Joan Burton (Dublin West, Labour)
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Question 131: To ask the Minister for Finance if he will support the general regulation of insurance companies through an EU regulatory framework which addresses the issue of burden sharing; and if he will make a statement on the matter. [29319/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The 2008 EU Memorandum of Understanding (MoU) on co-operation between the Financial Supervisory Authorities, Central Banks and Finance Ministries of the European Union on cross-border financial stability commits all signatories to cooperate across borders between relevant authorities, both in normal times, in order to ensure preparedness for the management of a potential cross-border crisis situation; and in crisis situations. It should be noted that the MoU is not legally binding.

The MoU contains a commitment on burden-sharing which recognises that issues related to the sharing of potential burdens must be sufficiently addressed before any crisis.

The voluntary nature of burden sharing arrangements is important, in line with the European Council conclusions of 18/19 June 2009 which note that "Recognizing the potential or contingent liabilities that may be involved for Member States, the European Council stresses that decisions taken by the European Supervisory Authorities should not impinge in any way on the fiscal responsibilities of Member States".