Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The decision of 29 June was a seismic shift because it was a major move from a European policy point of view. It was not existent before that. It was not expected to happen but because of the cogency of the arguments made around the table, agreement was reached to make that major move and break the link between sovereign and bank debt. That was a seismic shift in European policy. The decision of 29 June also meant that the introduction of the banking union and the supervisory process could lead to recapitalisation of banks from the ESM. The meetings of Thursday and Friday - the Deputy will have a chance to address this tomorrow as well - reaffirmed in full the decision of 29 June and set out a date for the legal framework to be in place. We cannot do anything about this without a legal framework, and the date for that is 1 January 2013. In addition, all 27 members of the Council reaffirmed their mandate to the euro group and the Ministers for finance to work out the definitions, the modalities and the conditions that will apply in the process, which will be quite difficult to negotiate. They appreciate that the banking union and the supervisory authority will have to deal with more than 6,000 banks and that the relationship between the Eurogroup, the Ministers for finance and the European Central Bank, which will be the central supervising authority, covers a broad and extensive range of areas to be dealt with.

It is important that when this mechanism is put in place that it be effective, that it be seen to be effective and it is based on quality and standards that will stand up. That cannot happen overnight. The June meeting was reaffirmed on Thursday and Friday. As Deputy Adams correctly pointed out, between ag caint and ag eitilt, the clarification and recognition of Ireland’s unique circumstances and special case will be dealt with as such in the context of the negotiating mandate given to the Minister for Finance.

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