MercoPress. South Atlantic News Agency

EU ministers and Ireland discussing possible (80 billion Euro) bailout

Irish Prime Minister Brian Cowen

Ireland is in talks with European officials about current “market conditions” as Germany pushes it to accept a bailout and help reverse a bond sell-off across the euro-region’s periphery.

“Ongoing contacts continue at official level with international colleagues in light of current market conditions” a Finance Ministry spokesman said in an email late Sunday. “Ireland has made no application for external support” and the government is “fully funded till well into 2011,” the spokesman said.

The confirmation of talks comes as Euro region finance ministers prepare to meet in Brussels this week. Allaying investor concerns about Irish finances would help advance Chancellor Angela Merkel’s’s plan to require investors to help pay for future rescues, a German government official said. European leaders are divided over Merkel’s proposal as well as over whether Ireland should seek aid now, he said.

Irish officials have repeatedly stated that a bailout wasn’t being considered. Seeking aid hasn’t been discussed by Irish Prime Minister Brian Cowen’s Cabinet, Enterprise Minister Batt O’Keeffe told a Dublin broadcaster denying that there is a “crisis.”

According to Barclays Capital the request for aid may total about 80 billion Euros between 2011 and 2013.

Bonds in Ireland, Portugal and Greece have plummeted since EU leaders agreed on Oct. 29 to draft a permanent crisis mechanism to replace the euro-rescue fund set up in May once its mandate expires in 2013. That prompted European finance chiefs to issue a statement at a Group of 20 summit in Seoul last week saying the plan being debated to have investors cover future bailout costs would have “no impact” on existing debt.

Irish Finance Minister Brian Lenihan will resist any effort at the finance ministers’ meeting to be forced to tap the European Financial Stability Facility, the Sunday Times reported Sunday without citing sources.

Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group of Euro finance ministers, said Nov. 12 there was “no immediate reason” to think Ireland will seek cash and that officials wouldn’t meet before the monthly talks in Brussels.