EMC meets to discuss implications for Ireland in case of ‘Grexit’

A Government statement said the Economic Management Council (EMC) met on Monday evening to discuss "developments in Greece and across the euro zone".

“During the meeting they received briefings from the Governor of the Central Bank Patrick Honohan and Cathal Kelly of the NTMA.

“The meeting took note of the calm in the Irish financial markets. The Government intends to keep developments in Greece under review.”

The EMC is a powerful Cabinet subcommittee at which Taoiseach Enda Kenny directs the thrust of policy with Tánaiste Joan Burton, Minister for Finance Michael Noonan and Minister for Public Expenditure and Reform Brendan Howlin.

Asked earlier on Monday what the EMC hoped to achieve, Ms Burton said it would "look at what the implications obviously are, if any, for Ireland".

She said the Government was keeping “a very close watch” on events in Greece.

“Clearly with the government of Greece they’ve a particular negotiating stance but I think I speak for everybody involved in Government in that we would like to see Greece having a successful outcome and be able to remain in the Eurozone.”

Ms Burton said it was critical to arrive at a situation with an agreed outcome, which allowed Greece to remain a member of the euro zone.

She said all the Greek politicians involved had indicated they wanted to stay in the euro zone.

“I honestly think that would probably be a very good outcome for Greece but they have indicated at the weekend that they now have a referendum on Sunday, and essentially that seems to be in or out,” she said.

“In terms of the development of the euro zone and the support to countries like Greece, I certainly hope that a resolution is possible.

“The differences between the two parties in terms of amounts is relatively small. It really is in terms of principle of repaying debt. Obviously over a very long period of time Greece has had significant reductions of interest rates,” she said.

Ms Burton said a lot more detailed negotiations were required.

“I would certainly like to see Greece and particularly the people of Greece get a deal that’s good for them and that helps to restore the economy.”