– Reiterates Ireland Has Not Asked For Financial Aid
BRUSSELS (MNI) – Ireland has not asked for financial aid and the
country is fully funded until the middle of next year, a European
Commission spokesman said on Monday.
Speculation has mounted in recent weeks that the Irish government
won’t be able to manage its debt burden on its own and will have to tap
the EU and International Monetary Fund for help.
Ireland’s government earlier this month outlined plans for E15
billion worth of budgetary savings over the next four years in a bid to
get its budget deficit below the EU’s 3% limit by 2014.
The budget deficit has widened to 32% of GDP this year due to a
costly bailout of the banking sector and weak growth. Stripping out the
cost of the banks, the deficit is expected to be around 11.9% this year,
the largest in the Eurozone.
“As the Irish authorities have reiterated… they have not made any
request for financial assistance,” an EU spokesman for economic and
monetary affairs told reporters at the European Commission’s regular
briefing.
Ireland is “fully financed” until mid-2011, so doesn’t have an
immediate funding need, he said.
“The Irish authorities have been very clear over the last days that
they have not asked” for help, the spokesman said, reiterating that
Ireland’s borrowing needs are “covered until next summer.”
“Ireland has a strong track record when it comes to fiscal
adjustment,” the spokesman said. “There is a strong track record, which
means the Commission can only support the commitment of the Irish
authorities to attain its targets.”
“I will not speculate on something that hasn’t even been
requested,” the spokesman said, when asked if Ireland was negotiating a
loan package for its banks only.
The spokesman said that since last May, the Eurozone has financial
backstops that are ready to provide assistance to ensure the stability
of the euro, if a member state requests help.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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