Ireland looks set for Bailout Funded by the UK, EU and IMF

The Irish government will begin negotiations today with the International Monetary Fund in the hope of securing assistance to remedy its problematic financial situation. Their economy has recently suffered a number of major setbacks caused by concerns over the stability of its banking sector, but markets in Dublin have been temporarily calmed by the announcement of IMF negotiations.

As well as from the IMF, Ireland’s government hopes to procure bailout contributions from the European Union and European Central Bank. Patrick Honohan, governor of the Central Bank of Ireland, suggested the loans could be worth “tens of billions” of euros. In addition to these measures there has also been a suggestion of a direct loan funded by the British taxpayer. Speaking on Wednesday, Chancellor of the Exchequer George Osbourne gave assurances that the UK is prepared to commit billions of pounds to ensure Ireland stays afloat.

This pledge from the UK is understood to have been well received across the EU but Osbourne’s plans have faced criticism from eurosceptic elements within his own party. At a time of such concern regarding the UK’s own deficit level some feel that this aid is something which the UK government simply cannot afford. It has been suggested by some that as Ireland is a member of the Eurozone, those countries which use the single currency ought to bear the greatest cost of Ireland’s bailout. However both Mr Osbourne and Prime Minister David Cameron have stressed that Ireland’s return to stability will be an important factor in the UK’s own economic recovery.