Financial assistance to Ireland
SUMMARY OF:
Implementing Decision 2011/77/EU — EU financial assistance to Ireland
WHAT IS THE AIM OF THE DECISION?
It approved an economic adjustment programme for Ireland. This included a financial package of loans of up to €85 billion for 2010-2013 from a number of donors, including the European Union (EU).
KEY POINTS
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In December 2010, the EU agreed that Ireland required €85 billion in financial assistance between 2010 and 2013. The funding was provided by:
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The financial agreement set out in the economic adjustment programme for Ireland required its government to:
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strengthen and reform the banking sector;
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restore fiscal sustainability and reduce the country’s deficit to below 3% of gross domestic product (GDP) by 2015;
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implement labour market reforms to return to robust and sustainable growth.
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In December 2013, the assistance programme came to an end.
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Ireland is now subject to the EU’s post-programme surveillance (PPS). Under this, the European Commission, liaising with the European Central Bank:
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carries out regular visits to the country to assess its economic, fiscal and financial health;
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prepares half-yearly reports to monitor progress and determine whether further measures are needed.
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The surveillance will continue until Ireland has repaid at least 75% of the loans it received. Barring any early repayments, that requirement will be met by 2031.
FROM WHEN DOES THE DECISION APPLY?
It took effect on 10 December 2010.
BACKGROUND
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On 11 May 2010, the EU agreed to create a European financial stabilisation mechanism (Council Regulation (EU) No 407/2010). This enables the Commission to borrow on financial markets and lend the resulting funds to a beneficiary country requiring financial support.
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Ireland, faced with large external liabilities and severe economic strain, requested help from the EU and the IMF on 21 November 2010.
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The mechanism has been used to help Ireland, Portugal and Greece.
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For more information, see:
MAIN ACTS
Council Implementing Decision 2011/77/EU of 7 December 2010 on granting Union financial assistance to Ireland (OJ L 30, 4.2.2011, pp. 34–39)
Successive amendments to Decision 2011/77/EU have been incorporated in the original text. This consolidated version is of documentary value only.
RELATED ACTS
Council Regulation (EU) No 407/2010 of 11 May 2010 establishing a European financial stabilisation mechanism (OJ L 118, 12.5.2010, pp. 1–4)
See consolidated version
last update 22.01.2017
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