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Ireland to Press for ESM Banks Role at Summit, Sunday Times Says

Ireland will join Spain and France at a European leaders’ summit this month to press for the European Stability Mechanism to take on the role of recapitalizing euro- area banks, the Sunday Times reported, citing ministers it didn’t name.

Brian Hayes, a junior minister in the finance and public expenditure ministries, said such a move would be a “game changer” for Ireland, according to the newspaper’s Irish edition. Ireland may seek to shift 43 billion euros ($53.5 billion) of its 62 billion-euro bank bailout costs onto the ESM if the fund was available for banks, the report said.

“The government supports proposals to allow European funds to directly capitalize banks and will ensure any proposals at EU level will be in the best interest of the Irish taxpayer,” the Finance Ministry said in a statement, according to the newspaper.

To contact the reporter on this story: Joe Brennan in Dublin at jbrennan29@bloomberg.net;

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net;

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