Complacency on eurozone rescue threatens Ireland’s bank debt deal

A swift resolution of Ireland’s banking debt woes appeared to be receding, leading EU president Herman Van Rompuy to warn that leaders are losing their sense of urgency on the euro.

Tánaiste Eamon Gilmore said he would be concerned if there was any backsliding on the commitment made to Ireland in June to help make the debt more manageable.

But gloom appeared to return to the euro yesterday, with German business sentiment falling for a fifth month to its lowest since early 2010, compounded by rumours about Spain and Greece needing further bailouts.