November 22, 2010
Ireland finally sought tens of billions in bailout money from the European Union and the International Monetary Fund after weeks of bickering that has exposed the limits of Europe's attempt to restore financial markets' confidence in the stability of its single currency.
The deal between Ireland and the EU took shape Sunday as EU finance ministers backed Ireland's request for a three-year package of loans totaling roughly €80 billion ($110 billion), according to people familiar with the matter. The size of the package could change, as talks with Ireland are still at an early stage, the people said.
The Irish rescue marks the latest escalation in Europe's effort to keep its 16-member common currency from unraveling. The crisis began late last year after Greece acknowledged that its budget deficit figures were inaccurate, triggering ratings downgrades and raising concerns about the creditworthiness of other European countries.
Ireland's banking and budget crisis is the first test of the €750 billion system of rescue loans for indebted euro-zone countries set up by the EU and IMF this spring after they pulled Greece from near bankruptcy with a €110 billion loan package.
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