Ireland’s rescue deal to be signed off

Ireland’s rescue deal to be signed off

The bailout package for Ireland has finally been signed off after days of negotiation between the Irish authorities, the EU, the European Central Bank and the International Monetary Fund (IMF).

Full details of the rescue package, which is worth €85 billion (£72 billion), will be confirmed by the Irish Government once it has been approved by all 27 EU ministers - which includes UK Chancellor George Osborne.

Last week, Mr Osborne said: “It is in Britain’s national interest that we sort out Ireland”.

According to reports, approximately €35 billion will be used to support the Irish banking system which has come close to collapse, while the remaining €50 billion will be used to help the Government with day to day spending.

The deal comes as the Irish Government last week unveiled its four-year austerity package, designed to bring down the country’s ballooning budget deficit.

Ireland is aiming to save €15 billion (£13 billion) between 2011 and the end of 2014 – 11% of the economy‘s annual output.

However, the cuts have met with public anger and yesterday thousands of people gathered in Dublin to protest against the measures.

According to Police, the protest passed peacefully and just one man was arrested.

Meanwhile, it has been revealed that Germany and France are in talks about future crises in the euro zone.

The report comes as speculation mounts that Portugal may be the next in line for a bailout - something which the Portuguese Government and the EU has strongly denied.

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