Fine Gael Dublin Central Deputy, Paschal Donohoe, has today (Friday) welcomed the news that a deal has been struck in Europe which will allow the burden of Ireland’s crippling bank debt to be removed from the backs of the Irish taxpayer.

“This Government has always recognised the unsustainability of Ireland’s banking debt. Since coming to office, one of the main priorities has been to find a solution to the banking crisis, making it more affordable for the Irish public, as stated in the Programme for Government.

“The Taoiseach, Tánaiste and our Ministers have made a determined effort to restore our reputation internationally, building strong relationships in Europe. The Irish public, for its part, has made significant sacrifices which have now been acknowledged by our EU counterparts who have agreed to improve the ‘sustainability of the well preforming adjustment programme’.

“While the details of the deal have yet to be worked out, the fact that Ireland’s bank debt can be re-engineered, using emergency, permanent bailout funds from Europe, will have a massive impact on our debt to GDP ratio and will also make meeting EU budget debt targets infinitely easier.

“Our return to the bond marks, and ultimately our return to economic sovereignty, is also a step closer as a result of this deal. The unwavering efforts of the Government to negotiate intensively on behalf of the Irish people have now borne fruit.  

“The Heads of Government decision taken in the early hours of this morning will now be passed over to the Eurozone Finance Ministers who will decide on how best to proceed in Ireland’s case. Reaching an agreement to break the link between sovereign and bank debt means the Government has finally arrived at its desired destination in this regard.

“We are not out of the woods yet, however, and we still recognise the scale of the challenge of getting our people back to work. Today’s announcement is of extreme significance for Ireland and its people and goes a considerable way to strengthening the euro and moving forward, towards a stronger and more secure European Union.”