Eurozone ministers to 'intensify' work to help Ireland

His statement came at the end of an emergency meeting of eurozone ministers and financial institutions in Brussels.

Finance ministers from all the 27 European Union countries are set to meet shortly.

Tuesday's emergency talks came against a background of renewed financial market turmoil.

At the centre of this has been the markets' fear that the governments of the weaker eurozone countries - particularly the Irish Republic - would not be able to afford to repay their huge debts.

Mr Rehn said that "the Irish authorities are committed to working" with the EU, the European Central Bank and the International Monetary Fund to calm market turmoil.

A statement by the eurogroup following its meeting praised Ireland's efforts to combat its problems: "The Eurogroup welcomes the significant efforts of Ireland to deal with the challenges it faces in the budgetary, competitiveness and financial sector areas."

'Short and focused'

The statement said the Irish government would engage in a "short and focused consultation" with the Commission, the ECB and the IMF in order to determine the best way to provide any necessary support.

It concluded by adding "We confirm that we will take determined and co-ordinated action to safeguard the financial stability of the euro area, if needed, and that we have the means available to do so".

The IMF welcomed Ireland's decision to allow a "short and focused consultation" to decide if the country needs a budget bailout.

Mr Rehn called Ireland the most pressing challenge of today, adding that there was "an intensification of preparations of a potential programme in case it is requested" but the meeting proposed no concrete course of action.......