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EU set for Irish Republic bail-out talks | |
(about 1 hour later) | |
European finance ministers have arrived in Brussels for a meeting, with the issue of a possible bail-out of the Irish Republic still top of the agenda. | |
EU finance commissioner Ollie Rehn said on Tuesday plans were being made for a potential rescue programme, should the Irish government ask for help. | |
As he arrived for the meeting, Mr Rehn said the EU was engaged in "effective" consultation with the Irish government. | |
British Chancellor George Osborne said the UK was "ready to support Ireland". | |
"We're going to do what is in Britain's national interest," he said, ahead of the meeting of the Economic and Financial Affairs Council (Ecofin). | |
"Ireland is our closest neighbour and it's in Britain's national interest that the Irish economy is successful and we have a stable banking system." | |
'Accent on banking' | |
Tuesday's meeting of eurozone ministers and financial institutions in Brussels came against a background of renewed financial market turmoil. | |
At the centre of this has been the markets' fear that the governments of the weaker eurozone countries - particularly the Irish Republic - cannot afford to repay their huge debts. | |
Mr Rehn said that "the Irish authorities are committed to working" with the EU, the European Central Bank and the International Monetary Fund to calm market turmoil. | Mr Rehn said that "the Irish authorities are committed to working" with the EU, the European Central Bank and the International Monetary Fund to calm market turmoil. |
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He told reporters that potential rescue plans would have an "accent on restructuring its banking sector". | |
A statement issued after the meeting praised the Republic of Ireland's efforts to combat its problems: "The Eurogroup welcomes the significant efforts of Ireland to deal with the challenges it faces in the budgetary, competitiveness and financial sector areas." | A statement issued after the meeting praised the Republic of Ireland's efforts to combat its problems: "The Eurogroup welcomes the significant efforts of Ireland to deal with the challenges it faces in the budgetary, competitiveness and financial sector areas." |
The statement said the Irish government would engage in a "short and focused consultation" with the Commission, the ECB and the IMF in order to determine the best way to provide any necessary support. | The statement said the Irish government would engage in a "short and focused consultation" with the Commission, the ECB and the IMF in order to determine the best way to provide any necessary support. |
It concluded by adding "We confirm that we will take determined and co-ordinated action to safeguard the financial stability of the euro area, if needed, and that we have the means available to do so". | It concluded by adding "We confirm that we will take determined and co-ordinated action to safeguard the financial stability of the euro area, if needed, and that we have the means available to do so". |
The IMF welcomed the Republic of Ireland's decision to allow a "short and focused consultation" to decide if the country needs a budget bailout. | The IMF welcomed the Republic of Ireland's decision to allow a "short and focused consultation" to decide if the country needs a budget bailout. |
Mr Rehn called the Irish Republic the most pressing challenge of today, adding that there was "an intensification of preparations of a potential programme in case it is requested" but the meeting proposed no concrete course of action. | Mr Rehn called the Irish Republic the most pressing challenge of today, adding that there was "an intensification of preparations of a potential programme in case it is requested" but the meeting proposed no concrete course of action. |
'No support' | 'No support' |
The Irish government has repeatedly denied that it is seeking outside support. | The Irish government has repeatedly denied that it is seeking outside support. |
On Tuesday, Prime Minister Brian Cowen told parliament that he had not asked for bail-out money and that the Irish economy was well funded until next year. | On Tuesday, Prime Minister Brian Cowen told parliament that he had not asked for bail-out money and that the Irish economy was well funded until next year. |
He said his country was working with European partners to deal with the debt issue, but that his country was neither "immune or unique" amid the recent economic crisis. | He said his country was working with European partners to deal with the debt issue, but that his country was neither "immune or unique" amid the recent economic crisis. |
Irish finance minister Brian Lenihan said European authorities had welcomed the steps taken to date by the Irish government. | Irish finance minister Brian Lenihan said European authorities had welcomed the steps taken to date by the Irish government. |
"What they are saying and what we are saying, what all the finance ministers are saying, is that we have to work together to resolve these market difficulties," he said. | "What they are saying and what we are saying, what all the finance ministers are saying, is that we have to work together to resolve these market difficulties," he said. |
Earlier, Mr Rehn warned that Europe must "resist alarmism" amid the latest fears over Irish debts. | Earlier, Mr Rehn warned that Europe must "resist alarmism" amid the latest fears over Irish debts. |
Mr Rehn, speaking after the talks had finished, said the EU would, however, step up work on support for the Republic "with an accent" on its banks. | Mr Rehn, speaking after the talks had finished, said the EU would, however, step up work on support for the Republic "with an accent" on its banks. |
Meanwhile, concerns were raised about the eurozone's bail-out of Greece after Austria said Greece had not fulfilled its obligations under the EU-backed aid package. Austria has yet to submit its December contribution to the package. | Meanwhile, concerns were raised about the eurozone's bail-out of Greece after Austria said Greece had not fulfilled its obligations under the EU-backed aid package. Austria has yet to submit its December contribution to the package. |
This followed the release of figures on Monday showing that Greece's budget deficit was worse than previously thought. | This followed the release of figures on Monday showing that Greece's budget deficit was worse than previously thought. |
Are you in the Republic of Ireland? What is your reaction to the latest developments? Do you think a bail out is necessary? Send us your comments using the form below. |