GERMANY IS PUTTING pressure on Ireland to apply for an EU bailout ahead of next week’s meeting of European finance ministers, the Irish Times reports.
Quoting an unnamed German official, the newspaper reports that the German chancellor Angela Merkel wants Ireland to apply to the EU fund to calm volatility in the markets.
Unless investors are assured that Ireland will not default, Merkel’s plans to introduce a new crisis resolution mechanism in 2013 would be endangered. Merkel’s proposals would force investors to take losses in a sovereign rescue.
However, other Eurozone leaders are said to be divided over whether to pressurise Ireland into seeking a bailout.
The Irish government has repeatedly insisted that it does not need to apply to the EU fund.
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