As investors worry about increased debt problems of Ireland, the global attention being turned to Europe from the U.S. QE2 Ireland. Markets are waiting to see whether the Irish will be the next “Greek.” But recently the European Union, the European Central Bank and the IMF and other institutions of the statement, the EU has clearly learned the lessons of Greece, Ireland, prepared to do any aid. In these powerful “patron”, the Irish become the next “Greek” is unlikely.

Euro zone finance ministers convened in Brussels meeting, the euro area member states are trying to broker a rescue plan for Ireland. The focus of the meeting is to provide some of Ireland’s banking sector and public assistance or individual assistance only to the banking industry. If the assistance of the banking sector alone will need 45 billion euros to 500 billion euros, if the assistance extended to the Government’s public finances, then the aid will reach 80 billion to 100 billion euros between. But regardless of which plan to take, IMF will provide half of the money, the other half of funds provided by the European Union and the United Kingdom.

EU aid mechanism is responsible for operating the EU officials said they and the European, North America and Asia have approached potential investors, and received positive feedback, once the need to start the rescue mechanism, will be in 5-8 working days from financial markets to raise large sums of money.

At present, Europe ready for the assistance of the Irish, just waiting for the Irish Open. But the key issue is the Irish Government has repeatedly reiterated that there is no intention to apply for external financial assistance.

The reason why Ireland has not help, first, because the country’s debt problem is not as serious market might think the Irish government in the hands still held cash reserves of 20 billion euros, at least before the middle of next year is still sufficient to repay all existing debt principal and interest ; Second, the Irish government has announced a large-scale debt relief plans, the deficit will be reduced in 2011 to below 10% GDP, in national support, this goal is not difficult to complete; Third, once the IMF loan scheme to apply its public finances relief part, the Irish will lose part of their sovereignty, because it involves public finance part of the loan scheme is often associated with policy requirements, and with the need to reach the goal.

But in order to stabilize the market and stop investors panic spread throughout Europe, Ireland is likely to choose not to involve only the public part of the domestic banking sector to rescue the plan. Irish Prime Minister Brian Cowen said on Monday, the Irish government is working with its European partners on “how to support banking and financial system stability” to start negotiations, he said, Ireland’s interest is limited to rescue the bank, and want to ensure that the cost of capital is not too high.

In fact, Ireland is from the domestic banking crisis caused the problem. The end of September this year, the Irish government said the rescue could cost its top five banks 50 billion euros, is expected deficit this year will be surging to 32% of GDP, public debt will account for 100% of GDP. The news came out, then the Irish government bonds interest rates soaring. Ireland-year bond interest rates rise to 9%, the German government bonds interest rates three times over the same period.

Currently, more and more dependent on European Central Bank of Ireland banks. Data shows that the Irish banking industry average of more than 10% are dependent on the liquidity of the three-month European Central Bank to provide unlimited loans, the ratio is much higher than other countries. According to Bloomberg news agency reported that as of October 29, the Irish banking institutions from the European Central Bank lent a total of 130 billion euros, equivalent to 80% of the gross domestic product.

In this regard, the European Central Bank concerns, the Irish banking issues such as drag, sovereign debt risk will become increasingly large, so the bank executives have suggested that the Irish government mechanism for financial stability from the European Union to obtain funding to complete the bank in the country industry capital supplement.

Although Ireland has not yet chosen whether to accept the aid and assistance by means of which, but there is a warning for Greece, the major European countries, the issue of assistance is relatively united Ireland, which to some extent reduce the obstacles to aid the Irish, maintenance of stability played a role in the market. Coupled with the EU had to help get into the debt crisis of the total amount of euro zone countries and the establishment of up to 750 billion euros of the European Financial Stability Fund, the Irish out of the debt crisis should not be a problem.

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