Pressure to submit plan to European Commission

IRELAND was under increasing pressure yesterday to submit its bank guarantee plan to the European Commission for clearance amid claims that it breaches EU state aid rules.

Several countries are concerned that they may be forced to follow Ireland’s example and give a blanket guarantee for all deposit and savings accounts in its banks.

Taoiseach, Brian Cowen, discussed the plan with the French President, Nicholas Sarkozy, during a visit to Paris yesterday.