Euro and shares rise as Ireland accepts bailout

The euro and shares across Europe have increased in value following the weekend announcement that Ireland will apply for bailout funds.

The euro rose to $1.376 while the FTSE-100 increase 0.5 per cent. The German DAX share index was up 0.6 per cent.

Ireland has agreed to apply for up to €90bn (£77bn), £7bn of which will be provided by the UK through direct loans and its membership of the International Monetary Fund, European Union.

Ireland has been forced to accept a bailout after a property bubble fuelled by low interest rates burst. The unpaid debts have brought the country’s banks to their knees.
Chancellor George Osborne told the BBC Radio 4’s Today programme it was in the UK’s interest to help Ireland out: "Our two economies are connected, and our two banking systems are interconnected."

Read a full report at BBC News. ·