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MEP Matt Carthy asks - "What is stopping an Irish bid for bank recapitalisation?"

1 October, 2014 - by Matt Carthy MEP

Sinn Féin MEP Matt Carthy today questioned Britain's nominated Commissioner Jonathan Hill over retrospective recapitalisation of Irish Banks.

 Jonathan Hill is the Commissioner designate for financial stability, financial services and capital markets union.

As part of his role on the Committee for Economic and Monetary Affairs, Matt Carthy inquired as to whether Hill would support a bid from Ireland for bank recapitalisation.

During the hearing Carthy stated:

"In June 2012 the EU Council agreed to break the link between sovereign and banking debt.  The Irish government stated that this was a 'game-changer' and would ensure the return of at least a sizeable portion of the monies that were taken off the Irish people in order to save the European banking system.

"This may appear as a parochial question but you will understand that Ireland, that has less than 1% of the EU population, has paid over 40% of the cost of the banking crisis.

"Although it will not be your direct responsibility, if you become a member of the College of Commissioners you will have an important economic portfolio - I therefore want to ask will you, in principle, support an application by an Irish government, and others with similar experiences, for the retrospective recapitalisation of banks so that we can see a real economic recovery across the European Union?"

Hill replied that it was legally possible for recapitalisation of Irish banks and that any decision would be made on a case by case basis.

Speaking after the hearing Carthy said.

"The question must now be asked of the Irish Government what is stopping a bid to seek recapitalisation.

"It is clear that the Irish people were laden with a grossly unfair burden of debt and it was the Irish people who effectively bailed out the European Financial System.

"Ireland has a strong case to make in seeking to recoup a substantial portion of the money that was taken from the Irish people without their consent.


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