The Irish Finance Minister has arrived in Brussels to decide the fate of Ireland’s banking sector.
Other eurozone members also assembled for the crunch talks to press Ireland into accepting a state bailout but Dublin has so far insisted only that some of it’s banks may be in trouble.
Olli Rehn, European Commissioner for Economic and Monetary Affairs said “That’s important to recall that at the same time the Commission together with the ECB and IMF and the Irish authiorities are working in order to resolve the serious problems of the Irish banking sector.”
The European Central Bank is urging a quick decision amid fears that the Irish banking sector could spark market contagion to Portugal and even Spain.
There is also the looming prospect of negative credit ratings for Ireland, which would push borrowing costs up for the country and other countries on the eurozone’s periphery.
With a by-election on the 25th, this is a politically sensitive time for the fragile coalition Irish government and they are keen to avoid slipping up.