Minister for Finance Brian Lenihan has welcomed the decision of the Ecofin Council on the €500 billion package of measures to support financial stability in the European Union.
The deal was reached early this morning after 11 hours of negotiations.
Speaking at the conclusion of the meeting, Mr Lenihan said: "The agreement to establish a European Financial Stabilisation mechanism of up to €500 billion shows the determination of the European Union to provide financial support if needed to member states facing exceptional circumstances that are outside of their control.
"Member states are showing their resolve to support the overall European economy and the interests of all European citizens."
Mr Lenihan said size of the stabilisation mechanism is possible due to support of €60 billion through the EU Budget and the decision by euro area member states to make available up to a further €440 billion if required through a special purpose vehicle that is guaranteed on a pro rata basis by participating member states.
These two commitments would be further reinforced by significant funds that could be made available from the International Monetary Fund.
"This stabilisation fund will compliment the commitment to accelerate fiscal consolidation by a number of member states, where warranted.
Mr Lenihan also insisted there were no suggestions during meetings that Ireland was facing the kind of difficulties that would require an EU bail out.
"In the past two years, the Irish Government has stabilised the public finances with fiscal consolidations of almost 5 per cent of GDP in 2009 and a further 2.5 per cent of GDP in 2010. As evidenced by last week's Exchequer returns, these fiscal adjustments have helped to place Ireland on target to meet our commitments under the Stability and Growth Pact," he said.