The United Kingdom ‘stands ready’ to support Ireland’s efforts to restore stability to its public finances following its decision to seek billions of aid, the Treasury in London said tonight.
However, British chancellor George Osborne has still to decide whether to offer a bilateral loan to Ireland outside of the European Union’s rules, or else take part in the £440 billion European Stability Mechanism.
“As the Chancellor said last week, it is in Britain’s national interest that the Irish economy is successful and its banking system is stable, so Britain stands ready to support Ireland in the steps that it needs to take to bring about that stability,” a Treasury spokesman said.
“The UK will be closely involved in discussions on the scale and type of assistance as they develop,” said the statement, though it is not clear whether the UK could contribute directly, or through EU or IMF channels.
A direct bilateral loan, worth up to £8 billion, would add to the UK’s deficit and cause considerable difficulties for Mr Osborne from Conservative MPs, who will inevitably face constituency complaints that services are falling to pay for Ireland.
It is not yet clear if MPs will even be given a vote on the Irish package.
