IRELAND: This Is Where We Stand Right Now

EU Night

The crisis in Ireland looks likely to continue, as the country has yet to request a bailout from the European Union and IMF that would provide support to its economy.

Authorities in the country, led by Prime Minister Brian Cowen, do not yet feel the country is in the need of the same sort of support Greece previously received. Instead, the indication is that Ireland is seeking support for its public bailout of its private banking sector, which has grown in cost and scale.

That support may look something like a bailout package, but is unlikely to be labelled as one by European authorities. Instead, it could be showcased as banking sector aid, and the UK could be involved.

It will take 8 days for a support package to appear for Ireland after it requests one. Talks have now moved to Dublin on how to assist the country with its banking sector problems.

Because of banking sector exposures across Europe, the crisis is likely to lead to further contagion to European banks like RBS, Lloyds, and Danske Bank. It could also involve Portugal, which has been under market pressure due to its own struggles with its budget, which it has been unable to pass due to political issues.

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