Trichet warns Ireland to stick to its bailout plan for sake of euro

EUROPEAN Central Bank head Jean-Claude Trichet said yesterday Eurozone countries must do more individually and collectively to combat the bloc’s debt crisis, and Ireland must stick “rigorously” to its bailout plan.

In a position paper published on its website, the ECB earlier expressed “serious concerns” that Ireland’s rescue package could affect the institution’s liquidity operations in the Euro zone.

Asked if he was concerned about the health of Irish banks, Trichet said: “The Irish [bailout] plan is designed for Ireland to face up to its own particular problems, which have mostly to do with its banking system.”

“We consider it necessary [for Ireland] to complete this plan rigorously,” he added.