Olli Rehn says consensus would be of great benefit to Ireland

The ECB might have “the keys to Ireland’s silver”, but there may be some loose ends to tie up.  There’s also a counter-argument to Morgan Kelly’s analysis here.

The European Commission’s Internal Markets Commissioner, Michel Barnier, can “see light at the end of the tunnel…”

Not excluding the possibility of an oncoming train…

And as RTÉ reports

European Commissioner for Economic and Monetary Affairs Olli Rehn has called for political consensus to back the Government’s four-year economic plan and the Budget.

Which is nice of him…  The same RTÉ report also notes

Ireland’s cost of borrowing continued to rise and the interest rate demanded by investors to lend money to Ireland for ten years stood at 8% this afternoon.

Irish banking stocks all saw big losses today again due to concerns about the state of the economy.

Bank of Ireland shares were down over 9%, while AIB dropped 3% and Irish Life and Permanent lost 18%.

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  • Alias

    Again it shows the EU’s contempt for democracy. Here we have an unelected regime illegally directing the policy of the opposition in a state just as it has directed the policy of the government in that state, and directing both government and opposition to support policies that are designed to promote the EU’s selfish and strategic interests at the direct expense of the national interest.

    It was the governance of the EU of Ireland’s macroeconomic policy and monetary policy along with its policies on the capital requirements of the eurosystem banks and its policy to boost economic growth by flooding consumers with cheap credit that led directly to the debt crisis, and now this destructive regime seeks to extend its incompetence governance to Ireland’s fiscal policy.

    Ireland’s debts were all external, so Ireland didn’t have a debt crisis: the eurosystem had the debt crisis. Ireland only has a debt crisis because the EU subsequently directed the europhile government to nationalise eurosystem debts.

    The strategy is to protect the eurosystem by containing its debts in the borrowing state rather than allowing them to default to the lending state. That is what NAMA, for example, actually is: a domestic dump for eurosystem debts. And it is why the government nationalised Anglo, and acquired majority shareholdings in domestic eurosystem banks. The debts of these eurosystem banks will default to their shareholders, so they will ultimately default to the taxpayers.

    Every 500K mortgage on a property (that is worth 100k) that is returned to the domestic eurosystem banks is another 400k in hard cash that is added to the national debt and another unsellable 100k asset that taxpayers are forced to ‘invest’ in. What the government doesn’t want to tell you is what percentage of the 80,000 it expects to immigrate in the next year will be handing their mortgage back to the domestic eurosystem banks and what percentage of mortgaged properties will lose their tenants, and subsequently lose their means of repaying their mortgage. It won’t tell you that because that’s next year’s bad news and ‘consensus’ would be elusive…

  • A.N.Other

    “There’s also a counter-argument to Morgan Kelly’s analysis here. The European Commission’s Internal Markets Commissioner, Michel Barnier, can “see light at the end of the tunnel…”

    Well, yes, but what would you expect him to say?

    This does not constitute a counter-argument based on facts, but is, rather, propaganda.

    The fate of Ireland will be decided upon by its citizens, who will no longer spend in order to prop up what they now see to be a corrupt regime.

  • Pete Baker

    Those are separate lines, with separate links.

  • Wilde Rover

    Alias,

    “What the government doesn’t want to tell you is what percentage of the 80,000 it expects to immigrate in the next year will be handing their mortgage back to the domestic eurosystem banks and what percentage of mortgaged properties will lose their tenants, and subsequently lose their means of repaying their mortgage.”

    Interesting.

    That might be the time the fear of staying in the EU is greater than the fear of leaving.

  • Neville Bagnall

    Ah yes. The bad, undemocratic, unelected commission.

    Goodness knows we shouldn’t be listening to them.
    Goodness knows those Europeans couldn’t have our interests at heart.

    After all its not as if they warned us about the dangers of wage and price inflation. Or that our housing market was developing into a bubble. Oh wait.

    Well ok, but surely if we’d been outside the eurozone we’d have been safe. Like Latvia.

    Or if we’d been outside the EU. Like Iceland.

    Sarcasm aside, xenophobia is blinding you if you believe that this national catastrophe was not primarily of Irish making. Ideas of Irish exceptionalism is part of what got us in this mess. We were so sure we were different.

    We have got ourselves into a right mess and we’ll have to get ourselves out of it. In return for help, we’ll have to pay a price. It could be to the ECB, the IMF, or the markets. Maybe all three.

    Ireland has never been in complete control of its economic destiny. Nor have we been very good at recognising that fact and adapting our policy to reflect it. Instead we have tended to insularity and conservatism.

    We are not exceptional, but we are underachieving. We don’t need complete control to ride the economic cycle, but we do need better governance (political and commercial) than our society has so far produced.

    I’m not a believer in revolutions, they tend to be followed by something worse in the short term. But we do need to evolve the way we are governed.