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Ireland agrees to bail-out deal

The former Celtic Tiger is to receive around €80-90bn

The value of shares and the Euro rose after last night's announcement that Ireland has agreed to the terms of its financial bail-out. The country is to received somewhere in the region of €80-90bn from the EU-IMF bail-out, although the exact figure is yet to be confirmed.

Both the UK and Sweden have offered direct financial support, although the UK's offer is stirring controversy in light of its recent domestic spending cuts.

The financial crisis in Ireland is a result of both the recession and the near collapse of its banking system. This crisis is particularly poignant considering that Ireland was recently known as the Celtic Tiger for its high growth rates. These growth rates are largely attributed to the country's low corporation tax of 12.5%, which will remain untouched in the terms of the agreement. This decision is likely to spark debate considering that Irish citizens will see a rise in income tax as well as considerable cuts in spending.

The somewhat premature announcement of the bail-out late last night before the financial markets open this morning signifies the broader crisis facing the Eurozone's markets at the moment.

In the announcement, Prime Minister Brian Cowen called for a realistic perspective on the present crisis but for an optimistic outlook upon the nation's future.

"To the Irish people I say simply this: We should not underestimate the scale of our economic problems, but we must have faith in our ability as a people to recover and prosper once more," he said.

"That is where the focus of our efforts must turn over coming weeks, beginning with the four-year plan and then the budget. And now we need to show the solidarity in our own country that our neighbours have shown to us at this time."