Taoiseach defends approach to euro crisis summit

TAOISEACH ENDA Kenny predicted that no final decision would be made to sort out the euro zone crisis at tomorrow’s emergency summit.

“It is a series of gradual steps and measures to be implemented,’’ he said.

He said officials were working on proposals to be tabled at the meeting.

“My priority will be to ensure an outcome with positive implications for Ireland,’’ Mr Kenny added.

Amid sharp exchanges with Fianna Fáil leader Micheál Martin, the Taoiseach said he had not been in contact with other EU leaders on the matter.

Mr Martin pressed him to say what would be discussed relating to Ireland, and if the Government would be formally tabling the restructuring of bank debt.

The Taoiseach said Mr Martin seemed to have the bug he had picked up in the Department of Foreign Affairs, when he travelled around the world.

“He seems to believe my job is to be on the telephone all day to other leaders around the world and to travel between European cities,’’ he added.

Mr Martin insisted he had not said the Taoiseach should be on the telephone all day every day. “He is never on it,” he added.

Mr Kenny said he would remind Mr Martin “of what he did in lumping bank debt on to sovereign debt and putting it on the backs of the citizens of this country”.

He added he had to deal with that at home and in Europe.

Mr Kenny said that since the Government had started to pursue the issue, there had been extensive sharing of responsibility by subordinated bondholders, and there was more to come.

“The Minister for Finance has made it perfectly clear that in respect of senior bondholders, we regard Anglo Irish Bank as being a dead bank,” he added. “It is in a different position and in different circumstances from any other bank.”

The discussions and negotiations were aimed at finding a European solution to a European problem, which he had pointed out at EU council meetings, he said.

“I have not been travelling around Europe,’’ Mr Kenny added.

“I have been going around this country telling people that we will not sink under the weight of this economic challenge.”

Mr Kenny said the Government had been left with a legacy that no previous government, or previous incumbent as head of government, had to face in the State’s history.

Part of the process, he said, involved getting the euro zone leaders to deal with Europe’s problems, which had clear implications for Ireland, at tomorrow’s meeting.

Questions of flexibility, pricing and maturity dates were relevant and important.

“Far be it for me to pronounce, on behalf of one of the euro zone countries, what the outcome of the decision-making process might be,” Mr Kenny added.

“I assure the House we are very interested – more than interested – in ensuring that that the decision which was originally made is adhered to.”

He added that if a more comprehensive solution was put on the table, it would be discussed comprehensively.

Independent TD Shane Ross said the summit would be the most important of the Taoiseach’s career. The Taoiseach’s choice, he said, was to face the issue of default or be in denial.

“It really is denial or default for this Government.”

Mr Kenny said it was obvious that the markets did not have confidence in a number of countries.

“Obviously, Ireland is not in the marketplace but is meeting its requirements,’’ he added.

He would like to think that the euro zone leaders would make a series of decisions that would start to restore confidence in the markets in a number of countries.