Brian Lenihan has had a baptism of fire. Just four months after taking over as Ireland’s finance minister, the former barrister this week found himself in the global market spotlight after the Irish government decided, late on Monday night, to guarantee the deposits and debts of the country’s six largest financial institutions.

The unprecedented decision was greeted with a mixture of shock and anger outside Ireland. European governments and the European Commission expressed surprise that Ireland would take such a dramatic unilateral step. British politicians and bankers were furious at a move they believe creates an uneven playing field both in Britain – where Bank of Ireland and Allied Irish Banks offer accounts – and in Ireland, where Royal Bank of Scotland and HBOS have local subsidiaries. After frantic lobbying, the Irish government on Thursday signalled it would consider applications from foreign banks with large branch networks in Ireland to be included in the guarantee.