Minister for Foreign Affairs Minister Micheál Martin has said he "absolutely" rules out activation of the European bailout package for Ireland.
"By and large we are very confident we'll come out of this," Mr Martin said in an interview with Bloomberg TV today in New York.
"Clearly it's challenging and so on, but there's no necessity for the triggering of such a mechanism."
Insisting the budget is financed through the middle of next year, Mr Martin also dismissed speculation about a default among holders of Anglo Irish Bank’s senior debt.
Admitting the cost of resolving the country's banking situation has been "significant and horrendous," Mr Martin insisted: "the Government has a clear pathway out of that".
Mr Micheal Martin said the European Union "shouldn't necessarily" need treaty changes to bring in new sanctions for countries that breach budget-deficit targets.
"As a member of the euro zone we actually welcome better governance, better compliance," he said.
"Our view is there shouldn't necessarily be treaty change to bring in new sanctions.