Ireland confirms it will ask for a bailout

Ireland is on the verge of an unprecedented bailout worth up to 70 billion euro.

The war-chest will come from the International Monetary Fund (IMF) and Europe as the Government conceded the bank crisis is too big for the country.

Finance Minister Brian Lenihan insisted Ireland had not been bounced into the plea for help and billed the mammoth rescue as stand-by firepower for the banks.

He refused to put a figure on the total bailout but accepted it was tens of billions and not a "three figure" sum.

And he attempted to quell fears that the IMF and Europe will hold the levers of power with the potential to hike the controversially low 12.5 per cent corporation tax rate.

"That issue is off the agenda now. Let's be clear about that," Mr Lenihan said.

Ireland's State running costs are 19 billion euro in the red.

Financial experts have warned that the banks need about 70 billion euro in total to create the kind of confidence needed in international money markets.

The Government will this week press ahead with a four year budget roadmap designed to cut 15 billion euro off State spending.

Mr Lenihan said the 8.65 euro minimum wage, the second highest in Europe, will have to be looked at. Social welfare cuts and new taxes are also on the cards.