Lucinda Creighton warns Ireland could need access to ESM next year
MINISTER of State for European Affairs Lucinda Creighton has warned that Ireland could need access to the permanent bailout fund or European Stability Mechanism and there is no guarantee we can re-enter the bond markets next year.
She was speaking at an event designed to encourage women to vote Yes to the fiscal treaty referendum later this month.
For the years 2014 and 2015 Ireland will have a funding gap of €36bn, which she described as “pretty immense.”
While the Government’s aim is to return to the open markets to borrow in 2013, this may not be possible.
"But as every day goes by, and let’s be honest about this, the situation in Greece, the situation in Spain, with all of the uncertainties throughout the euro zone, it makes it much more difficult for that to become a reality," she said.
"So there is a possibility that we would not be able to access the markets in 2013 and we would face a funding cliff in 2014.
“That’s quite a strong possibility."
She described the ESM as"the only show in town".