Angela Merkel's praised Ireland for what she says is the great success story of the exit from the bailout.

The German Chancellor was speaking at the end of her visit to Dublin this afternoon.

In a joint press conference with Taoiseach Enda Kenny, Frau Merkel praised the Irish people:

However, the Taoiseach says the process of Ireland securing retroactive bank recapitalisation is continuing.

Earlier, the Chancellor refused to be drawn on whether Ireland has a legitimate expectation for retroactive bank recapitalisation.

Mr. Kenny says a deal was never in the offing until banking union was in place.

At a press conference in Dublin she had a "positive outlook" on the process of setting up a banking union, but stopped short of giving her explicit support for Ireland's case.

Mrs. Merkel would only say that various discussions are continuing.

Earlier U2 singer Bono has rejected the idea that the Troika bailed out Ireland. He has told the summit of the European People's Party (EPP) in Dublin that the Irish economy is recovering mostly because of sacrifice by Irish people.

He has warned Europe that it needs to be more neighbourly, with member states coming together to take care of each other's interests.

And he had harsh words for people praising the role of the Troika in Ireland.

The former Prime Minister of Luxembourg has been announced as the Fine Gael candidate for the top job at the European Commission. He won the nomination at the EPP congresss this afternoon.

Meanwhile three people have appeared in court charged in connection with anti-austerity protests outside the EPP congress. They were arrested after protestors clashed with gardai outside the Convention Centre in Dublin.

Two political activists and a student were arrested after clashes broke out. Shane O'Brien, of Rathbourne Avenue in Ashtown was the first to be brought before Dublin District Court.

He is facing one public order offence.

Jennifer Rieck, a German student who is staying at Charleston Road in Ranelagh faces the same charge and is further accused of giving a false name. And Stephen Bennett of Pearse Green in Sallynoggin is facing three charges, including the assault of a garda.

During his short court appearance, Mr. Bennett (42) told Judge Patricia McNamara he was part of a "general protest against the fascists in Europe".

All three were granted bail and are due back in court later this month.