Kennny not contemplating collapse of euro despite warning from Ross

TAOISEACH ENDA Kenny said he did not contemplate the failure of the euro or the break-up of the euro zone.

Mr Kenny was responding to Independent TD Shane Ross who warned of “the ultimate collapse of the euro”, a situation that was unthinkable two or three months ago.

Mr Ross said the Government’s response was to say that a “financial firewall” was required.

“We have a problem,” Mr Ross added. “There is no financial firewall.” He said that if the current situation continued, very shortly every country would be running for its own lifeboats.

In that situation, which he hoped would not arise, he wanted to know what was Plan B for Ireland.

Mr Kenny said the very strong feeling at the meeting of the euro zone leaders was to make the political decisions necessary to deal comprehensively with the situation.

He agreed with Mr Ross that there was “a problem, absolute confusion and a great deal of uncertainty”.

The only unlimited firepower in financial terms was the European Central Bank, he said.

Mr Kenny said he had put a particular emphasis on not losing focus on countries such as Ireland, because the focus and energy had been on Spain and Italy, to a great extent, arising from the situation in Greece.

“We do not want to see countries that are being bailed out, but are actually making progress, being left behind,” said Mr Kenny.

“I think that is well recognised now.”

Mr Ross said British prime minister David Cameron had said his government had a contingency plan if the euro collapsed. He added that he was asking the Taoiseach to do likewise, even if he did not reveal the plans for understandable reasons.

“It is not necessarily likely to happen, but it is a real possibility,” he added.

Mr Kenny said that unlike what happened some years ago, he did not expect a decision would be taken at 2.30am, with only a few people present, if there was a crisis within the euro zone. “I would expect the leadership of the euro zone to call a special council meeting if there was to be a focus on a particular crisis or a particular aspect of a crisis,” he added.

Joe Higgins (Socialist Party) said the new jargon of “firewalls’ and “contagion’’ was reminiscent of US generals’ use of language to mask reality. Mr Higgins said “contagion’’ simply meant they could move to any country they wanted and ratchet up interest rates to increase private profit.

“The whole lot of you capitulate in front of them; what is that except a negation of democracy,” he added.

Mr Kenny said he did not share Mr Higgins’s view. “This country is a long-time member of the European Union and has been central to the European process since the 1970s,” he added.