France at odds with Germany over Irish bank ‘legacy’ debt
With Germany holding fast to the line that the ESM must not take on “legacy” debts in Ireland or any other country, France is pushing hard for a bigger effort to break the link between bank and sovereign debt.
The French position will strengthen the Government’s hand after a week in which Germany aligned with Finland and the Netherlands to say the ESM should bear only losses incurred under the fund’s supervision.
The divisions between Germany and France over Ireland come as they move together to advance plans for a European tax on financial transactions. Following the failure to achieve unanimous EU backing for such a tax, the two countries sought support yesterday for an “enhanced co-operation” procedure in which a group of at least nine like-minded states would move ahead together.
Posted on September 29, 2012, in Government and tagged Banks, City of London, Dublin, European Stability Mechanism, Fine Gael, France, Germany, Ireland, Irish Times. Bookmark the permalink. Leave a comment.