German refusal on bank aid mars end of Europe summit – New York Times

German refusal on bank aid mars end of Europe summit – New York Times

 Chancellor Angela Merkel of Germany damped expectations on Friday that Irish and Spanish banks hobbled by the financial crisis would receive direct aid from a newly established European bailout fund.

If her view prevails, and Germany’s often does, European rescue loans for the troubled banks, at least in the near term, would be carried on the books of the governments in Dublin and Madrid, adding to their debt burdens. The Spanish prime minister, Mariano Rajoy, has been particularly intent on avoiding that burden.