Concerns over EU ‘game changer’ deal

Concerns have been raised over the potential of the latest EU agreement to reduce Ireland’s debt to manageable levels and pave the way for a return to sovereign bond markets in 2013.

At the EU Council summit which concluded last Friday, heads of states agreed that the European Stability Mechanism (ESM) would be allowed directly recapitalise banks.

The move was hailed as a game changer, particularly here, as it was seen as the most effective way of breaking the link between sovereign debt and the banking system.