Micheál Martin (Cork South Central, Fianna Fail)
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Question 11: To ask the Taoiseach if he will elaborate on the clarification given to him by EU leaders at the European Council in June that if anything untoward were to happen in Greece that Ireland would be protected. [20075/11]

Enda Kenny (Mayo, Fine Gael)
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I reported to the House on 28 and 29 June on the meeting of the European Council that took place in Brussels on 23 and 24 June. While there was no detailed discussion of the economic situation in Ireland, in its conclusions the European Council welcomed the progress we have made in implementing our programme and agreed that it is on track.

In discussions with partners, I stressed not only the need to ensure that all elements of a programme, including pricing, contribute to a positive outcome, but also the need to ensure that measures taken to address the situation in one member state do not have negative consequences for another. That is especially necessary in the case of countries in a programme.

The point was well-taken by colleagues, and is reflected in last night's statement by eurogroup Ministers which states that "Ministers stand ready to adopt further measures that will improve the euro area's systematic capacity to resist contagion risk", pointing to a number of possible measures in that regard. These include enhancing the flexibility and the scope of the EFSF, lengthening the maturities of the loans, and lowering the interest rates, including through a collateral arrangement where appropriate. Proposals to that effect will be presented to Ministers shortly.

Ministers have also tasked the eurogroup working group with proposing measures to reinforce the current policy response to the crisis in Greece. This includes the modalities for financing a new multi-annual adjustment programme, steps to reduce the cost of debt servicing and means to improve the sustainability of Greek public debt. The reinforced strategy should provide the basis for an agreement in the eurogroup on the main elements and financing of a second adjustment programme for Greece shortly.

Micheál Martin (Cork South Central, Fianna Fail)
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Does the Taoiseach agree that, in essence, the Council has signally failed to contain the Greek crisis because it has delayed everything it does, and it continues to delay? Since early March many statements have been made but no action has been taken. It is now more than four months since the interest rate on this country's loan was held to be unsustainable by the Council. That was part of an agreement also to change Greece's terms. What happened last evening is a European-wide decision. We were bystanders more or less because of the fear of contagion in terms of Italy and Spain and the alarm that has sent around the euro system.

I asked the Taoiseach about the matter last week. I put it to him that it is important for him to publish the text of the Van Rompuy offer to him at the meeting of 11 March on reducing this country's interest rate in return for a vague statement on co-ordination on tax matters. To date, the Taoiseach has refused to publish the text. It is now being reported generally that this country was not asked to concede its corporation tax in the Van Rompuy compromise offer and neither were we asked to concede on CCCTB. That begs the question of whether we failed to take the opportunity to get an interest rate reduction as far back as March when we could have got it for very little in return and that we have lost four months as a result. Could the Taoiseach confirm that this was the essence of the Van Rompuy formula that was put to him on the evening of that meeting?

Enda Kenny (Mayo, Fine Gael)
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I can confirm that is not the case. Deputy Martin's question relates to clarification given by EU leaders at the European Council in June. In making the case in respect of reporting the progress being made by this country, European leaders were cognisant of the fact that countries in a programme which are measuring up to the conditions of that programme should be protected. The Council was not going to make decisions about that because decisions were being taken in respect of the response to the Greek crisis.

The situation Deputy Martin described as being "reported generally" is not accurate.

Micheál Martin (Cork South Central, Fianna Fail)
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Could the Taoiseach-----

Enda Kenny (Mayo, Fine Gael)
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I will be clear about it. This country was asked to increase its corporate tax rate. I refused to do that. I assume Deputy Martin supports me in that. The outcome of the decision is still being negotiated.

The Deputy is also aware that the provision of a wording that might be deemed to be an acceptable compromise does not mean that any such attempt would be acceptable to everyone at such a meeting. What Deputy Martin reports is not accurate.

Micheál Martin (Cork South Central, Fianna Fail)
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Why is the Taoiseach ducking and diving on the question of the Van Rompuy formula? Why will he not simply publish it because then we could make a judgment on it?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Will Deputy Martin put a question please? The Deputy's time is up.

Micheál Martin (Cork South Central, Fianna Fail)
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For some strange reason the Taoiseach gets very touchy about this. He will not publish the formula itself and he keeps ducking and diving to avoid the question.

Enda Kenny (Mayo, Fine Gael)
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I am not ducking and diving in any way. The Deputy is telling me that texts were circulated at the meeting of 11 March which would have allowed Ireland to obtain an interest rate reduction. I am saying to him that I sat at the table representing this country and I refused to accept an interest rate reduction that was contingent upon Ireland increasing its corporate tax rate.

Micheál Martin (Cork South Central, Fianna Fail)
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No. The Taoiseach confirmed the Van Rompuy text himself.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Sorry. We are over time and I cannot allow any more questions.

Micheál Martin (Cork South Central, Fianna Fail)
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He confirmed here in the House that it had happened but he would not release the text, and he still will not release it.