Ireland can fix banking and public finances, says ECB president

The President of the European Central Bank said today that it is "certainly not" impossible for Ireland to fix the banking problems and public finances at the same time.

Jean Claude Trichet's comments come as further stress tests on our banks, to be published next week, are expected to show the need for further funding from the taxpayer.

There are growing fears in Government that the cost of the bailout of the banks is unaffordable.

"With the appropriate and wise efforts of the Ireland, of the exec branch and of the parliament to regain progressively the credit worthiness which is absolutely necessary," he said.

"So, again, my working assumption is that Ireland can do it, and will do it."