The £85 Billion bailout of the Irish economy will cost every UK family £300.
The deal has been agreed by the UK Chancellor to pay £7.5 billion towards the total £85 Billion, further pressure for taxpayers in the UK. This £7.5 Billion for British taxpayers equates to £288 for every UK family.
If Ireland was to default on debts it would increase the liability of the UK taxpayer up to £12.5 Billion.
The Irish Government’s Debt Management Agency (NAMA) has been criticized over allegations that it was mislead by the Irish Banks. Dr Michael Somers formerly Chief Executive of NAMA said that these claims were outrageous and if NAMA had evidence they should “name the banks and the individuals, and face the consequences.”
Experts are concerned that Ireland’s bailout could affect the future of the euro with rising fears that this debt crisis could move across Europe affecting Portugal and Spain.
Brian Cowen the Irish Prime Minister said “‘the government has today decided that Ireland will apply for financial assistance to the European Union.”
“’European countries have agreed to our request. A formal process of negotiation will commence that will lead to assistance.”
Mr Cowen described the bailout as ‘the once-mighty Celtic Tiger requires a humiliating Greek-style handout to prop up the government and its basket-case banks.’