Eurozone finance ministers to discuss role of ESM in recapitalising banks

A decision on whether Ireland can recoup some of the €32bn it put into rescuing its banks should be made this week when eurozone finance ministers meet in Luxembourg.

They will discuss the role of the European Stability Mechanism — the EU’s rescue fund — in recapitalising banks in a step towards preventing bank failures and rescues affecting the sovereign in future.

No firm decision has been made yet, according to a senior EU source, on the thorny issue of retroactive banks funding — which Ireland has been pushing for.