The former President of the European Central Bank (ECB) says the introduction of the bank guarantee in Ireland was fully justified.

Jean-Claude Trichet is also rejecting that he previously said the decision by the Fianna Fail and Green Party government in 2008 was a mistake.

He made the comments during an appearance before the European Parliament's Committee on Economic and Monetary Affairs this afternoon.

Mr. Trichet - speaking through an interpreter - says the controversial move was necessary and similar to decisions made in other countries.