ECB Sees EU Aid for Irish Banks, Fueling Bailout Bets
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Ireland could use European Union aid to bail out cash-strapped banks, the European Central Bank said, stepping up pressure on the Irish government to give up its resistance to a rescue package designed to prevent the debt crisis from engulfing the euro economy.
As Ireland insisted it doesn’t need handouts for its public budget, ECB Vice President Vitor Constancio said it would be able to use the emergency fund set up to support euro-area governments to recapitalize banks reeling from the bursting of the real-estate bubble.