Europe

Home page

Europe

Euro ’at stake’ over Irish bailout

24 November 2010 00:27 (UTC +04:00)

Baku-APA. Germany says the shared European currency is now â€œat stakeâ€ after Ireland accepted an international bailout package to support its debt-ridden economy, APA reports quoting Press TV.
German Finance Minister Wolfgang Schaeuble said the euro is in danger of falling after Ireland asked for help from the European Union (EU) and the International Monetary Fund (IMF) to cope with its growing budget deficit and troubled banking system.

Schaeuble added that Berlin should take more responsibility to avoid untold economic and social consequences for its country, the biggest economy in Europe.

He also announced the German government’s plan to cut more than EUR 80 billion (USD 107.5 billion) from its budget over the next four years.

"We have every reason to continue decisively on this path," he told the Parliament.

According to German magazine Der Spiegel, Chancellor Angela Merkel will face a "tough sell" to the Germans to finance the bailout package for Ireland soon after the Greek bailout.

The German government continues to insist that private investors should contribute to future bailouts after the emergency fund expires in 2013.

Unconfirmed reports say the Irish bailout package could reach more than EUR 90 billion.

Dublin has already infused some EUR 50 billion, which is more than 10 times the EU limit, into its banks to push its deficit to 32 percent, AFP reported.

Violence has erupted in Dublin as police clashed with protesters demonstrating against the bailout measures.

People in Ireland are accusing the government of mishandling the country’s financial crisis.

Dublin is poised to unveil a four-year economic plan that will most likely include harsh austerity measures in exchange for the EU-IMF bailout package.