Ireland crisis poses little risk to euro: German minister

20th November 2010, Comments 0 comments

Germany's Economy Minister Rainer Bruederle said Ireland's economic collapse had not put the eurozone in danger, in an interview with the weekly Focus magazine to appear Monday.

"With the euro rescue plan, we have an effective instrument to ensure the stability of the monetary union. Ireland currently has sufficient reserves of liquidity. The situation is being analysed from day to day," said Bruederle in an extract from the interview released Saturday.

"One cannot compare the current crisis in Ireland to the one we had in the spring," he said, referring to Greece.

However, he said financial aid to countries in difficulty should be accompanied by reforms.

"It is important for the stability of the euro that the states which don't fulfill the conditions face consequences," he said.

Concerns over the eurozone economy were eased on Friday as officials from Ireland, the European Union and the International Monetary Fund began talks on a possible bailout for the once-hot "Celtic Tiger" economy.

© 2010 AFP

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