Independent MEP Marian Harkin said that "Angela Merkel, having embraced Enda Kenny at the EU summit on Friday, subsequently showed this to be a 'Judas Kiss' when she ruled out back-dated recapitalisation of Eurozone banks".

Speaking from the European Parliament, Harkin argued that this is "an extraordinary setback and a real kick in the teeth to our leaders who have been struggling earnestly to achieve a fair deal for Ireland".

She added that "our banking debt of € 64 Billion - which Ireland put in place to save German, French and other European banks, as well as our own - cannot be left on the shoulders of Irish taxpayers. It is unjust, unfair and it makes the possibility of recovery virtually impossible".

"Ireland took one for the team when Europe badly needed it, and should Germany follow through on this apparent decision to block recapitalisation of Ireland's legacy debt, it will sadly be a bitter blow to Irish hopes and another nail in the coffin of European economic solidarity" the Ireland North & West MEP concluded.