Michael Noonan (Limerick City, Fine Gael)

Obviously the European Central Bank does not have the legal authority to get involved in quantitative easing, but under the new director, Mr. Draghi, more imaginative approaches seem to be taken and there are elements of demand stimulus now in Europe also.

Some Senators raised the issue of euro bonds. While, when viewed on a week-to-week basis, one might think that little is happening, over the past 12 months a series of initiatives have been taken in Europe. Taken together, it is quite an interesting restructuring of the policy instruments available to defend the currency. It will not end when the fiscal compact treaty comes into effect. This is a process that is ongoing and at some stage in the future I believe there will be euro bonds. I believe it is something that will develop as the currency develops across Europe. We are part of it and we need to do our best in negotiating our own positions. Certainly, there is a policy development that has been developing strongly for the past 12 months or so. I do not expect it all to end next week - I believe the policy development will continue. This was an interesting debate and I do not disagree with much of what the Senators said.

The PSI in Greece should come to a conclusion this evening. It has been made very clear from the communiqués from the Heads of State and Government that this is specific for Greece and it is not permissible in any other euro country. It is Greece and that is the end of that.

Our position is that our debt is sustainable, which is confirmed by the markets which are marking down our bond rates now. Yesterday they were below 7% for nine-year bonds - I believe it was approximately 6.9%. While we would not go back to the markets at that rate, we are moving in the right direction. The interest rate charged on the secondary market is a reasonable measure of how the markets view the sustainability of our position and we are measuring up in that respect.

I again thank all Senators who participated and I thank them for their co-operation. We have deadlines to meet and it is very important that the authorities in Greece can draw on the money that is now being made available.