By Claire West
European shares and the euro have both risen in value, as markets have welcomed the bail-out of the Irish Republic.
Mark O’Sullivan, director of dealings at Currencies Direct commented, “The much anticipated news that Ireland will receive ECB and IMF aid has been greeted with relief within the currency markets.
The Euro has risen a cent against the dollar trading at 1.3748.
However once again it highlights the problems that the debt laden euro members face. Only a year ago Mr. Cowen and the Irish government were applauded by the markets for implementing tough austerity measures on the Irish economy.
However it hasn’t been enough, and the realization that a collapse of the Irish banking system could quickly spread to other euro member states including the UK meant action was inevitable and Ireland has effectively lost its independence and will face a tough economic outlook for many years to come.”