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Kenny must secure written guarantee on legacy debt

18 October, 2012 - by Pearse Doherty TD

Speaking in advance of the conclusion of the European Council meeting in Brussels Sinn Féin Finance spokesperson Pearse Doherty has said that “Enda Kenny must secure a written guarantee on the issue of legacy debt at today’s European Council meeting.”

The Donegal South West TD said “anything short of this is simply not good enough.”

Deputy Doherty said:

“Sinn Féin will welcome any deal secured by the government that lifts the toxic private banking debt off the shoulders of the taxpayer. However it is becoming increasingly clear that the government’s strategy on tackling the debt issue is in tatters.

“Enda Kenny and Eamon Gilmore clearly oversold the June 29th European Council summit statement on bank debt. The government failed to secure a written agreement on the issue at the summer summit.

“This issue must be resolved today. The Taoiseach must return from Brussels with a written guarantee on the issue of legacy debt. He must also indicate the scale of any such deal. Both the IMF and the ESRI are on record suggesting that with respect to the pillar banks an ESM recapitalisation of €24billion would help make the government debt sustainable.

“It is time for the government to up the ante on this issue. They need to make clear to our European partners that the state simply cannot pay this massive private banking debt.

“If An Taoiseach returns from Brussels with nothing more than an agreement that the Eurogroup will set the operational criteria guiding direct bank recapitalisations by the ESM then he will have failed.”


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