The results of the stress tests on Irish banks published yesterday show that the banks require a further injection of Euro 24BN, if they are to avoid collapse.
Allied Irish Bank will need the largest cash injection (Euro 13.3BN).
The money will be sourced from a draw down on the EU bailout package, and will signal the effective nationalisation of the banks.
This is all very well. However, the fundamental problems remain (no matter who owns the banks), namely the size of the debts and the fact that the Irish state does not have the money to cover the debts in the event of a further meltdown.
This action is merely putting off the day of reckoning.