Kenny says deal will not harm Irish interests

Taoiseach Enda Kenny said the deal agreed today between European leaders would not harm Irish interests, and warned banks would be pushed to participate in the bailout plan.

Euro zone leaders sealed a three-part deal today that will cut Greece's debt and hopefully bring stability back to the euro zone.

Mr Kenny said the proposed haircut for Greek bondholders was unique to that country, and there was still funding available for Ireland.As part of the deal, banks will take on 50 per cent losses on Greek bonds.

"In respect of recapitalisation of the European banks, this has been achieved without damage to Irish interests," he said. "From that point of view it's also recognised clearly the progress that Ireland has made and the continued funding for Ireland in its programmes."

He said banks would be encouraged to take part in the voluntary writedown of debt.

"There's a very clear commitment here that the maximum number of banks should contribute to that and that's going to be pushed very strongly that they do participate in that," he said.

Mr Kenny said it would bring stability to the euro zone, and therefore an improved environment for Ireland to conduct business.

"This allows us now to focus on the real opportunities that this presents itself, with increased opportunities for jobs and jobs creation and getting people back to work," he said.

Mr Kenny said the governments of Spain and Italy had entered into commitments, and a number of issues were decided in respect of better governance for the euro zone.