AN BILLE UM AN SSRA COBHSAOCHTA EORPACH, 2012 EUROPEAN STABILITY MECHANISM BILL 2012 EXPLANATORY MEMORANDUM Purpose of Bill The

he purpose of the Bill is to further facilitate, in the public interest, the financial stability of the European Union by establishing a permanent stability mechanism to assume the tasks of the EFSF and the EFSM in providing, where needed, financial assistance to Euro Area Member States. Section 1 provides the definitions to the legislation. Section 2 provides the Minister for Finance with the authority to make payments to the ESM to cover Irelands contribution to our share of the authorised capital stock of the ESM in accordance with the Treaty. Section 3 provides for payments to the ESM in respect of Irelands contribution to the ESMs authorised capital stock to be paid out of the Central Fund. This provision caps payment at 11,145,400,400 being Irelands share of the authorised capital stock as set out in Annex II of the ESM Treaty. Section 4 provides that any monies received from the ESM be it in the form of dividends or otherwise be paid into the Exchequer. Section 5 provides that the ESM be immune from legal proceedings and enjoy inviolability in respect of official papers and documents. Section 6 provides that the ESM shall be exempt from the requirement to be authorised or regulated by the Central Bank of Ireland. Section 7 provides that the ESM be exempt from taxation; income tax, corporation tax, capital gains tax and any other taxation provided for by Article 36 of the ESM Treaty. Section 8 provides that the Minister for Finance shall arrange for six monthly reports on payments made to the ESM by Ireland and any monies received by Ireland from the ESM to be laid before Dil ireann. 1

Section 9 provides that expenses incurred by the Minister for Finance in the administration of this legislation shall be paid out of monies provided by the Oireachtas. Section 10 is a standard section defining the short title of the Act. The Schedule provides for the text of the Treaty in the Irish and English language. Department of Finance, May 2012.

Wt. . 629. 5/12. Clondalkin Pharma and Healthcare. (X59444). Gr. 30-15.