The ‘Bank of Ireland’ is to receive £3bn in EU aid

Ireland’s new Government has announced that it will receive £4bn in direct and indirect financial support from the EU.

It will include a new, €8bn scheme for Irish banks to help them cope with the Brexit fallout.

Mr Noonan’s government is seeking to reduce its reliance on the EU bailout and is seeking the backing of other European nations, including France, to ensure that the country can remain in the EU single market.

The move comes just days after it was revealed that the Bank of Ireland would be losing its EU funding.

It is a sign that Mr Noonan is determined to bring the country back to its former glory, as he faces a re-election bid in 2020.

The Government said the aid would be used to help Irish banks meet the financial demands of a “challenging and complex financial environment” which includes the Brexit vote, the impact of Brexit on bank earnings, and the impact on the banking sector.

The Irish Bankers’ Association welcomed the news.

“This is a great news for Irish bank customers and investors, as it will help ensure that our banking sector can withstand Brexit,” said Gary Higgins, the association’s secretary general.

“The Government has pledged to continue to invest in Irish banks, and it’s a sign of the confidence that our banks are in, that this funding is here to stay.”

Mr Noonam said he would ask the European Commission to review the allocation of EU aid to Irish banks.

He said he expected the European commission to give the money back within two weeks, and he hoped it would be sufficient to support the Irish banks until the end of 2020.

Mr Higgins added: “This is an important signal to the international community, which has been very clear that we need to make sure that we are taking action to protect the Irish economy from Brexit, and to do that we must have strong Irish banks.”

“We also want to ensure the Government continues to meet its economic targets.

We expect that this aid will be used in this way and to ensure it is not wasted.”

In recent years, the European Union has been a major donor to Ireland.

The aid package is part of a wider package of €4bn EU funds aimed at supporting banks in the wake of the Brexit referendum.

The money will come in the form of loans, direct grants and a €100m European Investment Bank loan.

The bank will also be receiving €2bn of EU-backed funding for infrastructure projects.

The total of EU funding will be about €16bn.

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