Ireland may face crisis election over EU ruling on Irish Water viability

A crisis general election would be on the cards if official fears in Brussels casting doubt on the viability of Irish Water are borne out by EU watchdogs.

A senior Cabinet source told the Irish Examiner the Government would not be able to continue in office if the Eurostat agency rules in April that the utility is not financially independent.

Ministers scrambled to downplay fears Irish Water could fail the market corporation test to be decided on by Luxembourg-based Eurostat in three months’ time, which would mean its borrowings would be included in official Government debt, thus putting proposed tax cuts in jeopardy.