Greece has to reach a deal, says Taoiseach

Taoiseach Enda Kenny said Greece has a responsibility to conclude a deal with its international creditors as he warned it was getting “very close to a real crisis time”.

Mr Kenny made the remarks ahead of an emergency summit of eurozone leaders on Monday to try and avert a Greek default.

Speaking at a summit of the British-Irish Council in Dublin yesterday, Mr Kenny said: “Obviously we have had lots of comment surrounding this issue but it’s now getting very close to real crisis time here.”

He said he was not sure what the outcome of Monday’s talks will be. They come after finance ministers could not find an impasse to the Greek loan talks this week.

Mr Kenny said he had previously made the point to Greek Prime Minister Alexis Tsipras that Ireland has suffered €25bn in cutbacks since 2008 and a 13% cut in public service pay as part of the bailout.

“The leaders of the European Council in its entirety have been very much focused in wanting this to succeed. But it’s exceptionally difficult and obviously the responsibility of concluding a deal will rest with the representatives of the Greek government,” he said.

Asked whether a Greek default on its loans could have knock-on effects for Ireland, Mr Kenny said the National Treasury Management Agency and Central Bank were advising the Department of Finance on any consequences.

The immediate effect of a Greek default would be negligible, department sources said, as Ireland’s exposure to Greek banks is minimal. The problem is the secondary, greater impact on the eurozone, sources said.

Mr Kenny said there could be a “very rapid spiralling” set of consequences if Athens defaults.

Meanwhile, Martin McGuinness, the North’s deputy first minister, refused to deny or confirm reports that he was considering resigning if London moves to take back power over welfare budget cuts.

The Sinn Féin MP said the crisis in the North had nothing to with republicanism or unionism but was about the economy, with further “eye-watering cuts” now on the horizon.

First Minister and Democratic Unionist Party leader Peter Robinson said that unless last December’s Stormont House Agreement is implemented, there would be “no future government”. The agreement deals with outstanding issues relating to the peace process and cuts to the North’s budget.

A row between the DUP and Sinn Féin over the welfare cuts has left a hole in the North’s budget.

Meanwhile, the summit also discussed Britain’s plans for its EU membership referendum. Mr McGuinness said Britain’s with- drawal from Europe would be a “hammer blow” for the North and Ireland overall.

Scottish First Minister Nicola Sturgeon said a British exit would affect jobs and investment in Scotland.

She agreed to set up a ‘Scottish Hub’ in the British embassy in Dublin to enhance relations with Edinburgh on trade and investment.