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Kenny and Monti discuss EU bailout fund

Enda Kenny and Mario Monti would like the ESM expanded
Enda Kenny and Mario Monti would like the ESM expanded

Taoiseach Enda Kenny has held talks with Italian Prime Minister Mario Monti in Rome on the possible expansion of the European Union's €500bn bailout fund and how to boost jobs and growth.

"Ireland's firm view is that there is a need for strong financial firewalls to prevent contagion in the markets," Mr Kenny said. This is something he will pursue at the upcoming EU leaders' summit in Brussels.

Last night, Mr Kenny was in Berlin for talks with German Chancellor Angela Merkel. This morning, it was Rome for an hour-long meeting with the influential Italian Prime Minister, Mario Monti.

There was a cordial atmosphere, and Mr Monti said the turnaround in the Irish economy was proof for Italians that tough reform measures can be difficult to take, but will boost recovery.

The question of boosting the EU bailout fund will be discussed by EU leaders next week.

Germany is reluctant to increase the fund. Asked if Ms Merkel had expressed a view during their meeting near Berlin last night, Mr Kenny would only said that she "listened carefully".

When suggested that the upcoming EU leaders’ summit on jobs and growth would mostly re-package existing plans, Mr Kenny said there was nothing wrong with repackaging if measures and promises had not been acted on.

However, he added that Europe's citizens need to see real tangible effects from EU political decisions which both benefit the economy and their lives.