One of Europe’s most influential leaders has offered Ireland the promise of a new deal on the bank bail-out.
As Spain comes to terms with the austerity measures that will follow its $130billion bail-out, EU commissioner Olli Rehn has addressed the Irish issue.
Speaking at a European parliament meeting in Strasbourg, Rehn confirmed his desire to help Ireland achieve a deal on restructuring its banking debts.
He told the parliament that he remained ‘hopeful’ that Ireland could be permitted to rearrange its Anglo Irish Bank promissory notes.
He also promised a new deal on other banking liabilities in order to lower the burden on the Irish taxpayer.
Rehn made his remarks about Ireland while confirming that Spain’s banking bailout will not come with terms and conditions for the government itself.
He also suggested Spain could be given more time to reach its deficit targets.
“There will be no new conditions on fiscal policy and structural reforms, because this is dealt with under the re-enforced economic governance and there the normal policy conditionality applies,” said Rehn said.
“The Spanish bailout is intended to be seen as a very clear signal Euro area is willing and able to tackle the remaining challenges and in this context Europe is standing by Spain and supporting Spain in its challenges in order to restructure the banking sector.
“If the governments of Spain’s autonomous regions were able to cut back on their spending, and Madrid could present a convincing two-year budget plan, its deficit-to-debt targets could be put back a year from 2013 to 2014.”
Website TheJournal.ie also reports that Rehn outlined further plans for fiscal union, saying the most stable long-term solution to the Eurozone’s debt crisis would be ‘stronger responsibility through a pooling of sovereignty at the European level, while at the same time also pooling our burden-sharing’.
He added however that deficit countries need to achieve surpluses to in order to bring the external debt in a declining trajectory.
“This requires further improvements in competitiveness and it need to go hand-in-hand with the private sector deleveraging and the consolidation of public finances,” he said.
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Switch to the desktop site to post a comment.Pittsburghkid | Jun 17, 2012, 02:13 PM EDT
Why do Banks charge interest? to pay for operational cost. Operational cost are amoung other things bad loans. If the Banks can cover the bad loans then they being mismanaged, and should go belly up. If I can't pay my mortgage, then I'm in the street. Banks should be the same.
Seanmor | Jun 17, 2012, 04:27 AM EDT
Regardless of the E.U.'s financial aid to the Irish state, or lack thereof, the fact remanis that theere is an ironic twist to that state's desire to form closer links with countries such as Romania and Bulgaria while remaining firmly detached fron the region within Ireland's shores that is at the other side of the illogical Border. Not only are Southern Partitionists who have become Europhiles putting the horse before the cart, they have made thenselves the horse's hind quarters.
Bythebay | Jun 13, 2012, 11:33 AM EDT
An offer isn't a fact.
esatdigiwank | Jun 13, 2012, 07:29 AM EDT
Ollie, you won't be getting your neo-liberal fiscal debt union as easy as you think. What is a Comissioner but a Komissar?
IrelandNorth | Jun 13, 2012, 05:53 AM EDT
Promises offered aren't worth the paper they should be written on. Reminds me of my free collective bargaining days in the trade union movement at the Labour Court. Both sides put in inflated claims for what they both know is realistically possible, knwoing full well they'll be beaten down to what was a more realistic expectation. Seems the EU has financially compromised Ireland's sovereign integrity, only to cut some slack to prove how nice a corporate loan shark they really are. Typical nice cop/bad cop approach by the EuroFed CapitalCops.
aloistmartin | Jun 12, 2012, 08:31 PM EDT
The Irish Democracy is Walking a Tightrope !
FastEddy | Jun 12, 2012, 11:29 AM EDT
Look out now. If the IMF get wind of an Irish pullout/bailout/subsidy that excludes the needs for tax increases, the IMF will squeak and spew and try to penalize Ireland. The taxsuckers will out? Don't be foolish, buy Gold and sell g'ment short = works every time.
greensod | Jun 12, 2012, 10:57 AM EDT
Olli:Long fingering the Irish again.Exactly as he and his cronies did to get the YES vote.
esatdigiwank | Jun 12, 2012, 10:34 AM EDT
We'd believe the ImF or GoldmanSucks more than you Ollie any day!