Ireland is working directly with the International Monetary Fund and the European Central Bank to shore up the country’s debt-laden banking system, according to the European Union’s top economic official.
The statement from Olli Rehn, the EU’s commissioner for economics and monetary affairs, is the clearest sign yet that European officials are drawing close to a bail-out of Ireland, amid growing market pressure on policymakers to tackle the country’s banking problems.
“The real problems are in the banking sector, but there are interconnections, so we are discussing the overall situation with a strong focus on the banking sector,” Mr Rehn said, as he entered a summit of finance ministers from the 16 countries that use the euro.
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