Irish Prime Minister Enda Kenny has been urged to default on Ireland’s debt ahead of an emergency European Union summit on the Eurozone crisis.
Independent Deputy Shane Ross, the biggest vote getter in the last election, has called on Kenny to consider reneging on the national debt before he meets with fellow European leaders.
Ross believes that the decision by the Moodys rating agency to downgrade Ireland’s credit rating status to junk proves that the international money markets believe Ireland will not be able to pay what it owes.
He believes the government now has two choices to make when it comes to the national debt - denial or default.
“What I suggest to you and what I ask you is this, would you not consider taking up the default gauntlet, and in a structured way if necessary saying yes, default is not a negative, default is a positive, because believe me, the markets believe it is inevitable,” claimed Ross.
“This summit in Brussels is the most important of Mr Kenny’s career as fears mount that debt contagion could spread from Greece to Italy and Spain.”
--------------------
READ MORE:
Enda Kenny on defense of Irish hospital services
Enda Kenny guarantees no increase in income tax
Irish priests say they will not reveal confession secrets
Ireland celebrates its fallen military in National Day of Commemoration
--------------------
Kenny refused a request from Ross to bring the Irish parliament back from summer recess next week to discuss the summit.
The Irish Prime Minister also claimed the summit, expected to ratify a second Greek bail-out, will not find a solution to the current crisis.
“What I’d like to think might happen is that the Eurozone leaders will make a series of decisions here that will start to restore confidence in the markets in a number of countries,” said Kenny in the parliament.
“Obviously, as the German chancellor has pointed out, there will not be an overall decision that will sort this out once and for all on Thursday, that it is a series of gradual steps and measures to be implemented.”
7 Comments
-
-
-
-
-
-
-
Switch to the desktop site to post a comment.CitizenWhy | Jul 21, 2011, 08:11 PM EDT
Ireland's debt falls into two main types: sovereign debt, debt run up by government spending; and bank debt, the government's paying off the debts of its badly managed privately owned banks. Economists outside Ireland see the sovereign debt as quite manageable if the bank debt were disowned, if Ireland simply stopped paying of the banks' debt to other EU banks. In effect the bailout of Ireland is really designed to make Ireland a conduit for a stealth bailout of various EU banks, mainly German. ... Why should Ireland pay off private sector debts and throw itself into disastrous economic decline? This story, and any comment of default, needs to clearly define the two types of debt. Ireland should not default on its sovereign debt, and should stop paying the debts of privately owned banks
seanomelbourne | Jul 20, 2011, 07:26 PM EDT
Kenny will not have the balls to default,he is of the same mould as the previous government forcing the poor and the middle class to pay someone elses debt.Fine Gael and their psuedo-labour party acolytes are morally bankrupt.
greensod | Jul 20, 2011, 06:32 PM EDT
Take the mans advice or the boys in the EU will continue to take the tax payers money until it is all gone, then they will dump Ireland over board.Sinn Fein told you this when this Government first came into power,had you listened then, look at all the money you would have in the treasury.Think bigger and wider than those bumbs in the EU. Reach out to Canada, Brazil,China,Remember what Gerry Adams told you Mr Kenny,you are not running the United States and all Of Ireland is Half tne population of London.The boys in the EU will drop you like a bad habit after they have sucked the last penny from the people of Ireland.listen to Mr Ross before any more people die on trollies in hospitals that are in turmoil and broke.All I have heard from this Government so far is bitching about all the problems caused by FG.We are all aware of what they left behind,but you were elected to fix the problems.Well this is the record so far.All of the money in the treasury given to the EU so we could borrow our own money back at racketeering interest rates,1000 people leaving Ireland per week because they can not make a living,Schools in disrepair,teachers loosing jobs,doctors refusing to work in the country because of the shambles of the medical system and the hospitals.Dont you agree that 24 hour shifts are a little much to expect MDs to work.Your legal system is also a joke,not one crook held accountable for the billions stolen and swindled,NOT ONE.Tax increases on everything taxable.Sick, old, and disabled benefits cut.Charges for water put in place.Big bonuses passed out to useless dead beats who know how to play the game for their own benefit.Credit ratihg downgraded to junk status.Listen to Mr Ross,start leading and tell Mr Chopra and Ollie that the jig is up,find another sucker,no more blood money from Ireland.
mikilomikilo | Jul 20, 2011, 12:59 PM EDT
Shane Ross is a plonker: it was he who very vocally chided AIB to catch up on the "growth" Anglo Irish Bank was providing to its shareholders some years ago!!!
cillowen | Jul 20, 2011, 12:08 PM EDT
Enda can't be civil on this one, went beserkowitz on Gerry A
FastEddy | Jul 20, 2011, 11:40 AM EDT
I fail to understand why Ireland can't borrow and payback at less than 2% ... Jesus, your inflation is topping 5% per annum = a license to steal. Ireland should be cutting taxes to un-twist the tail of the Celtic Tiger = g'ment revenue increases when the private sector is hiring.
LoyalCitizen | Jul 20, 2011, 09:51 AM EDT
Its a bit late to default after taking the bailout funds. They should have done what Iceland did and bugger the bond holders.