be the response from the eurozone countries. Within the range of issues the Deputy mentioned, it is necessary to consider what can be achieved in the short, medium and long terms. It has been my view for some time that giving the ESM a licensed facility to inject money directly into the banking system is important. Equally important is the separation of the sovereign from the banking crisis. That is an issue which could have been addressed in this country a number of years ago but it was not.

Fiscal union is not going to be achieved in the shorter term. It is clear that there is vehement opposition on the part of many countries to elements of fiscal union. We have made it very clear that we would support, in principle, a banking union. In my view, such a union could be achieved in a relatively short time if the political will exists. However, as I informed the Deputy on previous occasions, there are 17 different governments - with one bank - and they all have their own opinions. As far as Ireland is concerned, we have obviously been working for quite some time with our colleagues and counterparts in the troika in respect of a re-engineering of the promissory note. Deputy Martin will be aware that the troika is finalising its technical paper on this matter. The negotiations to which I refer are continuing.

The agenda for next week's meeting has not been drafted and it will not be drafted until the G20 and the G8 conclude their deliberations in Mexico. A two-day ECOFIN meeting will take place this week. I assume the questions the Deputy has raised will, in part, be included on the agenda for that meeting.

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