Varadkar: We may need second bailout

Minister for Transport Leo Varadkar has warned that Ireland may need another bailout. He is the first minister to make that admission.

Minister Varadkar said it was unlikely that Ireland would be able to raise money from the international bond markets next year as originally planned.

In an article published in the Sunday Times today, Minister Varadkar said we might be able to return to the markets "some time" in 2013.

That "would mean a second programme (would be required)," he said, "either an extension of the existing programme, or a second programme. I think that would generally be most people's view."

Former head of Libertas Declan Ganley said it had been obvious since before the General Election that a second bailout would be necessary.

"This is the cost of not purging the insolvency from our economy," he said. "Ireland can pull out of this…but we have to get rid of the insolvency of the bank debt that has been left hanging over us because otherwise, of course we can't revisit the markets.

"Government policy today says we should carry this millstone of bank debt around us…Who's going to lend money to us in that case?"