Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

We are making progress along a number of dimensions. First, by any standards, what has been agreed today is hugely significant. The toxic bank that has been at the heart of the crisis - Anglo Irish Bank and Irish Nationwide in the form of the IBRC - is no more. We have liquidated that.

The €3.1 billion promissory note that was to be paid every March, no longer has to be paid. On several occasions, people here asked whether it would be paid. We have now secured an agreement which is significantly to the benefit of the Irish people.

We have also succeeded in persuading our European partners to have a fundamental change in banking policy. That fundamental change was reflected in the conclusions last June on the separation of bank and sovereign debt. It was followed through by the agreement to establish a banking union. Once again there were people who said that would not happen, there would be no follow through, and that some states might not allow it to occur. The reality, however, is that the legislative measures to put in place the single supervisory mechanism is proceeding. As it happens, this country currently holds the Presidency of the European Council and has responsibility to advance that, and we are doing so.

Arising from that, there is another set of discussions we must have on recapitalisation of the pillar banks. Those discussions will take place in the context of the establishment of the banking union and the possibility arising from that of the ESM recapitalising Irish banks.

Every citizen has a right to go to the courts on any issue but I find it incredible that a Member of this House, no less, went to the courts to try to stop the establishment of the European Stability Mechanism, which is the instrument we are now relying on to see some direct recapitalisation of Irish banks.

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