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Potential for full recapitalisation has been let slip – Doherty

20 June, 2013 - by Pearse Doherty TD

Speaking as Euro Group Ministers met today in Luxembourg Sinn Fein Finance Spokesperson Pearse Doherty said:

“Minister Michael Noonan must make progress on the full retrospective recapitalisation of Ireland’s banking debt at today’s Eurogroup meeting.

“Ireland, under EU pressure, pumped €30 billion into the ‘pillar banks’. The EU has admitted it made mistakes. Ireland was a guinea pig in a failed experiment.

“It is almost exactly a year ago that the Euro Group committed to ‘to break the vicious circle between banks and sovereigns’. The Tánaiste called this statement a ‘game-changer’ and Minister Noonan called it a ‘seismic shift’.

“Since then and during the Irish Presidency they have let the full potential of this commitment be rowed back on. What is now on the table appears to be only a partial break – a ‘dilution’ as Olli Rehn put it.

“There should be no more delays and the Euro Group must break the link between banks and sovereign debt in full. This means using the ESM to retrospectively recapitalise the Irish pillar banks.

“The government has taken its eye off the ball and let last June’s promise slip away. It also caved in and agreed to repay the toxic Anglo-Irish debt.

“This week the government cut the resources for education for children with special needs and has seen through cuts to respite care and taxed people’s homes. They were unflinching in imposing these cuts but they are as meek as kittens when it comes to demanding a fair deal for Ireland from the other Eurozone leaders.

“The potential of last June’s promise is clearly slipping away and this government seems powerless or unwilling to stop it.”


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