Osborne in European banking talks

George OsborneChancellor George Osborne is travelling to Dublin for the first meeting of all 27 European finance ministers since Cyprus was hit by its banking crisis.

The Ecofin meeting was described by a Treasury source as "rather low key from a UK perspective", but it is likely to include discussions on banking union - specifically on the eurozone-wide banking supervisor which is being set up. Banks based in the UK will in most part not be subjected to the new authority.
Treasury Minister Greg Clark will join the Chancellor for the meeting at Dublin Castle, which will continue into Saturday.

On Thursday night, a Treasury source dismissed any suggestion the UK could offer bilateral loans to Cyprus. The UK is also not committed to stump up any part of the EU's bailout of Cyprus but it does contribute to the International Monetary Fund, which is helping with the rescue package.

Cyprus has agreed to a 10 billion euro (£8.5 billion) bailout with the IMF and eurozone partners. But it will see savers with two of the country's biggest banks incur hefty losses as part of their contribution to the total package.
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