Michael McGrath (Cork South Central, Fianna Fail)
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Question 24: To ask the Minister for Finance his views on the impact of possible European assistance for the Spanish banking sector on Ireland's efforts to reduce the cost incurred by this State in the rescue of banks; and if he will make a statement on the matter. [25574/12]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 47: To ask the Minister for Finance if, in the event of any European mechanism being established to assist Spain to keep bank recapitalisation off the sovereign balance sheets, such a mechanism could be used retrospectively to assist Ireland. [25626/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 24 and 47 together.

As the Deputy is aware the Government remains committed to reducing the cost incurred by the State in the rescue of the Irish Banks and to the protection of the States balance sheet. The recent agreement by the Troika to produce a common paper which will consider all options for the restructuring of the IRBC notes has the express purpose of determining if there is a way to reduce the overall cost to the State of the arrangements that were put in place to capitalise IBRC.

It is too early to make any assessment as to what mechanism will ultimately be arrived at in relation to the potential recapitalisation of the Spanish Banking Sector or to speculate as to how such mechanisms could if implemented be retrospectively utilised in Ireland. It should be borne in mind that the recent concerns in the Eurozone underpin the fact that the solutions to address the Spanish situation, as with the Irish situation, should be seen as part of an overall Eurozone/Global solution. We will continue to review the proposals that emerge in relation to the Spanish banks recapitalisation to ascertain if any of the proposed measures would have favourable applicability if implemented in Ireland.