Responding to the publication of the conclusions of the European Council, Fianna Fáil Leader Micheál Martin TD commented, “The only thing which is clear from the formal conclusions issued by the Council President is that the government continues to relentlessly spin every small development.
“In spite of claiming to have achieved progress, the Council’s published conclusions actually raise concerns about a weakening of our position since March 11th.
“In February it was agreed that Ireland’s interest rate needs to be reduced to ensure debt sustainability, and this was formally adopted as policy at the summit held on March 11th. The issue was not whether but when Ireland’s interest rate would be reduced.
“The new text reopens this and implies that we accept that the current programme is sustainable and will see us return to the financial markers next year.
“If we are now calling our interest rate a sustainable burden, how can we continue to demand that it be reduced?
“It’s time for the Taoiseach and his staff to stop over-hyping every minor encounter and explain in detail what exactly we are now seeking and why we have accepted that the current programme is sustainable without change.”
European Council June 23rd:
“The European Council welcomes progress made in Ireland in the implementation of its reform programme, which is well on track. It also welcomes the strong commitment by the newly elected Portuguese government to fully implement its programme of reforms. Building on a cross-party consensus on the need to reform, strict implementation of those programmes will ensure debt sustainability and will support the return of Ireland and Portugal to the financial markets.”
European Council March 11th:
“Pricing of the EFSF should be lowered to better take into account debt sustainability of the recipient countries, while remaining above the funding costs of the facility, with an adequate mark up for risk, and in line with the IMF pricing principles.”