Kenny: Bailout deal will not ease budget

Enda Kenny has warned taxpayers not to expect an immediate budget dividend, despite what the Taoiseach hailed as a “seismic” EU bank debt deal.

The agreement came after Italy and Spain effectively held the EU summit to ransom by insisting they would block a key €120bn growth initiative unless Germany gave ground to ease the crippling costs of their borrowing.

While many details have still to be worked out, the dramatic dawn deal will see Brussels permit rescue funds to be used to stabilise bond markets without forcing extra austerity measures and sovereign debt onto countries in crisis.