REPRESENTATIVES FROM THE European Commission, European Central Bank and International Monetary Fund are in Ireland today to conduct a bailout review.

The Troika are expected to focus on Budget 2012 and deficit-busting measures, during talks taking place over the next ten days, RTÉ reports.

Although Ireland is ahead of its targets for this stage of the bailout plan, it has been suggested that adjustments of a further €3.5bn may be necessary in order to close the country’s deficit to the target of 8.6 per cent of GDP.

The talks come amid growing fears over the eurozone debt crisis – which have been eased somewhat by an announcement by France and Germany to introduce a coordinated plan to bolster Europe’s banks to withstand a possible government bond default by Greece.

Nicolas Sarkozy and Angela Merkel said that the plan, to be presented by the end of the month, would also outline how to prevent contagion that could threaten other heavily indebted eurozone nations.

The Irish Independent reports that sources have indicated the government is going to ask for leniency on certain terms such as cuts to social welfare and income tax increases.