The problem faced by Ireland is that due to a lack of trust of investors in its ability to repay its debts, the current interest rate investors would demand on new Irish bonds are prohibitive (around 10%). What other EU countries are going to do is to borrow money themselves at a low rate because investors can trust them to repay, and lend it to Ireland with a small premium. The final rate of interest on the bail-out money is likely to be around 5% for Ireland.
Where are the EU taxpayers here?
Main: take the money and run? Image: (cc) Vincepal/ Flickr