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

At last year's June summit, it was clearly stated that there would be a separation of sovereign debt from banking debt. It has not been done in this deal. In many respects, the link is being cemented. Last June and in the context of the "game changer", the Government gave a clear commitment that the ESM would retroactively fund our investment in our legacy and pillar banks and that significant relief would be forthcoming in respect of the banking debts on our books. At some stage, will the Taoiseach outline to the House when the possibility of the ESM investing in our legacy banks will be addressed?

We have been clear - the ECB did not deal with Ireland fairly from the outset. Europe's policies on burning bondholders and the creation of mechanisms such as the ESM to recapitalise banks did not exist when the banking collapse occurred.

The situation has changed. Ireland deserved a fair deal and a better deal. The question is whether the deal goes far enough and to what degree it affects people in terms of their taxes and cuts to fundamental services on which they rely in their daily lives. Our welcome is very much a qualified one, awaiting a more detailed and independent analysis of the impact of the deal. Any alleviation of the Irish debt situation is welcome and we support it.

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