Govt to unveil four-year fiscal plan early next week

The Government’s four year plan to fix the economic crisis will be published early next week, a minister said tonight.

As the European Commission (EC) confirmed Ireland has made no request for an EU bail-out, Justice Minister Dermot Ahern revealed the €15bn adjustment was being finalised.

Meanwhile Irish borrowing costs eased back following assurances from key European figures that investors would be repaid if the country tapped into a rescue fund.

Mr Ahern said the Cabinet will hold an early morning meeting tomorrow before Finance Minister Brian Lenihan travels to Brussels to face his EU counterparts over the country’s financial crisis.

“Obviously we would like to get the plan out sooner rather than later,” said Mr Ahern.

“I anticipate it will be some time next week.”

Reports Ireland was under increased pressure to apply for a multi-billion euro emergency bail-out was again rejected by Mr Ahern, who instead confirmed officials from Ireland, the European Central Bank (ECB) and EC were in constant contact over the pressure on the euro.

He said Mr Lenihan will be articulating Ireland’s position at the meeting of EU finance ministers.

“People need to be calm,” said Mr Ahern.

“Ultimately there’s people who may very well have their own particular interest for making comments.

“It’s vital the less said about these issues the less speculation there is because speculation does lead, as we have seen, does lead to some very significant spikes in the cost of funding of not just Ireland, but in a number of other countries across Europe.”

Irish 10-year bond yields – the interest rates that investors demand to hold the debts, a reflection of risk of default – have sunk to 8.1% from their peak of 8.9% on Friday morning.

The drop in yield came after Vitor Constancio, the ECB vice president, said the European Financial Stability Facility would be adequate to help the Irish government prop up its economy in the same way it had helped Greece

Ireland’s financial crisis was discussed by Commission officials at brief talks in Brussels yesterday afternoon, but no conclusions were reached.

A spokesman in Brussels said there was a “financial backstop” available for Ireland under emergency EU financing agreed last May – a €50bn fund.

But so far there has been no approach from Dublin for help with “financial stabilisation”.

He pointed out that Ireland’s sovereign debt is fully financed until next summer and dismissed suggestions that the Irish government is facing pressure to take advantage of EU assistance.

“The Irish authorities have made no request for financial assistance and their sovereign debt is fully financed until summer 2011” he said.

“The Commission is in close contact with the Irish authorities as you can imagine.”