Promissory notes deal secure, says Mitchell

The Government last night insisted the deal on the promissory note would not unravel, despite a day of claim and counterclaim in Europe and concerns being raised by the head of the German Bundesbank.

Jens Weidman told the Bloomberg news agency that the Irish deal “blurs the clear line between monetary and fiscal issues”, and ECB president Mario Draghi later said the opportunity had “not necessarily” passed for objections to the deal and added: “If it does not [comply], we will see what legal remedial action needs to be taken.”

However, the Government moved to ease fears over the future of the deal, with Fine Gael MEP Gay Mitchell saying Mr Draghi was supportive of the arrangement, stating: “This deal will not unravel.”