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Eamon Gilmore needs to show he has the support of the German Social Democrats for an Irish debt dealGreen Party Communications | 25.07.2012 | Back to News | News Archive
Eamon Gilmore needs to show that he has the support of the German Social Democrats for an Irish debt deal
As the Green Parties in Germany and Ireland agree on a common approach to the Euro crisis.
In the German Parliament last Thursday the leader of the Social Democrats Frank-Walter Steinmeier made it clear that his Party does not support the sort of banking measures that the Irish Government is looking for. In a debate on the allocation of funding to support Spanish banks he said 'The rescue of banks with the help of the ESM must not become a permanent solution. There will be no direct way from the rescue package for Spanish banks to a permanent recapitalisation of distressed banks, not with the Social Democrats'.'
Fourteen of his Party members voted against the support measures for Spain and he said that MPs in his ranks were 'totally unconvinced' about such deals. He asked 'how many rescue packages are we actually going to need?' and stated 'It cannot go on like this'.
By contrast, the Green group in the Bundestag called on the German Government 'to make direct payments to banks within the ESM possible, to brake the vicious circle of the crisis of the banks and national debts'.
The German and Irish Green Parties have engaged in a series of bilateral meetings in Berlin and Dublin over the last six months to establish a common policy position which would allow the Irish economy recover and help a wider resolution of the Euro crisis. There is clear support for the use of debt-for-equity swaps in operating Irish banks and for the lengthening of the repayment schedule on the promissory notes issued to the Irish Bank Resolution Corporation.
Green Party leader Eamon Ryan said today: "After the welcome breakthrough on our own debt situation at the last European Council, Tanaiste Eamon Gilmore acknowledged that he would have to talk to his Social Democrat colleagues in Berlin before he could be certain of the sort of deal we could attain. Following the comments in the German Parliament last week it is clear that he has failed to get such support. He needs to be clear about what his colleagues are saying to him about a possible Irish debt deal. Up to now the main problem in the German Parliament came from Government members adopting simple nationalist solutions to the crisis. The real problem now is that such populist thinking is taking hold among the Social Democrats. We need to know what exactly is the Social Democrat/Labour way, in Berlin as well as here at home."
"We welcome the consistent support of the German Green Party for a different policy approach to the flawed thinking coming from Angela Merkel. Since last November the German Greens have called publicly for some form of mutual assistance to resolve the banking difficulties in Ireland and Spain. They have taken the politically difficult decision to vote with the Government on a series of programmes providing financial support to other European Countries.That cross party support should have given the German Government the room it needs to stabilise the Euro, but the opportunity was wasted due to a lack of decisive action and clear messaging from the Government in support of the Union," he continued.
"Such uncertainty about Christian Democrat and Social Democrat support for the European project is now the critical factor in the worsening of the crisis. The Green Parties alone have given a consistent message about the need to protect the Euro and secure the Union. We have shown how that can be done without resorting to the simplistic austerity economics which has only made things worse. Loose talk about letting Greece go in the next few weeks, could see one country after another falling over a financial abyss of historic proportions. We need to work together in our political groupings across Europe to avoid that happening," concluded Eamon Ryan.
ENDS
