Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

Even that limited objective was not achieved. Ireland needs a banking union to be established as soon as possible. The Taoiseach should use the upcoming meeting to call for the negotiations to be restarted and taken out of the hands of the finance Ministers.

Five months after the game change on bank-related debt, this progress also appears to be under threat. As no advance work was done before the June agreement, the June communiqué contained a general principle and nothing more. It was merely an opportunistic grab for a couple of sentences to be hurriedly cobbled together and attached to an Italian and Spanish deal. The Government has never stated what exactly it is looking for in these negotiations beyond the general idea of retrospective help. What do we define as "debt sustainability"? Are we seeking to sell our bank stakes to the European Stability Mechanism, ESM, and for what price? Are we trying to convert or lengthen the period of the promissory notes?

In explaining the game change, the Taoiseach, Tánaiste and Minister for Finance stated that the key was the availability of the ESM to refinance bank-related debt. Victory was declared on this basis. In the past week, however, it has emerged that we may no longer be seeking ESM money for this purpose. In July, the Minister for Finance, Deputy Noonan, explained to the international media that the availability of ESM funding for direct recapitalisation of banks was the objective. He stated: "Now that the rules have changed in Europe we want to retrospectively avail of the new regime". In October, he stated that the June agreement "implicitly paved the way for the ESM to recapitalise Irish banks for legacy debt".

In spite of constant requests from my party colleagues and me, no member of the Government would explain what exactly was being sought. The reason for this began to emerge last month when the head of the EMS, Mr. Klaus Regling, stated that legacy debt "has not been discussed in any European body". While our Government was claiming that it was doing everything possible and was confident of progress, nothing of the sort was happening.

Chancellor Merkel's initial comments on this matter last month were papered over after a panicked Sunday night telephone call from the Taoiseach. Since then, a number of senior German policy makers, including the president of the Bundesbank, have stated that these debts should remain a national responsibility. Last week, the Minister, Deputy Noonan, stated that having the ESM own large parts of our banking system might not be the best approach after all. The only clear point is that the Government is appealing to the ECB to give a "statement of intent" that the latter will do something at some point about the promissory notes.

In light of the extent off what German officials have called the Taoiseach's spinning about the agreement last June, he owes it to the people of this country to stop the mumbling about what is happening and explain exactly what it is we are seeking.

We are about to have a few weeks of budget announcements and the first thing should be the Taoiseach or one of his Ministers giving a clear answer to the basic question of what must happen to bank related debt in order to achieve debt sustainability. It is the Taoiseach's duty to the Irish people to be honest and explain what he is seeking.

The Taoiseach indicated earlier in the week that the summit will also address the serious situation in Gaza and the conflict involving Gaza and Israel. Every day people see new and alarming reports about the escalating conflict and they are genuinely shocked by the nature of the attacks on the civilian population in Gaza and likewise the meaningless and unacceptable rocket attacks on Israel, which are affecting human life there. There is no justification for the attacks on the civilian population and too many families and too many young children have died. An urgent ceasefire is required. The force being used is entirely disproportionate. It is important the European Union takes a strong stance in regard to what is happening. In particular, I ask the Taoiseach to carry the Irish voice in terms of an unequivocal condemnation of the deaths incurred by the civilian population, which are absolutely unacceptable. I further suggest that consideration be given to the participation of an international force to seek compliance with any ceasefire that emerges so that we avoid a continuation of the cycle of destruction which has gone on for far too long. We need more proactive interventions by the European Union in that regard.

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