Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Last year I presented a paper to the European Council on unemployment among young people. No funding at all had been allocated in the budget to deal specifically with this scourge, which is affecting quite a number of countries. Rates of unemployment and employment vary from country to country. In reply to previous questions from the Deputy, I indicated that Austria has a youth unemployment rate of 3%, that the rate in Ireland is 29% to 30% and that in Spain and a number of other countries it is 50% or more. This is the reason that all of the leaders, as I understand it, made a specific case during the bilateral meetings with President Van Rompuy - I was no different in this regard - that funding should be put in place for unemployment programmes for young people. The €6 billion allocated is new money and Ireland will obtain a portion of it. I hope the schemes put forward will not just be schemes for schemes' sake but will give young people the opportunity to get on the ladder of employment and make a contribution.

I heard the comments made by Commissioner Rehn. We have clearly outlined the path we propose to take in order to reduce our deficit to 3% of GDP by 2015. We will not be deflected from achieving this goal because the future rests on ensuring that our country is lean and competitive, that our cost base is reduced, that the banks operate as they should and that, as a result of lower interest rates, we have access to credit, which can be spread around in respect of the opportunities that exist by the thousand. That is extremely important.

The question of getting money back for the taxpayer is a central issue in the relevant discussions of the Eurogroup of finance Ministers, which is chaired by the Minister for Finance. Commissioner Rehn stated that there was no reason countries that had committed to a course of action should not honour that commitment. This matter has been raised in the House on previous occasions. Ireland was specifically mentioned in the decision made on 29 June last. It was agreed at the time - this was publicly endorsed by the French President, Mr. Hollande, and the German Chancellor, Ms Merkel - that our specific circumstances would be taken into account at the discussions which are now taking place. What we want to do is to reach a position at which, arising out of the decision of 29 June last, the maximum amount of money possible will be retrieved for our taxpayers.

That decision has not been changed. It is set out clearly by the European Council. The Presidency now falls to Ireland, and our Minister for Finance happens to have initiated the discussions within the Eurogroup about that very issue.

The Deputy will recall that the decision on 29 June set out that this could lead to the potential for recapitalisation of banks from the ESM. Our challenge, therefore, is to set out a position, which is recognised by everybody, with regard to how Ireland can now use the mechanisms currently in place - which were not in place when Ireland borrowed very extensively in the beginning - to retrieve the maximum amount we can for our taxpayers. That will be the centre of those discussions, which will continue during the course of 2013. That is the part of the progression we have to set out here to restore the economic health of the country. Obviously, there are other issues with regard to banks, mortgages, remuneration and so on, and the Minister for Finance will comment later in respect of the bank guarantee.

See this speech in context