BRITAIN’S PRIME MINISTER David Cameron has refused to rule out the prospect of the UK opting into a European bailout. telling a government committee that Britain’s interests in the welfare of the Irish economy remained important.

Taking questions from fellow MPs and asked to offer an indication of Britain’s stance on joining a potential funding package for Ireland, Cameron stopped short of bowing to requests he rule out any British involvement.

“I do not think it would be right to speculate about the financial health of another country, a close neighbour, a friend, and a country we have very close political relations with,” Sky News quotes the prime minister as offering.

“Looking at the relation between Britain and Ireland, it is one of our largest export markets. We export more to Ireland than we do to Brazil, Russia and China combined.”

We have got an interest. I do not want to rule anything out.

As the Guardian adds, however, Cameron acknowledged that helping Ireland out would inevitably result in the UK’s government deficit being pushed upward.

The fund being offered by Europe would be derived from cash that EU members had already committed, and merely hadn’t been spent. There was no such prior budget allocation made by the UK, which isn’t a member of the Eurozone – so such assistance would mean having to cut funding elsewhere.

Being part of a two-pronged assistance package, it suggests, would also help Cameron get support for the help in the House of Commons, where many members would be keen to avoid the notion that Britain was helping to save the Euro currency as a whole.

His comments followed reports on Tuesday that Cameron, speaking to Brian Cowen, had made it clear the UK was prepared to contribute to the bailout, which the Daily Mail estimated to be in the order of €82bn (£70bn).

Brian Lenihan yesterday left the door open for Britain to take part in a bilateral aid package, commenting:

In general the UK has not participated in European-wide assistance but I know that the British authorities are anxious that any assistance Ireland needs be given. If Britain wishes to participate, that is a matter for Britain.