Germany has admitted that Ireland, or any other eurozone state weighed down by the financial crisis, could not be allowed to collapse and would have to be bailed out by other eurozone members.
German finance minister Peer Steinbruck said it would be intolerable to let fellow EMU members fall victim to the global financial crisis. "We have a number of countries in the eurozone that are clearly getting into trouble on their payments," he said. "Ireland is in a very difficult situation. The euro-region treaties don't foresee any help for insolvent states, but in reality the others would have to rescue those running into difficulty."
Fears are mounting that Ireland may not be able to cover the massive liabilities of its banking system.
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