Peter Mathews (Dublin South, Fine Gael)
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Question 63: To ask the Minister for Finance if he will clarify a matter regarding the European Stability Mechanism (details supplied); and if he will make a statement on the matter. [13357/12]

Michael Noonan (Limerick City, Fine Gael)
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The European Stability Mechanism (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 or Government (HoSG) of the Euro Area on 21 July and 9 December 2011, aimed at improving the effectiveness of the mechanism.

The ESM Treaty as signed does not have any requirements specifying the method of national ratification. This is a matter for each Member State. My understanding is that 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 and a target date of July 2012 has been set, which is a year earlier than originally planned. 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.