Peadar Tóibín (Meath West, Sinn Fein)
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Question 14: To ask the Minister for Finance if he will provide an update on the progress of the ratification of the European Stability Mechanism treaty; if in the aftermath of the 9 December 2011 European Council summit statement he expects any changes to be sought to the ESM treaty; his views that the linking of the ESM eligibility to the ratification of the inter-Governmental treaty will require changes to the ESM treaty; and when the legislation on the ESM treaty will be published. [5660/12]

Willie O'Dea (Limerick City, Fianna Fail)
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Question 20: To ask the Minister for Finance his views on whether it is appropriate for countries who do not sign up to the EU treaty ratifying the fiscal compact to be excluded from assistance under the European stability mechanism; and if he will make a statement on the matter. [5642/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 14 and 20 together.

As the Deputies will be aware, earlier this week at the Informal European Council, Heads of State or Government announced that the treaty establishing the European Stability Mechanism (ESM) is ready for signature and the objective is that it enters into force in July 2012. In line with decisions at the Heads of State or Government meeting on 21 July 2011, the ESM will have a wide range of tools available and a strong financial basis. As decided on 9th December 2011, the Heads of State or Government will reassess the adequacy of resources under the ESM and the European Financial Stability Facility (EFSF) in March 2012. These decisions have now been incorporated into the ESM Treaty text.

The ESM Treaty which is expected to be signed later this week by Euro Area Member States, subject to ratification, also provides that the granting of financial assistance in the framework of new programmes under the ESM will be conditional, as of 1 March 2013, on the ratification of the Intergovernmental Treaty on Stability, Coordination and Governance in the Economic and Monetary Union by the ESM Member concerned. The linkage between the ESM and the Intergovernmental Treaty to ratification was accepted in the interests of securing agreement on the ESM and its acceleration into force by July 2012.

It has been clarified that the linkage of both the ESM and the Intergovernmental Treaties refers to new applications for assistance under the ESM and will not affect the transfer to the ESM of undisbursed amounts under the EFSF to Ireland (and other programme countries). The ESM will replace the EFSF. While the ESM may assume the rights and obligations of the EFSF, this should not affect the terms and conditions of the amounts transferred to the ESM and subsequently disbursed to Ireland. Primary legislation will be required to enable Ireland to ratify the ESM Treaty and implement its decisions. It is expected that the required legislation will be published this term.