Dublin

Bailout roils government: Ireland’s government teetered this week after admitting it was near bankruptcy and in need of a massive bailout from the EU and the International Monetary Fund. Prime Minister Brian Cowen said the government needed $100 billion to avert collapse in the wake of a financial crisis brought on by a housing-market crash and bank investments in bad mortgages. As the country’s credit rating plummeted, the government began nationalizing banks and presented a radical four-year plan for $20 billion in combined spending cuts—including painful welfare and social-service cutbacks—and new taxes to meet bailout terms. The junior party in Cowen’s government quit the coalition, and Cowen said he would call elections for early next year, after the austerity budget had passed. Some members of Cowen’s own party demanded his immediate resignation, saying he had “betrayed” Ireland through mismanagement.

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