Taoiseach may challenge high charge for bailout

TAOISEACH Brian Cowen may be encouraged to raise the issue of the high interest rate Ireland is being forced to pay for the EU/IMF loan at today’s summit in Brussels.

Mr Cowen is expected to tell his fellow EU leaders that Ireland is happy to change the treaty to allay German fears over lending to other eurozone countries. But, at Germany’s insistence, any countries tapping the bailout must pay penal interest rates, and this also applies to Ireland.

As a result although the European Commission and the European Stability Fund Mechanism can borrow on the markets at less than 3%. Ireland has to pay more than 5%, plus a handling fee.