Failure to deliver a deal on the Anglo debt will impact badly on public sector pay, a Government minister has admitted.
Labour health junior minister Alex White said there was a “huge amount riding” on the Coalition’s ability to secure agreement with the ECB before the next promissory payment of €3.1bn is due at the end of the month.
However, Mr White refused to be drawn on suggestions within Labour that failure to cut a deal could trigger a general election.
Mr White said that not getting an agreement would herald major problems in negotiating a Croke Park II settlement with public sector unions.
“It will be more difficult to persuade people to take further hits in terms of their living standards, on their pay, and so on, if we don’t get a deal,” he told RTÉ.
Mr White said getting a deal is “indispensable” to the country’s recovery.
The warning came as Labour Senator John Gilroy predicted a snap general election would happen if an agreement is not secured with the ECB.
The senator tweeted: “I think there will have to be a general election if promissory notes are to be paid.”
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