Ireland ‘cannot prevent’ Spanish deal

Demands for a bank debt deal were thrown onto the backfoot as the Government admitted it is powerless to block a mega bailout for Spain if Madrid gets multibillion-euro sweeteners that are denied to Dublin.

Despite Enda Kenny’s promise to push for a “just debt deal” after the referendum vote, the Cabinet barely discussed the issue as the Taoiseach talked down a possible breakthrough at the next EU summit after Germany poured cold water on the idea.

It comes as pressure on Germany and the eurozone was increased by a G7 conference call that included finance ministers, central bankers, and EU economics commissioner Olli Rehn.