Charles Flanagan (Laois-Offaly, Fine Gael) | Oireachtas source

To address the question as tabled by the Deputy, I have not spoken to the Minister, Mr. Kotzias, since the referendum was held in Greece on 5 July. The Deputy and the House will be aware that, following the referendum, Finance Ministers of the euro area member states and Heads of State or Government have met on numerous occasions. The leaders have agreed in principle that they are ready to commence negotiations on an ESM financial assistance programme for Greece.

In response to what the Deputy has just said, the euro area has an obligation to Greece in these difficult times, but Greece also has an obligation to itself. It needs to reform its economy and return it to a measure of sustainable growth. I have not read the article to which the Deputy refers. However, Ireland, together with the other member states, understands and empathises with the difficult situation being faced by the Greek people. That is why there has been a willingness to negotiate a way forward which takes account of the realities of the situation in Greece and the political priorities of its new government, while also respecting the commitments it has already entered into.

Greece is a sovereign state. It is for it to decide whether it wishes to accept the financial aid offered by its European partners. It is in all of our interests that Greece remain firmly in the euro area. However, as a member of the euro area, each member state continues to have its obligations. It is no different for Greece. That is precisely why, following a request by the Greek authorities for a third programme under the ESM, leaders of the euro area member states have agreed in principle that they are ready to commence negotiations on an ESM financial assistance programme for Greece. For recovery of the Greek economy to take place, a number of difficult and challenging reforms have to be undertaken - these are inevitable. In that regard, we continue to urge the Greek authorities to keep to their commitments and legislate without delay for the first set of agreed trust-building measures which I understand will be under way in the Greek Parliament in the next 24 to 36 hours.

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