The new Greek rescue deal could save Ireland a lot of money as euro zone leaders decided at their special emergency summit to cut the interest rate charged on the loans being made to countries to save them from bankruptcy.
The two percentage point reduction should save Dublin between 600 million and 800 million euros annually.
Ireland’s prime minister Enda Kenny welcomed what he called a “substantial” saving: “Ireland’s burden has been eased. We have a long way to go, we have some very difficult choices to make with respect of our budget at home, with the unemployment situation and dealings with our banks. But for now, this was a good day for Ireland in terms of the euro zone meeting and its consequences.”
Ireland needed to raise 85 billion euro because its banks were in danger of collapsing having made loans that were not repaid.
Just over half that money came from various EU bodies and a quarter from the International Monetary Fund.
The rest was from an Irish government austerity programme of tax increases and spending cuts.
Despite the savings for Dublin from the interest rate cut there will not be any let up in the tough economic measures for the Irish people. They will continue as Ireland tried to restore its economic balance.