‘Hammerblow’ to Ireland’s hopes of retroactive recapitalisation – Doherty

‘Hammerblow’ to Ireland’s hopes of retroactive recapitalisation – Doherty
The Chairperson of Eurogroup’s comment today that there is no political support at the Eurogroup for retroactive recapitalisation of banks is a hammer blow to Ireland, according to Donegal South West TD Pearse Doherty.

The Chairperson of Eurogroup’s comment today that there is no political support at the Eurogroup for retroactive recapitalisation of banks is a hammer blow to Ireland, according to Donegal South West TD Pearse Doherty.

The Sinn Féin Finance Spokesperson also called Jeroen Dijsselbloem’s words “ and an indictment of this government’s strategy in Europe”.

Deputy Doherty said: “More than a year ago now the Eurogroup committed to breaking the vicious connection between the banks debt and sovereign debt. The Tánaiste described the statement as a game changer while Minister Noonan described it as a seismic shift.

“We were led to believe that the ESM would be used to retroactively recapitalise Irish banks, that the Irish taxpayer would be refunded for pumping billions into failed banks to cover private debts.

“Since then, the government has wound up Anglo Irish Bank and put its debts firmly on the state’s sovereign debt.

“The potential of the June 2012 statement has been allowed to slip away during the Irish Presidency of the EU as our ministers have failed to push the issue sufficiently.

“Today the Chairperson of the Eurogroup Joroen Dijsselbloem has said there is no political support at the Eurogroup for retroactive recapitalisation of banks.

“This statement is a hammer blow to Ireland and an indictment of this government’s strategy in Europe.

“The government has to take a more proactive approach to this issue. The ante needs to be raised to ensure that the issue does not completely fall off the European agenda,” he concluded.