An emergency bailout fund put together to defend the Euro has boosted European markets.

The €750 billion package has seen shares surge and the cost of government debt fall, as investor worries ease.

But analysts warn that the deal could come at a high price, as eurozone countries come under pressure to cut spending and raise taxes.

However, author of the “Bord Snip” report Colm McCarthy believes the deal hammered out in Brussels is ultimately of benefit to Ireland.

“It’ll only be called in the event that some European government to whom funds are lent defaults or something like that” he said.

“I think that’s not an immediate risk now”.

“I suppose it’s a bit like a mutual insurance fund…we’re towards the top of the queue of countries that might some fine day have to avail of it”.

“If you join a rainy day club, if you live in a country where it rains more I suppose it’s a better deal” he added.

Meanwhile, The European Commission President Jose Manuel Barroso is promising to press on with stronger economic policy co-operation after today’s agreement to stabilise the single currency.

The Commission is due to announce plans on Wednesday – urging EU governments to sign up to a centrally co-ordinated set of economic policies.