Coveney: Cypriot-style raid on savings will never happen here

A Cypriot-style raid on bank savings will never happen in Ireland, ministers have insisted.

Opposition parties greeted the pledge with scepticism as they accused the Government of undermining Ireland’s bid to get a bank debt write-down by agreeing to the initial Cypriot move to impose a levy on savers.

Standing in for the Taoiseach at Leaders’ Questions in the Dáil, Agriculture Minister Simon Coveney promised a Cypriot-style levy would not be attempted in Ireland under any circumstances.

“Let me give an absolute guarantee on behalf of the Government that under no circumstances will this Government look to introduce a Cypriot-style levy on deposits for any purposes in terms of raising money.

“I have spoken to the finance minister about this and I am clear as crystal that we will not be targeting bank deposits for any purposes as a Government,” Mr Coveney said.

Fianna Fáil’s finance spokesperson Michael McGrath criticised the Government for agreeing to the initial deal that would have punished Cypriot savers as part of the proposed bailout deal.

Mr McGrath said it was essential that savers remained confident that monies lodged in banks would be guaranteed under all circumstances.

Fianna Fáil insisted that the European Stability Mechanism (ESM) should be used to resolve the Cypriot debt crisis.

The party called on Mr Noonan to convene an emergency meeting of the Eurogroup to deal with the unfolding problem.

Sinn Féin’s finance spokesman Pearse Doherty was also strongly critical of the Government’s role in what he called the “blackmail” of Cyprus by “Brussels bullies”.

Mr Doherty warned that by backing the original proposals to target Cypriot savers, the Government had undermined Ireland’s case for a write-down on its bank bailout debt.

The TD said that by not insisting on discrimination by Brussels on the sovereign and banking elements of Cypriot liabilities, the Government had damaged a key plank of its own case for the EU to compromise with Ireland on the bank bailout debts.

Mr Coveney countered by accusing the opposition of being “irresponsible” for trying to scare savers.

The minister also said that the idea for the levy had emerged from the Cypriot government and had not been imposed on them by the eurozone.