The Taoiseach says events in Brussels overnight represent a ‘seismic shift’ in European policy.
Politicians and officials agreed that the ESM would be used to lend directly to banks without adding to a country’s sovereign debt.
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The change will apply to Spain when it agrees to its banking bailout, but Ireland is expected to get equal treatment after that.
Work is to begin now on how the agreement can be used to formulate a deal on Ireland’s banking debt.
