Ireland’s Bailout Drags Down EU Markets

The Republic of Ireland conceded yesterday it needs a €90-billion loan.

In the wake of Dublin’s announcement that it would seek the loan from its European partners, the country’s opposition Green Party called on the government to set an election for January 2011, fueling uncertainty about Ireland’s political stability and denting the value of the Euro in the process. Ireland’s economy nearly collapsed completely after the real estate bubble burst and the government had to channel billions of euros into its failing banks. Under the terms of the bailout deal, Dublin will announce €15 billion worth of austerity measures this and is expected to increase income tax rates. The country’s controversially low corporate taxes, which the government says are key to encouraging foreign investment, will remain untouched.