Pearse Doherty (Donegal South West, Sinn Fein)
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29. To ask the Minister for Finance the number of times he has formally raised the issue of the retrospective recapitalisation at the Eurogroup or ECOFIN meetings since September 2012. [8348/14]

Michael Noonan (Limerick City, Fine Gael)
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As I have outlined in my replies to a number of previous Parliamentary Questions, the Euro-area Heads of State or Government (HoSG) agreed in June 2012 that "it is imperative to break the vicious circle between banks and sovereigns", and that when a Single Supervisory Mechanism, involving the ECB, is in place and operational, the European Stability Mechanism could recapitalise banks directly.

Since September 2012, the issue of direct recapitalisation by the ESM has been on the Agenda of the Eurogroup on seven occasions (21st January 2013, 11th February 2013, 4th March 2013, 12^th April 2013, 13^th May 2013, 20th June 2013 and 17th February 2014). Discussions at Eurogroup have focussed on the establishment of the ESM's Direct Recapitalisation Instrument (DRI) which will provide the source for any possible future retrospective recapitalisation.  

The Eurogroup meeting on 20^th June 2013 referred to above agreed on the main features of the European Stability Mechanism's Direct Recapitalisation Instrument or DRI. There is a specific provision included in those main features, which states that "The potential retroactive application of the instrument should be decided on a case-by-case basis and by mutual agreement." Therefore, the agreement, that we were active in negotiating, keeps open the possibility to apply to the European Stability Mechanism for a retrospective direct recapitalisation of the Irish banks, should we wish to avail of it.

Finally, both I and my Government colleagues will ensure that Ireland's case for retrospective direct recapitalisation is made at all levels as appropriate.  I remain confident that the commitment made by the Euro-area Heads of State or Government in June 2012 to break the vicious circle between banks and sovereigns will be respected.