Second bailout a possibility, says Burton

MINISTERS have clashed over the likelihood of a second bailout for Ireland, as fears grow over the uncertainty of the euro.

Social Protection Minister Joan Burton said yesterday she could not rule out Ireland having to seek a second round of emergency loans to keep services and day-to-day spending ticking over.

However, party colleague and junior transport minister Alan Kelly insisted last night that a second bailout was not needed.

The difference of opinion emerged after Citigroup economist Willem Buiter last week said that Ireland needed to negotiate a second bailout in advance of the end of the current programme in 2013.

Asked about the possibility of a second bailout, Ms Burton said: “Of course the Government has to look at all the contingencies, but we are working the programme and we are working positively on the programme. If the eurozone gets capacity to act collectively we could be in quite a positive position.”

Finance Minister Michael Noonan last week said talk of a second bailout was “ludicrous”. His comments were echoed by junior minister Mr Kelly, who last night told RTÉ’s The Week in Politics show that there was no need for one.

Prof John FitzGerald of the ESRI told the show that a second round of emergency loans was unlikely.

“I think it is too early to say on that. I think it is unlikely [a second bailout] but we won’t know for certain, until the earliest possibly this summer, and it could be the summer of next year before we know for certain.”