Ireland looks to interest rate cut from Europe

The EU is working to lower interest rates on bailout loans to Greece and Ireland and is looking at a second rescue for Athens in a chaotic effort to prevent a disorderly debt restructuring.

The Irish government believes the renewed rise in tensions around Greece has strengthened its hand in talks with its EU partners.

“We carry a heavy burden of debt. Without strong growth, questions of sustainability will remain,” Prime Minister Enda Kenny told a special meeting of Ireland’s parliament in celebration of Europe Day.

“There is no doubt that a reduction in the interest rate on the moneys we are borrowing from Europe would be a meaningful and appreciated measure.”

Ireland expects to end three years of economic contraction this year before racing to gross domestic product growth of 2.5 per cent next year and averaging three per cent growth between 2013 and 2015.

However, the forecasts of the country’s IMF creditors and economists are more pessimistic, while Ireland’s export-led growth is dependent on favourable factors outside of its control.

Ireland’s government is hoping to gain concessions on the EU’s portion of the rescue package.