No vote a ‘major setback’ for bank debt deal

Efforts to secure a better deal on the country’s bank debt would suffer a major setback if voters reject the EU fiscal compact, the Government has claimed.

Senior ministers have hit back at attempts by businessman Declan Ganley to link a no vote in the referendum with an easing of bank debt.

Simon Coveney, director of Fine Gael’s referendum campaign, said rejecting the treaty would have exactly the opposite effect, weakening Ireland’s ability to get a better deal on debt owed by bailed-out banks.