Rehn hints at 'room for manoeuvre' on bailout terms

There could be "room for manoeuvre" on the repayment terms and conditions of the €67.5bn EU-IMF bailout, EU Commissioner for Economic Affairs Olli Rehn has said.

However speaking in Brussels ahead of talks between finance ministers of the 17 eurozone countries, Commissioner Rehn said that if changes are made, they will be because of "overall European reasons", and not because of any electoral statements made here.

"I'm following the Irish debate closely," Commissioner Rehn said following the meeting.

"The European member states have signed a memorandum of understanding with the Republic of Ireland.

"We expect continuity of the memorandum."

Mr Rehn said that if there were changes to the interest rate charged on the bailout loan "it will take place for European reasons."

He warned that it was especially important that the agreement be adhered to for this year.

"It is essential to respect the memorandum, especially for 2011," Commissioner Rehn said.

"Concerning outer years, there is more room for manoeuvre."

The Brussels talks - on future rescue funding in the EU - will broaden out to include all 27 member states.