It is clear from the Tánaiste’s remarks during Leader’s Questions in the Dáil today that burning bondholders is not a priority for this Government, according to Fianna Fáil Deputy Leader Éamon Ó Cuív.
Following questions from Deputy Ó Cuív, Tánaiste Éamon Gilmore was unable to confirm whether the Government would be pushing for burning the bondholders in the Irish banks at the forthcoming EU Summit.
Deputy O ‘Cuiv commented, “The ongoing talks at EU level are the first opportunity for Ireland to ensure that the two consistent roadblocks to burning bondholders in the Irish Banks be removed.
“Ireland could not take unilateral action on this and to do so would impact on our ability to borrow money to pay for public services such as social welfare, health and education. Now it is being reported that Greek sovereign bondholders are likely to lose up to 50% of their money and that widespread recapitalisation of European banks will be undertaken to deal with this. In this new scenario, there is a unique opportunity to address on a pan-European shared basis the debt crisis in European banks.
“This is hugely important moment for Ireland. It is the first and perhaps the only opportunity for the Government to ensure that the banks who lent recklessly into the Irish economy take their share of the burden. The Labour Party always said this issue would be a priority prior to the election and now it seems this pledge is joining a long list of broken promises.”