And on a somewhat related note, Miriam Lord spots a report of comments by Fianna Fáil TD, Ned O’Keeffe, who, as they say, has form on the topic… From Miriam Lord’s Week Our thanks to reporter Brian Moore of the Avondhu newspaper in Mitchelstown for bringing us this update from Ned, who is doing the nation some service by keeping a beady eye on troop movements in the Far East. In the course of a wide-ranging interview on Cork local …
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 …
Eastern promises aside – and isn’t there something about beware [metaphorical] Greeks bearing gifts? – Portugal’s visit to those reluctant bond markets is described as “successful” by this Reuters report at the Irish Times – €1.25 billion raised with the ten year yield kept below 7%. But as the BBC report points out Bond buying by the European Central Bank (ECB) had helped keep the yield below 7%. “Probably the most important thing for the 10-year yield is that the 7% level …
It would appear that our Asian friends have confidence (and an interest) in the survival of the European project. Japan and China will help fund the European Financial Stability Fund that will be used to bailout European banks, sorry, I mean Ireland. With Japan pledging to buy 20% or more of the bonds that will be sold later this month. From Bloomberg – There is a plan for the euro zone to jointly issue a large amount of bonds late …
With Portugal heading back to an increasingly reluctant bond market, the BBC’s Europe editor, Gavin Hewitt, notes that “White knuckles have re-emerged in Brussels and other vulnerable European capitals.” Sometimes in Brussels I detect that the fight is less to save Portugal but more to ring-fence Spain. It’s the fourth-largest economy in the eurozone. If it needed rescuing the funds currently are probably not there. And then awkward questions would have to be asked – including whether Germans, in those …
Now that the notorious gambler, and former Taoiseach, Bertie ‘Lucky’ Ahern, has confirmed his decision not to contest the next Irish general election he obviously feels freer to be critical of his party colleagues in government. From the Belfast Telegraph report Mr Ahern, a columnist for the Irish News of The World, told the newspaper Mr Cowen’s administration failed to communicate properly with the public throughout the crisis. He said he carried out daily doorstep interviews with the media when he led …
In the Irish Times Arthur Beesley’s assessment of the “mammoth task” European leaders face in the year ahead is well worth a read. From the Irish Times article Strain and anxiety were everywhere in 2010. Merkel held the line against easy bailouts but her dogged intransigence on core principles led to accusations that she was making matters worse, not least in Ireland. From the summit room came whispered reports of shouting matches between French president Nicolas Sarkozy and ECB chief …
EU leaders met in Brussels last week, for their last summit of 2010, and agreed the text of a “narrow revision” to the Lisbon Treaty – the conclusions of the European Council (16-17 December 2010) [pdf file]. In Taoiseach Brian Cowen’s view, “There isn’t a change of competence or a transfer of competence, so our strong view is that it is compatible with the Constitution.” That would be without the need for a referendum. And from the same Irish Times …
Inside the Irish Times Stephen Collins drills down into the data from the survey Brian noted to pick up on an interesting point. From the Irish Times article When asked if it was better to be part of the European Union the same pattern emerged. Among Fianna Fáil voters 87 per cent said it was better to be in the EU with just 9 per cent saying it was not. Fine Gael and Labour voters gave identical responses, with 77 …
Asked if they believed that Ireland had surrendered its sovereignty in accepting the bailout, 56 per cent said that it had, while 33 per cent said it had not and 11 per cent had no opinion. Latest Irish Times poll As Mick and others have discussed , it’s interesting how fashions of sovereignty change. I remember Dev’s grandson Eamonn O Cuiv telling me how Ireland finally won it on joining the Common Market in 1973 (though even if they …
In the Belfast Telegraph, Kevin Myers welcomes, sort of, a belated recognition of the value of grown-up politics. Although, I’d like to see more evidence of that recognition… Ireland is a pioneer in a new form of IAA governance: after incurring financial losses unprecedented in world history, it is a state no one wants. And these losses were only made possible by a compulsive infantilism that infuses and informs so much in Irish life. No matter: the fiction of an independent …
As the Irish Times notes, EU economics and monetary affairs Commissioner Olli Rehn has joined the head of the IMF in calling for “well coordinated action to safeguard stability in the euro area”. From the Irish Times Mr Rehn told the conference [in Athens] that the euro area was determined to agree thorough reform to set up a new system of economic governance. “We will not stop until we have accomplished our mission. We are now in the decade of fundamental reforms,” …
In the Belfast Telegraph Sinn Féin MLA Mitchel McLaughlin responds to Ed Curran’s question on the cost of a united Ireland with some hollow nationalist rhetoric, and indulges in some fantasy economics. An analysis of the expenditure by ‘regions’ along with a series of estimates of the revenues from the regions by Oxford Economics shines some light on the actual subvention by the British Exchequer. The main findings demonstrate that total ‘identifiable expenditure’ for the North was £14.1bn in 2004/05. This is …
While a furious Irish taxpayer [on the Clontarf dart] discovers just how bad it’s going to be, RTÉ notes that EU finance ministers have formally approved the €85billion bail-out for Ireland. While bond investors still appear unconvinced that the politicians have a clear strategy to restore the euro’s fortunes, there is growing political division over the best solution. Belgium, which holds the EU presidency, and which has seen its own bond yields increase, wants the €750bn fund increased. Luxembourg and Italy …
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 …
I think this point is worth highlighting more clearly. Below – Simon Johnson ex-CEO of the IMF – on who is owed money by the Irish banks German banks are owed $139 billion, which is 4.2 percent of German G.D.P. British banks are owed $131 billion, or about 5 percent of Britain’s G.D.P. French banks are owed $43.5 billion, which is approaching 2 percent of French G.D.P. But the eye-catching numbers are for Belgium, which is owed $29 billion – …
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Is there an alternative strategy after all? Might the euro’s continuing adversity become Ireland’s opportunity? The first thing to notice is that the Irish government rejected the Financial Times’ stern advice and succumbed to overwhelming pressure. Ireland is readying itself to sign the dotted line of a rescue package foisted on it by Europe. It should not accept before securing terms that avert a bail-out of European lenders paid for by Irish taxpayers thrown into debt bondage. Although we won’t …
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 …
“The best under the circumstances”, says Cowen or “almost unaffordable” according to Noonan? The battle lines for the general election are drawn up immediately. But the contest won’t be about real alternatives. It’ll be about how the Irish people respond to a settlement they have to work through whoever is in power, give or take a tweak or two. This poses a big challenge for Michael Noonan, Joan Bruton and the rest of the government in waiting. They have to change …
