Ireland’s Catch-22 is a dilemma for EU

We’re in a debt crisis but, apparently, don’t need the cash, and investors are not happy about the plan to spread the burden, writes Europe Correspondent Ann Cahill.

FINALLY after 13 days of uninterrupted panic about Irish government debt, the markets retreated yesterday and the cost of holding our debt dropped a little.

The figures for our debt and borrowing have not changed. The only thing that did change was that political leaders made statements clarifying Ireland’s position that the country has not applied for a bailout, that the EU is willing to lend to them if required, that the fund is ready and, most importantly, that debt holders will not lose money.