Ireland’s bailout resistance wavering
By politics.co.uk staff
Fears of another sovereign debt crisis among eurozone members are thought to be weakening Ireland’s resolve to resist a bailout.
Yesterday the Irish government insisted it did not need assistance from the EU, because its debts are covered until next summer.
Concerns about the future of the single currency are set to be raised at a meeting of EU finance ministers today, however.
Last night German chancellor Angela Merkel admitted she feared markets could be caught by the same “contagion” which gripped Europe this spring.
“The bailout for Ireland that many expected to be announced over the weekend didn’t materialise, though it was acknowledged for the first time that talks had taken place,” Markit credit strategist Gavan Nolan told the Financial Times newspaper.
“Ireland’s government offered a public show of resistance, stating that it will stand alone. However, reports suggest that a decision could be reached at a meeting of EU finance ministers on Tuesday.”
Although Britain is not one of the 16 EU states in the eurozone its banks have major links with other vulnerable countries like Spain, while Ireland is the UK’s largest trading partner within the EU.
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