ECB – Page 3 – Slugger O'Toole

Ireland and the ECB: “We have political power and we should use it”

Mick Fealty on February 15, 2011, 8:47 am | Readers 3

Brian Lucey in the Irish Times: I RECENTLY had coffee with a former colleague who is now working in the financial services industry in Germany. He was at pains to stress that the general tenor of the German press, even among the tabloids, was that although Ireland had been stupid, feckless, and perhaps somewhat arrogant, it was in general a well-run European country that was at least trying, painfully, to get out of the hole it had in part dug …

“It was the choice of the successive governments, and their voters…”

Pete Baker on January 15, 2011, 3:27 pm | Readers 1

In a lengthy interview in the Irish Times senior European Central Bank official, Lorenzo Bini Smaghi, makes a point previously noted here. From the Irish Times article A lean Italian in his mid-50s, Bini Smaghi is a ranking member of the ECB executive board and was a key figure behind the scenes in the drama that saw Ireland seek an EU-IMF bailout two months ago. He is the first senior European official to publicly describe in detail, from the perspective …

There’s no point in deluding ourselves about what must be done.

John Ó Néill on December 11, 2010, 12:36 am | Readers 5

This may be a slow burning story which will develop over the next week. Fianna Fáil have belatedly agreed to hold a Dáil debate and vote on the IMF/ECB arrangement to push commercial bank debts onto the taxpayers at a punitive 5.8% plus interest rate while continuing to deny that such a debate or vote is necessary. Backbench pressure to hold the vote apparently will include at least one, if not more government TDs voting against the agreement. Some of whom have become decidedly erratic of late, …

IRISH TAXPAYER (Séan): “I am really furious right now, Helmut…”

Pete Baker on November 30, 2010, 3:29 pm | Readers 7

As I mentioned yesterday, the markets were distinctly unimpressed with the details of Ireland’s bail-out. The Irish Times today notes that Although banking stocks rose yesterday, global stock markets closed lower as markets failed to be convinced that the €85 billion package for Ireland would solve the euro zone debt crisis. EU economic and monetary affairs commissioner Olli Rehn said yesterday that Spain may need further austerity measures to reduce its deficit if growth was lower than forecast next year. And the paper …

Euro crisis: “This might be the last chance to bring stability back to the European’s financial system…”

Pete Baker on November 29, 2010, 4:43 pm | Readers 2

The day after the details of Ireland’s bail-out were revealed, the BBC notes the markets’ reaction On Sunday, ministers reached agreement over a bail-out worth about 85bn euros ($113bn; £72bn). On Monday, the euro fell 0.8% to $1.3136, its lowest since 21 September. And Irish, Spanish and Portuguese bond yields remained stubbornly high, indicating the market is not convinced European debt problems have gone away. Meanwhile, major European markets were also lower in midday trade. The euro also fell against …

Details of Ireland’s €85 billion bail-out agreed

Pete Baker on November 28, 2010, 6:58 pm | Readers 143

As RTÉ reports, European Union finance ministers have agreed the €85 billion bail-out for Ireland. Of the total package €35bn is to be used to support the banking system. Of that €10bn will be used immediately to inject fresh capital as a buffer against expected loan losses. The remaining €25bn will be made available as a contingency fund, effectively a massive overdraft facility, to be drawn down by the banks as and when required. And the other €50billion? The Irish …

Euro Crisis : History repeats

Mack on November 26, 2010, 1:50 pm | Readers 4

The Guardian report that – the Portuguese prime minister José Sócrates insists Portugal is under no pressue from EU states to accept a euro bailout. Meanwhile After Financial Times Deutschland reported eurozone nations and the European Central Bank were urging Portugal to follow Ireland and capitulate to financial aid, the office of the Portuguese prime minister José Sócrates said it was “totally false” that the country was under such pressure. So the politicians deny any contact while financial journalists say …

Ireland’s Four Year “National Recovery” Plan

Pete Baker on November 24, 2010, 3:03 pm | Readers 16

The Irish Government has announced details of its, IMF/ECB agreed, four year national recovery plan [pdf file]. The BBC provides some key points. And The Guardian continues its live-coverage of Ireland’s financial crisis. 2.37pm: Cowen has explained that negotiations with the IMF are based on the assumption that €6bn of the €15bn cutbacks will be implemented in 2011. That means that 40% of the total programme is ‘front-loaded’. The aim is to slash Ireland’s deficit to 3% of its GDP. …

“It is the long term nature of this crisis that is just beginning to gain recognition.”

Pete Baker on November 23, 2010, 10:27 pm | Readers 4

If there was any uncertainty about the markets’ reaction yesterday to Ireland’s bail-out, and to subsequent events, today’s plummeting Irish bank shares and more evidence of the fear of contagion in the markets should remove all doubt. The euro has hit a seven-week low against the dollar and global stock markets retreated today on fears that the Republic’s debt crisis may spread to other European countries with large budget deficits. Investors fear that Portugal and Spain may also have to seek financial help. The Spanish …

Cowen Statement (in case you missed it)

admin on November 22, 2010, 9:38 pm | Readers 0

Via Maman Poulet: Brian Cowen’s statement 22/11/010 from maman poulet on Vimeo. adminA slightly inhuman presence that bans bad comments and works late at night to remove the wrinkles in Slugger’s technical carpet. You will need to know about the comments policy to stay off the fightin’ side of me and there is a bit of background about me here. You can email me using this spam-proof link if you really need to, and Slugger is @sluggerotoole on Twitter. But …

Olli Rehn: ‘it is likely unfortunately to imply tax increases’

Pete Baker on November 22, 2010, 1:25 pm | Readers 2

I’d wait for the detail, Brian, before declaring anything ‘safe’. RTÉ reports the latest comments from European Commissioner for Economic and Monetary Affairs, Olli Rehn, on Ireland’s bail-out application. From the RTÉ report European Commissioner for Economic and Monetary Affairs Olli Rehn has reiterated that Ireland would no longer be a low tax economy. When asked in an interview with RTÉ News if the corporate tax rate was now off the table for good, Mr Rehn said that by Ireland ceasing …

The Minister for Hardship

Paul Evans on November 22, 2010, 11:54 am | Readers 11

I understand that this clip is a send-up of former Taoiseach Liam Cosgrave, but it’s got a bit of currency left, hasn’t it? (Hat tip: Padraig Reidy) In other news, Duncan has three questions which partly boil down into one big one: Is Ireland really the place to adopt the mantra that ‘the markets have failed – we need more markets’? And Charlie McMenemin (no mean blogger himself) has some very pertinent questions in Duncan’s comment thread about how recent …

“Could a bank bring down a country?”

Pete Baker on November 19, 2010, 12:09 am | Readers 3

As was indicated previously, the Irish Minister for Finance, Brian Lenihan, has confirmed the conditions under which a bail-out will be required Minister for Finance Brian Lenihan has said that it is clear Ireland will need some sort of external assistance to address the problems in the banking sector. Mr Lenihan said officials from the International Monetary Fund and the European Union were not in Dublin to direct Irish affairs, but to offer advice on the four-year budgetary plan and …

Lenihan: “if the banking problems in the country are too big for this small country to manage…”

Pete Baker on November 17, 2010, 4:23 pm | Readers 3

The EU finance ministers meeting in Brussels have denied holding detailed discussions on a potential bail-out for Ireland. From the BBC report [Belgian finance minister] Didier Reynders, who chaired the talks, said the situation was not addressed because the Irish government had not requested financial help. “There’s no reason to ask all the participants for an answer because we did not receive a question,” he said. And why would they discuss it? The detailed discussions will be held tomorrow in Dublin. …

Economic crisis blogburst 1: Government in denial of bailout

Mick Fealty on November 15, 2010, 1:40 pm | Readers 4

The sovereign/bank debt story has moved on over the weekend, with the Government denying it was talking about triggering a bailout, and everybody else talking about the likihood that they would. So, with little or no attempt to editorialise, here’s some of the best commentary of the day: – Dan O’Brien suggests this is no longer a domestic only issue. The question of a bail out for Ireland may be secondary to a larger crisis in the Eurozone… – As …

ECB : There are no alternatives

Mack on May 29, 2010, 11:21 pm | Readers 9

European Central Bank executive member Lorenzo Bini Smaghi outlined the fiscal and monetary constraints facing EU states at the Group of 30 conference in Rabat. In it he warns of a US of future crisis, and perhaps controversially denounces Keynesianism as inappropriate. European states can’t rely on inflation to reduce their debts, fiscal austerity is the only course available to them, but Americans may be deluding themselves that they will be able to impose an ‘inflation tax’ on investors in …