The Tánaiste says the Government will not know until next April at the earliest if Irish Water will pass an EU test and can keep the utility off the State's balance sheet.
Under the rules, the Government's funding to Irish Water must be less than 50% of its revenue. It is not clear if the revised water charges announced yesterday will meet this test.
Eurostat will have to rule on whether the Water Conservation Grant of €100 for every household is indirect funding to Irish Water.
Fianna Fáil's Barry Cowen quizzed the Tánaiste Joan Burton in the Dáil:
The Tánaiste spoke to Newstalk earlier today about water charges and last weekend's protests. You can listen back here.
Meanwhile, the Dáil has voted against a Sinn Féin plan to hold a referendum on the ownership of Irish Water.
TDs voted 74 to 43 to defeat the bill in the Dáil this morning.
The Government says the amendment was botched, and is introducing its own laws to make sure Irish Water cannot fall into private hands without a public vote first.
However, Sinn Féin's Pearse Doherty says that new law is worthless:
