The Irish Government has an ongoing campaign to renegotiate its bank bail-out deal and if the Spaniards end up getting a better deal, the Irish Government will expect those terms to apply retrospectively to Ireland. Failing that, their only real threat is to default of the Anglo Irish promissory notes - something that would drive Angela and the ECB nuts, but which they can do little about because that debt was not covered by the Bank guarantee or the Troika deal.

Whether Fine Gael have the balls to actually follow through on that threat is another matter...

Index of Frank's Diaries