Finance Minister chairs meeting to reach agreement over EU bailout fund

The Minister for Finance will chair a meeting of his European counterparts in Luxembourg today in a bid to reach a final agreement on how to use the EU bailout fund.

Last night Finance Ministers agreed broad guidelines on how to use the ESM to rescue banks from failure.

The fund will be able to shore up struggling banks directly and possibly retrospectively which would be of benefit to Ireland.

Nick Bullman from Check Risk says the agreement raises the prospect of retrospective recapitalisation for the banks but it is not the end of road yet.

"Well I think everything is still in play - I think what's quite interesting is that the EU Finance Ministers meetings, the European Commission seems to be making a play to actually control the Single Regulatory Mechanism - which is called the SRM - which will  control all the banks going forward" he said.

"So again this is political horseplay in Europe - it's been done at a time when decisions have to be made" he added.