Factbox: Euro zone comments on Irish turmoil

(BestGrowthStock) – The European Union urged Ireland on Tuesday to adopt an austerity budget on time to unlock promised EU/IMF funding, responding to a deepening political crisis that threatens to derail the financial rescue.

Below are key quotes from euro zone officials on the task facing Ireland.

ANGELA MERKEL, CHANCELLOR, GERMANY

“The difficulties in Ireland should be classified differently to those in Greece, but are still no less worrying.

“We are in an extraordinarily difficult situation, as far as the euro’s situation is concerned.

OLLI REHN, MONETARY AFFAIRS COMMISSIONER, EUROPEAN UNION

“Stability is important… we don’t have a position on the domestic democratic politics of Ireland but it is essential that the budget will be adopted in time and we will be able to conclude the negotiations on the EU-IMF program in time.”

“The budget needs to be adopted.

CHRISTINE LAGARDE, ECONOMY MINISTER, FRANCE

“Let’s be clear, the Irish state must reduce its public deficit. There are several ways to cut a deficit.”

“It is entirely desirable that Ireland uses the fiscal lever to reduce its budget deficit.

JAN KEES DE JAGER, FINANCE MINISTER, NETHERLANDS

“Throwing Ireland out of the euro is not a good idea, it would provoke a chain of unwanted effects… If you … (allowed) southern countries to devalue, then this would hurt our exports and our economy.”

“The amount of money needed to clean up the Irish banking system is now being studied by experts. Shareholders and holders of subordinated bonds in Irish banks will have to bleed in a restructuring process.”

“It could be better to raise the VAT rate than the corporate tax rate.

(Compiled by Jan Harvey; Editing by Paul Taylor)

Factbox: Euro zone comments on Irish turmoil