THE GOVERNMENT HAS moved to play down comments by Leo Varadkar that Ireland may need a second bailout.

The comments by the Minister for Transport were made in an interview with the Sunday Times and were reported worldwide yesterday as Varadkar suggested that Ireland’s inability to return to the bond markets meant that “a second programme” may be needed.

But his spokesperson yesterday told the Irish Times that Varadkar had been speaking about a “hypothetical” situation.

However, the opposition, principally Fianna Fáil, has accused Varadkar of making comments that could lead to “further confusion” on the issue of Ireland’s EU/IMF loan.

A spokesperson for the Department of Finance said that Ireland  still plans to return to the bond markets next year.

This despite most economists predictions that it will be at least 2014 before the country can resume borrowing through the normal mechanisms.

The Irish Independent reports that Varadkar’s comments sparked alarm and confusion in government circles and that the Department of Finance had to stress there was no change in the government’s plans.

Despite breaking ranks on a “sensitive economic issue”, Varadkar will not be reprimanded according to senior government sources.

The paper also quotes the minister himself backtracking on the comments.

With regard to whether or not Ireland would be able to return to the bond markets next year, Varadkar told the Irish Independent:

Nobody really knows and there are no crystal balls.