Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

Let me set the record straight on a couple of issues. There is no evidence to suggest that what is taking place in Cyprus is having any impact in Ireland, whether in the financial markets, for example, in respect of the cost of funds, or on bank deposits. That is a simple fact. It is also a fact that the decision to raid deposits in Cyprus, as the Deputy describes it, was proposed by the Cypriot Government. Whereas it was not possible to put in place a programme with the previous Government of Cyprus, under the new government, an agreement on a bailout programme was reached in the Eurogroup of Finance Ministers chaired by the Dutch Finance Minister, rather than in the ECOFIN meeting which is chaired by the Minister for Finance, Deputy Michael Noonan. The proposal to introduce a one-off levy on deposits of under €100,000 agreed in the Eurogroup meeting was made by the Cypriot Government. It was not forced by other member states, as was proved only a couple of hours ago when the European Commission found it necessary to issue a statement on the matter in response to commentary by people such as Deputy McGrath. The Commission stated:

Regarding the one off levy on deposits BELOW 100.000 €: The Commission made it clear in the Eurogroup BEFORE the vote in the Cypriot parliament, that an alternative solution respecting the financing parameters would be acceptable, preferably without a levy on deposits below 100.000 €. The Cypriot authorities did not accept such an alternative scenario.

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