British Chancellor George Osborne has said it is 'overwhelmingly in Britain's national interest' for Ireland to have a stable economy and banking system.
He was speaking in the House of Commons, where he updated MPs on British involvement in the international bail-out of the Irish economy.
Mr Osborne said Ireland was a major trading partner with a banking sector 'interconnected' with the UK's. The UK's total contribution to the support package is thought to be around £7 billion but in a statement to the Commons Mr Osborne said it was right to help a 'friend in need'.
Shadow chancellor Alan Johnson said Labour was 'in principle content to support a role for the UK in assisting Ireland to secure economic stability'.
Ireland is a significant export market for the UK and British banks - already bailed out by the British taxpayer - have large exposures to Irish debt.
Sweden could lend Ireland €1.1 billion
Sweden could lend Ireland up to €1.1 billion, Swedish Finance Minister Anders Borg said today.
'We are prepared to consider a bilateral loan in addition to the programme decided on by the IMF and the EU,' Borg told reporters in Stockholm.
'The possible Swedish loan to Ireland would resemble greatly the loans given to Iceland and Latvia' by Sweden, 'with the amount ranging from five to 10 billion kronor,' at an interest rate of around 3%, he said.
Sweden, a member of the European Union but not of the single currency euro zone, said last night that it would consider a loan to Ireland but did not specify the amount.
The Scandinavian country's public finances are among the healthiest in the European Union and the government is forecasting growth of almost 5%. 'For an export-dependant country like Sweden, it is basically inevitable to help contribute to financial stability,' Borg said today.
Stockholm would expect a 'credible but also socially responsible and fair' plan from Ireland in exchange for a potential loan, Borg said.
However, unlike demands from several other countries that Dublin raise its controversial 12.5% corporation tax, among the lowest in Europe, the Swedish minister stressed it would be up to the Irish government to determine taxation levels.
If Portugal, which some experts say could be the next European country to ask for help, or Spain, with its budgetary woes, were to request a loan, 'the bar might be a bit higher' before Sweden agreed to contribute, Borg said.
'We do not intend to automatically offer support,' he said.
