Germany to continue to 'work closely' with Ireland

Written By Unknown on Sabtu, 20 Oktober 2012 | 22.40

He said a clear pledge was made to enhance the sustainability of Ireland's programme at the European summit in June.

It is understood that contact between the two governments was made at the highest official levels overnight.

The spokesman said the Government had never been prescriptive in laying down a timeline for a deal on debt or on how it should be done.

He said the Government was determined to secure the best deal possible for the Irish people.

A German government spokesman told RTÉ News that Germany would continue to "work closely" with Ireland to "improve the sustainability of the Irish programme and ensure its successful outcome".

He said the recapitalisation of banks was a "complex" issue.

The spokesman added that there would be negotiations at various stages to address aspects of the process.

A Department of Finance spokesman described the statement as "important".

The German government spokesman said that following the Brussels summit and the decision to set up the framework of a new pan-European banking supervision regime by 1 January 2013, it was "our common task" to complete the framework by the end of this year and to work on its "operational implementation" next year.

In a statement, he said: "The Chancellor has used several opportunities to reiterate strong support for the efforts made by the government and the people of Ireland for a full return to the markets.

"The European Council has just taken important decisions to advance the project of a Single Supervisory Mechanism, it is now our common task to complete the legal framework for it by the end of 2012 and to work on its operational implementation in the course of 2013.

"The later process of recapitalisation of the banks will be a complex one with negotiations at each stage to address important issues.

"Ireland and Germany will continue to cooperate closely in order to improve the sustainability of the Irish programme and ensure its successful outcome."

During a news conference in Brussels at the end of a two-day summit Ms Merkel appeared to rule out the use of the ESM to recapitalise banks for debts run up in the past.

While the question was in relation to Spanish banks, a Chancellery source later told RTÉ news that Ms Merkel was "quite clear" that only future debts could be dealt with by the ESM, once a banking supervision system was in place.

June agreement on Irish bank debt issue stands - Bruton

Minister for Jobs, Enterprise and Innovation Richard Bruton said the agreement between EU leaders in June on the banking debt issue still stands.

He said that meant there would be a separation of banking and government debt and direct action on the sustainability of the Irish debt position.

Speaking on RTÉ's Saturday with Claire Byrne, Mr Bruton said the European Council decided that EU ministers must design the ESM's mandate and this would become effective once the bank supervision is in place.

Minister Bruton said Ireland would work on the negotiation undertaken by Minister for Finance Michael Noonan on the two issues including the two pillar banks and the legacy of the Anglo Irish promissory note.

He said getting a deal on Ireland's bank debt was a sustained case that the Government was pursuing.

Mr Bruton said the decisions taken by the European Council were "absolutely clear".

He said they agreed that the sustainability of Irish debt must be tackled, a separation between bank and sovereign debt must be created, the ESM must be working and there must be an effective banking supervision system put in place to trigger the ESM.


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