Taoiseach Enda Kenny today rejected suggestions that European Union leaders were drinking "in the last chance saloon" if they fail to resolve the debt crisis at a summit meeting in Brussels on Sunday.

"There's never a last chance saloon in politics but obviously people would like to see this matter cleared up. There is a crisis in the euro zone. Our view is the flexibility and facilities available under the EFSF (European Financial Stability Facility) and the decisions taken in July can actually deal with the crisis," he said in Cork this morning.

"Clearly, there are differences of opinion between some of the countries here but I do hope that politically on Sunday that people can arrive at a number of conclusions, be they about recapitalisation, restructuring or obviously the Greek situation," he said.

Mr Kenny said that he believed it would be possible for agreement to be reached on Sunday in Brussels and for leaders who need to get the backing of their own national parliaments to do so on Monday or Tuesday in time for a second summit meeting on Wednesday.

"For instance, in the case of Germany, the Bundestag in approving the vote last September also required that if any further moneies were to be raised there, that the chancellor would also have to get the authorisation of the German Parliament," the Taoiseach said.

"Let's say that a political agreement was to be reached on Sunday, chancellor Merkel would have go to back her to parliament on Monday or Tuesday and come back with that endorsement on Wednesday - that's the difficulty and requirement for the summit," he said.