Ratings agency IBCA has stated that the implications of EMU for small, peripheral countries such as Ireland are neutral to positive.

IBCA managing director of sovereign ratings, Mr Christopher Huhne said that although smaller countries such as Ireland, which were expected to he in the EMU first wave, were more vulnerable to economic shock, "they also, generally, have flexible labour markets so that the loss of the exchange rate as a means of adjustment is less serious".

Mr Hume said that, given the other benefits of EMU - substantial savings in foreign exchange transaction costs, which are proportionately higher for smaller countries - "the ratings implications would be positive or neutral".