November 28, 2010
Europe sealed a €67.5 billion bailout of Ireland Sunday and for the first time crafted a blueprint for rescues from 2013 on that could have private-sector creditors bearing some of the cost.
The Irish bailout, equivalent to about $90 billion, is intended as a signal that the euro zone will come to the aid of its own. But the plan to share pain with banks and other private-sector lenders is a message that the munificence won't continue forever.
Ireland is the second euro-zone country, after Greece, to call for help paying its bills. Bond markets have all but cut Dublin off by demanding soaring interest rates. They have also become more wary of lending to Portugal and Spain, stoking fears of toppling dominoes along the euro-zone's weak perimeter. European finance ministers raced to reach an agreement before unsettled markets opened Monday.
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