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Collective EU bank bailout is needed


VIEWING the €100bn bailout of Spain as a welcome move is naive. As are any suggestions that the Irish Government should seek to renegotiate a better deal simply on the back of developments in Spain.

The Spanish government, not its banks, is responsible for repaying the bailout, just like the situation in Ireland. With unemployment at 25pc and cuts more severe that those in our last Budget, there is little about Spain to be envied.

It increasingly appears a collective recapitalisation of eurozone banks is now needed. With little German appetite for a new Irish debt deal, the Government must argue for this.