Hayes urges EU-wide deal on bank debt crisis

Junior Finance Minister Brian Hayes has said that an EU-wide solution needs to be found to the banking debt crisis.

Minister Hayes was speaking after a bailout programme of up to €100bn agreement was reached to help Spain shore up its struggling banks.

Spanish Prime Minister Mariano Rajoy said the agreement of Eurozone finance ministers to lend the money had secured the "credibility of the euro".

Pressure is now on the Government to return to Europe and work on a better deal for Ireland's bailout.

But Minister Hayes insisted that EU-wide deal is what is needed.

"It's certainly the preferred view of the Irish government that an EU-wide banking solution needs to be found," he said.

"Certainly, if the banks were to recapitalise directly through the emergency funds from the EU as against the sovereign, that would in our view provide for even more stability."

Meanwhile Sinn Féin has alleged that the Spain has received a "better deal" than Ireland on its bailout terms, and challenged the Government to explain why.

The party's fnance spokesperson Pearse Doherty said that the loans were to be provided “at a lower cost, with no additional austerity or loss of sovereignty”.

“News reports in Spain are indicating that the rate to be charged on loans to Spain is 3%. This is below the current blended interest rate of 3.7% on our Troika loans," Deputy Doherty said.

“There will also be no additional austerity imposed on the Spanish people nor will there be any loss of sovereignty by the Spanish state as a result of these loans.

“All of this means that Spain will pay less for their loans that the Irish government currently does.

Spain’s debt and deficit reduction strategies will be determined by their own government. There will be no Troika reviews and no detailed memorandum of understanding dictating tax increases, cuts in social welfare payments or sale of valuable state assets.

“Many Irish people looking at the deal today will be asking themselves why is their one set of conditions for us and another for Spain," the Donegal TD added.

"More importantly they will be asking why the Irish government was not able to secure these kinds of conditions.”