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Ireland is 'banjaxed' after IMF deal announced

Angry reaction from opposition parties

CATHY HAYES,

IrishCentral.com Staff Writer

Published Monday, November 29, 2010, 5:45 AM

Updated Monday, November 29, 2010, 7:18 AM

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Irish Government will raid the national pension fund and other cash reserves for €17.5bn, as a condition of the deal, to bail out its banks

The IMF deal to bail-out the Irish economy has been agreed. The deal will mean that Ireland will receive €85 billion.

The Irish Government has said the purpose of the external financial support is to return the economy to sustainable growth. The €85 billion bail-out, or rescue package, will ensure Ireland has a functioning banking system.

Ireland will contribute €17.5 billion, from the National Pension Reserve Fund (NPRF) and other resources. The bail-out itself will include €35 billion to support the failing Irish bank system, €10 billion for recapitalization and €25 billion, which will be provided on a contingency basis.

Joan Burton, of the Irish Labour Party, said that the Europeans and International Monetary Fund (IMF) had "played better poker" than Ireland. She claimed that the Irish government had gambled away assets such as the pension reserve fund in the discussions. "The EU and IMF have us where they want us," she said.

Speaking to Ireland’s national broadcaster, RTÉ, she said “we are being asked to put up front ... all the assets we have as a country.” She added that when our cash reserves run dry “trap has closed on Ireland and we are banjaxed.”

Labour Party Leader, Eamon Gilmore, described the bailout as a sell out of the Irish taxpayer. He claimed that the IMF and EU had walked over a weak Irish Government and the Irish tax payers had now been dealt a debt that is unsustainable.

He believes that the NPRF will short change pensioners of the future. Mr Gilmore also said that the extension of the deadline for deficit reduction illustrated that the Government are not confident that the deal will work.

Michael Noonan, the Finance Spokesperson for the Fine Gael Party said that the opposition parties had been made aware that a contribution would come out the NPRF saying that this was, at least, money that “we won’t have to be borrowing elsewhere”.

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Searlit | Dec 03, 2010, 11:44 AM EST

It still comes down to the exploitative banking system. People don't have to live that sternly. That happens to be one country's philosophy but it shouldn't be forced unto other countries who are known for their hospitality.

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DanOLoingsigh | Dec 01, 2010, 04:01 AM EST

THE PERSPECTIVE FROM GERMANY - The following is an edited version of a letter in today’s Irish Times - Why should European taxpayers be expected to subsidise a standard of living higher than their own? There is a surprising willingness to help here in Germany but little sympathy for an Irish backlash against allegedly harsh bailout conditions. Average gross income here is currently €32,000 per annum, which translates into considerably less take-home pay than is common in the Republic. The social levy amounts to 36 per cent of gross salary, of which employers pay half. University teachers here can only dream of what their Irish counterparts of equivalent qualification take home and the same goes for ordinary teachers. A hospital Oberarzt effectively works around 50 hours a week and takes home less than half as much as an Irish hospital consultant, his equivalent in qualifications and experience. The highest contributory state pension is similar to that in Ireland but that is not a fiscal issue here anyway, as the system only pays out what it takes in. Like everyone else, pensioners pay for their medical insurance, around 7 per cent of their pensions; there are no medical cards, free travel, free TV licences and the like. . You won’t see many of the larger German cars on German roads: most of them are exported to places like China, the US, or Celtic Tiger Ireland. And I don’t know anyone here who ever went on a Christmas shopping trip to New York – but I do know several in my home country. In short, the Irish are heading back towards European normality in the next five years, not austerity. It is an issue for the Irish in Ireland to solve, and not for the rest of Europe. – Yours, etc,

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moygannon | Nov 30, 2010, 03:19 PM EST

Why so much debate on the Irish bail-out since all over the world politicans are busy printing money to cover their lamentable imcompetence. It is all directed toward "World Socialism". The world bank, U.N., IMF and scores of other organizations are in place for the take over. When Ireland cannot pay the interest on this loan the lenders will advance more money for Ireland to pay the interest. The lenders - International Bankers" will eventually own Ireland.

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John5319 | Nov 30, 2010, 02:07 PM EST

Remember this...that it was American President FDR that confiscated the Gold in America, to perpetuate The Federal Reserve System of "private" world central bankers. The very same Cabal of Thieves that has grown into the European IMF. The very same IMF that has begun purchasing Gold to back up the EU Dollars, as the value falls to "equalize" the currencies of the world!!! The Irish "political class" has the citizens falling into the same trap that has been laid out by George Soros, the international currency trader, who makes Billions off the monetary crisis HE CREATES. This all smells of the forthcoming of a nation's demise, all according to HIS plans, not the freedom found in a sovereign nation. WAKE UP ..... you may not get another chance at Liberty! "In politics, nothing happens by accident. If it happens, you can bet it was planned that way."-Franklin D. Roosevelt

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squeezebox | Nov 30, 2010, 05:11 AM EST

Hi all. The Irish are going through hell and yet we can still laugh at ourselves! So on a less serious note, here's a joke that's going around at the moment. Five thousand years ago, Moses said to the Israelites "Pick up your shovels, mount your asses and I will lead you to the promised land". Ten years ago, Bertie Ahern said " Lay down your shovels, sit on your asses and light up a camel. This is the Promised Land"... And this week Brian Cowen stole our shovels, taxed our asses, raised the price of camels and sold the promised land. If we didn't laugh at this situation, I think we'd go mad!

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Dublinjas | Nov 29, 2010, 11:49 PM EST

Dub2Daingean58 I dont need to send money to a fat ugly pig of a dictator called cowen and a useless bas-ard called lenihan. To make them look good, To keep fat stupid civil servants in work , to pay welfare benefits to Foreigners while Irish people returning home are refused any help...Is your head ok ..

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Dub2Daingean58 | Nov 29, 2010, 11:05 PM EST

And just how many of you (my Irish Countrymen) will commit to taking our U.S. dollars and investing them in OUR Ireland.... as at this time of OUR homelands need's???? Keeping in mind that we only have one ("OUR") Ireland..... Lets just think about it; if each of us (who could) put some of our (American based) resources back into the land that gave us the right to be called "IRISH"...... And I ask you... Could there be any more worthy cause?????? KEEPING IN MIND....IRELAND IS OUR HOMELAND!! So lets stop pointing the middle finger in the direction of the "elected officials"...(who totally deserve it!!). But, while also keeping in mind THAT THE PEOPLE'S OF THE WORLD HAVE THE GOVERNMENT(S) THAT THEY DESERVE!!! Now I ask you my Irish countrymen.... Did we deserve this??? Well the answer is (I believe) ABSOLUTELY NO!! But just please keep in mind THAT THE BAS***DS THAT PUT OUR IRELAND IN THIS MESS WERE ELECTED BY OUR FAMILY MEMBERS!!..... So, could we (as a group) accept that our family members were not the most sophisticated voters in the world (no big surprise there I'm sure). BUT, DOES THAT SAY THAT WE WILL ABANDON THEM?? I FOR ONE SAY NO! As the place that I want to be buried in is my beloved Ireland....... An Ireland that will still be recognized as THE LAND OF THE IRISH!!! And not the land of the EU and/or any other "FOREIGN INVESTER" that could take our heritage (and name it to their liking)..... I ask you fellow countrymen, to please join me in making a personal commitment to saving Ireland for The Irish!! Hey, it's only money we are talking about here..... Now think about what Kevin Barry, Michael Collins and thousands of other Irish Patriot's gave in an effort to save Ireland..... CAN WE INVEST A FEW OF OUR U.S. gotten $'s TO SAVE OUR IRELAND??? PLEASE JOIN ME IN SOPPORTING OUR IRELAND... Paddy......And if you disagree?? Call me at 951-2647103

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Dublinjas | Nov 29, 2010, 08:56 PM EST

Should have hired a team of Northern Ireland Loyalists to do the negotiating with the ECB/IMF.

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DanOLoingsigh | Nov 29, 2010, 05:07 PM EST

George…’Collins and his cronies’, as you eloquently call them, were sent on a ‘Mission Impossible’, and got the best deal available. Not treason, but a ‘least worst’ solution at the time. You cheapen the memory of a brave man, and yourself, by trying to make comparisons where none exist.

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GeorgeDillon | Nov 29, 2010, 02:10 PM EST

This "agreement" is a rerun of the "agreement" of the Anglo-Irish Treaty of 90 years ago. Of course the times are different, but once again we see an Irish negotiating team giving away the store when faced across the table with a shrewd and wily opponent. The Irish government has now agreed to spend billions paying the debts of the banks, instead of building schools, hospitals, libraries, fire stations etc. etc. Collins and his cronies committed treason 90 years ago, and today's version of those renegades are doing the same thing.

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JeffGallagher | Nov 29, 2010, 01:34 PM EST

Ever small country that is a part of the EU and their great single currency system should be looking at this. This is how they big players want you. They want you under your thumb. The promise of a sustainable and growing Euro are out the door, with the Euro sliding faster than greased dog poop on a hot tin roof. The only winners will be the EU big boys. Germany couldn't take over Europe with force; they'll do it by financial subjugation.

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Fightin69th | Nov 29, 2010, 01:17 PM EST

Michael Collins Was shot for less

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killowen | Nov 29, 2010, 12:25 PM EST

Irish, are the laughing stock of our planet. I have an urge to vomit like never before - how stupid can they continue being - taking the bailout instead of defaulting. Those banker mavens who led them down the primrose path have solved the problems they unleashed on a people not quite ready for prime time. Ridicle of the the Irish will be fodder for funnies for years to come. Their pompous ignoramus - better than thou attitude when the tiger was purring galled me. Had they defaulted the Portugeese - Spanish or Italians might pop to the top as being the turkey that Ireland across the globe is now by default is regarded.

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MaryM232 | Nov 29, 2010, 11:56 AM EST

It was all about bankrupting the country so France and Germany could take control, and create a plantation slavery state to exploit. It's the new Irish land clearances. Knowing the inherent lazy and mentally deficient, greedy nature of the Irish, who wouldn't stand and fight for their country, they loot and bankrupt the country, bail it out, which would fail, the money's already being pulled out of Ireland. Encourage the Irish to emigrate, and that is their answer to everything, to become burdens on other countries, the EU will now turn Ireland into a plantation, filled with taxpayer subsidized slum housing for Eastern Europeans, Indians, Asians, Africans, Middle Easterners, who will be cheap foreign labor. There will be no Ireland to return to , it will be an island plantation state. Ireland could sack it's government, quit the EU, return to it's own currency, and cut spending. The Irish need to learn how to sacrifice, do without, instead of spending like welfare queens and waving the begging bowl. Learn to work hard, to save it's country. Greenland did it. They were told they'd be broke if they left the EU, but they didn't allow themselves to be intimidated, and now they are rich. Are you aware that Ireland lost 7.2 trillion per year, when it joined the EU, by allowing the EU to give your fishery rights to Spain, Italy and France? Are you such fools?

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CitizenWhy | Nov 29, 2010, 10:09 AM EST

What was the Irish bank bailout program all about? In agreeing to pay off the debts of Allied Irish and other banks, the Irish government in effect agreed to transfer over 300 billion Euros from the Irish people to European banks. The debts were owed to European banks. The new bailout is structured to assure that the debts owed to these European banks continued to be paid off at the expense of the Irish people. ... Unlike the US, where letting its 6 largest (and irresponsible) banks go bankrupt was not an option for the government, it was a legitimate option for the Irish government to let its banks go bankrupt. ... This simply would mean that the banks no longer were obliged to pay off their debts, although, in reality, they would have negotiated an arrangement to pay off a percentage of that debt once they re-emerged from bankruptcy or were acquired by another European bank. ... The question remains, why did the government agree to pay off the debts of a private company, thereby encouraging executives, investors and lenders to believe that that they could be as imprudent as they wish in the future? The government violated one of the bedrock principles of a capitalistic market system, namely letting foolish risk takers suffer from their foolishness. ... So you have a huge transfer of wealth from the Irish middle class to the wealthy while also violating the principles of capitalism. this type of government is normally called aristocracy, or oligarchy. It is certainly not republican or democratic.

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