Mick Wallace (Wexford, Independent)

I agree that the decision to allow the European Stability Mechanism, ESM, to fund banks directly rather than go through the sovereign could be beneficial for Ireland; it will definitely benefit Spain in the short term. I am sure the Minister of State will agree that it is a step in the right direction. The ESM fund will have to increase and we will still probably end up with eurozone bonds. There is a serious issue in rebalancing the weak and strong countries in Europe and as the last speaker noted, the buyer of last resort of sovereign bonds remains a crucial factor, as there is none currently.

Spain will have its banking money loaned directly to institutions rather than through the sovereign, and Ireland seems to be benefitting from this in some way. In total the Government has parted with approximately €30 billion on the pillar banks so what are the chances of other European countries absorbing losses in the Irish banks? The €30 billion sum is valued at approximately €9.4 billion in bank value. With regard to the promissory notes and the €31 billion related to the former Anglo Irish Bank, what are the chances of the issue being taken on board and dealt with through the new system?

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