Clare Daly (Dublin North, Socialist Party)
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Question 62: To ask the Minister for Finance if his statement on 13 April 2011 that Ireland's contribution to the proposed European Stability Mechanism will be €9.87 billion is still valid; they way this figure is calculated; and the further way the State proposes to raise this sum or whatever amount Ireland will be have to pay through this mechanism. [22097/11]

Clare Daly (Dublin North, Socialist Party)
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Question 63: To ask the Minister for Finance if, according to the European Stability Mechanism Contribution Key, Ireland's contribution to the ESM l subscribed capital will be 1.59 % of €700 billion subscribed capital, that is €11.13 billion made up of €1.28 billion in cash and the rest in the form of callable capital and guarantees, this is still valid; and the reason he has not sought an opt out from these commitments. [22098/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 62 and 63 together.

As the Deputy may be aware, agreement was reached at the European Council meeting on the 24th June 2011 on the text of the European Stability Mechanism. On the 11th July 2011, Euro Area Finance Ministers signed the Treaty at a Eurogroup meeting subject to the completion of national parliamentary procedures.

Under the proposed European Stability Mechanism Treaty, the ESM will have a total subscribed capital of €700 billion. Of this amount, €80 billion will be in the form of paid-in capital by the Euro Area Member States, paid in five equal annual instalments from July 2013. The balance of €620 billion will be callable capital. The contribution key for each Member State is based on the ECB capital contribution key. For Ireland the key is 1.5922% of the total paid and committed capital.

Thus, Ireland's share of the €80 billion paid in capital will be just above €1.273 billion, to be paid in five equal instalments starting in July 2013. This will be paid from our annual budget. Ireland's share of the €620 billion callable capital will amount to €9.87164 billion.

Euro Area Member States' commitment to the ESM will be in the form of paid in and callable capital. There are no guarantees involved in the ESM. The ESM Treaty does not include provision for opting-out of these commitments.

The capital requirement for Ireland for the ESM will be provided for at the time it becomes operational and will be financed, as all expenditure is, through the various sources of funding that are available to the State. These include tax revenues, non-tax revenues, capital receipts and Exchequer borrowing, as necessary.