Germans deal blow to Irish hopes on EU rescue fund

ATTEMPTS to reorganise the EU’s rescue fund were dealt a blow by the junior coalition partners in Angela Merkel’s government when they ruled out any changes as they fight to retain seats in pending regional elections.

The tough new stance by the Free Democratic Party is bad news for Ireland, which is hoping the interest rate on its bailout loan will be reduced and that loans could be used to buy back debt at a reduced rate.

Economics Commissioner Olli Rehn met the FDP leader Guido Westerwelle and party members in Berlin yesterday in an effort to have them change their new policy, but met with little success.