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The Irish parliament, the Dáil Éireann will probably pass the budget. One independent member, Michael Lowry, came out to the media and said that he’ll support the budget. His support, together with another independent member, pave the way for the budget to pass.

The Irish Times reports that the ministers are likely to feel the cuts as well, with their salaries cut. This was one of the conditions that the independent members wanted:

Sources say the Taoiseach will take a pay cut of €14,000 and Ministers will also take pay cuts. Reform of the system of State cars will also take place including a pool system for Ministers based in Dublin. One of the two Government jets will be disposed of.

The session will begin at 14:30 GMT, with the vote on the budget coming later on. The expected confirmation of the budget will help the Euro, even if the result is very narrow. The 2011 budget, including severe cuts, is very unpopular in Ireland, yet the members are likely to vote for it.

If it doesn’t pass, the markets will rock. This means no bailout for Ireland, at least for now, and the Euro will tumble. In the meantime, the group of European finance ministers approved the bailout program in their planned meeting in Brussels.

You can watch it here.

EUR/USD is now at 1.3366, between 1.3334 and 1.3440, which is a strong line of resistance. See more levels and technical analysis in the EUR USD forecast.

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