Portugal urges Ireland to consider eurozone's needs

15th November 2010, Comments 0 comments

Portuguese finance minister Fernando Teixeira dos Santos said on Monday that Ireland must take the eurozone's needs into consideration as Dublin mulls whether to seek a possible EU bailout.

Teixeira dos Santos said Portugal had suffered a "contagion effect" from concerns over Ireland's abilities to repay its debts, which have seen Irish government bond yields shooting through the roof over the past week.

"I would not want to lecture the Irish government on that," Teixeira dos Santos said in an interview with Dow Jones newswires.

"I want to believe they will decide to do what is most appropriate together for Ireland and the euro.

"I want to believe they have the vision to take the right decision."

Ireland admitted earlier Monday that it had "ongoing contacts" with "international colleagues" on its budget woes but denied reports that it was seeking EU assistance similar to that received by Greece earlier this year.

Portugal, like Ireland, is struggling with burgeoning public debt and deficit levels and as a result have had to pay ever higher returns to bond buyers in order to raise funds.

© 2010 AFP

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