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Merkel: Irish debt still on the agenda

Thursday, November 01 16:07:02

German chancellor Angela Merkel today said that Ireland's debts are still on the agenda and that the country should be helped by EU partners to return to financial markets in a "timely manner".

Speaking after a meeting with the Taoiseach this afternoon, the Chancellor said that the question of what might be done to improve the sustainability of Irish sovereign debt is to be determined by Eurozone finance ministers.

She said "we have to wait and see" the outcome of the talks but work is being carried out to look at specific Irish questions.

She described Ireland as "a shining example" of how the EU will emerge from this crisis "stronger than when it went in".

The Taoiseach said Dr Merkel had re-affirmed that Ireland is a special case in the Eurogroup of finance ministers. He said Ireland was seeking to return to private debt markets in a durable fashion once the bailout programme ends.

Mr Kenny said that the more clarity on how it would emerge would be helpful.

He said Ireland's priorities in its Presidency of the EU in the new year will be to focus attention on financial stability, and to promote jobs and economic growth.

The EU is looking at how the new bailout fund, the ESM, can be used to deal with banking industry problems in the eurozone.

The German government and its opposition leader have already ruled out using the fund for retrospective bank recapitalisations. Ireland argues that it is a special case, as it has already recapitalised its banks using borrowed money.