Irish Republic To Get EU Bail Out

The Governor of the Irish Central Bank Patrick Honohan has announced a multi-billion Euro bailout for the country’s beleaguered financial sector. Since 2008 the Irish Government, and ultimately Irish taxpayers, […]


The Governor of the Irish Central Bank Patrick Honohan has announced a multi-billion Euro bailout for the country’s beleaguered financial sector.

Since 2008 the Irish Government, and ultimately Irish taxpayers, has been entirely liable for the country’s heavily indebted banks. From there, the entire banking system of Ireland has been dependent on loans from the European Central Bank.

The Irish Government has denied claims they asked for aid, but it would now be inconceivable for them to reject it against the advice of its own Central Bank, the EU and International Monetary Fund.

There are rumours that the British treasury may step in with unilateral loans to support our closest neighbour. Worries persist that another collapsing EU economy could tear the union apart. Herman von Rompuy, President of the European Union, has said that the EU is in a “survival crisis” and warned that unless instability in the region is contained, it will spread.

Discussions are ongoing with respect to the scale and conditions of the loans. Other weaker economies in the Eurozone, such as Portugal and Spain, are expected to be concerned by the news as it will lead to an increase in their borrowing costs and both countries rely heavily on EU support.