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Dublin plays host to the EU finance meeting this week

THE fall-out from the messy Cyprus bail-out is expected to top the agenda.

Growing German reluctance over eurozone banking reform is also expected to be raised within the meeting.

Cyprus's bail-out funding details identified that the total package will now cost €23bn, with the country providing €13bn.

Cyprus was originally meant to come up with €7bn and the EU/IMF would supply €10bn. The country is also expected to sell €400m worth of its gold reserves. And it will have to raise corporate tax and capital gains tax rates at a time when its economy is forecast to contract more than 12pc in the next two years.

The complete winding up of one Cypriot bank, Popular, and the writing-off of a large portion of secured debt and uninsured deposits in the largest bank, Bank of Cyprus, will raise a total of €10.6bn, the documents showed.

The Dublin meeting – an informal gathering of all 27 EU finance ministers at which no decisions are expected – will also examine the deepening problems in Slovenia and debate how to press ahead with setting up a fully-fledged 'banking union' across the euro zone countries and the wider EU.

One of the more sensitive issues to be discussed on Friday and Saturday will be a proposal from Ireland, which holds the rotating presidency of the EU, to impose losses on interbank deposits held by troubled banks as another way of resolving banking sector difficulties.


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