Cost of Irish bank support rises

The Irish government has confirmed there has been a sharp rise in the cost of rescuing the country's biggest banks. The additional bail-outs will plunge the Irish economy deeper into debt - but the government in Dublin says the banks could bring down the entire economy if they fail.

Thursday's announcement means Anglo-Irish Bank could need a total of nearly 34bn euros (£30bn) which is more than the Irish government collects in taxes. They are giving Allied Irish bank an additional 3bn euros (£2.5bn) and taking over majority control of what was once Ireland's biggest bank.

The amount being pumped into Ireland's banks will lift the country's deficit to a staggering 32% of GDP -- the highest in Europe since the Second World War.

Lisa Hampele reports.

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