Ireland heading toward ‘second bailout’

Ireland was heading for an effective second bailout last night as Taoiseach Enda Kenny refused to rule out taking a safety net credit line — similar to an overdraft facility.

Such a move would lead to harsh financial controls again being imposed by the troika, even if the backstop money never needs to be drawn down.

The latest twist in Ireland’s ongoing bailout drama came as EU leaders appeared to row back on plans for a banking union and in particular on setting up an EU fund to rescue or wind up failing banks.