Ireland ponders the true cost of the bailout

The true price of Ireland's €90bn bailout is becoming clearer as the organisations providing the country's financial lifeline lay down their demands.

The International Monetary Fund is calling for a gradual reduction in Ireland's unemployment benefit and minimum wage – currently one of the most generous in the European Union.

Meanwhile, French finance minister Christine Legarde, in common with the EU's line on the subject, has said Ireland will have to raise taxes.

Dublin has so far refused to bow to pressure to increase its ultra-competitive corporation tax - at 12.5 per cent, a major irritant to its neighbours. But it is hard to see how it can remain at that level.

Meanwhile, credit rating agency Moody's indicated it will be slashing Ireland's rating by several notches, which will increase the cost of borrowing for the government.

Read a full report at the Independent. ·