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Nine News: David Murphy, Business Correspondent, reports that a top EU banker has said that the scheme is in line with the EU approach
The comments follow remarks from French Prime Minister Nicholas Sarkozy who said the Irish guarantee created a spiral where money would have gone from country to country depending on who offered the best return.
In an interview with RTÉ Jose Manuel Gonzalez Paramo backed the Irish scheme.
He also believed Irish authorities were monitoring whether banks in Ireland needed a capital injection.
He said where there should be funding, authorities would provide it.
Mr Gonzalez Paramo said the turmoil showed banks also needed to diversify their sources of funding and not solely rely on the money markets for finance.
