Irish Finance Minister is Confident that Crisis Won’t Affect Euro Zone Much

On Wednesday, Brian Lenihan, Irish Finance Minister showed his confidence in the Ireland's economy by saying that the problem of debt crisis in the country would not cause havoc for the Euro Zone.

Speaking with France 24 television Lenihan said, "I have absolutely no doubt that Ireland will not cause any serious dislocation in the euro zone". He was of the view that for a small country like Ireland, the problems that erupt are addressed by an EU monetary support package.

France 24 interviewed Lenihan on Wednesday afternoon. He told the interviewers that the size of the bailout package was still to be negotiated. He added that they would be lacking funds worth 100 billion euros.

In order to solve the financial crisis prevailing in Ireland and attaining a foreign bailout, the country on Wednesday pledged to reduce spending and increase taxes. The overconfidence shown by Ireland could lead to allegations against it in the present scenario when the economy is in bad state.

The Euro Zone felt a brunt yesterday, when there was a sudden increase in the borrowing costs in Portugal and Spain, as the investors speculated that their debt levels would prove indefensible.