The European Central Bank chief, Jean-Claude Trichet, has said the bank will concentrate on discussions with the Irish authorities on the development of a multi-annual budget strategy.
Mr Trichet said the key for the ECB was the credibility and the delivery of Ireland's commitment to bring its deficit into line with EU targets by 2014, as had been previously agreed. The ECB president was speaking on the sidelines of a meeting of euro zone finance ministers.
A statement from euro zone finance ministers meeting in Brussels described today's banks statement as an 'important and helpful clarification of the situation'.
They also welcomed the Government's 'unequivocal' commitment to bring its deficit into line with EU rules by the target of 2014.
'We are looking forward to the multi-annual economic and fiscal adjustment strategy of the Irish authorities, which should present detailed consolidation measures and revised annual headline targets for the whole period until 2014 including new structural reforms,' the statement said.
The ministers said the Irish authorities should develop this strategy in close co-operation with the European Commission, in liaison with the ECB. They said they had confidence in Ireland's commitment to deliver such a strategy.
'In this respect, we welcome Ireland's commitment to make an additional consolidation effort in 2011 over and above the already announced effort,' the ministers added.
Competition chief welcomes 'clarity'
European Union competition chief Joaquin Almunia welcomed the 'clarity' provided by Ireland regarding the state aid provided to the Irish banks.
He said the changes announced by Ireland on the way it manages loans within the National Asset Management Agency, were in line with the European Commission's approval of the scheme.
Read Mr Almunia's statement here
'I welcome the statement on banking which brings clarity with regard to the remaining transfer of (bank) assets to NAMA and the capital needs of some banks and building societies,' he said in a statement.
The EU Commissioner for Economic and Monetary Affairs, Olli Rehn, said the costs associated with Anglo Irish Bank were very large but manageable.
He said he strongly endorsed how Finance Minister Brian Lenihan was handling the situation and he said Europe would stand by the Irish people in these difficult times.
Speaking on his arrival at an informal meeting of Finance Ministers, he said it was essential that the Irish Government unveiled its multi-annual four year budgetary plan to consolidate public finances.
When asked if she was concerned about the figures from Ireland, the French Finance Minister Christine Legarde said: ' I trust Ireland.'
The President of the Eurogroup, Luxembourg's Prime Minister Jean Claude Juncker, said he did not believe Ireland would need to come under the umbrella of the special EU bail-out fund.
'We believe the Irish government can resolve its banking problems without the rescue fund,' he said in Brussels today.
European governments and the International Monetary Fund have set up a €750 billion warchest to help any euro zone state in fiscal trouble following the financial rescue of Greece in May.
Meanwhile, Irish borrowing costs fell on bond markets today after the announcements on the banks.
The interest rate demanded by investors to lend money to Ireland for 10 years was at 6.76% this evening, having begun the day at around 6.9%. The closely watched gap between Irish and German costs also narrowed compared with yesterday.
