The Minister for Finance says there's "no crisis" over news that Irish Water will have to remain on the Exchequer balance sheet.
Michael Noonan says he's disappointed that Irish Water has failed the so-called 'market corporation test', and that its borrowings will have to remain on the government's balance sheet.
But he's denied that the move will have any impact on October's Budget, saying we're still on target to beat the EU deficit targets.
And he's playing down the overall effect of the news from Brussels, saying it simply means the budget deficit will stand at 2.3% of GDP this year instead of 2.0%. The EU rules only require Ireland to get the deficit to within 3% of GDP.
But opposition TDs say the news is another sign that the government's water charges regime is unfit for purpose - and that it sounds the death knell for Irish Water.
Our political correspondent Gavan Reilly filed this report for Today FM's National Lunchtime News:
