BRUSSELS (MNI) – The European Commission on Friday declined to
comment on reports that preparations are under way for an aid deal for
debt-stricken Ireland, saying only that the country hasn’t asked for
help.
National newspapers in Germany, Ireland and other EU states have
reported that the EU institutions are secretly preparing a bailout
package for Ireland, which has seen its sovereign debt spreads widen
sharply as it struggles to manage its budget deficit.
“We have not received a request from the Irish government for any
financial support, so therefore we are not commenting on any
speculation, rumours and statement made by other parties,” a European
Commission spokesperson told reporters at a regular press conference.
“I will not comment on any possible preparatory work that would be
undertaken by the Commission,” the spokesman said.
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 its GDP this year, due to
a costly bailout of the banking sector and worse-than-expected growth.
Stripping out the cost of the banks, the deficit is expected to be
around 11.9% this year, one of the largest in the Eurozone.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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