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

Given how deeply important a functioning and effective banking union is for Ireland, this position is indefensible. The same approach led to Ireland making no positive contribution to negotiating the fiscal treaty. In fact, the Government pushed for it to be watered down in a desperate attempt to avoid a referendum. The people have shown they will support any proposal which can be shown to make a serious contribution to rebuilding economic confidence in Europe. In light of the failings of our banking system and our regulatory procedures, any treaty changes that build a strong banking union are likely to earn the people's support.

A significant development in what the Taoiseach has to say about our bank-related debt was buried in his reply to the 55 questions he took together yesterday. His failure to do detailed work in advance of June’s deal has meant there is no agreement between states on what it means. More seriously, the Taoiseach has never said exactly what we are looking for. Every other country that is receiving or seeking EU support has set out its objectives very specifically. Greece has been working to achieve changed terms which would help it to achieve its debt-to-GDP target of almost 120%. Spain is seeking between €50 billion and €60 billion in direct recapitalisation for its banks, with the risk being shared through the ESM. In contrast, Ireland's objective has been set out in as vague a way as possible. We are looking to reduce the burden of bank-related debt to help with debt sustainability. What is the Government’s definition of what is sustainable? What terms are required to deliver this? There appears to be terror in some Government circles that answering these basic questions might undermine their ability to claim victory no matter what emerges, which is what is most important to them.

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