Brian Cowen has confirmed that a rescue package in the region of €85bn is being discussed with the IMF and the European Central Bank. He said …
“The size of any programme has not been decided but an amount of the order of 85 billion has been discussed.Negotiations are continuing, these talks are proceeding as quickly as possible but we have to see how it can be finalised before government can consider the matter further.”
All eyes are on Ireland today as the government is set to reveal the 4 year “austerity” measures which are aimed at slashing the budget deficit by €15 billion, roughly 11% of the nation’s GDP.
Political instability and persistent concerns about Irish sovereign debt have devalued the Euro and sent stock markets lower in Irelad and around the world. Ratings Agency Standard and Poor’s has downgraded Ireland’s long-term sovereign debt rating from AA- to A. The Pound was worth €1.1836 this morning – up from the €1.13 level of around a month ago.