Merkel call and bank-debt relief
Deputy Ross praised the Government’s European efforts but asked whether the Taoiseach had sought German support for writing off legacy debt and recapitalising Irish banks. The Taoiseach declined to disclose the private conversation with Chancellor Merkel, referring instead to their joint communiqué and continuing negotiations over Ireland’s special circumstances.
It would be wrong and churlish of anybody on this side of the House not to recognise the extraordinary energy which the Taoiseach and members of the Government have put into getting some relief on the bank debt from Europe in recent days.
Comment on this
Will Deputy Ross tell that to his buddies in the Sunday Independent?
Comment on this
The danger is that Ireland will become a victim in German internal politics, however. We have seen several examples of that in the changes made to policies and statements in recent days. The Taoiseach alone is in a unique position as he was on the telephone call to Angela Merkel on Sunday. He can tell us whether he asked her if there was any question of writing off legacy debt and, if so, what was her answer to that particular question. This is the nub of the problem. It is a very serious life and death matter for the nation. To answer Deputy Adams’s earlier question, it was the Minister for Education and Skills, Deputy Quinn, who yesterday in addressing the issue of bank relief said if we do not get some relief in time we will not be sustainable as an independent state. That is pretty straightforward. It means if we do not get a write-off of the debt, we will perish economically.
With genuine concern I want to make the following constructive suggestion. The Taoiseach and his other Ministers should go ahead with their diplomatic efforts to get relief on the debt, which has so far proved particularly unfruitful. However, parallel to this, the Taoiseach should make another telephone call to Angela Merkel to tell her that behind this velvet glove, there is an iron fist. As Ireland’s debt is unsustainable, as admitted by one of the Taoiseach’s Ministers, the Taoiseach has only two options. The first is forgiveness by the lenders; the second, unilateral decisions by the borrowers. The Taoiseach must insist on parking and postponing the payment of the €3 billion on the Anglo Irish promissory notes due in March if no deal is agreed before then.
Comment on this
That way the Taoiseach would bring a pressure point but would also pursue the diplomatic initiative.
Comment on this
When I travelled to Brussels for the 29 June summit, the Minister for Public Expenditure and Reform, Deputy Howlin, took the Order of Business. Deputy Ross commented on that occasion that I would be better off going to Blackrock than to Brussels. Deputy Ross has shifted ground more than once.
We are looking for a deal in respect of bank debt because of the unfairness that applies to our people. That was applied following panic and desperation and the imposition of the blanket guarantee by a previous Administration. People might not like to hear that but it is important that it is not forgotten.
Comment on this
The Taoiseach voted for it though.
Comment on this
The Taoiseach was mad to vote for it.
Comment on this
The focus of the intensity of the discussions by every Minister at European level speaks for itself. I have not heard Deputy Martin, for instance, say that the joint communiqué with the German Chancellor or the statement by the French President, are meaningless and harmful to our country like he said over the weekend in a classic observation of shallow opportunism.
Comment on this
I did issue a statement and I will also issue a very substantive statement tomorrow. We have 85 minutes of debate on it here tomorrow too.
Comment on this
Will the Taoiseach be switching over to digital in the morning?
Comment on this
Will the Taoiseach be going digital in the morning?
Comment on this
Deputy Dooley went analogue a long time ago.
Comment on this
Maybe, Deputy Dooley, you could go down to the Olympia and try out your jokes there. Will you listen to this, please? Thank you.
Comment on this
As Deputy Ross is aware, much of what has been developed in this country in terms of infrastructure over the years has been contributed to by contributor countries of the European Union funding mechanisms, including Structural Funds. The negotiations in respect of the promissory notes situation are being conducted with the European Central Bank, the Minister for Finance and the troika and they continue. We are now in a position in respect of the break between the sovereign and bank debt where the date has been set for the legal framework, the mandate has been given to the euro group and there is a recognition now at the highest level that the unique circumstances that apply in Ireland's case and the special nature of our case will be taken into account in those negotiations by the euro group.
Deputy Ross is well aware that if we took the route that he is proposing, or that of Deputy Adams, the people working in PayPal in Dundalk would not be employed there and many other indigenous global firms and others would not have been in a position to make the decisions of confidence in the country which they have displayed by putting their money where their mouth is in terms of the future and the employment of Irish people. There are many others throughout the country who could take a lesson from such confidence and not have us faced with an avalanche of unpatriotic comment, meaningless in most cases, which I witnessed over the weekend.
Comment on this
I notice the Taoiseach did not comment on the fact that his Minister has admitted that the debt is not sustainable in public. This is why it is so serious. Since the Taoiseach has not answered any of my other questions I call on him to answer this question: what did the Taoiseach say to Angela Merkel in that telephone call?
Comment on this
"Put your sweet lips a little closer to the phone."
Comment on this
Did the Taoiseach ask her the one question on the lips of the nation, that is, whether legacy debt could be written off and whether the banks could be recapitalised? I am referring to the Irish banks that got into trouble before the night of the guarantee. If the Taoiseach did not ask her that question, he was simply agreeing with her to produce a temporary solution to get him over the next crisis. If the Taoiseach had the opportunity of chewing the ear off the German Chancellor, he should have taken it.
Comment on this
I hope that opportunity was not missed. I hope the Taoiseach will tell us what questions he asked her about and what answers she gave him because the Taoiseach is the only person who can tell us whether Ireland is a special case. Moreover, the question is this: is Ireland an exception? That is what the Taoiseach is looking for.
Comment on this
Surely Deputy Ross does not expect me to say what the questions I had for the Chancellor were or those that she had for me?
Comment on this
I do. That is exactly what I expect.
Comment on this
Deputy Ross would love to know and that is why he is up there, as Deputy Rabbitte said.
Comment on this
Has Deputy Ross heard of international discussions?
Comment on this
Deputy Ross should note the position. After the conversation a joint communiqué was issued on behalf of the Chancellor and myself. It speaks for itself and it is very clear.
Comment on this
The conversation was amicable, comprehensive and resulted in a clear position in so far as this country is concerned in the view of Germany.
Comment on this
We knew we were special.
Comment on this
Deputy Ross's comment that this country could become a victim of the internal politics of any other country is invalid.