Eurobonds 'for discussion' at EU summit, says Kenny

Talks are underway in Brussels tonight at the informal dinner of heads of government hosted by Hermann van Rompuy, president of the European Council.

Speaking ahead of tonight's summit, the Taoiseach said Eurobonds will be on the table for discussion.

Mr Kenny said the ESM, the role of the ECB, leveraging the EIB and trade liberalisation and expansion would also be on the agenda.

"I see this as an opportunity not just to have the question of good budgetary rules examined here but to ally that a very strong growth agenda and that covers a very broad spectrum. We'll have a lot of views I think from different leaders this evening," Mr Kenny told reporters.

Of interest to Ireland, Mr Kenny said, was the issue of the ESM being used to capitalise banks.

"Clearly as the first country where the sovereign government borrowed money to recapitalise the banks - this didn't happen elsewhere - and clearly an issue like that would be in Ireland's interest and would be something we would be exceptionally interested in."

Mr Kenny also said the government would not support a financial transaction tax. "We do not support that where there would be a  disadvantage to our country."

MEPs meeting in Strasbourg today backed a proposal to introduce a tax on financial transactions across the European Union and  EU economics commissioner Olli Rehn said yesterday the tax had the potential to raise €57 billion in revenue that could be used for targeted investment.

Earlier today, the Tánaiste said the summit will give added urgency to the growth agenda for Europe but will not result in firm proposals at this stage.

Speaking in Brussels, Eamon Gilmore played down hopes of a concrete outcome from the summit but insisted the meeting would accelerate progress towards the tabling of growth proposals.

Asked whether Ireland would need a second bailout, Mr Gilmore insisted that the country was on track to re-enter the financial markets at the end of 2013 after the current bailout programme is completed.

He said Ireland had made its targets under the programme and was in discussion with the troika about ways its bank debt could be re-engineered to the benefit of the Irish taxpayer.

The Labour leader was speaking immediately after a meeting with EU economics commissioner Ollie Rehn and before entering a meeting of leaders of the Party of European Socialists grouping to which his party belongs.