Report: Euro membership increased recession in Ireland

A new report is expected to point out that while eurozone membership has helped financial stability in Ireland, it has also made the impact of the recession more severe.

The research, to be published by an influential German research group, said the financial crisis is more severe here because we are unable to devalue our currency.

It also said Ireland is one of a small number of countries that pose "a real risk" to the future of the euro.

The IFO Business Confidence Index named Ireland - along with Greece - as a country where international money markets see a significant risk of a sovereign default.