LABOUR FINANCE spokeswoman Joan Burton demanded to know the detail of the negotiations involving the EU and IMF officials.

“The Minister for Finance needs to tell us the structure and the template of the negotiations. We want to know what is and what is not on the negotiating table.’’

Labour, she added, believed it was not advisable for the Government to include the 12.5 per cent corporation tax rate in the negotiations.

Ms Burton said confidence would only return to Irish bank depositors, businesses and foreign businesses in Ireland when the banking crisis was settled and there was a functioning system.

Regardless of what defence Fianna Fáil offered for its actions, the banking crisis dated back to March 2008 “when Deputy Brian Cowen was still the minister for finance and waiting to see when Deputy Bertie Ahern should be taken out”.

At that time the price of shares in Anglo Irish Bank collapsed and Mr Cowen refused to do anything. “A month later, as he waited to become Taoiseach, he was wined and dined by Anglo Irish Bank but still apparently knew nothing.”

Sinn Féin spokesman Arthur Morgan said the EU and IMF support would do no good unless the source of doubt about solvency was tackled.

“This is not what seems to have been discussed in Europe in the past few days,” he said. “Instead the idea was mooted that Ireland should tap European funds for the purpose of recapitalising its battered banking sector further.”

Mr Morgan said an EU-IMF bailout would not be a bailout for the Irish people.

“It will not secure social welfare, nurses’ wages or the provision of education. It will be provided for the Government to pursue its current failed banking policy.”

He said a large percentage of the bailout costs arose from the decision to honour 100 per cent of senior bondholders’ debt rather than burning or negotiating with them.

He warned that financing zombie banks could buy time, but not indefinitely. “We must underpin banking and financial stability. This banking system cannot be salvaged in its current form, and cannot be saved while the Government is holding the reins.”

The State, he said, needed a Government clear-out, not a banking clear-out. The proposal to cut €15 billion over four years was wrong and making the markets nervous.