Gilmore and Kenny call for debate on €1.3bn Greek loan

EUROPEAN RATING agencies were sharply criticised by Labour leader Eamon Gilmore.

Mr Gilmore and Fine Gael leader Enda Kenny called for a Dáil debate on the State’s €1.3 billion loan to Greece.

The Labour leader said that a proposal for an independent European rating agency would be discussed at today’s heads of government meeting.

“At the moment, we are in the hands of three ratings agencies, Standard Poor’s, Moody’s and Fitch,’’ he added.

“These are three private companies that have the power, through their ratings, to decide the future and the fortunes of national economies.’’ Labour’s Michael D Higgins remarked that the agencies had “a scurrilous record’’.

Mr Gilmore said there were serious economic circumstances in Europe, currently concentrated in Greece. At the heart of those problems, decisions were being made by private ratings agencies that were determining the credit rating of individual countries.

“The same ratings agencies have a very poor record and have got it wrong repeatedly before,’’ he added.

Calling for an agreed national position on the matter, Mr Gilmore said it would only be possible if the Government was prepared to discuss the issue in the Dáil in a mature, reasoned way.

Mr Kenny said that Fine Gael had already requested a series of Dáil statements on the issue.

“As we speak, there is great tension across Greece as its parliament debates the austerity programme that will have to be implemented in some measure if the country is to abide by the rules and regulations,’’ he added.

Mr Kenny claimed that the Government did not want to debate any issues which were seen to be complex or difficult or could cause trouble.

He suggested a 90-minute or two-hour discussion on the issue in advance of today’s meeting.

Tánaiste Mary Coughlan said the legislation would come before the Government next week and would be debated in the House the following week.

In the interim, Department of Finance officials and the Minister would brief Opposition spokespersons in preparation for that discussion, she added.

Ms Coughlan said that following a request from the Greek authorities, the European finance ministers agreed to activate a stability package for Greece.

“That is designed first and foremost to safeguard the financial stability of the EU and Greece,’’ she added.