The Irish Republic has denied that it needs to be bailed out by the EU, although they admit to having talks with “international colleagues”.
The government has said that it doesn’t want help from Brussels, and that it has enough money to last until next summer. However, creditors see Ireland as having a bad credit rating and are trying to force them towards the handout. Other countries too are considering how the Euro may be affected if Ireland doesn’t accept the bail-out. If they accept the assistance, it will give a sense of certainty, easing the worries of some EU officials. Portugal has urged Ireland to think of the EU’s interests as well as their own.
At the same time, it can be suggested that the pride of Ireland will be tainted if they take money from the International Monetary Fund. It could also bring into question the independence of Ireland financially. Having enjoyed a booming economy (named the Celtic Tiger) based on investment, low interest rates and easy lending; Ireland, once one of the poorest EU countries, became one of the richest. Now facing the great deficit as a result of the boom/bust, the country doesn't want to go backwards and want to build their own recovery, without looking elsewhere for assistance.
The Irish government will introduce greater cuts by 2014, with many jobs being lost and higher taxes; many fear it will deepen the recession instead of help resolve it. There need to be cuts, but the problem is that the Irish people have to pay for the mistakes of those in higher positions.
If a bail-out is requested by Dublin, the Irish people are not the only ones who will then suffer. It is reported that the Irish Republic will need £70bn, and for Britain’s tax payers it would cost at least £7bn. However, if the Irish are not helped, it could lead to further problems – Portugal and Spain may follow in their requests for help, straining EU finances.
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