Ireland's debts 'bigger than expected', says EU report

The European Union has said the debt loads of Ireland, Greece and Portugal will be much bigger than previously forecast, adding to fears that international bailouts are failing to solve the region’s crisis.

In its biannual economic forecast, the EU said that Ireland’s debt is expected to hit 112% of gross domestic product this year before rising to 117.9% in 2012. That is up from earlier forecasts of 107% and 114.3% respectively.