Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The decision on the ESM was made back in June and then fleshed out further at the next Council meeting. It was decided the legal framework would be put in place by the end of the year so that the details of the conditions, the modalities and the mechanics of it could be worked out during 2013. I listened to the explanation given by Mr. Draghi, the Commission and the Presidency. This is obviously a massive undertaking. Everyone was of the understanding that a banking union with a supervisory element would not be up and running in the first half of 2013. I cannot say what it will be like in the end until we see what shape emerges. If it is an issue that requires treaty change, then we have to accept that. At this stage I cannot say - nor can anyone else - whether this will require treaty change. If it does, then so be it. That would be an issue to be dealt with in any event by the European Parliament elected after 2014 with the new European Commission. There is a strong feeling emerging in Europe that while we have had the Union for some time, we never had the capacity for a monetary union in the sense of having banking supervisory responsibilities, and these things will never happen again. The remit has been given to the finance Ministers, and the sort of structure envisaged will emerge fairly quickly. At the end of it, if it means better regulation, better transparency, better accountability and better responsibility, then I am not averse to having to deal with future treaty change. However, I cannot confirm whether it will be necessary, and nor can anyone else at this stage.

The detail of how it will work out remains to be seen. It is fair to say hindsight is a wonderful thing. Were Deputy Martin over on this side now, he would probably be saying that, considering the discussions with the European Central Bank prior to the bank guarantee and how it worked out, he might have handled it differently.

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