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Angela Merkel and Enda Kenny in Dublin earlier this year Laura Hutton/Photocall Ireland

After opening a Penneys, Enda Kenny spoke to his 'good friend' Angela Merkel about bank debt

The Taoiseach also spoke at an economic conference on his whistle-stop tour of Berlin today.

TAOISEACH ENDA KENNY discussed Ireland’s bank-related debt with his “good friend” German Chancellor Angela Merkel in Berlin today.

Speaking to an audience from the German business community at the Wirtschaftsrat Economic Conference in the capital, Kenny said: “Ensuring the sustainability of Ireland’s economy remains as important as ever – the Chancellor and I discussed this again this afternoon, including in relation to Ireland’s banking-related debt.”

Kenny said assistance from Ireland’s European partners would eventually deliver for those partners in return and noted that the country’s economic recovery remains “fragile”.

The coalition has been pushing for retroactive recapitalisation of its banking system in the wake of a historic EU deal – hailed as a “game changer” – in June 2012 to break the link between sovereign and bank debt.

Any retrospective deal for Ireland, which ploughed €64 billion into its banking sector after the 2008 guarantee, is contingent on the establishment of a banking union but several senior EU figures have suggested any deal is unlikely.

In his speech today Kenny sought to woo a crowd of “job-creators, innovators, exporters across the world”, noting that Ireland has “many business relationships” with Germany and citing the fact that the Volkswagen is currently the best-selling car in Ireland.

He said: “Already, therefore, Germany and Ireland have a real partnership, a win-win one between our two economies. Almost €11 billion in goods are exchanged between us annually, along with a further €11 billion in services. And we can do even better, with your help.”

He told the audience about the “recent story of Ireland” and said that the turnaround continues “to reduce that remaining fragility”.

“A story of a serious economic disaster with massive consequences for the Irish people. A story which for a time could have had serious implications for the euro. And a story which ultimately involved the Irish people responding themselves decisively, quickly and through radical action and reform.”

He praised the decision of German bank KfW to back the establishment of the new Strategic Banking Corporation of Ireland which will lend to small and medium enterprises in Ireland.

Kenny said definitively that Ireland will reach its 3 per cent deficit to GDP ratio target next year and get rid of the deficit altogether by 2018.

He also reiterated the target of “eliminating unemployment” by 2020.

Earlier: Our Enda is a bit of a superstar in Germany

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    Mute Gert McNulty
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    Jul 12th 2022, 3:49 PM

    Oil prices plunged……. lets see it at the pumps

    216
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    Mute mark daly
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    Jul 12th 2022, 4:06 PM

    @Gert McNulty: 2.02 here for diesel in Dundalk. Think I seen it at 1.98 at some places.

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    Mute Dave Barrett
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    Jul 12th 2022, 4:13 PM

    @Gert McNulty: won’t happen. MM and LV making to much money on taxing petrol. Just stay hard pressed, head down and don’t question. That’s what they like.

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    Mute The next small thing
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    Jul 12th 2022, 5:03 PM

    @Gert McNulty: the euro has plunged in value against the dollar (of which oil is bought and sold) so this will have a negative effect on the prices at the pump, fall in oil prices will cancel this out somewhat.

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    Mute JillyBean
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    Jul 12th 2022, 5:24 PM

    @Gert McNulty: WE wont see todays oil price for another few weeks yet but hopefully it will come to fruition at the pumps

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    Mute Gert McNulty
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    Jul 12th 2022, 7:42 PM

    @JillyBean: its funny. It goes up aful quick the other way !!

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    Mute Buzz Killington
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    Jul 12th 2022, 5:14 PM

    On the plus side, it will encourage American tourists to spend more. On the negative side, there’ll be more Americans visiting here.

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    Mute James Moran
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    Jul 12th 2022, 5:25 PM

    @Buzz Killington: lol

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    Mute John Kavanagh
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    Jul 12th 2022, 3:21 PM

    Already here

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    Mute Paul O Meara
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    Jul 12th 2022, 4:14 PM

    People don’t realise this is big news

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    Mute Mike Trant
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    Jul 12th 2022, 4:51 PM

    I keep an eye on about 4 different currencies including the dollar because I travel quite a bit with the job.
    The only thing I see is a strengthening USD. The Euro hasn’t really changed against the others at all.

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    Mute Ciaran
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    Jul 12th 2022, 4:05 PM

    A European wide recession ?? Let’s blame FF FG and the Greens of course ..

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    Mute Stephen Walshe
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    Jul 12th 2022, 6:47 PM

    @Ciaran: how about SF they definitely are to blame with their expensive dinners

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    Mute Eugene H. Krabbs
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    Jul 12th 2022, 3:20 PM

    Arrrgghh, money

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    Mute The Bolt
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    Jul 12th 2022, 3:44 PM

    If raising interest rates in the states is having the slowing effect, why is Europe not raising theirs?

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    Mute JedBartlett
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    Jul 12th 2022, 3:49 PM

    @The Bolt: They are.

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    Mute The Bolt
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    Jul 12th 2022, 4:00 PM

    @JedBartlett: Kind of want to get a move on wouldn’t they? There’s obviously more pain to come the longer they leave it, no?

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    Mute Godknows
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    Jul 12th 2022, 8:08 PM

    US started the war, now the EU is the victim

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    Mute Roger Bond
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    Jul 12th 2022, 8:40 PM

    @Godknows: The US never starts a war near the US.
    The people of the US would never tolerate fighting a war near its own territory.

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    Mute Don Hogan
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    Jul 12th 2022, 9:31 PM

    @Roger Bond: That’s because we all have guns.

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    Mute Godknows
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    Jul 12th 2022, 10:06 PM

    @Roger Bond: now we will see American will try to sell gas to Europe this winter

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    Mute Steven C. Schulz
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    Jul 12th 2022, 10:10 PM

    @Godknows: Hmm. And here I thought Russia started the war. Must be mistaken. Surely no one would be Putin’s lap dog.

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    Mute Godknows
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    Jul 12th 2022, 10:37 PM

    @Steven C. Schulz: Wake up!

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    Mute Adam Hernes
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    Jul 13th 2022, 1:08 PM

    This makes European exports to USA so much cheaper and more competitive to other products and markets. This is only the problem with imports.

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