Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The stability mechanism is not just an Irish institution; it is in place for all 27 member states. I have explained previously to the Deputy that three Eurogroup meetings included a political discussion to give guidance to the small group drafting the guidelines for the ESM. In that context, there were discussions on both legacy issues and retrospective application in recapitalisation. However, the process has not concluded. It was a political discussion to guide those drawing up the full regulation in order that they would not devise something that was totally politically unacceptable. We are keeping in place the distinction between legacy issues and retrospection. We know that the arrangements for our legacy bank, IBRC-Anglo Irish Bank, are done and dusted with the arrangements on the promissory notes. However, in the case of our trading banks, we want to keep the issue of retrospection and the possibility of retrospective recapitalisation on the table. So far, it is still on it.

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