The UK’s chancellor George Osborne has vowed to help Ireland restore stability to its finances. Speaking ahead of the Ecofin meeting in Brussels today, Osborne pledged Britain’s support to Ireland in its efforts to fix its ailing banking system. He said helping its closest neighbour was in his country’s national interest. “Ireland is our closest neighbour and it’s in Britain’s national interest that the Irish economy is successful and we have a stable banking system. So Britain stands ready to support Ireland in the steps that it needs to take to bring about that stability,” he told reporters today. Irish Minister for Finance Brian Lenihan said he was aware that…

EU Council President Herman Van Rompuy said today that the eurozone is in a “survival crisis” but is confident the EU will overcome its debt issues. He said EU members must work together to get through the crisis. He added that national interests could not come ahead of European interests. “We all have to work together to survive, with the eurozone, because if we don’t survive with the eurozone, we will not survive with the European Union,” said Van Rompuy. The president’s comments come before the euro zone’s 16 finance ministers (Ecofin) meet this evening in Brussels where Ireland remains under pressure to accept funding support from the EU. Much…

Speaking ahead of today’s vital meeting of Ecofin, the eurozone’s 16 finance ministers, Olli Rehn has said that Ireland is working with the EU, the International Monetary Fund (IMF) and the European Central Bank to solve the country’s banking crisis. He said although the two were connected the “real problems are in the banking sector” and not with the Irish government. The EU commissioner added, “We have a very strong focus on the banking sector.” Earlier today, EU Council President Herman Von Rompuy said all EU countries needed to work together and not put national interests first. Many interpreted this as further pressure on Ireland to accept a bailout from the European Financial…

Axel Weber, policy maker at the European Central Bank said that banks should be allowed fold in order to avoid complacency and ‘moral hazard’ among bankers. Speaking at the opening of Euro Finance Week, he said, “The relevant instrument in this context is a restructuring mechanism that allows for a wind-down of systemically-relevant banks without overburdening markets.” During his speech, Weber also supported the idea of issuing special bonds which would convert to equity in the event of a crisis. He said these were one option for large banks that play a role in global finance. Calling for a more stable banking system, the German banker stressed the need for…