Government failed in Euro debt talks
October 19, 2012
Speaking in response to the conclusion of the European Council meeting last night Pearse Doherty TD has said that the government “failed to secure any deal on the issue of legacy debt.’ The Donegal South West TD also said that ‘the government didn’t even get the issue on the agenda”.
Deputy Doherty said:
“The government’s strategy for securing a deal on the banking debt is in tatters. The European Council statement issued early this morning once again shows that the government is failing to even have this matter discussed.
“Last June the government said that a deal on the recapitalisation of the pillar banks by the ESM would be concluded by the end of the year. They said that they had a clear commitment that the ESM would be used to retrospectively recapitalise Irish banks. They claimed this would reduce our debt-to-GDP ratio and assist our economic recovery.
“Since then we have seen the most powerful finance ministers in the Eurozone flatly contradict the government. We have also seen the new head of the ESM saying that this issue has yet to be discussed.
“In advance of this weekend’s European Council meeting Enda Kenny said he was going to talk tough on the issue of a deal on Irish banking debt. Not only has he failed to secure such a deal, he didn’t even manage to get the issue on the table for discussion.
“Meanwhile the negotiations on the promissory note payments have also stalled.
“All of this is bad news for the Irish taxpayer who continues to be saddled with €64bn of private banking debt. The government needs to adopt a new approach. It needs to start playing hardball on both aspects of the banking debt. Otherwise the possibility of any deal will become even more remote.” ENDS