Minister for Finance Statement on Ecofin Council

The Minister for Finance, Mr. Brian Lenihan T.D., has welcomed the decision of the Ecofin Council on a comprehensive package of measures to support financial stability in the European Union. On the conclusion of the meeting, the Minister said:

"The agreement to establish a European Financial Stabilisation mechanism of up to EUR500 billion shows the determination of the European Union to provide financial support if needed to member states facing exceptional circumstances that are outside of their control. Member states are showing their resolve to support the overall European economy and the interests of all European citizens.

The size of the stabilisation mechanism is possible due to support of EUR60 billion through the EU Budget and the decision by euro area member states to make available up to a further EUR440 billion if required through a special purpose vehicle that is guaranteed on a pro rata basis by participating member states. These two commitments would be further reinforced by significant funds that could be made available from the IMF.

This stabilisation fund will compliment the commitment to accelerate fiscal consolidation by a number of member states, where warranted.

In the past two years, the Irish Government has stabilised the public finances with fiscal consolidations of almost 5% of GDP in 2009 and a further 2.5% of GDP in 2010. As evidenced by last week's Exchequer returns, these fiscal adjustments have helped to place Ireland on target to meet our commitments under the Stability and Growth Pact.

I welcome the Ecofin Council's emphasis on the need to make rapid progress on financial market regulation and supervision.

Finally, I like my colleagues, recognise the very significant announcement by the European Central Bank that will help ensure the stability of the euro area."