Dept of Finance admits talks with EU over aid package

The Department of Finance has admitted that there has been contacts between Ireland and the EU about the country's debt problems, but insists a bailout is not being discussed.

It is understood the EU is keen for Ireland to accept an EU aid package, in order to avoid de-stabilising the euro.

Several international news organisations have stated that discussions are underway about a bailout for Ireland, but the Justice Minister Dermot Ahern last night described those reports as "fiction".

But a statement released by the Department of Finance later confirmed that there are at least some discussions going on between Ireland and the EU.

The department said those talks are about current market conditions and not a bailout.

Today, traders on the markets will give their views on the weekend reports.

Meanwhile, the Reuters news agency has reported that the EU is keen for Ireland to accept an aid package because it wants to protect the euro from a Greek-style crisis.