Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

However, we do support the permanent structured co-operation, PESCO, to which we have signed up. This House voted by a very clear majority in favour of Ireland joining PESCO. That involves security co-operation and there is lots of scope for greater EU security co-operation. Operation Sophia, under which our navy participates in operations in the Mediterranean is one example, as is the EU Training Mission, EUTM, Mali. We see the possibility of our Defence Forces drawing down funds from any EU defence instrument, recognising that we are already involved in EU operations in places like the Mediterranean and Mali.

Deputy Martin's question was about the European deposit insurance scheme. He asked if we support it, which we do. We think it would be of benefit to savers and could make financial services more portable, available and affordable. However, we need to make sure that the proposal is right and is properly de-risked. We have concerns that there are banks and banking sectors in other parts of Europe that may not be as robust as ours, and we want to make sure that if we sign up to a European deposit insurance scheme, the banks covered are well regulated and stable. We do not want to find our taxpayers on the hook.

We have not ruled out supporting a eurozone fiscal instrument. We have reserved our position on it but again, the devil is in the detail. Ireland is a wealthy country and we have a budget surplus. If a eurozone fiscal instrument is established, we will be net contributors and are unlikely to have to use it. When we were in the position of relying on European aid, it was in the form of ,loans which we had to pay back with interest. It was not in the form of a fiscal instrument that is not repayable. It is all about the detail and we are open to considering proposals.

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