Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Academics and retired luminaries from illustrious organisations such as the IMF have far more scope to get involved in speculation than a Minister of a Government who has to take the hard decisions. I draw Deputy Doherty's attention to the commitment made by the Government, along with all 27 member states at the European summit in October last:

As far as our general approach to private sector involvement in the euro area is concerned, we reiterate our decision taken on 21 July 2011 that Greece requires an exceptional and unique solution.

All other euro area Member States solemnly reaffirm their inflexible determination to honour fully their own individual sovereign signature and all their commitments to sustainable fiscal conditions and structural reforms. The euro area Heads of State or Government fully support this determination as the credibility of all their sovereign signatures is a decisive element for ensuring financial stability in the euro area as a whole.

It is not just that we in Ireland are ruling out default. It is the policy of the European Union and not just the euro group. It is the policy of the 27 members, who were willing to make an exception for Greece because of the unique conditions in that country in respect of private sector involvement in debt restructuring. The policy, as laid out clearly at the October summit, is that Europe does not default. Ireland is a country whose economy is repairing quickly, and as we get stronger again and our ratings improve, we are certainly not going to throw in the towel at this stage of the game. Our debt is sustainable and we will not default.

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