Minister of State for Finance Martin Mansergh today rejected criticism of the Government's plan to rescue banks, a move that European officials said would promote unfair competition.
Mr Mansergh told RTÉ radio today that British Prime Minister Gordon Brown is saying that "national governments have the primary role in resolving the crisis and was opposed to grand European solutions."
"Effectively, he's accepting we have the right to act as we did.''
Mr Mansergh said "some" money is returning to the State's financial system after Ireland guaranteed the deposits and debts of six banks, but Irish officials sought to damp concern that the move would weaken lenders elsewhere.
It has emerged that an e-mail was circulated by the son of Irish Nationwide boss Michael Fingleton seeking new deposits. It sent to least one leading global bank stating that as a result of the protection of the Government's new bank guarantee plan, Irish Nationwide “represented the safest place to deposit money in Europe . . ."
"Aggressive marketing wasn't part of the plan," Mr Mansergh said today.
Ireland's move to stave off a banking collapse has caused anger as Europe struggles to respond to failing financial institutions.
Spanish Finance Minister Pedro Solbes said yesterday the Irish plan has provoked "quite a lot of irritation". French Finance Minister Christine Lagarde said other European countries should have been informed in advance of the plan.
Mr Brown said through a spokesman today that UK officials have been in close contact with "Irish colleagues" and other European partners. He said the changes in Ireland may have an "impact on the single market'".
The British Bankers' Association said the guarantee will distort competition by attracting money to Irish banks.
Bloomberg