The White House welcomed Ireland's decision to apply for a loan from the International Monetary Fund to combat its debt crisis.

President Barack Obama's spokesman Robert Gibbs praised Europe's decison to act quickly to address the crisis and added that President Obama has been briefed on the developing situation in Ireland at his daily economic briefings.

Ireland's financial crisis was set off by its debt ridden banks and its headline grabbing economic troubles quickly drove up borrowing costs for countries like Spain and Portugal, which may soon require bailouts of their own.

It's hoped that Ireland's massive bailout will now copper fasten financial stability in Europe.