AFTER RISING LAST NIGHT ON news that Ireland would get an IMF and EU bailout, European shares and the euro have dropped in value today amid the country’s political uncertainty.

European shares turned flat by midday today, according to Reuters, as economists expressed doubt over the Irish bailout boosting the euro.

Royal Bank of Canada currency strategist Elsa Lignos said the Irish bailout should not be seen as a “euro panacea”, according to Bloomberg.

Reuters reports that uncertainty over the bailout package has cut a relief rally on the currency, with the euro now at a session low against the sterling.

After the government confirmed last night that it had applied to the IMF and the EU for financial aid, Fine Gael’s Michael Noonan voiced some of that uncertainty by claiming there could be a conflict of policy between the two bodies.

Noonan said there could be “a conflict of policy position” between the IMF and ECB over whether discounts should be taken from bondholders.

Today, political uncertainty increased with the Green Party’s call for a general election in January.

The announcement caused Irish stock to plummet, according to BusinessInsider. The coalition party said it would stay in government until the budget in December, but wants an election in late January.

Speaking on RTÉ Radio One this afternoon, Independent TDs Michael Lowry and Jackie Healy-Rae said the government could no longer count on their support to retain its majority.