German politicians recognise that a collapse in Cyprus’s banking industry would pose a threat to eurozone stability, an ally of Chancellor Angela Merkel said, suggesting that Germany won’t block a bailout package.

The Taoiseach will hold crisis talks with German chancellor Angela Merkel following chaos and confusion over a bank deal on legacy debt.

A BOTCHED sale of German bonds rang alarm bells in Berlin yesterday, with opposition MPs accusing Angela Merkel’s government of failing to spell out the true risks of the euro debt crisis to Germans.