Irish rescue programme discussed on November 21 has helped raise Euro value and share markets. Though full details are yet to be discussed in coming days, the mere announcement that the Ireland has been offered bailout package has satisfied the markets, it seems.
Ireland government initially denied that it would need bailout but finally admitted it would need one on Thursday, November 18. Reuters report has suggested the bailout amount would be between 80 and 90 billion euros. This is less than the bailout sanctioned to Greece, 110 billion euros. Yesterday, Sunday Telegraph has speculated the bailout amount would be 120 billion euros. But, Ireland finance minister has said the amount might not cross two-digit figure. Ireland bailout will be disbursed over 3 years.
Ireland President has requested solidarity from his people. Irish people will be facing income tax raise as a result of conditions that will follow the aid package.
The other measures are that the budget deficit will be reduced from 32% to 3% by 2014; size of the banks will be reduced from the current one. Ironically corporate tax which is at lower than many European Union countries will not be hiked as Ireland has already received warning from foreign companies such as Microsoft, Meryl Lynch and Hewlett Packard.
Sweden and the UK have offered their own loans to Ireland to save their investments and demand for their goods from Ireland.