It is understood that the Irish government reacted angrily to comments made by European officials during the troika's recent visit to Dublin. Quotes attributed to "senior European officials" appeared in the Irish media during the visit, and raised concerns about changes that the Government had made to its plans to introduce water charges.

Officials spoke to the media two days after the Government announced plans to bring in a flat, rather than metered rate - a move that was intended to defuse ongoing protests against the introduction of water charges and the set-up of Irish Water.

It was revealed that the European Commission's representatives were worried about the fiscal impact that these changes would have. They also said they were surprised by the force of public opposition to water charges.

The Irish Times is reporting that after the stories appeared in the press, high-ranking Government officials met and called the representatives of the European Commission to an unscheduled 9am meeting where an official from the Department of Public Expenditure expressed the Government's anger over the incident.

Sources who were at the meeting have told the Irish Times that the encounter was "tense" and "difficult."

A meeting that was meant to take place later that day between troika representatives and the secretary generals of Government departments was subsequently cancelled.

Minister for Finance Michael Noonan has taken the incident to a higher authority - writing to EU Economic Affairs Commissioner Pierre Moscovici, saying that the leaked comments were "entirely unhelpful". It is unknown if he has received a reply.

On leaving Dublin both the IMF and the EU issued statements, however neither mentioned water charges.

Irish Times political editor Arthur Beesley discussed the story on The Pat Kenny Show.