Germany has said it will push ahead with a growth compact now that Irish citizens have adopted the fiscal treaty, despite cuts and hardships which they said deserved special recognition and respect.

The president of the European Parliament, Martin Schulz has welcomed the outcome of the Fiscal Treaty referendum here.

Strong leadership by Ireland’s Taoiseach-elect will finally get the country working again, the leader of his European allies has said.

BELGIUM plunged into political crisis yesterday as Prime Minister Yves Leterme threw in the towel after a key Flemish party quit his coalition government two months before the country assumes the EU chair.

Belgium has turned to a veteran politician to broker a new government after a scandal over the botched bail-out of the Fortis bank forced the ruling coalition to resign.