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This article is about the effect of the single euro currency on Ireland and the rest of Europe. Because the economic health of one nation can threaten the Eurozone as a whole, the single currency means that the EU must bail out a financially troubled Ireland or risk the currency's collapse.

The decision may significantly raise the future cost of borrowing for over-indebted eurozone governments. It is part of a new permanent scheme - to be funded by eurozone governments, but not the UK - to replace existing bail-out funds that expire in 2013. "The Member States whose currency is the euro may establish a stability mechanism to safeguard the stability of the euro area as a whole. The granting of financial assistance under the mechanism will be made subject to strict conditionality."