Ireland still insists it does not need a bail-out package as it prepares to host a delegation of European experts and International Monetary Fund officials. The meeting is as a result of heavy pressure by EU members in its quest to convince Ireland to follow Greek’s example in taking a large bail-out package.

However, Ireland is insistent that it only needs a loan to rescue its banking sector which is on its knees as a result of a $90 billion debt. The European Union is worried about the impact of Ireland’s debt situation on the euro, which traded against the dollar in a seven-week low.

Financial analysts however doubt the effectiveness of these bail-out packages being given to struggling countries. Rym Ayadi, a senior research fellow at the centre for European policy studies in Brussels says that it is unclear to him whether or not these packages are going to be effective against other countries on their way to a crisis such as Portugal.

He cites Greece as having not yet recovered even after receiving the bail-out package.

On the other hand, Ian Begg of the London School of Economics said that the package was going to keep markets calm and avoid a larger disastrous crisis.

Since the EU package has the lowest interest rates available in the market, speculation is rife that Ireland will consent to some form of assistance from the EU. Britain and Germany have thrown their weight behind helping Ireland recover from its current economic crisis as soon as possible.

Britain and German investors owe money to the tune of $288 billion in form of Irish debt.
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