EU ministers meet to reach agreement on bailout Irish

European finance ministers are quick to conclude an international rescue package of Ireland before the opening of markets to halt the country's financial crisis spread to the rest of the euro region.

The Irish government wants to reach an agreement to end the "uncertainty" that is worrying investors euro area, Energy Minister Eamon Ryan said the chain based in Dublin yesterday RTE. Finance ministers of the 16 euro countries will meet at 1 pm in Brussels before a meeting of the 27 EU ministers. The European Central Bank President Jean-Claude Trichet will also attend.

The government of Prime Minister Brian Cowen is finalizing a bailout deal that may amount to 85 million euros (113 billion) after more than 50,000 people took to the streets of Dublin yesterday to protest budget cuts. As the crisis spreads from Ireland to Portugal and Spain, investors are looking for details on the interest rate paid on their loans Ireland and the fate of bondholders in the senior banks.

"The euro is at stake here," said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin. "The market has made up his mind that will choose a country at a time."

A spokesman for Irish Finance Ministry has rejected a report by Reuters that the agreement has come to rescue.

The average yield investors demand to hold debt to 10 years in Greece, Ireland, Portugal, Spain and Italy rose by 7.5 percent over November 26. The yield on the 10-year German bonds was 2.73 percent.

Cowen problems

Cowen has overseen the collapse of Ireland's banking system and the national finances after a burst property bubble 10 years, the country fell into recession and unemployment rose nearly 14 percent. Cowen's government is pulling the thread. The Green Party, a partner in the coalition, wants the January elections and some members of his own party are hitting your leadership.

Ireland will become the second country in the euro to find a rescue after the Greek debt crisis earlier this year destabilized the currency and forced the EU to create a rescue fund of 750 billion euros. Ryan said Thursday November 25 a report on RTE that Ireland can pay as much as 6.7 percent interest for loans of more than nine years was "erroneous."

"Ireland does not have to dance to the rhythm of the ECB and the IMF and at risk of squandering our future land any decision relating to loans or terms of payment in the next 24 hours," said Ned O'Keefe, a lawmaker from the ruling Cowen Fianna Fail party, in a statement.

Spending cuts

Irish government plans to reduce spending by 20 percent and raise taxes in the next four years to reduce its budget deficit to 3 percent of gross domestic product by 2014 from 32 percent this year, when 31 million euros in capital support for banks are included. The government expects tax revenues this year of 31.5 million euros, said Nov. 24.

The protesters cheered yesterday when O'Connell Street Dublin Siobhán O'Donoghue, director of the Center for Migrant Workers Ireland, broke a copy of the government's budget plan for four years, and called a general election before the announcement of next year's budget in December. 7.

Ireland has been made "on its knees" by the government and bankers, Jack O'Connor, director of the umbrella organization for unions in Ireland, told the crowd. "Several generations of Irish men and women" will have to pay the bill, he said.

Irish banks

The need for a pact is intensifying as declines Irish bank capital. Allied Irish Banks Plc and Bank of Ireland Plc fell on November 26 bonds on concern the government will abandon its promise to protect senior bondholders and forced to share the costs of rescue. Ireland's Sunday Business Post and the Sunday Tribune reported today that the ECB vetoed hurt senior bondholders.

UK Chancellor of the Treasury, George Osborne, will attend today's meeting of finance ministers of the euro zone, a British spokesman. Britain intends to make a loan bilateral actions to Ireland and not joining the euro zone finance.