Banking union will ‘spell end of bailouts’

If the EU banking union proposals are implemented in full then it will avoid governments having to bail out banks in the future, according to Gert Jan Koopman, deputy director general for state aid at the European Commission’s Directorate General for Competition.

Ireland was forced into a €64bn bailout of the banking system following the property market crash in 2008. It now owns AIB and Permanent TSB and has a 15% stake in Bank of Ireland.

The Government has submitted a restructuring plan to the European Commission for Permanent TSB to split it into a good bank/bad bank and a separate unit for its UK operations.