Irish protesters are calling for Prime Minister Cowen to dissolve the Irish Parliament. (Photo courtesy of AP)

Ireland is facing a political crisis today, after Irish Prime Minister Brian Cowen filed for a bailout from the European Union and the International Monetary Fund.

Protesters are calling for Cowen to dissolve the current government.  Cowen has stated that he will not call for new elections until Ireland’s emergency budget is passed next month.

Ireland is currently facing the largest European budget deficit since World War II.  Cowen said he is worried the protest could delay the relief funds.

European Union officials think the bailout could reach 85 million euros—or $118 billion.

Investors and economists are worried about the possible domino effect of an Irish bailout.  Several European countries are teetering on the edge of bankruptcy.  Both Spain and Portugal could soon be asking for relief funds.

Earlier this year, Greece became the first European Union member state to receive bailout money.

News of the bailout caused the euro to drop 1.8 percent to $1.338.