Ireland 'will implement' bailout

Tánaiste and Minister for Foreign Affairs Eamon Gilmore has called for a “wider European response” to tackle the euro zone crisis and “left-field” rating agencies providing “loose market sentiment” as analysis.

Mr Gilmore was speaking in Berlin after meeting his German counterpart Guido Westerwelle, who called for the establishment of a “neutral and independent” European ratings agency offering “unjaundiced” finance analysis.

Mr Westerwelle expressed his “great respect and recognition” for Ireland’s reform efforts.

“Ireland will recover, Ireland will be the recovery story of the euro zone and the EU,” Mr Gilmore said at a press conference with Mr Westerwelle at Berlin’s foreign ministry.

He dismissed as an “academic question” speculation that Ireland’s sovereign debt will be downgraded by ratings agencies to junk status, because the country is out of finance markets.

“I don’t think there is great merit to be served in passing around the blame,” he said, before criticising rating agencies who have recently downgraded Portuguese sovereign debt.

“These are the opinions being offered by private rating agencies which seem to be based more on loose sentiment than on fact and reality,” he said.

“The reality as far as Ireland is concerned is that we are implementing the [EU-IMF[ programme and are making progress. Yes we have difficult challenges ahead but the Irish government is determined to do everything to bring about economic recovery and use every instrument available to achieve that.”

Mr Westerwelle made clear Berlin’s determination for an independent European rating agency.

“The current discussion shows the need for a neutral, independent rating agency in Europe that will examine financial markets in an unjaundiced fashion using the same technical criteria internationally,” he said. “I see it necessary to create an agency. To guarantee its independence one could create a foundation model. No doubt this is something we will need to discuss.”

As well as political meetings, Mr Gilmore’s Berlin visit includes attending a reception with Irish business people in the German capital.

The Tánaiste said he was “very reassured” by the supportive comments in Berlin as it was “very, very important that Germany understands what the Irish government is doing on the road to recovery”.