Labour pressure on ECB ‘could collapse talks on promissory notes’
It follows weekend reports that Labour leader Eamon Gilmore told European leaders that failure to reach a deal to reduce the €30bn burden could risk collapsing the Coalition.
His comments were reported to have been made at a private meeting with German chancellor Angela Merkel and others at an event in Chile last week, at which he publicly declared that failure to reach a deal would be “catastrophic”.
Michael Noonan, the finance minister, prefers “less pressure and more negotiation”, according to sources in his department.
There is concern a political game is being played by people who would seek to take the credit if a deal is reached before the Mar 31 deadline when the next €3.1bn instalment is due.
Informed sources said there was one particular sticking point in the talks with the ECB and work was under way to bring both sides closer together.
At this tense stage of the talks, “you have to be careful about how much pressure you put on”, said a source within the department, adding that “this sort of pressure is not helpful”.
Mr Noonan said the Government recognised the ECB’s independence.
“We feel we will get, in due course, an appropriate deal on the promissory note,” he said. “But people shouldn’t be trying to bring the thing forward to the present. Negotiations are always a process; we have about two months.”
Speaking in Limerick, he said the talks were separate to the stability of the Government: “I don’t see any threat to the coalition Government and I’m not too sure where the speculation is coming from.”
In Belgium, Taoiseach Enda Kenny remained optimistic of a deal and, when asked if failure to get a deal would collapse the Coalition, said: “The Government is very strong. We have a very strong working relationship.”
