Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 167: To ask the Minister for Finance if a eurobond scheme has been discussed at EU level; and his views on whether this would address Germany's concerns and allow the ECB to stabilise the euro. [38476/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

In November last year, the European Commission published a Green Paper on the feasibility of introducing Stability Bonds. The paper analyses the potential benefits and challenges of a number of approaches to common sovereign debt issuance among euro area Member States. In terms of process, the Commission is expected to indicate its views on the best way forward in mid-February, on the basis of the public consultation.

While there are potentially significant benefits attached to common debt issuance, resistance from some Member States is clearly a factor.

In terms of the stabilising role of the ECB, I would highlight the key role that the ECB is already playing in addressing the crisis. For instance, it is important to note the positive impact of measures announced in December to support bank lending and liquidity in the euro area money market. In addition, secondary market purchases of the sovereign debt of vulnerable euro area Member States under the Securities Markets Programme have had a beneficial impact.