Kenny raises bailout with Sarkozy

Taoiseach Enda Kenny raised the Government’s campaign for a reduction in the cost of the Irish EU/IMF bailout with French president…

Taoiseach Enda Kenny raised the Government’s campaign for a reduction in the cost of the Irish EU/IMF bailout with French president Nicolas Sarkozy at an EU summit last night.

Although there was no settlement of the dispute over Ireland’s corporate tax rate during the private conversation, Mr Kenny’s spokesman said: “Both leaders agreed to continue a process of talks” which was already under way.

The spokesman said the Taoiseach also raised Ireland’s bailout at the wider meeting and told his counterparts that the standoff was “making it very difficult for us” in the effort Ireland was making.

EU leaders issued a communique welcoming Ireland’s progress in the execution of its reform programme.

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They also promised more money to help Greece stave off looming bankruptcy, provided its parliament enacts an austerity plan finalised in fraught last-minute talks with international lenders.

After hours of talks on Greece, the leaders urged “all parties” in Greece to support a plan agreed with the EU-IMF “troika”.

Greek prime minister George Papandreou promised to push through radical economic reform after his new finance minister clinched agreement with EU and IMF inspectors on extra tax rises and spending cuts to plug a €3.8 billion funding gap.