Irish parliament approves EU-IMF bailout

Ireland’s parliament on Wednesday narrowly approved an 85 billion-euro rescue to save its debt-ridden economy and stave off a collapse of its banking system.

The deal, agreed with the European Union and the International Monetary Fund, squeezed through the Dáil by 81 votes to 75.

Finance Minister Brian Lenihan told fellow lawmakers that the IMF described the government’s planned austerity mesasures as a “clear and realistic package of policies to restore our banking system to health and put our public finances on a sound footing.”

Two years ago, Dublin gave the country’s banks a blanket guarantee to honour their debts.

But their sheer size led investors to doubt whether the government could keep its word.

The banks also ploughed money into the construction industry, fuelling a property bubble.

But as developers defaulted on those loans, boom turned to bust, taming an economy once dubbed ‘the Celtic Tiger’.

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