Ireland’s finance ministry has denied reports it has asked the European Commission for permission to wind up the affairs of Anglo Irish bank.
Ireland’s finance minister is in Brussels to try to persuade the European commission that at least part of Anglo Irish is worth saving. However Brussels is worried the escalating costs of the rescue could threaten Ireland’s creditworthiness, and pile pressure on the Euro, Greece-style.
Media reports this morning suggested the rescue had been abandoned, and a 10-year decommissioning plan would replace the previous idea of splitting Anglo-Irish into a good bank/bad bank pair.
Dublin insists keeping part of Anglo-Irish open for business remains an option, although voters are increasingly impatient with higher taxes and public spending cuts to pay for shoring up Ireland’s financial system.