| 12°C Dublin

Now EU supervisor row hinders bank debt deal

THE Government is facing another hurdle to get a bank debt deal due to the disagreement over having a single banking supervisor for the EU, writes Michael Brennan.

German Chancellor Angela Merkel has made it clear that no deal will be agreed until there is an effective banking supervisor in place.

But European Parliament president Martin Schultz, who is visiting Dublin ahead of our EU presidency, said that he believed the December deadline for an EU banking supervisor would be missed.

"I'm afraid I must say clearly that will be another burden for the Irish EU presidency because I think we will switch to January, February, March," he said.

It means that the Government will have to get agreement on three complex issues during its six-month presidency.

The first is the European Central Bank becoming the banking supervisor, the second is the stalled negotiations on the EU budget and the third is a deal on our bank debt.

Irish Independent