Council Implementing Decision of 30 May 2011 amending Implementing Decision 2011/77/EU on granting Union financial assistance to Ireland (2011/326/EU)

Article 1 U.K.

Article 3 of Implementing Decision 2011/77/EU is amended as follows:

(1)

in paragraph 5, point (a) is replaced by the following:

‘(a)

take action to ensure that domestic banks are adequately capitalised in the form of equity, if needed, so as to ensure that they respect the minimum regulatory requirement of a 10,5 % core tier 1 capital ratio for the entire duration of the EU financial assistance programme, while deleveraging towards the target loan-to-deposits ratio of 122,5 % by end-2013;’;

(2)

paragraph 7 is amended as follows:

(a)

in point (b) the following sentence is added:

‘In consultation with the Commission, the IMF and the ECB, Ireland may introduce budgetary changes to the above specified measures to fully realise efficiencies that are to be identified by the ongoing Comprehensive Review of Expenditure and the priorities of the Programme for Government, consistent with the overall objective of ensuring that the budget for 2012 yields a fiscal consolidation of at least EUR 3,6 billion;’;

(b)

point (e) is replaced by the following:

‘(e)

the adoption of measures reinforcing a credible budgetary strategy and strengthening the budgetary framework. Ireland shall adopt and implement the fiscal rule that any additional unplanned revenues in 2011-2015 will be allocated to deficit and debt reduction. Ireland shall establish a fiscal advisory council to provide an independent assessment of the government’s budgetary position and forecasts. Ireland shall adopt a fiscal responsibility law introducing a medium-term expenditure framework with binding multi-annual ceilings on expenditure in each area. This shall be made taking into account any revised economic governance reforms at Union level and build on reforms already in place;’;

(c)

point (g) is replaced by the following:

‘(g)

the recapitalisation of the domestic banks by end July 2011 (subject to appropriate adjustment for expected asset sales in the case of Irish Life & Permanent) in line with the findings of the 2011 PLAR and PCAR, as announced by the Central Bank of Ireland on 31 March 2011;’;

(d)

point (l) is replaced by the following:

‘(l)

enhancing competition in open markets. To this end, legislation shall be reformed to generate more credible deterrence by ensuring the availability of effective sanctions for infringements of Irish competition law and Articles 101 and 102 of the Treaty as well as ensuring the effective functioning of the Competition Authority. In addition, for the duration of the programme, the authorities will ensure that no further exemptions to the competition law framework will be granted unless they are entirely consistent with the goals of the Union financial assistance programme and the needs of the economy;’;

(e)

the following points are added:

‘(n)

the deleveraging of the domestic banks towards the target for loan-to-deposit ratios established under the 2011 PLAR;

(o)

the preparation of a plan to underpin the solvency and viability of undercapitalised institutions in the credit union sector, including by granting the Central Bank of Ireland the necessary powers to promote a higher degree of consolidation of the sector through mergers where appropriate, with government financial support if warranted;

(p)

the submission of legislation to the Oireachtas to assist the credit unions with a strengthened regulatory framework including more effective governance and regulatory requirements.’;

(3)

paragraph 8 is amended as follows:

(a)

in point (a), the following sentence is added:

‘In consultation with the European Commission, the IMF and the ECB, Ireland may introduce budgetary changes to the above specified measures to fully realise efficiencies that are to be identified by the ongoing Comprehensive Review of Expenditure and the priorities of the Programme for Government, consistent with the overall objective to ensure that the budget for 2013 yields a fiscal consolidation of at least EUR 3,1 billion;’;

(b)

the following point is added:

‘(c)

the deleveraging of the domestic banks towards the loan-to-deposit ratio targets established under the 2011 PLAR.’.