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# UK pledges 7bn to help bail Ireland out of debt crisis
## George Osborne has pledged British support of up to £7bn for an EU bail-
out of Ireland and its banking sector.
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* [![The European Union is locked in a 'survival crisis' as Ireland resisted
calls to take an international bailout. ][2]][3]
Video
[Irish crisis explained in 30 seconds][3]
* [![][4]][5]
Article
[How the Irish debt crisis unfolded: timeline][5]
* [![How safe is your money in an Irish bank?][6]][7]
Article
[How safe is your money in an Irish bank?][7]
* [![][8]][9]
Article
[Ireland rescue - the cost to Britain][9]
* [![][10]][11]
Article
[Ireland debt crisis: European banks' exposure][11]
[1][1] [2][1]
[![Bruno Waterfield][12]][13]
By [Bruno Waterfield][14], in Brussels 9:11AM GMT 17 Nov 2010
[Follow Bruno Waterfield on Twitter][15]
[Comments][16]
The Chancellor arrived in Brussels for a meeting of EU finance ministers aware
that exposure of British financial institutions to Irish banks is £140bn.
"Ireland is our closest neighbour. And it's in Britain's national interest
that the Irish economy is successful and we have a stable banking system," he
said. "Britain stands ready to support Ireland."
Britain is not part of the 16 member eurozone but is a member of a £51bn
"European Financial Stabilisation Mechanism" that will be used to aid Ireland.
The European Commission said a potential British role was "under discussion"
as EU and IMF officials headed to Dublin today to carry out "intensified,
short and focused" preparations for a bailout of Ireland.
Officials said that multi-billion cash injection could be ready within "five
to eight days" of a eurozone decision to step into save Irish banks.
## Related Articles
* [Ireland set to tap €80bn loan as it opens door to IMF mission][17]
18 Nov 2010
* [Ireland on the brink of massive bail-out][18]
18 Nov 2010
* [Ireland denies 'surrendering sovereignty'][19]
18 Nov 2010
* [Greek rescue frays amid Irish crisis][20]
16 Nov 2010
* [Graph - Ireland's bailout challenge][21]
16 Nov 2010
* [Horrible truth starts to dawn on EU][22]
16 Nov 2010
The intervention is climb down for Ireland after other eurozone countries
pushed it into accepting an intervention against its wishes.
Brian Lenihan, Irish finance minister, insisted that a bail-out was not
inevitable but admitted that Irish sovereignty was compromised by its
membership of the euro. "When you borrow, you lose a little bit of your
sovereignty, no matter who you borrow from," he said.
"Sovereignty, in my view in a European context, is shared. We have a duty to
the eurozone as our currency and it is Ireland's currency as much as it is
Germany's or France's. We have a duty to sustain the stability of the
eurozone. Ireland is the zone of attack in the eurozone."
Mr Lenihan said talks with the IMF-EU team would begin on Thursday.
The European Central Bank and other euro currency members have been concerned
that that Irish banks have been increasingly dependent on support and putting
Ireland under intense pressure to give to controversial aid conditions that
will reduce the country economic independence.
No details of a rescue emerged at meeting of eurozone ministers last night but
it is likely that a bail-out will be choreographed with an Irish four year
spending plan and austerity programme which could be as early as next week.
Jean-Claude Juncker, Luxembourg's Prime Minister and chairman of the
eurogroup, said he expected a decision on the bail-out "within the coming
days".
"Market conditions have not normalised and pressures remain, giving rise to
concerns that further reforms and stabilisation measures may be appropriate,"
he said.
EU economics commissioner Olli Rehn said the talks would centre in the main on
a package to stabilise Ireland's banks and said it would be available if the
Government choose to seek aid.
Olli Rehn, the European economic and monetary affairs commissioner, said the
EU-IMF teams sent into Ireland would have an "accent on restructuring its
banking sector".
"This can be regarded as an intensification of preparations for a potential
programme in case it is requested and deemed necessary," he said. "This is a
time for cool heads and clear determination to take the necessary decisions to
that effect both at the EU level and in every member state."
The Irish government has insisted that it can afford to repay its record
debts, despite having an annual deficit equivalent to almost a third of the
size of its economy.
The [growing market turmoil surrounding Ireland][23] has also threatened to
push Spain and Portugal into crisis. The cost of Spanish government borrowing
rose sharply on Tuesday.
A full EU-IMF bail-out would mean Ireland losing key areas of political and
economic sovereignty. This would be deeply controversial and could cost the
Irish government its majority.
Senior EU figures have suggested that Ireland should increase its low
corporate tax rates, regarded by the Irish as key to Ireland's economic
recovery.
Herman Van Rompuy warned on Tuesday, that the deepening debt crisis in Ireland
which has spread to other parts of the eurozone has left the [single currency
and EU fighting for their "survival"][24].
"We are in a survival crisis," he said. "We all have to work together in order
to survive with the euro zone because if we don't survive with the euro zone,
we will not survive with the EU."
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## [Financial Crisis][29]
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