ESM will be allowed to buy Irish banks

The ESM rescue fund will be allowed to buy Ireland’s banks, allowing the State to recoup some of the money pumped into them.

However, taxpayers will continue to be liable for unforeseen bank debts for a period of years afterwards.

This is according to plans being drawn up to allow the ESM to directly recapitalise banks — the details of which are hotly contested by the German, Dutch, and Finnish governments, and which will be discussed by eurozone finance ministers meeting on Monday.