Governor Honohan at the Oireachtas Finance Committee
This post was written by Seamus Coffey
The opening address by Governor Honohan at today’s meeting of the Joint Oireachtas Committee on Finance, Public Expenditure and Reform is here. The transcript of the meeting will be available in due course. [UPDATE: The transcript is here.]
There are several topics briefly covered in the opening address. On the Promissory Notes he says:
… there has been a very intensive process of discussion and negotiation on this matter, which is one of the two main thrusts of the Government’s policy to have a euro area review of the indebtedness arising out of the banking crisis. There is considerable goodwill from all interlocutors in this process. Nevertheless, it has not been easy to find a generally acceptable solution. Taking into account both the statutory position and wider policy stance of the ECB, an initiative of this type will be novel and as such challenging. Using our knowledge of central banking law and practice, we have been working carefully to build understanding and confidence around a set of proposed transactions designed to deliver for Ireland, while not taking other decision makers too far out of their comfort zone. The ECB is an organisation that seeks to proceed as far as possible by consensus, and it is not surprising that this work has been taking quite a while. In fact, what we have designed is, I believe, largely in the interests of the eurosystem as a whole.
In the subsequent words of Governor Honohan it seems that any deal is not “done and dusted”.