Pearse Doherty (Donegal South West, Sinn Fein)
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Question 136: To ask the Minister for Finance if the ratification of the European Stability Mechanism Treaty will take place before or after the passing of the European Stability Mechanism Bill; and if he will make a statement on the matter. [8229/12]

Michael Noonan (Limerick City, Fine Gael)
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The ESM treaty was signed by Euro Area Member States on 2 February 2012. The original version of the treaty was signed on 11 July 2011, but it has been modified to incorporate decisions taken by the Heads of State and Government (HoSG) of the Euro Area on 21 July and 9 December 2011, aimed at improving the effectiveness of the mechanism. The treaty will have to be ratified by the 17 Euro Area Member States. The ESM treaty will enter into force as soon as Member States representing 90% of the capital commitments have ratified it. The ESM will become operational as soon as possible. A target date of July 2012 has been set, which is a year earlier than originally planned. As a permanent mechanism, the ESM will take over the tasks currently fulfilled by the European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism (EFSM). With the accelerated entry into force, the ESM will now operate alongside the EFSF for 12 months.

Primary legislation will be required to enable Ireland to ratify the ESM Treaty and implement its provisions. It is expected that the required legislation will be published this term. Ireland cannot ratify the ESM Treaty until the required legislation is enacted.