Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I have always said that dealing with the decision made last year regarding the possibility of the ESM being able to recapitalise banks directly could only happen after banking union is fully in place. It is not fully in place yet but the Deputy will be aware that the Eurogroup meeting of 20 June this year made the decision to which she referred, namely that the potential retroactive application of the instrument would be decided on a case-by-case basis and by mutual agreement.

I do not accept the Deputy's assertion that the Government has thrown in the towel on this. This is very much a live issue and the subject of complex and technical negotiations which are continuing. There is still a lot of negotiation to take place on this matter.

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