Enda Kenny, Fine Gael’s leader and presumptive taoiseach, claims he will renegotiate the deal. The likely outcome is a face-saving but useless compromise: in return for a lower interest rate, Mr Kenny will stand by his predecessors’ suicidal conflation of bank and sovereign debt. The Irish tragedy will come full circle – but a new act will open in Europe’s drama. Crucifying the Irish for the sins of their banks will not bring redemption, but more strain on sovereign debt. That is a greater threat to Europe’s banks than is applying capitalism to senior creditors – all the more so when imminent stress tests offer a chance to separate healthy banks from sick ones.