Specific reference to Irish debt sustainability should give our Government real bargaining power to get a better deal.

The Green Party welcomes the Euro Summit decision to allow direct funding from the European Stability Mechanism (ESM) for the re-capitalisation of European Banks. The deal will need to be approved by a two-thirds vote of the German Parliament this evening, which will require the support of the German Green Party.

Green Party Leader Eamon Ryan said: "I welcome the statement from Brussels and commend our Government and other European leaders for agreeing a new approach to our bank debt problems."

"While there are no details about the deal Ireland will get, the specific reference to our case should give our Government the leverage to put a large section of our own debt into a long-term ESM facility."

"Chancellor Angela Merkel played a political card at home of standing firmly against Euro bonds which allowed her to move at the last minute towards a much closer European Banking Union. What happened last night is a significant step towards a much more integrated Union," he continued.

"We have been working closely with our German Green colleagues on this debt issue and they have already come out in support of the use of the ESM to manage legacy banking debts. Across Europe this morning there is a sense that, while the crisis is far from over, perhaps the Union will after all be able to come back from the brink of financial collapse," concluded Eamon Ryan.

Speech by Green Party Leader Eamon Ryan to the German Green Party special convention on the Financial crisis – 24 June 2012. http://youtu.be/tuCFWaCCBFQ