France expects 'responsible' Irish action on bailout

18th November 2010, Comments 1 comment

France's finance minister said Thursday she was confident Ireland would act in a "responsible" way if officials decide it needs a financial rescue, and said there was no risk to eurozone stability.

"If it is decided that a mechanism has to be put in place (to rescue Ireland), I have no doubt that the Irish government will be responsible and make the appropriate decision independently," Christine Lagarde said.

Ireland's government and central bank were due to hold financial crisis talks with a delegation from the European Commission, the European Central Bank and the International Monetary Fund on Thursday.

"There is no risk of the eurozone falling apart," Lagarde told France Inter radio, insisting Ireland's public finance troubles were different from those that pushed Greece to take an EU bailout in March.

The EU and International Monetary Fund have agreed in principle to provide emergency funds for Ireland if it asks, but Irish Prime Minister Brian Cowen said he would take no decision until after Thursday's talks.

© 2010 AFP

1 Comment To This Article

  • Thomas posted:

    on 18th November 2010, 11:23:39 - Reply

    People should be wary - I can't see this amount of money being repaid; the Irish government, for one thing, haven't been honest about their books; almost half of their social welfare bill is going to their banks at this stage (over 10 billion p/a) in rent subsidies, and they're buying up unsold properties to house a continually growing population for which there are no jobs.
    The situation could become very unstable - the Irish security forces have warned that the old paramilitary organisations have seen huge recruitment from people disillusioned with the State and are expecting aggression to turn the government