The EU has tonight agreed a €85 billion rescue package for Ireland, €10 billion of which will immediately be used to secure the banks. €17.5 billion of these funds are to come from the Irish pension reserve fund.the remainder being supplied by the EU and IMF at an average interest rate of 5.83%. Key points include Ireland has been given an extra year, until 2015 to reduce the budget deficit to 3% of GDP required by the EU. €15bn in Budget spending cuts and tax increases. Restructuring of the main banks. Banks must draw up a list of potential assets to dispose of. […]

Taoiseach Brian Cowen has announced that the EU has agreed to a joint EU/IMF bailout details of which will be negotiated in the coming weeks. The package will be over three years and is linked to restructuring of the Irish banking sector and a deficit reduction plan. Brian Cowen also stated that income tax levels will be returned to 2006 levels.