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

Very interesting.

As the Deputy will be aware, the Government decided on 14 November that Ireland is now in the best position to exit the EU-IMF programme of financial assistance on 15 December without the need to prearrange a new precautionary credit line from our EU and IMF partners. Following a careful and thorough assessment of all of the available options, and various consultations with the European Commission, the ECB, the IMF, the President and members of the Eurogroup, the Governor of the Central Bank of Ireland and the National Treasury Management Agency, the decision was taken to exit the programme without a prearranged precautionary facility or backstop.

All along I have indicated that the decision was finely balanced, and since the announcement of the decision many commentators have also acknowledged that to be the case. That said, taking all factors into account, exiting our EU-IMF programme of financial assistance without a prearranged precautionary facility or backstop is the right decision for Ireland. This view is widely held both in Ireland and abroad, based on the generally positive reaction to our decision.

Market confidence in Ireland is high, the public finances are under control, we are reducing our deficit and debt levels, and economic conditions and sentiment are improving. We have already returned successfully to the financial markets. We have a domestic backstop in place, with cash reserves expected to be approximately €20 billion by the end of the year. This option represents greater normalisation, with Ireland now subject to EU economic co-ordination, fiscal surveillance and governance rules that apply to other EU and euro area member states that are not in a programme of assistance.

This decision is the latest in a series of steps to return Ireland to normal economic, budgetary and funding conditions. Like most other sovereign eurozone countries, from 2014 we will be in a position to fund ourselves normally on the markets. Confidence in Ireland has improved considerably in recent months and interest rates on Irish Government bonds are at highly affordable levels. This is the right decision for Ireland. We will be exiting the bailout in a strong position.

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