Enda Kenny (Mayo, Fine Gael)

I have made it clear before that we share the public's dismay at the cost of honouring the banking debts, considering the role of the banks in the economic crisis. When the Government was appointed we raised this with the ECB and with the various authorities at European level. The fact is the vast majority of Anglo Irish Bank debts were paid off by our predecessors in office. Some €15.7 billion was paid out in senior unsecured bonds since the Government of the day issued a blanket guarantee back in September 2008 and €160 million remains to be paid after this week. If one allows Anglo Irish Bank to default clearly that would create doubt over future funding being made available by the European Central Bank to Irish banks at very low interest levels and we would see a renewed flight of funds and ever tighter credit conditions being placed on potential Irish job creators. We cannot and will not have that.

As I said to Deputy Adams on many occasions, we are not going to default, especially as we have rebuilt the reputation, trust and the confidence of this country. What we need now at political level is a political decision to deal with the eurozone banking crisis. The changes being made by Government are challenging and great credit is due to the people in accepting those changes and for the clarity of their decision, not least in the Deputy's constituency, in respect of the fiscal stability treaty. The crisis of the moment is the banking crisis within the eurozone.

The Van Rompuy paper, referred to by Deputy Adams, is a strategy and a roadmap where growth and opportunity can be created but for me and for the other leaders, the question is what political decisions can be made on Friday in regard to the immediate crisis in the banking situation within the eurozone and to set out that pathway and strategy where confidence, trust and stability can be restored. It is important for investment into the eurozone, investment here, purchases of goods and dealing in the euro. All of those areas require political decisions and that process has to start on Friday.

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