Three years after being saved from bankruptcy by a trio of international lenders with a €67.5bn loan,Ireland has become the first stricken eurozone state to exit its rescue programme.
Describing the crisis as the country's worst period since the potato famine, Ireland's finance minister said there must be no repeat of the debt-fuelled property spree that brought the Celtic Tiger boom to a disastrous end. "We can't go mad again," said Michael Noonan.
Ireland's announcement that it will not seek more funds from the International Monetary Fund, European commission and European Central Bank - with the rescue scheme to end formally on Sunday - was seized upon by the EC president, José Manuel Barroso, as evidence that the eurozone can stage a full recovery.
"Ireland's success sends an important message - that with determination and support from partner countries we can and will emerge stronger from this deep crisis," he said.
Greece, Cyprus and Portugal are still working through rescue programmes, which include external scrutiny of government budgets, while Spain has received funds to recapitalise its banks. Ireland's bailout - which came after the state guaranteeed the investments of depositors and bondholders in its stricken banks - was comprised of €22.5bn from each of the co-called "troika" members over three years, topped up to a total of €85bn with the country's cash reserves.
Having implemented the spending cuts, asset sales and reforms required under the bailout, Ireland has been embraced again by the debt markets that shut out the country at the turn of the decade. It has raised enough debt independently to fund itself into 2015 and has more than €20bn (£17bn) in the bank.
However relief that Ireland will officially exit the rescue programme on Sunday was tempered with warnings from Irish ministers that the policy of austerity must continue, in order to drive down the country's mountain of debt. Noonan said: "This isn't the end of the road. This is a very significant milestone on the road.
In its final report on Ireland's progress under the rescue scheme, published on Friday,the European commission said: "With public debt level at 124% of GDP in 2013, Ireland needs to continue with fiscal consolidation, reduce the private-sector debt overhang, and improve bank profitability to revive lending."
Source: theguardian
