Connaughton welcomes breakthrough on decoupling of bank debt

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News that a policy change was agreed in the early hours of this morning in Brussels which could decouple bank debt from national debt, was welcomed this morning by Paul Connaughton T.D.

“This is a very significant breakthrough and should result, over time, in a significant easing of the debt burden on the Government.  The move will also see the creation of a single supervisory body for banks in the Eurozone, which should ensure that the banking collapses of recent years are not repeated.

“Taoiseach Enda Kenny deserves to be congratulated for his role in securing this significant policy change, because it will have real and measurable benefits for all Irish taxpayers and will help the country recover economically much earlier than would have been possible otherwise.

“Five out of the seventeen Eurozone countries are currently in a bailout situation and thus this deal will have major repercussions across Europe and will help restore confidence in economies large and small.

“It will take some time for the necessary mechanisms to be put in place and the country’s debt remains significant, but last night’s breakthrough is a very significant policy change and all involved must be commended for their efforts.”