There is not enough competition in the banking sector to allow the banks to set their own fees and charges without the oversight of the Central Bank, according to a report by the Department of Finance.

European Stability Mechanism (ESM) funds should be used to recapitalise banks, including Irish banks, as part of an EU-wide Banking Union, IMF mission chief to Ireland, Ajai Chopra, told a conference in Dublin.

It is far, far too early to celebrate the announcement that the European Union is considering an extension of Ireland’s debt repayments scheduled over five years or more, but it may not be too early to hope this development means the tide may really be turning in our favour.

Cutting the minimum wage is back on the agenda of the IMF together with a raft of measures to cut at least €3.5bn off the budget for next year.

Under intense pressure from bailout creditors, Greek party leaders were seeking a long-delayed agreement on harsh cutbacks demanded to avoid looming bankruptcy, as a general strike disrupted public services nationwide today.

Debt talks vital to avoiding bankruptcy are at “a satisfactory level of agreement” but are being held up by a disagreement over drastic workplace reforms, A senior Greek official said today.

PRIME Minister George Papandreou appealed for unity from his own lawmakers yesterday to beat Greece’s debt crisis after two deputies quit and the IMF insisted there can be no back-sliding on agreed cuts.

FINANCE Minister Michael Noonan has refused to assure the public a forthcoming “jobs budget” will not include increased taxes or further cuts in spending.

PORTUGAL has vowed to “do all it can” to avert a bailout after Prime Minister Jose Socrates stepped down following a showdown with parliament over his minority government’s latest austerity plan.

SINN Féin leader Gerry Adams yesterday launched his new front bench pledging his party would strive to be the main opposition in the new Dáil.

MINISTER for Enterprise, Jobs and Innovation, Richard Bruton, said the Government would stand firm against any attempt by Europe to insist on a change in the 12.5% corporation profit tax as a condition for easing the terms of the €85 billion bailout.

A GOVERNMENT minister has said the burning of bondholders in the banks is still a possibility despite Taoiseach Enda Kenny recently appearing to rule it out.

Europe Correspondent Ann Cahill looks at the busy ‘to do’ lists of the new ministers which are imbued with the responsibility of IMF-EU conditions.

VOTERS in Cork South Central are pessimistic about the chances of renegotiating the terms and conditions of the EU-IMF bailout.

IRISH politics is not as exciting as that of Italy, with Silvio Berlusconi and his antics at the centre.

THE response to Portugal’s attempt to raise €1.25 billion from the markets today will signal whether or not contagion has been contained in the euro area, but many believe it is only a matter of time until Lisbon looks to the EU for help.

The European Commission has this afternoon moved to clarify reports that Ireland will face additional charges for securing loans from the EU and IMF.

THE contract being negotiated by the Government with the EU, ECB and IMF will bind whatever government is in power, since it is an agreement with the state, the European Commission has confirmed.

Talks between the EU, the IMF, the European Central Bank and the Government are resuming in Dublin today.

BRIAN LENIHAN last night admitted Ireland would need an EU-IMF bailout after the Government spent the best part of a week firmly downplaying the possibility.