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Problems loom over EU bid to end eurozone crisis
Date 31/03/2011 14:24  Author webmaster  Hits 1028  Language Global
31 MAR 2011

By Ian Wishart | European Voice

Finance ministers will aim to tackle some of the issues that EU leaders failed to resolve last week.
Finance ministers from all 27 member states will attempt to draw a line under the eurozone sovereign-debt crisis when they meet in Budapest on 7-9 April. They aim to tackle some of the issues that EU leaders failed to resolve at their summit last week (24-25 March), and which continue to hamper efforts to deal with the crisis.

Top of the list is the interest rate that Ireland must pay on the EU portion of its bail-out loans. The new government's demands for easier terms were not discussed at the summit because leaders decided to await the results of bank ‘stress tests' that are to be published after markets close today (31 March).

The tests are expected to show that Ireland's banking crisis is even worse than first feared. Four of the country's banks – Allied Irish, Irish Life and Permanent, Bank of Ireland and the Educational Building Society – are likely to need extra capital of more than €25 billion. This is more than twice the €10bn assigned to recapitalisation under the €85bn joint EU-International Monetary Fund bail-out agreed on 21 November.

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