Deal on Anglo needed to aid bailout exit - Kenny

Written By Unknown on Kamis, 10 Januari 2013 | 22.40

Enda Kenny has said that Ireland needs a deal on Anglo Irish Bank promissory notes, as well as clarity on how the European Stability Mechanism can alleviate Ireland's bank debt, in order to exit the EU-IMF bailout.

Speaking at a news conference alongside European Commission President Jose Manuel Barroso, Mr Kenny said no other country had been burdened with similar levels of bank debt.

He said that fact had been recognised by the German chancellor and the French president.

"For Ireland to exit its program successfully we do need a conclusion to the negotiations on the promissory notes on the one hand and the conclusion, eventually, on the discussions on a banking deal arising from the decision of the 29th of June on breaking the link between sovereign and bank debt," Mr Kenny told a news conference in Dublin Castle.

He was speaking following a bilateral meeting with Mr Barroso, and a plenary session between the Irish Government and the College of EU Commissioners.

Mr Barroso said he had always made the case for solidarity with Ireland and for fairness in the European Union.

However he declined to say how long it would take before there was clarity on how the ESM might be used to directly recapitalise banks in a way that would benefit Ireland.

He said member states should stick to the letter and spirit of the 29 June summit statement, which pledged to break the link between bank debt and sovereign debt.

That statement was the first official acknowledgement of the need to examine Ireland's aspirations on bank debt.

Since then, however, doubt has been cast on whether or not the ESM might be used to alleviate Ireland's historical bank debt.


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