Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 131: To ask the Tánaiste and Minister for Foreign Affairs and Trade if he will confirm that the Article 136 Amendment to the Treaty on the Functioning of the European Union which is due to be ratified by the Government later this session via the European Communities (Amendment) Act requires the unanimous support of all 27 member states of the European Union to come into effect and to confirm that the purpose of this amendment is to provide a legal basis for the Treaty Establishing the European Stability Mechanism and the European Stability Mechanism itself. [22577/12]

Eamon Gilmore (Dún Laoghaire, Labour)
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On 25 March 2011, the European Council agreed to amend Article 136 of the Treaty on the Functioning of the European Union to insert the following text: '3. The Member States whose currency is the euro may establish a stability mechanism to be activated if indispensable to safeguard the stability of the euro area as a whole. The granting of any required financial assistance under the mechanism will be made subject to strict conditionality.'

Separately, a Treaty to establish the European Stability Mechanism (ESM) has been agreed among euro area countries. This is an intergovernmental treaty that stands outside the EU Treaty framework.

Both instruments are separate and contain their own requirements for entry into force.

The amendment to Article 136 will enter into force when approved by all Member States of the EU, including Ireland, according to their national requirements. The target date for this to be done is 1 January 2013.

The European Communities (Amendment) Bill 2012 will amend the European Communities Act 1972, in order to provide, inter alia, that the European Council Decision amending Article 136 of the Treaty on the Functioning of the European Union shall form part of the domestic law of the State.

The ESM Treaty, which is the responsibility of my colleague the Minister for Finance, will enter into force when ratified by signatories whose subscriptions represent 90% of the total initial subscriptions. The target date for this is 1 July 2012.

The Government considers that it is strongly in Ireland's best interests for both instruments to enter into force as soon as possible.

Not approving the amendment of Article 136 will not prevent the ESM Treaty from entering into force once the necessary conditions are met.