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

It is a long process, and the question of whether banks will be recapitalised through the ESM is part of the process of moving towards banking union. The conclusions of the October 2013 European Council outline the hierarchy of decision-making for bank recapitalisation - to which the Deputy referred - and continue to provide for direct bank recapitalisation by the ESM as part of the process. Of course there are different opinions, and the Deputy has mentioned some of those who see a very limited role for direct capitalisation by the ESM. However, other countries are strongly in favour of it. I believe the issue will only come to a head when the capital requirements of the European banking system are identified through the stress testing next autumn, but it is part of the process.

The Eurogroup does not use the word "retrospective" in the piece I cited. It refers instead to the "potential retroactive application of the instrument" and says it should be decided on a case-by-case basis and by mutual agreement. The word "retroactive" is the word being used, rather than "retrospective".

See this speech in context