Taoiseach Brian Cowen tonight welcomed confirmation that the European Commission has approved Ireland's bank guarantee scheme.
The Taoiseach received the news directly from President Barroso, who confirmed that the scheme has been approved as being in compliance with the European Commission's requirements. Modifications agreed with the Commission do not alter the basic parameters of the scheme as announced.
The Taoiseach thanked President Barroso, Commissioner Kroes and their staffs for their swift processing of the case. He also expressed his appreciation for the work of the Minister for Finance, the Attorney General and the team of Irish officials who had worked tirelessly on the details of the scheme over recent days.
The news came as the Taoiseach returned from Paris where he took part in a unique Euro Area meeting where, for the first time, the Heads of State and Government of the Euro countries gathered, in Paris this evening.
The meeting was convened by President Sarkozy in response to the ongoing uncertainty in financial markets.
The 15 leaders, along with the Presidents of the European Central Bank and the European Commission, agreed on a declaration setting out a range of measures which individual Member States may avail of according to their national circumstances in order to provide greater liquidity and, where they consider necessary, capitalisation to financial institutions.
The Taoiseach made clear to his colleagues that Ireland had already taken effective and decisive action with the announcement of its guarantee scheme. The meeting confirmed that the new set of measures now being made available for future action does not in any way affect the terms of the Irish scheme.
Speaking on his return to Dublin, the Taoiseach said:
"The Irish Government took decisive and effective action when it announced its bank guarantee scheme to provide stability to the financial market in Ireland when it was needed. I very much welcome that following detailed discussion with the Commission the scheme is now in compliance with EU requirements. The arrangements that we have agreed in Paris tonight to govern potential future action by Member States do not impinge on the Government's guarantee scheme and I welcome my colleagues confirmation of this".
Commenting on the Euro Group declaration, he added: "Today's Euro group agreement is a very important step in the ongoing international effort to provide reassurance to the financial markets and to the general public. It shows the determination of the members of the Euro zone to work in a coherent fashion, and to agree on a shared set of measures, or toolbox, which can then be deployed by each Member State in the manner most suited to its particular circumstances."
The main elements of the package of measures now available to the Euro zone Members States are:
Further guarantee measures and other similar arrangements to improve bank liquidity;
The option to provide additional capital resources where appropriate;
Additional capitalisation measures in the event of banks being in distress;
Commitment to appropriate flexibility in accounting rules to reflect current exceptional circumstances.
Ends.
12 Oct 2008