Progress or pain? Government criticised for not seeking bank debt write-down

THE Government has been criticised for failing to seek a further write-down on Irish banking debt which many suggest would have eased the burden on taxpayers ahead of a tough budget.

Speaking after EU leaders reached a deal which will see a 50% write-down on Greek banking debt and a mechanism to boost the eurozone’s main bailout fund to €1 trillion, opposition parties have questioned why the Government shied away from putting Irish banking debt on the agenda at the summit.

It came hours before French President Nicolas Sarkozy cut his country’s growth forecast for 2012 to 1% from 1.7%. His government is to unveil an austerity plan to cut between €6 billion and €8bn from state spending.