A spokesman for the German finance minister has played down hopes of a deal on Ireland’s bank debt.
The Taoiseach raised the issue with the German Chancellor after the fiscal treaty referendum – but the Irish Times quotes a spokesman for Wolfgang Schauble as saying they see ‘no need for movement’ at the moment.
Meanwhile, a ratings agency says the timing of Ireland’s return to the markets is still unclear, despite Ireland voting ‘yes’ to the treaty.
Finance ministers from the Group of Seven economic powers are expected to hold a conference call later today, amid worries that some of Spain’s banks could collapse without direct aid.
So far Germany has resisted allowing funds from the European Stability Mechanism, to be lent directly to banks rather than via governments.
The Turmoil in the Eurozone is continuing to create havoc on the markets.
Investors are worried that European officials are not addressing the crisis fast enough.
