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

We are trying to undo some of the damage that was done when those decisions were made. The Parliament in Cyprus has rejected the deal done by its Government and the Eurogroup. I must say that this is understandable, but Cyprus now has a responsibility to find an alternative way to raise money. Those alternatives are being discussed today and will be discussed again tomorrow.

Banks in Cyprus are different from banks in many European countries, given the size of its banking system and the deposits held in same. Compared with the size of the Cypriot economy, its banking sector is approximately eight times larger. Much of that money has come from outside the EU. Indeed, much has come from Russia. It is not easy to apply a normal banking recapitalisation programme to banks that are primarily capitalised with Russian money rather than money from European banks. This complex situation is developing day by day. Countries like Ireland will, in solidarity with countries like Cyprus, search for solutions. If possible, we will try to be helpful in our Presidency, as will the Commission.

There is no easy way out. Cyprus needs to raise significant sums of money to trigger the €10 billion bailout fund on offer. We must monitor the situation and be as helpful as we can be during that process.

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