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Mr Rehn said the European Commission was committed to finding a solution to Ireland's debt burden issue. But the issue has been stalled with an elusive technical paper by the Troika still unpublished.
The Government had hoped that a deal whereby the permanent rescue fund, the ESM, would recapitalise Spanish banks directly without placing a further burden on the sovereign, could provide a template for something similar for the Anglo-Irish promissory notes.
Given the decidedly short-lived relief on the markets and the continued rise of Spanish and Italian borrowing costs, the authorities may already have to rethink how they handle the Spanish banking debt.