Written answers

Thursday, 21 March 2013

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance his objectives in the course of Ireland’s Presidency of the EU with particular reference to the need to convince his EU colleagues and institutions regarding the importance of their need to recognise the economic sacrifices made by the Irish people arising from the consequences of the financial bailout which he inherited from his predecessors and the need for a substantial alleviation of this burden in the future; his views on whether progress can be achieved in this regard in the next six months; and if he will make a statement on the matter. [14020/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The theme of the Irish Presidency is Stability, Jobs and Growth, which is pertinent for both Ireland and the EU as a whole. As President of the ECOFIN Council I will continue to pursue the objectives set out in the ECOFIN work programme of the Irish Presidency of the European Union which were outlined to the ECOFIN Ministers on January 22nd last. This document set our ambitions on financial services dossiers (including the Banking Union proposals), economic governance and taxation measures. In respect of work on the Banking Union proposals we have achieved support on a compromise package reached with the European Parliament on the Capital Requirements Directive IV. Provisional agreement was recently reached with the European Parliament on the Single Supervisory Mechanism. The Bank Recovery and Resolution proposals are proceeding well in the Council and European Parliament.

Making progress on the banking union proposals is of particular importance, both to Ireland and to the wider EU, as a way of breaking the vicious circle between banks and sovereigns. In so doing we will be fulfilling the goal set down by the Heads of State and Government on the 29 June 2012.

Agreement has been achieved with the Commission and European Parliament on the "two pack" of economic surveillance measures for the Eurozone and this reflects the final part of this set of agreed proposals on improved economic governance. The Irish Presidency has also worked to ensure the smooth operation of the European Semester process across the ECOFIN Councils in January, February and March.

The Deputy will appreciate that there is a need for the Presidency to remain impartial in order to be able to seek and achieve agreement with European partners on our Presidency agenda.

That being said, I am happy to inform the Deputy that I am satisfied that there is clear awareness among my ECOFIN colleagues - and indeed across the whole EU - of the actions being taken by this Government to bring stability to our public finances and banking system and in that context an awareness of the economic sacrifices being made by the Irish people arising from these actions.

I am also happy to inform the Deputy that there have been some recent positive developments, which will assist in our return to more normal economic and fiscal conditions. I refer in particular to:

- The agreement at the March Eurogroup and Ecofin, to ask the Troika to come forward with a proposal for their best possible option for an adjustment of the maturities on the EFSF and EFSM loans for Ireland and Portugal. In this regard it is important to note that, in advance of the Troika coming forward with proposals at the recent Eurogroup, Finance Ministers agreed to an adjustment of maturities on the loans of the EFSF.

- The enactment of the Irish Bank Resolution Corporation Act 2013 to provide for the winding up of Irish Bank Resolution Corporation in an orderly and efficient manner, which resulted in the removal of emergency liquidity assistance (ELA) from the Irish financial system.

- The ending of the Eligible Liabilities Guarantee Scheme for new liabilities incurred after the 28th of March 2013. This marks an additional significant step in the normalization of our banking system and reduces substantially the associated contingent liability of the State.

- The successful conclusion of the ninth review mission of our EU-IMF Programme. In line with each of the previous quarterly reviews, Ireland has met all of its commitments and our continued strong programme implementation has been recognized by the Troika.

- The successful issuance of treasury bills and longer term bonds by the NTMA in 2012 and 2013, together with the continued Irish yield contraction, which shows improved sentiment and reduced risk perception towards Ireland.

These outcomes were achievable primarily as a result of the Government’s determined and steady management of Ireland’s economy, the goodwill and support of our EU partners and the EU Institutions and the improved perception of Ireland in financial markets. These outcomes have also arisen from improving our relations with EU partners and institutions and improving these relations has been part of the aims of my Department as set out in the recently published Department of Finance Review 2012.

Comments

No comments

Log in or join to post a public comment.