Kenny plans to banish European ‘suspicions’ about Ireland

FINE Gael party members unanimously backed the formation of a Government with Labour, as incoming Taoiseach Enda Kenny stressed that he wanted to banish any suspicions about Ireland in Europe.

Mr Kenny also dismissed suggestions that the joint-party agreement was little more than a continuation of policies formed by the outgoing government.

A three-hour meeting of party parliamentary members in central Dublin heard questions raised about the draft programme, as well as the five days of negotiations that had taken place with Labour.

Senior party TDs Michael Noonan, Phil Hogan and Alan Shatter — members who had negotiated with the Labour side — spent the afternoon outlining the agreement to 86 of the party’s TDs, senators and MEPs.

While no actual vote took place on the agreement, all members there backed it. Speaking afterwards, surrounded by smiling party members in Dublin’s Shelbourne Hotel, Mr Kenny denied the agreement was a rehash of the outgoing Fianna Fáil/Green Party Government’s four-year plan.

He also said: “We are constrained by the EU-IMF deal. But what we do intend to do is in the first 100 days is to introduce a jobs budget with a particular focus stimulating our national economy here, which we believe will restore hope and confidence to people.”

The make-up of ministers and Cabinet had been decided, he added, and would be revealed when the Government officially took office on Wednesday.

Key issues including the stress-testing of banks (expected to be finished later this month), negotiating the EU-IMF deal and a eurozone summit in Brussels this Friday lay ahead for the new Government, warned Mr Kenny.

“We have never made anything else but the truth that we face very challenging times here and that the room for manoeuvre is very limited.

“We want to rebuild our reputation here and abroad.

“There are suspicions about Ireland in Europe.

“We want to banish those suspicions by telling the truth to our colleagues.

“We’ve made it perfectly clear that we want to pay our way and play our part.

“But there’s an urgency about this, that the outgoing Government had become too stale, too out of touch and too removed,” he added.

Mr Kenny also admitted that despite Fine Gael pledges during the election campaign, the issue of ‘burning’ bondholders in relation to bank debt was for the moment off the agenda in the new programme. “Arising from concerns in Europe about burden-sharing, as it is called — if that’s off the agenda from a European perspective, we want to see and have put forward views as to where other flexibilities on the other side can take place,” he said.

The incoming Taoiseach added: “We look forward to a formation of a Government on Wednesday which will give a stable and strong Government to Ireland and its people, which will get on with restoring our reputation both at home and abroad.”