When I grow a beard, the Ceann Comhairle will be entitled to mistake me for Deputy Gerry Adams, otherwise there is not much of a similarity.

Despite the IMF's reservations, the austerity economic policies continue throughout Europe. Nowhere was this more apparent than in Luxembourg yesterday when the ECOFIN Ministers met. What happened was something of a triumph for Europe, in that the ESM was launched. However, I suggest what happened was a source of humiliation for Ireland because the bank debt issue did not even make it onto the agenda. In view of what has been said about this issue recently, will the Taoiseach enlighten the House on whether it is a phantom bank deal we are encountering? Is it melting as the days go by? I do not know if the Taoiseach is aware of what Klaus Regling said yesterday when asked about the legacy debt, the issue in question. He was dismissive. He said: "This point has not even been discussed in any European body so far." Has the deal gone down the tubes? I know the Taoiseach will say the breaking of a link between sovereign and bank debt has been established, but where is the Irish deal which mainland Europe seems to be so keen on dismissing as not being on the agenda anymore? The breakthrough in June is now a non-event in October.

Will the Taoiseach address, in particular, what is happening with the two strands which appear to be hitting the buffers? One is the Anglo-Irish promissory note, on which the Minister for Finance, Deputy Michael Noonan, appears to have extended the deadline from October to March. The second, the recapitalisation of Bank of Ireland and AIB - sometimes known as the legacy issues - which we were promised after June has been postponed at least until a supervisory authority has been set up. That will not happen until next year. Therefore, is the deal disappearing? Is it a mirage? Is it vanishing before our eyes and something the Taoiseach has oversold but which mainland Europe is now disowning?

The answer to the Deputy's question is "No". It is not disappearing.

It has disappeared.

Neither of the two issues that are at stake here are disappearing.

It is gone.

Obviously, the discussions that take place prior to European Council meetings, and consequent to them, can be complex and quite varied. Deputy Ross will recall that there was a view that there would not be an interest rate reduction from a European perspective, that there would not be a temporary bailout system, that there would not be a permanent bailout mechanism, that there would not be an ESM, that there would not be a second bailout for Greece and that there would not be a break between sovereign and bank debt. All of these issues have happened and have been implemented, or decisions have been taken in respect of them but have not been implemented yet.

Live horse and eat grass.

Neither of the two issues mentioned in Deputy Ross's question are disappearing from the radar. On the question of legacy issues, I made it perfectly clear to President Van Rompuy when I met him last week that the decision to break the link between sovereign and bank debt in this country's case is not about some problem that will arise for Ireland in the future. I said the problem is here now, having been caused by issues of the past. The same thing applies to a number of other countries. It is clear the facility to recapitalise banks directly is intrinsically tied up with the decision to have a banking union capacity brought forward. The Commission has put that on the table and it is now the subject of intense and ongoing discussions and negotiations. As Deputy Ross is aware, it has direct implications in the case of Spain and a number of other countries. Work is proceeding on that.

In the case of the Anglo Irish Bank promissory note, we are trying to unravel a very difficult situation for this country and, as a consequence, for the people of this country. It is not as easy as it might sound or seem. Some progress has been made in regard to the payment that was due in March of this year. As the Minister, Deputy Noonan, said at the meeting in Luxembourg yesterday, the situation is that the next payment date is March 2013 but our clear objective and wish is that this might be concluded before the end of the year. I have answered questions from other Deputies about this. I cannot put an exact timeline on it.

Could the Taoiseach put a decade on it?

The important thing is to get the best deal for the taxpayer and the people.

It needs to be done more quickly.

I recall the statement that was made in this House last week by the President of the European Parliament, Mr. Schulz. I note the comments of Mr. Draghi, Commissioner Rehn, the IMF, the European Commission, the President of the Council last week and the President of the Commission.

What about the comments of Deputy Mathews?

All of them are strongly in favour of a political decision being made with regard to this country easing its way out of the bailout programme and reducing the level of pressure on our people. I would like to reassure Deputy Ross with regard to both of these issues. The issue of the Anglo Irish Bank promissory note, which we are trying to unravel here, is being discussed directly by the Minister for Finance, his counterparts and the European Central Bank. The issue of the decision on sovereign and bank debt, which is also being discussed directly, is the responsibility of the Council and the heads of government. We are absolutely clear, as other countries are, on what the 29 June decision actually means. It is not about some problem that might arise in the future. It is about a problem that exists now, having developed in the past. The implications of that problem are very exacting for many people in this country.

I am glad the Taoiseach mentioned the heads of government. Obviously, Angela Merkel is the most powerful person in Europe. I presume that if the Taoiseach were persuasive with her, she could give us a deal on legacy issues at the drop of a hat. Can the Taoiseach tell the House how often he is in touch with the German Chancellor?

Before every election.

Has he asked Angela Merkel for her assistance on this matter? We had the President of the European Parliament here for a piece of theatre last week, but would the Taoiseach consider asking Angela Merkel to join him as his guest at the football match on Friday?

We could ask Seánie Fitzpatrick if he was not in court.

I have made this country's position perfectly clear to other leaders.

He is the Deputy's friend.

Forever friends.

When one studies the-----

The Deputy is like Bilbo Baggins over there.

Sorry, we cannot hear the Taoiseach.

I remind Deputy Ross that we are following through on the decision of the people to endorse the Lisbon treaty. He will appreciate that the comments made here by President Schulz last week were not a piece of theatre, but the actual facts. The budget for the European Union requires the support and approval of the European Parliament. The Deputy will recall that President Schulz said last week that we need to return to the community method. We had already made that perfectly clear to other leaders. In its own way, it was a contributory factor to the decision that was made on 29 June to break the link between sovereign and bank debt. In our case, it clearly signifies our understanding of this as a legacy debt with implications for other countries. The banking union programme that has been prepared by the Commission is on the table and is being discussed. The target date for that being implemented, or being in situ, is 1 January next. That is a tight timeline. I hope it can happen.