This document is an excerpt from the EUR-Lex website
Document 02011D0077-20131024
Financial assistance to Ireland
- Date of last review:
- 23/01/2017
- Initial creation date:
- 23/01/2017
- Summary code:
-
- 14.07.03.00 Financial assistance in EU countries
- EUROVOC descriptor:
- Directory code:
- Summarised document(s):
- Author:
- Publications Office of the European Union
- Responsible entity(ies):
- Publications Office of the European Union
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
- In December 2010, the EU agreed that Ireland required €85 billion in financial assistance between 2010 and 2013. The funding was provided by:
- EU: €22.5 billion through the European financial stabilisation mechanism (EFSM) and €17.7 billion through the European Financial Stability Facility;
- bilateral loans: €4.8 billion — from the UK (€3.8 billion), Sweden (€0.6 billion) and Denmark (€0.4 billion);
- International Monetary Fund (IMF): around €22.5 billion;
- Ireland: €17.5 billion from its cash reserve and national pensions reserve fund.
- The financial agreement set out in the economic adjustment programme for Ireland required its government to:
- strengthen and reform the banking sector;
- restore fiscal sustainability and reduce the country’s deficit to below 3% of gross domestic product (GDP) by 2015;
- implement labour market reforms to return to robust and sustainable growth.
- In December 2013, the assistance programme came to an end.
- Ireland is now subject to the EU’s post-programme surveillance (PPS). Under this, the European Commission, liaising with the European Central Bank:
- carries out regular visits to the country to assess its economic, fiscal and financial health;
- prepares half-yearly reports to monitor progress and determine whether further measures are needed.
- 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 .
BACKGROUND
- On , 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.
- Ireland, faced with large external liabilities and severe economic strain, requested help from the EU and the IMF on .
- The mechanism has been used to help Ireland, Portugal and Greece.
- For more information, see:
- ‘The Economic Adjustment Programme for Ireland’ on the European Commission's website
- ‘Post-Programme Surveillance for Ireland’ on the European Commission's website.
MAIN ACTS
Council Implementing Decision 2011/77/EU of on granting Union financial assistance to Ireland (OJ L 30, , 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.
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