Enda Kenny (Mayo, Fine Gael) | Oireachtas source

There was considerable speculation about the potential appointment of Ms Mogherini in the first instance. People thought that some of the comments that had been made were very soft towards Russia. The Prime Minister of Italy, Matteo Renzi, was very clear that her appointment, if sanctioned, would clearly take into account and follow the European Council's view in respect of the attitude towards Russia and its involvement with Ukraine and earlier with Crimea. The speculation that existed on the part of a number of member states was certainly cleared by the Prime Minister when he spoke and obviously when Ms Mogherini spoke.

The Deputy is aware that Ireland was not the only country singled out by the European Commission on tax issues. The Commission launched preliminary investigations against a number of countries. We defended Ireland's case and will continue to do so arising from the Apple hearings in the US Senate. We have made that perfectly clear. The view of the Minister, Deputy Noonan, is that this case will be dropped. Ireland has been very clear through the years that no special deals were done by the Revenue Commissioners for any companies in Ireland. We are perfectly entitled under international law to discuss options that are open to any company investing in this country, as the Deputy will know from his time in government. Ours is not the only country that was the focus of attention from the Commission. In addition, there was a very clear response from the European Council that every country should involve itself openly in getting an overall international response to the tax position.

When I was in America recently, the question of the double Irish concept arose. Some companies raised it, others indicated they would be nervous of it or would move on it themselves. Last year, Ireland dealt with the stateless concept and this year with the double Irish. I very well recall the European Council meeting at 4 a.m. and Ireland being the first country out through the gap with a debt of €64 billion. It was a very significant achievement to have Ireland named in the Council's decision to separate bank and sovereign debt as being eligible for consideration for recapitalisation. The question is what is the best thing for the Irish taxpayer. We put €4 billion into Bank of Ireland and got back €6 billion, and we still own 14% or 15% of the bank, which the Minister will retain for the sake of ability to influence bank policy. We own 99% of AIB. We must consider its value and what we should do with it and whether it would be better, as the Minister has reflected on numerous times, to lodge an application for direct recapitalisation under the scheme agreed.

In June 2012, it could not have been followed through until the Single Supervisory Mechanism, SSM, and banking union concept were put together. From engaging with officials over those years, I know it was incredibly complex and some of the negotiations went on for weeks and months and faced much resistance from some other countries regarding particular aspects. It is operational and Ireland has a number of options. We could follow the decision and apply for direct recapitalisation on the basis of what we might get from it, which would require unanimous approval from the board of governors. We could consider what is the best option in the interests of the taxpayer. The Minister is reflecting on the concept of AIB, its value and how the value is determined.

I have had a number of conversations with Mr. Draghi about Ireland's position. His impact on the ECB has been very significant and he has said he would do whatever it takes to sustain and protect the euro. With interest rates and inflation as low as they are, he is considering the question of quantitative easing. His presentations to the European Council are very comprehensive and detailed. He wants to stimulate the European economy for growth and investment and, as a consequence, for jobs. I have spoken to him directly about this over recent years. SSM is in place, the conditions are there for an application and the Government must consider what is the best option open to us in the interests of the taxpayer.

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