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Growth, jobs key for Europe - Kenny

Taoiseach addresses Thomson Reuters Newsmaker event in London
Taoiseach addresses Thomson Reuters Newsmaker event in London

The Taoiseach has told an audience in London that he "absolutely rules out" the view that Ireland will need to seek a second bail-out.

Speaking at a Thomson Reuters Newsmaker event, Enda Kenny said Ireland was in a programme for two years, and was meeting its targets and commitments.

He said that if we came through the euro zone crisis politically, there were a lot of engines that would drive the Irish economy. Mr Kenny also told his audience Ireland would make a tentative return to the bond markets by next year.

Mr Kenny also said that public confidence in Europe and the euro would ultimately be determined by delivery on growth and jobs rather than institutional wrangling or complex legal or technical negotiations.

He said Europe must create an environment to foster a return to economic growth and ensure countries pursuing sound and sustainable economic policies are given funding certainty.

European leaders agreed to draft a new treaty to tighten budget controls in the euro zone last month and while this represents significant progress, it is not enough on its own, Mr Kenny said.

The Taoiseach's warning follows comments by Italian Prime Minister Mario Monti yesterday that it was vital markets recognise its economic policy progress soon given Europe's third-largest economy still face stubbornly high sovereign debt yields.

"Clearly we are not yet at a point where market confidence in the euro has been restored. We must ensure that more binding, durable and enforceable fiscal rules go hand-in-hand with funding certainty for countries pursuing sound and sustainable economic policies," Mr Kenny said in a speech.

"Beyond that, we absolutely must start creating the conditions and environment for a return to economic growth and job creation across the Union," he added.

The IMF warned last month that the prospects of a successful conclusion to Ireland's bail-out were fragile and said Europe could help Ireland's prospects by offering its lenders medium-term funding, help on deleveraging costs and possibly taking temporary equity stakes in them.

Ireland is in technical discussions with European officials to try to refinance the €47 billion cost of shoring up nationalised Anglo Irish Bank and Mr Kenny told the Dáil yesterday that the "intense" talks were ongoing.

Mr Kenny will meet British Prime Minister David Cameron later today. The UK's opt-out of Europe's fiscal compact was a blow to Ireland, which like London, opposes France's plan for a financial transaction tax.

EU summit brought forward to January 29 - Monti

A European summit in Brussels to tackle the debt crisis sweeping the euro zone has been brought forward to January 29, Italian Prime Minister Mario Monti said today.

"The European summit in Brussels has been brought forward to the 29 for technical reasons," Monti said in a speech to parliament.

EU officials had said earlier that the date could be changed because of a general strike called in Belgium on January 30.