EARLY THIS MORNING, European leaders finalised an agreement that might change the way that struggling countries are bailed out by the EU.
Previously, bailout loans used to shore up troubled banks were the responsibility of the nation’s government – meaning countries including Ireland had to shoulder billions in sovereign debt.
But under the new deal, the EFSF and ESM will give funds directly to the financial institutions themselves, effectively breaking the link between bailed-out countries and their banks. You can read the full details in our handy explainer.
The Government has said the agreement will allow Ireland to retrospectively “re-engineer” our own bailout debt, and possibly reduce the future financial burden. Tánaiste Eamon Gilmore described it as a “game-changer” for Ireland.
So what do you think? Are you optimistic about the eurozone debt deal?