EU trio throw up obstacles in debt cut quest

The Government’s plan to ease the national debt by refinancing up to €30bn put into the banks has suffered a setback with three triple-A countries setting tough new conditions.

They insist only debt incurred in the future should be eligible for long-term, cheap loans from the EU’s new rescue fund, the ESM.

Nations should continue to be responsible for banking problems from their past, according to the German, Dutch, and Finnish finance ministers.