Kenny: EU deal on cash for banks still stands

The promise of a deal to ease the burden of billions of euro poured into banks still stands, the Taoiseach insisted, although it is not a significant part of its economic plan launched yesterday.

As EU finance ministers and leaders meet in Brussels over the coming days, Enda Kenny said a decision by EU partners on Jun 29, 2012, on retrospective bank recapitalisation “is very clear”.

He said “the decision of the possibility of direct recapitalisation still stands” but that “it will be the second half of next year before you get to a point where you can deal with these on a case-by-case basis”.