Micheál Martin (Cork South Central, Fianna Fail)
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212. To ask the Minister for Finance his views that the Greek Government may reject the creditors, thereby creating a default; and if he will make a statement on the matter. [24563/15]

Michael Noonan (Limerick City, Fine Gael)
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Following circulation of an aide-mémoireand a list of Prior Actions to the Greek authorities in the first week of June and a subsequent meeting between Prime Minister Tsipras, European Commission President Juncker and Eurogroup President Dijsselbloem to discuss the proposal, it seemed like both sides were moving closer together.

However following submission of Greek counter proposals on the 12th June it was clear that there had been a complete rowing back on the Greek side.

Attempts at a technical level to make progress concluded with no agreement.

As a result, an additional Eurogroup meeting and Informal Euro Summit were called on 22 June 2015 in Brussels. The purpose of these meetings was to exchange of views on Greece and clarify the positions and the situation in the ongoing talks between the Greek authorities and the Institutions. 

A revised list of counter proposals was submitted by the Greek authorities yesterday leaving no time to assess them prior to the meetings. The Greek authorities will now work with the Institutions to agree a comprehensive list of reforms and a list of prior actions by tomorrow that can be presented to the Eurogroup.

The euro area has an obligation to Greece in these difficult times but Greece has an obligation to itself, it needs to reform the economy and return it to sustainable growth.

Ireland, together with the other Member States, understands and empathises with the difficult situation faced by the Greek people. This is why there has been a willingness to negotiate a way forward which takes account of the realities of the situation in Greece and the political priorities of its new Government, while also respecting existing commitments.

Even at this very late stage, there is still time for a deal to be agreed - but Greece must put reasonable proposals on the table. It is still in everyone's interest that agreement is reached. We have already seen backtracking on previous reforms and this is unacceptable. The Member States and institutions are working in good faith - Greece must do so also.

The situation of Greece's finances is very challenging with immediate financing needs to be addressed. In addition, deposit outflows have continued from the banking system. Therefore, urgent agreement on the necessary structural reforms is imperative to conclude the 5th review and release the associated disbursements.

Direct trade and financial linkage between Ireland and Greece are small, therefore the risk to the Irish economy are second round in nature. If turbulence in Greece results in a slowdown in the EU economy then this could have a knock effect on the Irish economy given our openness to trade.

As a Union, we are now in a much better place than when the crisis hit. In recent months, financial markets in Greece have been adversely affected through declines in the stock market, capital outflows and increases in bond yields, although markets appear to be treating Greece as an outlier rather than a source of contagion. This is encouraging and suggests the firewalls created and the governance changes made during the crisis appear to be having the desired effect.