Former U.K. Chancellor of the Exchequer Alistair Darling said it is in everyone’s interests that Ireland’s banks are helped to overcome their current problems.
“Over the last week there’s been an escalating level of noise from Brussels which has made it rather inevitable that Ireland is going to accept, I think, some form of assistance,” Darling said today in an interview on Bloomberg Television. “If action is taken quickly, that should serve to reassure people,” he said. “The markets will be expecting there to be a definite outcome in terms of some sort of deal.”
Irish Finance Minister Brian Lenihan said in Dublin today that he would welcome the creation of “substantial contingency capital funding” for Irish banks, as officials from the European Union, International Monetary Fund and European Central Bank started to study the books of Irish banks battered by the country’s property slump.
“It’s in all our interests in the whole of Europe, including the United Kingdom, that the matter is resolved and resolved as quickly as possible,” Darling said.
The lesson to be learned is that governments globally must sort out their banking problems to stop the threat of contagion, he said.