TAOISEACH ENDA Kenny has said he is hopeful the emergency summit of EU leaders tomorrow will go some way towards securing agreement on reduced interest rates for bailout funds to Ireland.
Mr Kenny said his aim at the meeting would be to ensure that euro zone leaders would demonstrate to financial markets that countries in difficulty could return quickly to economic sovereignty.
“The issues that have been put on the table by Ireland in recent months – flexibility, overall pricing and interest rates – can be considered in that context.
“I hope decisions can be made on those issues, in part if not in full ,” he said.
Asked if the Government expected an interest rate cut at the meeting, the Taoiseach’s spokesman said the context of the issue had been widened from problems affecting peripheral countries to one affecting all European countries.
He said that given that context – and the fact that the meeting would be focusing on the challenges facing Spain and Italy - Mr Kenny had used the word ‘hopeful’ on Monday and again yesterday in relation to movement on the interest rate issue.
“We are actively chasing it down,” he said.
Minister for Finance Michael Noonan yesterday briefed Cabinet colleagues about the situation and the general approach that would be adopted by the Government delegation in Brussels.
The spokesman also confirmed there have been ongoing contacts between Irish and French officials on the rate issue this week.
Speaking in the Dáil yesterday Mr Kenny contended the general pricing from the EU stability mechanism fund was too high and that this situation needed to be dealt with at a European level.
He said that German chancellor Angela Merkel had pointed out there would not “one spectacular step” taken tomorrow.
Suggesting a more incremental solution, he said: “There will be, hopefully, a series of processes and measures taken which will lead to that situation”.
Mr Kenny said the desired outcome was a “controlled composed process of gradual measures”.
Fianna Fáil TD Michael McGrath asserted Ireland should not be a “passenger” at tomorrow’s summit.
Independent TD Shane Ross said the Government had a choice either to face the issue of default or be in denial. He said Mr Kenny’s approach sounded like a fudge.
