European Union economic and monetary affairs commissioner Olli Rehn said he expects the issue of pricing for rescue loans to EU governments to be looked at from a European perspective.
"We look forward to continue supporting the Irish people and the next Irish government in the implementation of the EU- IMF program, which is key for Ireland's economy and its revival," Mr Rehn told reporters in Brussels. "We have the common goal for Ireland to revive its growth dynamics and succeed in ensuring its debt-sustainability," he said.
Mr Rehn said pricing policy, referring to the interest rates, was a key issue that would be discussed as part of the comprehensive strategy of the European Union.
"I expect this issue of pricing policy will be looked at from the overall European perspective over safe-guarding financial stability in the euro area and ensuring debt-sustainability of all its members," he said.
Euro zone leaders meet in Brussels on March 11th to discuss strengthening the European Financial Stability Facility (EFSF), the €440 billion fund set up last May.
Incoming taoiseach Enda Kenny is to press for a lower interest charge on bailout loans, which is already on the table, and compulsory "haircuts" on unguaranteed senior bank debt, something ruled out by the European Central Bank.
Discussions on reforming the European bailout programme are set to culminate next month.
European Central Bank interest rate rises are off the table until the details of that package are known and the ECB has seen how markets receive them. Were the EU to fail to reach a deal - a real possibility - the ECB would have to postpone action for longer.
"A situation where they don't agree on anything, leave a status quo, that would be very bad," said RBS economist Silvio Peruzzo. "It would delay the rate hike and make it more a 2012 story, because the market would clearly take that very negatively and the periphery would go under significant stress."
A Reuters poll last week showed economists expect the ECB will hold fire on raising rates until at least October, though an increased minority saw a hike in the third quarter.
Irish borrowing costs remained relatively unaffected by political movements at the weekend, with the 10-year bond yield at 9.41 per cent today.
Additional reporting: Bloomberg, Reuters
