O'Keeffe latest to deny EU bailout reports

Another Minister has today dismissed international reports Ireland was under increased pressure to apply to Europe for emergency funds.

Batt O'Keeffe flatly denied behind-the-scenes talks have been taking place on securing a multibillion-euro rescue package from the European Financial Stability Facility.

The Minister for Enterprise, Trade and Innovation said that unlike Greece, Ireland was fully funded until next July and boasted a pension reserve fund of €25bn.

"We certainly haven't looked to Europe," insisted Mr O'Keeffe.

The country's economic problems are expected to be the focus of Brussels on Tuesday and Wednesday when Finance Minister Brian Lenihan attends a meeting of EU finance ministers.

Speculation has mounted in several international media outlets that negotiations are ongoing between Ireland and EU officials on tapping into the financial stability fund set up in the wake of the Greek economic crisis.

Fears are also growing Ireland's bond market woes will spread across Europe, particularly to Portugal.

Taoiseach Brian Cowen and Mr Lenihan were both forced to deny the claims on Friday. They separately stressed there was no immediate need for a bailout, insisting Ireland was funded up to the middle of July next year.

On Saturday evening officials from both of their departments again denied reports.

"There are no talks on an application for emergency funding from the European Union," said a Government spokesman.

The IMF also confirmed it had not received any request from Dublin, with head Dominique Strauss-Kahn adding he thought Ireland could manage well.

Mr O'Keeffe revealed the Cabinet has not discussed a possible bailout in a worst case scenario.

And in a third Government denial in three days, the Minister stressed there had been no pressure from Europe to make an approach for emergency funding of up to €80bn.

"I'm absolutely unaware of any moves from Europe," he added.

"I can only go on what has been said as late as this weekend by Commissioner (Olli) Rehn and by the President of the IMF that we can, and that they believe, Ireland will trade successfully.

"As a country we have to inspire confidence, we have be a people and a Government and an opposition that can show clearly that Ireland can stand alone, that it will stand alone, and that it is determined to get out of the financial difficulties that we are in and that we are prepared to take those though decisions," he told RTÉ.

Ireland is facing a delicate three weeks as the Government puts together a drastic six billion euro slash-and-burn budget.

Taxes look set to increase by €1.5bn while Government departments and State agencies will have to live with €4.5bn spending cuts.

Mr O'Keeffe said it was important for international confidence and credibility to note the two major opposition parties agreed with Government plans to cut its deficit to 3% of GDP within four years.

"All of those are extremely important because even if there was a change in government, there will be no change in the attainment of the 3% by 2014," he added.