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Kenny’s spin on Bank Recapitalisation an attempt to hide Government failure to stand up for Ireland - Carthy

2 January, 2015 - by Matt Carthy MEP

Sinn Féin MEP, Matt Carthy, has said that the assertion of Enda Kenny that a deal on retrospective recapitalisation of Irish bank debt is no longer a consideration is further evidence that the government simply will not stand up for Ireland’s interests.  Mr. Carthy claimed that a letter which he received from Klaus Regling in August shows that the source of Enda Kenny’s remarks was the hostility of European institutions rather than any considered judgment on the part of the government.

Carthy, who is a member of the European Parliament’s Economic and Monetary Affairs Committee said:  “In his letter to me last August Klaus Regling, Managing Director of the ESM, stated that he considered it unlikely that the Direct Recapitalisation Instrument (DRI) would be used retroactively.   It appears to me that knowing this to be the position of the ESM and other European institutions our government have sought to implement a PR strategy to attempt to convince the Irish people that it the government’s own choice not to seek a deal.

“The reality is that Fine Gael and Labour have simply rolled over and accepted a position which means that Ireland, who with less than 1% of the EU population have been burdened with 43% of the cost of a European Banking crisis, will continue to be loaded with the legacy of bad decisions made by EU bodies and the previous Fianna Fáil government.

“The government must now come clean and assert when a decision was made that an application for retrospective recapitalisation would not, in fact, be made.  Considering that senior government representatives, including Enda Kenny, and all of the Fine Gael and Labour candidates in May’s European elections made statements that such a deal was a live and likely prospect people have a right to know ‘Did government parties knowingly lie to the electorate yet again?”

ESM Letter to Matt Carthy 25.08.2014

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