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George Osborne's £7 billion offer to 'friend in need' Ireland
Britain will be at the centre of the international deal to rescue Ireland, George Osborne announced last night.

“Ireland is a friend in need and it is in our national interest that we should be prepared to help them at this difficult time,” the Chancellor said.

However, the announcement was criticised by some Eurosceptic MPs with other politicians waiting to see the full details of the bail-out before passing judgement.

Bill Cash, the Conservative MP, said: “Why are we getting more European integration from a government that claims to be Eurosceptic? For EU finance ministers and George Osborne to take this decision is an issue of parliamentary sovereignty. We are told we are getting a Eurosceptic line and actually we are acquiescing in further EU integration.”

John Redwood, the former Cabinet minister said: “I’m sure many will want to know why, how much, how long are we out of the money, what are the prospects of being repaid, what is the interest rate?”

Mr Osborne came under heavy questioning by MPs over the terms of the emerging deal but said he was unable to provide details on the size of any loan, the interest rate, or the conditions for repayment. He said he would return to Parliament within the next few weeks to unveil the final details.

However, he said the assistance offered would be in the “billions” rather than “tens of billions” of pounds. The cost of the bilateral loan will be added to Britain’s already record debts.

The Chancellor did disclose that he would not seek to intervene in Ireland’s tax affairs as a condition of the bail-out. Several European countries are demanding that Ireland increase its low rate of corporation tax as a condition of the rescue package.

Mr Osborne’s admission that the Irish economy is in serious trouble is embarrassing as the chancellor previously heaped praise on the country. He was reminded several times by Labour MPs that in 2006, he said: “We should look and learn from across the Irish Sea. What has caused this Irish miracle and how can we in Britain emulate it?”

Labour said it agreed with the principle of the bail-out but would wait to see the detail before offering judgement.

Alan Johnson, the shadow chancellor, said: “We agree with the Chancellor’s basic argument that Ireland is a friend in need and Britain should not simply ignore the plight of one of our biggest trading partners because they are in the Eurozone and we are not.”

However, he added: “One lesson from Ireland should be salutary, exaggerated rhetoric affects confidence and loss of confidence can lead to economic disaster.”

The deal is facing opposition from Northern Irish politicians. Gerry Adams, the Sinn Fein President, has resigned his seat in Westminster to contest a seat in the Republic.

“We are opposed to a bail-out from wherever it may come,” he said. “It is important to recognise that this is not a bail-out for the Irish taxpayer. It is a loan for Irish banks that the Irish taxpayer will be forced to repay through increased taxes and slashed public services.”

Cameron just loves giving away OUR money.Whether its £13.1 Billion to other countries, over £10.2 billion to the EU.Or worst of all Millions in compensation to terrorists. Only a few days ago on the news £160 million was cut from School sports budgets, Plenty of money for others NONE for the UK .
Please step down Cameron, we cant afford you

Here's an update to this post and as you can see they have still managed to keep their Tax level low :shocked1:which in my opinion is the big problem they have along with the Euro

Ireland's government has announced the most brutal austerity measures in its history to take effect over the next 4 years.

Irish Prime Minister Brian Cowen announced the measures, which are expected to have the effect of EUR 15 B by 2015, at a moment when his government is negotiating an EUR 85 B aid package with the EU and the IMF.

The 130-page austerity plan provides for reducing state spending by EUR 10 B and for raising EUR 5 B from tax hikes in the next four years. EUR 6 B of spending, or 40%, is supposed to be saved in 2011.

For the four-year period, Ireland will save EUR 3.8 B from welfare cuts, and will raise EUR 1.9 B by increasing the income tax. The steps are designed to bring its budget deficit below 3% of the GDP by the end of 2014, as required by the Stability and Growth Pact of the EU.

Ireland will keep its corporate tax at the low level of 12.5% despite pressure by France and Germany, which demand its increase. Its VAT, however will be raised gradually from 21% to 24%.

Including Ireland's banking rescue, the country's budget deficit expected to reach 32% in 2010, which is a record in contemporary Europe.

So we now have so much money we can give Ireland 7 billion pounds because they are 'a friend in need'.Or we borrow 7 billion pounds, with interest, we slam the British public even more, make the poor eat bread and jam, slam the middle class, we are in this together, while Dave and his cronies live off their millions.The British public should rise up and protest loudly.Ireland is a Euro country. Do they intend to give more money to say Spain or Portugal if they go the same route?

A friend in need..On yer bike Cameron..

From Novinite

DUBLIN TAKES OVER BANK OF IRELAND AFTER S&
P DOWNGRADE

The rating agency Standard &
Poor's has downgraded Wednesday Ireland's long-term debt from AA minus to A, with the short-term rating cut from A-1 plus to A-1.

The move was triggered by concerns over the increased borrowing due to the European Union and International Monetary Fund bail-out.

Meanwhile, Financial Times informs that the Irish government is poised to take a majority stake in the single major lender in the country, still not controlled by the State until now – the Bank of Ireland.

The move comes after the European and IMF officials agreed to help bail out the country with loans to tackle its banking and budget crisis, stabilize financial markets and prevent loss of confidence in other euro zone members, notably Portugal and Spain.

Taking over Bank of Ireland would become part of a EUR 85 B rescue package from the EU and IMF. The government currently owns 36% of its shares.

The details of the bail-out are still being ironed-out, but it will include a large capital boost of Ireland's banks, upping their main capital to 12%. This would lead to the full nationalization of Bank of Ireland, something Dublin was hoping to avoid.

Until recently, the bank was believed to be one of the most stable in the country, but had become more and more dependent from cheap loans from the European Central Bank, over the lack of other means of financing.

In addition to increasing bank capital, the rescue package would be used to cover their future eventual losses.

Ireland already nationalized Anglo Irish Bank, and it is expected State shares in Allied Irish Banks would reach 95%.

The jitters surrounding Ireland's bank system swept across European markets Tuesday with the EUR reaching its lowest level against the USD in the last two months.

The Irish government is also planning to introduce formal targets for the banks to shrink their balance sheets over the next five to 10 years.

It is expected that Dublin would present later Wednesday a plan to reduce State expenditures by EUR 15 B in the next four years.