Bank shares across Europe react positively to bailout

European bank shares are reacting positively to Ireland's €85bn EU IMF bailout.

Irish bank shares are also up this morning, AIB shares are up 8% while Bank of Ireland is up 17%.

In another positive move this morning, European Central Bank policymaker Christian Noyer has sought to bolster market confidence in the rescue deal for Ireland.

He said he had "no doubt" that the bailout agreed would be successful and that cagey investors should have faith in the plan.

The rescue deal negotiated between the Government the EU and the IMF was approved by Finance ministers from across Europe yesterday.

However, Fine Gael have said the Government has "sold out the country on lousy terms", while Labour said the Government has "lost the house, in a high stake game of poker" with the EU and the IMF.

Earlier, the Minister for Science, Technology and Innovation, Conor Lenihan confirmed that the Government is considering the sale of state assets to raise funds.

He said the sale of the rest of Aer Lingus is one of the options which has been looked at.