eurozone – Page 10 – Slugger O'Toole

Olli Rehn: “We are now in the decade of fundamental reforms”

Pete Baker on December 9, 2010, 1:37 pm

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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,” …

Euro crisis: “So something is afoot.”

Pete Baker on December 7, 2010, 5:17 pm

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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 …

Comment of the day…

Mick Fealty on December 6, 2010, 11:03 am

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We’re running in a few new commenting tools on Slugger, which we hope will help raise standards on the blog. But I also want (from time to time) mark out good content from the comments zone. So the reader’s comment of the day (so far) is from Laughing (Tory) Unionist on Mr Reckless’s Red C poll: I still regret ’79 (when the sterling link was broken, by the South, in favour of the ERM), but having made that mistake then, Dublin’s …

43% of Sinn Fein voters want to return to Sterling standard…

Mick Fealty on December 5, 2010, 11:10 pm

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Mark Reckless is Tory MP for Rochester and Strood. He’s also the grandson of one Henry McDevitt, who briefly sat as a Fianna Fail TD for the now defunct Donegal East constituency. It seems Mr Reckless has taken it upon himself to commission a Red C poll on the question of whether the good folk of the Irish Republic would like to return to the calmer waters of the sterling zone. (H/T Gawain) He has hosted the detailed report on …

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

Pete Baker on November 30, 2010, 3:29 pm

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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 …

The [animated] view from Taiwan

Pete Baker on November 30, 2010, 1:58 pm

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Via The Cedar Lounge Revolution. Courtesy of Next Media Animation. Pete Baker

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

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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

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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: “The avoidance of such a meltdown must be the over-riding interest of both Ireland and Europe now”

Pete Baker on November 26, 2010, 12:14 pm

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I’m not entirely convinced that the “strongest argument against a State default has disappeared” completely, but in the Irish Times Dan O’Brien provides the rationale behind the argument against a default in the short-term It is no longer in Ireland’s narrow national interest to prevent senior bondholders from suffering the consequences of their own bad judgement. But this is very unlikely to happen, in the short term at any rate. That is so because a consensus exists among European policymakers regarding …

Euro crisis: “Come on, Frau Bundeskanzlerin, history is knocking at your door.”

Pete Baker on November 25, 2010, 11:13 am

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The Irish Times reports the comments by chief of the European Financial Stability Facility, Klaus Regling. “There is zero danger,” Klaus Regling, chief of the European Financial Stability Facility (EFSF), told German daily Bild when asked if the euro zone could break up. “It is inconceivable that the euro fails. “No country will give up the euro of its own will: for weaker countries that would be economic suicide, likewise for the stronger countries. And politically Europe would only have …

Ireland’s Four Year “National Recovery” Plan

Pete Baker on November 24, 2010, 3:03 pm

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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. …

Fintan O’Toole sounds great but he’s got it wrong

Brian Walker on November 24, 2010, 12:05 am

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The Republic supports two latter day raging Jonathan Swifts, Vincent Browne who had the plug pulled on him by RTE and Fintan O’Toole. To be sure, there’s a horrible banality as well as tragedy about being in hock to bankers just as it was to 19th landlords or ironclad industrial capitalists. Fintan comes close to recommending revolt, surely a risky approach at this time of high anxiety and volatility. And where is the real strategy in this howl of protest? The primary goal of the IMF-EU …

“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

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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 …

Stephanomics: “broad lessons for the eurozone are already clear, and not encouraging”

Pete Baker on November 22, 2010, 5:35 pm

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Market Moves notes the reaction to today’s events in their London Market’s closing comments Worries over stability in the Emerald Isle are being compounded as the bailout becomes more and more political by the day, with the opposition party Fine Gael calling for a snap general election, citing public distrust over the handling of the crisis. The risk of contagion still lingers over European markets, with traders now eyeing up the next sacrificial lamb. Spanish and Italian markets are down …

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

Pete Baker on November 22, 2010, 1:25 pm

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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 …

“Could a bank bring down a country?”

Pete Baker on November 19, 2010, 12:09 am

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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 …

“In hindsight…”

Pete Baker on November 18, 2010, 3:20 pm

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In the Irish Times Stephen Collins signs off with a line on the electoral prospects of Fianna Fáil that’s worth considering as the ECB and the IMF have those detailed discussions in Dublin. The voters who rewarded it for being so irresponsible in the good times are likely to be merciless now that everything has gone so badly wrong. Read the whole thing. Pete Baker

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

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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. …

Van Rompuy: “We’re in a survival crisis”

Pete Baker on November 16, 2010, 1:49 pm

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The Irish Minister for European Affairs, Dick Roche, tells European finance ministers not to “panic“… as the EU President, Herman Van Rompuy, panics? A Guardian report indicates the extent of the concern “The Irish problem is spreading, but it could get more volatile,” said Ashok Shah, chief investment officer at London Capital, a fund management firm. “They have to get this bailout, they have a period of time before it gets impossible, before nasty things happen. The longer they leave it, …

Guardian poll supports British help for Ireland

Brian Walker on November 16, 2010, 10:20 am

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Is this genuine, generous solidarity, the like of which would not be extended to any other country or a cunning Irish write-in? Ireland bailout: should Britain foot the bill? 59.2% Yes 40.8% No Bearing in mind…　 Ireland bailout: UK taxpayers could face £7bn bill But the Wall St Journal plays down the threat to sterling… Debt stresses in nearby Ireland therefore are unlikely to derail the pound’s outlook for now at least. In fact, they are “something of a small positive …