No deal on bank debt before budget, says Kenny

Taoiseach Enda Kenny has said there will be no deal done on Ireland’s bank debt before the budget next month.

However, speaking in Brussels before the EU summit, he said negotiations on the €31bn given to the country’s pillar banks would proceed in parallel with arrangements to set up a single EU-wide bank supervisor next year.

The intention is to have the details of the supervisory system worked out as early as possible in the new year as it will open the way for direct recapitalisation of banks by the EU’s rescue fund.