BERLIN (MNI) – Several European Union member states fear that there
might be a contagion effect from Ireland’s debt crisis on other EU
member states, German weekly Welt am Sonntag (WamS) reported Sunday.

According to the newspaper, there will be concrete deliberations in
Brussels this week about an aid package for Ireland.

Spain and Portugal, in particular, are pushing for fiscal rescue
measures for Ireland similar to those for Greece agreed earlier this
year, WamS reported, without citing any sources. The two countries fear
that they might come under pressure themselves if the Ireland crisis is
not defused quickly.

German Finance Ministry spokesman Martin Kreienbaum stressed Friday
that “the Irish government has repeatedly, and only today again, made
clear that it sees no need to tap in the European rescue fund.”

The Irish government “has reaffirmed its ambition to continue on
the consolidation path and the [German] federal government has not the
slightest reason to doubt that,” he explained.

“On this occasion I want to point out again that to our knowledge
Ireland will need to refinance itself on markets again only in
mid-2011,” the spokesman said.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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