Rehn: “I expect this issue of pricing policy will be looked at from the overall European perspective…”

The European Union’s economic and monetary affairs commissioner, Olli Rehn, has been making somewhat encouraging noises  [for the new Irish government] ahead of a series of key European meetings for the incoming Taoiseach.

From the Irish Times breaking news report

“We look forward to continue supporting the Irish people and the next Irish government in the implementation of the EU- IMF program, which is key for Ireland’s economy and its revival,” Mr Rehn told reporters in Brussels. “We have the common goal for Ireland to revive its growth dynamics and succeed in ensuring its debt-sustainability,” he said.

Mr Rehn said pricing policy, referring to the interest rates, was a key issue that would be discussed as part of the comprehensive strategy of the European Union.

I expect this issue of pricing policy will be looked at from the overall European perspective over safe-guarding financial stability in the euro area and ensuring debt-sustainability of all its members,” he said. [added emphasis]

As Arthur Beesley notes, also in the Irish Times

Mr Kenny’s election victory comes as negotiations intensify on reforms to the euro bailout fund. These discussions are set to culminate next month, meaning core election pledges will be put to the test within weeks.

He will press for a lower interest charge on bailout loans, which is already on the table, and compulsory “haircuts” on unguaranteed senior bank debt, something ruled out by the European Central Bank. He must also confront a renewed Franco-German onslaught against Ireland’s corporate tax system.

The risk Mr Kenny faces is that Ireland’s chief sponsors resolve to set a concession on corporate tax as the price of a lower interest rate. Mr Kenny’s negotiating position is feeble due to Ireland’s reliance on external financial aid. [added emphasis]


The game’s afoot!

Adds  Worth noting Enda Kenny’s comments in this BBC report yesterday

Mr Kenny said the IMF/EU bail-out was “a bad deal for Ireland and a bad deal for Europe”.

“We are not going to cry the poor mouth, other than to say the reality of this challenge is too much. I don’t want to talk about difficulties, I look for co-operation, consensus and support across Europe,” he said.