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Sinn Féin pushes for EU Parliament support for recapitalisation of Irish Banks

12 March, 2014 - by Martina Anderson MEP


Sinn Féin MEP Martina Anderson has called on the European Parliament to support her call for support for the use of the European Solidarity Mechanism (ESM) in a debate today in Strasbourg.

MEP Anderson has tabled three amendments calling for the retrospective recapitalisation of Ireland’s banking debt through the ESM and the release of a letter by then ECB President Jean Claude Trichet in 2010 which it is believed to have threatened the withdrawal of emergency liquidity assistance (ELA) to Ireland if Minister Brian Lenihan government refused to accept the bailout, that included a ban on burning bondholders.

Speaking in Strasbourg MEP Anderson said:

“In June 2012 the Eurogroup agreed that the possibility existed for the retrospective recapitalisation of Irish banking debt through the ESM. Taoiseach Enda Kenny called it a ‘seismic shift’ and Tánaiste Eamon Gilmore called it a ‘game-changer.’

“Since then there has much backsliding and delays. The head of the ESM itself has cast doubt on the possibility as well as the German Finance Minister. Today the European Parliament is discussing a report on the role of the Troika in Ireland other countries.

“Currently the Report states that it ‘takes note’ of Irish demands for retrospective recapitalisation. That is not good enough 20 months after the Eurogroup decision. Sinn Féin is pushing for unambiguous support from the EU Parliament and from all political groups.”

Sinn Féin Finance Spokesperson Pearse Doherty TD echoed MEP Anderson’s call saying:

“Sinn Fein has been pushing the Taoiseach to make good on the potential of retrospective recapitalisation. I urge all Irish MEPs and all MEPs to send a clear message that the parliament and their political groups support the use of the ESM to recapitalise Ireland’s banking debt.

“I also wish to call on MEPs to support our call for the ECB to publish the letter of November 2010 from Jean Claude Trichet to then Finance Minister Brian Lenihan which it is believed to have threatened the withdrawal of emergency liquidity assistance (ELA) to Ireland if Ireland refused to accept the bailout, that included a ban on burning bondholders.

“The ECB has only last week refused once more to release this letter despite a request from the European Ombudsman to do so.”

ENDS

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