EU ready to rescue Irish

Irish Finance Minister said the government bond spreads widened "very serious", blamed the German comments

* Bond spreads and CDS record high, bank shares plunge

* If necessary, Barroso said the EU has the tools to help Ireland

* Short-term debt concerns highlight the default

Reuters, Dublin, November 11 - --- Ireland Thursday warned the cost of borrowing soared to a record high the situation has become "very serious." The EU said that if Ireland to seek help, the EU stands ready to lend a helping hand.

European officials say the situation is being closely monitored changes in Ireland, but denied the second straight day to seek financial assistance. This is six months ago the European Union and the International Monetary Fund (IMF) joint relief echoed the Greek language prior to the official, seems to presage not good.

And Greece is different is that until the middle of next year the Irish capital are adequate, meaning that the liquidity crisis will not soon come.

However, the Reuters economic analysts and bond strategist survey has revealed that 30 respondents in 20 agree that does not accept external assistance in the case of Ireland, but I am afraid that support the end of 2011.

"Very serious debt problems spread, the euro zone and therefore the international community was worried." Irish Finance Minister Brian Lenihan in Dublin said.

He accused German officials on the new mechanism for the euro area long-term assistance, "casually" Comment is caused in part because the rapid expansion of spreads. If this long-established mechanisms to help private creditors will be forced to bear the cost of future rescue.

While Germany made it clear that the new mechanism does not apply to existing debts, but the plan is still to let the market panic, worried that the euro zone second-tier members will have a domino effect.

Lenihan said the Irish hope they clear the plan proposed by Germany, the country can survive the crisis without outside assistance.

"We have the ability to maintain the operation, to maintain the country's reputation." He said.

Ireland, the current government is very unpopular in Congress occupied only a slight advantage, but the government does not need the outside world trying to give proof of the Greek aid to reduce their budget deficits. Irish budget deficit this year, gross domestic product (GDP) ratio will reach 32%, which no doubt will be the tallest in Europe.

But the market doubts the Irish government to slash 2011 budget 6 billion euros could be adopted next month.

Such concerns led to the Irish 10-year yields in three weeks, jumped from the 6% to 9%.

European Union (EU) Commission President Jose Manuel Barroso told reporters in Seoul on Thursday said that if the Irish need help, the EU is ready.