Ireland

The Irish government has announced plans to save €15bn over the next few years to tackle the country's debt crisis.

Standard & Poor's has downgraded Ireland's long-term sovereign credit rating from A to AA- as the country prepares to accept an EU bailout.

FSA chairman Adair Turner says Britain's banks are not disturbingly exposed to Irish banks or Irish government bonds.

The FTSE 100 fell almost 1% this afternoon, reversing early morning gains, due to rising political uncertainty in Ireland.

THE BIG QUESTION

The FTSE 100 advanced 0.67% or 38.68 points to 5,771.51 as investors responded positively to news Ireland has agreed to a bailout.

Legendary investor Jim Rogers believes Ireland and wider Europe would be better off if the Celtic Tiger was allowed go bankrupt.

Ireland became the second country this year to accept billions in EU funding after last night conceding its banking and budget crisis was too big to handle on its own.

Many investment advisers tell their clients lending to governments is one of the safest things you can do.

As Ireland prepares to accept a rumoured €80bn euro European Union and IMF bailout to pull it from the mire of its financial crisis, fund managers consider what the contagion effect may be on the banking sector in the UK and Europe.