Merkel softens on Irish debt deal

The possibility of a deal to reduce the country’s crippling bank debt has been reopened after German Chancellor Angela Merkel last night appeared to soften her position from last Friday.

Just days after Ms Merkel appeared to rule out letting the ESM bailout fund take on old bank debt, she said Ireland should be treated differently.

A joint statement between Ms Merkel and Taoiseach Enda Kenny, issued last night, said Ireland was “unique” and should be considered a “special case”.