Taxpayers to save up to €1.5bn in interest

TAXPAYERS will save up to €1.5 billion a year in interest payments on the bailout funds from the EU — although the savings will not mean an easier budget this year.

The European Commission, which is contributing one third of the €67.5bn loan, agreed to cut the interest on what it pays for the money when it borrows it on the markets.

This follows the decision in July by the eurozone to cut the cost of loans totalling €17.7bn made through the European Financial Stability Facility (EFSF) following a long battle over demands to raise the corporation tax rate.