Finance Minister Michael Noonan will meet with his EU counterparts today to launch to €500 billion rescue fund the European Stability Mechanism (ESM).

The formal launch of the ESM  comes just 10 days ahead of a leaders summit where the issues of the Greek bailout and the fragile Spanish economy will be thrashed out.

Already expectations are low that there will be a breakthrough on any of the key issues.

Last week Germany, the Netherlands and Finland cast doubt over key commitments made at a June summit which meant the ESM would be able to deal with legacy assets.

The 3 do not want the fund to be used to help those banks already bailed out.

This is a move that has been described a a heavy blow for Ireland.

However speaking in Brussels last Wednesday after a meeting with Taoiseach Enda Kenny the EU Commission President Jose-Manuel Barroso said the issue of Irish debt should be dealt with before next year.

In early September a German Constitutional Court gave its backing to the ESM with a number of conditions.

The court said any financial cost for Germany arising from the ESM must be strictly limited to its share of the capital of the fund or €190 billion.

This was seen as giving the green light to the scheme.

The Irish government moved to formally ratify the scheme back in August.

It followed the failure of a legal challenge by Independent TD Thomas Pringle.

The Supreme Court here had ruled that the ESM is fully compatible with the Irish Constitution.

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