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| EU begins Irish Republic bail-out talks | EU begins Irish Republic bail-out talks |
| (40 minutes later) | |
| European finance ministers are meeting in Brussels, with the issue of a possible bail-out of the Irish Republic still top of the agenda. | European finance ministers are meeting in Brussels, 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. | 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. | As he arrived for the meeting, Mr Rehn said the EU was engaged in "effective" consultation with the Irish government. |
| UK Chancellor George Osborne said the UK was "ready to support Ireland". | |
| There have been reports that the UK is considering offering billions of pounds of direct loans to the Irish Republic. | There have been reports that the UK is considering offering billions of pounds of direct loans to the Irish Republic. |
| But a spokesman for the UK Treasury said: "There has been no application from Ireland and we are not speculating on the situation." | But a spokesman for the UK Treasury said: "There has been no application from Ireland and we are not speculating on the situation." |
| At the same time, concerns have been 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 bail-out. | At the same time, concerns have been 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 bail-out. |
| 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. |
| 'Strong interconnection' | 'Strong interconnection' |
| When asked if the UK should assist the Irish Republic, EU commissioner Mr Rehn said: "That is under discussion and it is natural because the United Kingdom and UK banks have a very significant exposure in Ireland. | When asked if the UK should assist the Irish Republic, EU commissioner Mr Rehn said: "That is under discussion and it is natural because the United Kingdom and UK banks have a very significant exposure in Ireland. |
| "There is a very strong interconnection in the banking sector and the financial system between the two countries." | "There is a very strong interconnection in the banking sector and the financial system between the two countries." |
| Mr Osborne said: "We're going to do what is in Britain's national interest. | Mr Osborne said: "We're going to do what is in Britain's national interest. |
| "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," 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," he said, ahead of the meeting of the Economic and Financial Affairs Council (Ecofin). |
| The Irish government has repeatedly denied that it is seeking outside support. | The Irish government has repeatedly denied that it is seeking outside support. |
| Prime Minister Brian Cowen has said that he has not asked for bail-out money and that the Irish economy is well funded until next year. | Prime Minister Brian Cowen has said that he has not asked for bail-out money and that the Irish economy is well funded until next year. |
| An EU handout would seen as a big loss of face for the Republic - essentially meaning that its survival and solvency was reliant on Brussels. | An EU handout would seen as a big loss of face for the Republic - essentially meaning that its survival and solvency was reliant on Brussels. |
| 'Accent on banking' | 'Accent on banking' |
| Tuesday's meeting of eurozone ministers and financial institutions in Brussels came against a background of renewed financial market turmoil. | 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. | 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. |
| He told reporters that potential rescue plans would have an "accent on restructuring its banking sector". | 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. |
| 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. | 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. |