Ireland is not second Greece

As yields on Irish 10-year bonds have reached 9 percent, there are deep worries that Ireland may follow the suit of Greece and another round of sovereign debt crisis may be looming. Brugha, professor of University College of Dublin (UCD) School of Business, believes that compared with Greece, Ireland has one of Europe’s strongest export sectors.

Brugha said "Greece is very much dependent on tourism and shipping whereas Ireland has a vibrant hi- tech service focused economy. When cut-backs were necessary because of difficulties in the size of the public sector that was not supported by taxation revenue this led to public political unrest in Greece, but not in Ireland."

"The retirement age in Ireland is 65, but typically as low as 55 in some of the other countries."

On the cause of such crisis in the eurozone, Brugha said with the formation of the European Union (EU), European countries pooled their sovereignty and their currencies, but they did not coordinated their economic, monetary and fiscal policies. This led to "holes in the European wall."

In order to defend its currency and the economic stability of its members, the EU and International Monetary Fund (IMF) has created a safety net totaling 750 billion euros to help eurozone countries if debt problems become acute

Sunday night, Irish Prime Minister, Brian Cowen, confirmed that the European Union has accepted the Irish Government’s request for financial support from the EU and the International Monetary Fund (IMF).

The duration of the programme is 3 years and it goes with a program of banks’ restructuring and budget cuts, M. Cowen told to the media during a press conference held in Government Buildings.

«A formal process of negotiation will now commence that will lead to the provision of assistance, on the basis of a programme to be negotiated by the Government with the European Commission and the International Monetary Fund, in liaison with the European Central Bank.», he said.

«A central element of the programme will also be to support further deep restructuring and the restoration of the long-term viability and financial health of the Irish banking system. »

The amount of aid will be decided during negotiations.