Ireland Gets €85 Billion, As ECB-Germany Schism Becomes Acute
From RTE "The EU and the IMF will offer the Government an €85bn facility, which can be used to recapitalise the banks and fund the public finances. The EU and the IMF will offer the Government an €85bn facility, which can be used to recapitalise the banks and fund the public finances. The package would see the level of capital in the Irish banks being increased from eight to 12% in a move to bolster confidence of depositors in the financial system." This could well be too little, too late. The bank run has already started. And just to confirm that the schism between the ECB and Germany is now likely insourmountable, Nowotny said that he is 'irritated' with Merkel's remarks on the serious situation for EUR. Why, of course Ewald- nobody wants to hear the sad truth that you will be unemployed within a year.
More from RTE:
The International Monetary Fund earlier said talks between it and Ireland were moving forward quickly, but it was up to the Irish Government to make the necessary political decisions.
The IMF's First Deputy Managing Director, John Lipsky, made the comment in New York in response to questions by reporters about the impact on the negotiations of growing political instability in Ireland.
Mr Lipsky said the IMF's work in Ireland was technical, not political.
EU Economic and Monetary Affairs Commissioner Olli Rehn said it is essential that Ireland passes the Budget in the timeline foreseen, adding this would be best done sooner than later.
The Commissioner was speaking following a confidential briefing with Irish MEPs at the European Parliament in Strasbourg, which lasted for just over an hour.
Mr Rehn said every day that is lost increases uncertainty and increases the economic and social cost.
He added that Ireland needs to adopt the Budget, get it out of the way and move on.
Mr Rehn also said that while he did not have a position on domestic politics, political stability is important.
However Socialist Party MEP Joe Higgins walked out of the meeting after just two minutes.
Mr Higgins said that the information was only being shared on the basis it was confidential and would not be divulged. He said not sharing the information would be a betrayal.
For many of the MEPs at the meeting the key issue was keeping Ireland's 12.5% corporate tax rate off the table.
Minister for Minister for Enterprise, Trade and Innovation Batt O'Keeffe told the Dáil that Ireland's corporation tax of 12.5% is critical, and is but one of a number of factors that makes Ireland attractive to multinational companies.
He was speaking this evening on a Fine Gael Private Members' Motion on the need to defend Ireland's corporation tax rate.
Mr O'Keeffe also said a move away from the existing corporation tax rate would have a significant negative effect on existing and potential investments.
Meanwhile, Managing Director of the International Monetary Fund Dominique Strauss-Kahn was commenting on Ireland and Greece.
Speaking during a Swiss Television interview Mr Strauss-Kahn's message was: 'We must tighten our belts.'
Referring to the crisis in Ireland and Greece he said: 'The idea that you may live long beyond his means is a crazy idea, even if the causes are different in these two countries.'
The director of the IMF estimates that these countries 'in one way or another we have to tighten their belts to get back to something that is bearable ... Those who are in a weak position are those who get in trouble first.
'That is why we need to preserve as much as possible social spending. We cannot continue like this.
'The solidarity of European countries should avoid the collapse of some states, but it requires rather drastic economic measures, and once again it will be the weakest countries that will suffer most', he said.
Elsewhere, a now panicking Europe tries to go for broke with a constantly (mis)firing bullshit crapapult:
- ECB's Nowotny says Portugal not comparable to Ireland and Greece in economic terms
- It is individual European states which are in danger, not the EUR
- 'Irritated' with Merkel's remarks on serious situation for EUR
Bullshit translation: The countdown to the end of Europe has begun.