Talks to avert state’s slide into insolvency

HIGH-LEVEL talks to make sure the banks do not bring down the state will come to a head over the next few days as the bank stress tests are finalised.

Irish experts want to change some of the banking elements of the austerity pact and are working to convince the ECB, the European Commission and the IMF (the “Troika”) to agree to them. They see it as a possible “game changer” for the country if they can persuade them to accept the changes.

The Government sees it as a delicate balance to ensure the country does not end up with strong banks, and the state heading for the rocks.