Irish Government On Verge Of Collapse, Could Impact Brexit

Tyler Durden's picture

The Irish government was on the verge of collapse as it faced a vote of no confidence in the deputy prime minister by a party whose votes are critical for Prime Minister Leo Varadkar to pass laws (the government is a minority administration).  As Reuters reported late on Thursday, the opposition Fianna Fail party threatened it would put a motion of no confidence in Deputy Prime Minister Frances Fitzgerald on Tuesday - a move sparked by Fitzgerald’s handling of a legal case involving a police whistleblower - and which would breach the "confidence and supply" agreement that allowed Taoiseach Leo Varadkar’s Fine Gael party to form a minority government 18 months ago.

And, as UBS notes, if the government were to lose such a vote, it would have implications within Europe over the Brexit process.


Ireland's Prime minister Leo Varadkar arrives for an EU Social Summit

Fianna Fail indicated it might withdraw the motion if Fitzgerald resigned, but Foreign Minister Simon Coveney told state broadcaster RTE that Fitzgerald would not resign. Additionally, as Bloomberg reports, Prime Minister Leo Varadkar won’t “abandon” deputy Frances Fitzgerald, Coveney also told RTE. Fitzgerald faces a “trumped up charge,” Varadkar told his party lawmakers late on Thursday.

As Politico adds, Fine Gael MPs passed a unanimous motion of support in Fitzgerald at an emergency meeting convened Thursday evening. An unnamed “senior Fianna Fáil” source told Reuters the country was heading “straight toward” a new election after the motion was passed, and added the party would hold a meeting Friday on the matter.

While Varadkar said he didn’t want an election, without support from Fianna Fail, the minority government could fall. Fine Gael is preparing for an election in January, the Irish Times reported, as the opposition readies to submit a no-confidence motion on Friday in Dublin. It will be debated on Tuesday. “We don’t have confidence in her ability, ” Fianna Fail spokesman Dara Calleary said in a RTE radio interview on Friday, suggesting Fitzgerald’s exit would defuse the issue as it prepares for more talks with the government. “There’s a long way to go until Tuesday.”

The crisis comes at an awkward time for the UK's Brexit process, just weeks ahead of a European Union summit in which the Irish government has an effective veto on whether Britain’s talks on leaving the bloc progress as it determines if EU concerns about the future of the Irish border have been met. More from Bloomberg:

The affair comes at a delicate time for the government, as it moves toward a decision on the Brexit process. The Irish border is one of three key issues that have been identified, along with citizens’ rights and money owed by the U.K., that require “sufficient progress” toward a resolution before the EU will allow talks to move on to Britain’s future trade relationship with the bloc.

 

“The timing is an issue when considering the crucial December meeting of the European Council, where Ireland will require a strong leader to deal with possible political pressure regarding the progress of Brexit talks,” said Ryan McGrath, head of fixed-income strategy at Cantor Fitzgerald LP. “Having Varadkar attend as a lame duck could potentially be very disadvantageous for Ireland.”

 

Varadkar has pledged to stand firm in the face of any pressure to move talks on without enough progress on the border question.

It’s the biggest political crisis to hit Varadkar since he took over as premier from Enda Kenny in June, according to Bloomberg. Last year, Kenny’s coalition drew about 35 percent of votes, slumping from 55 percent five years earlier. That result left him at the mercy of his main rival, Fianna Fail, which agreed not to block him.

“If there is no confidence and supply agreement in place, I don’t see how we can have a government that can function,” said Coveney. “That is why the actions that Fianna Fail are taking today are so reckless at a time when the country does not need an election.”

While the market reaction to the report has been contained, the Irish 10y yield has moved higher by 4bps to 0.62%, with fresh elections now seen as a potential risk according to traders.

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ParticularlyStupidHumanoid's picture

I don't care. It's Europe.

Croesus's picture

It's just that pesky Putin, interfering again.

MonetaryApostate's picture

The greatest lies are perpetuated by the money printers, debt is just another lie, like the fake money, & you know damn good & well the wealthy who made fortunes are moving for smaller gov, digital centralization, while they lay off millions thanks to automation & internet tech.  Goodbye serfs, prepare to watch your money turn to worthless trash.

 

#EveryoneVsTheMoneyPrinters

https://plus.google.com/+GaleInnes/posts/CdLuBK4GcMy

fleur de lis's picture

Leo Varadkhar is another cultural misfit.

His mother is Irish, father Indian Hindu, he was raised Christian, and is gay.

Okay for a doctor but stupid combination for national leadership.

Too many identity issues.

He should have found another path besides leading a nation that he does not culturally understand.

After the Irish taxpayers wasted heaps of money paying for his medical school education he went into politics instead of medicine.

He should pay back every penney.

 

 

b-sugar's picture

They lived on UK perfect negociations to enter the EU. 

 

Now that the EU is dead (british have always 20years on the frenchs...) those irish non productive bastards are realizing that they probably need to do some work.

bottom line, brexit is still an excelent thing for UK, and if you don't believe it just look at alsmost every EU government ... (irish, spanish, german, dutch...)

Bobbyrib's picture

Calling a nation a "Non"Producing" nation while saying that they benefited from England's work is completely laughable. Other than the Chinese and Russians, the next biggest money printers are the anglo nations- England and the United States of America.

 

What percent of England's economy is the financial sector and what percent of Ireland's economy is the financial sector? Who has a higher debt to GDP ratio? Those Libor rigging cunts in England have no one to blame but themselves. It's about time they got their shit together, but to say Ireland lived off the back of all the hardwork of the English is a joke.

To Hell In A Handbasket's picture

Ireland is a joke and has been for decades. After the collapse of Allied Irish Bank, the bond holders were liable, as their was no provision in place to make the Irish tax payer liable. 

The Irish finance minister, signed a law RETROSPECTIVELY making the Irish tax payer liable to the bond holders.  IE: It was basically a unsecured loan, but the Irish government by free will, renegotiated the debt it was not liable for and decided to make the tax payer liable.

Is that the definition of legendary Irish stupidity, or treason? Take your pick. 

eofarrell's picture

Another bitter Brit.

We whipped your ass before and we'll keep whipping it.

Conscious Reviver's picture

Well I'm no bitter brit and I can tell you the country is a laughing stock. Why did you bail out the (most likely brit banksters of the) Anglo-Irish Bank. Why do you have a gay H1b running the country??

DownWithYogaPants's picture

By "We" you mean the private central bankers of the BOE whipped Ireland.

You should take no pride for wins by such 3rd parties of which you have no part.  They own you as much as they own the Irish.

And if you should forget this again you too can be hung upside down and whipped on a whim and if you think you have an recourse or rights against this.........think again.

Lucky Leprachaun's picture

To show how progressive  and such good World Citizens we are. The Irish have been trained to despise what their traditions.

keep the bastards honest's picture

Hey Conscious dear, a country is not its politicians, the Banking Coven is thevBank of England, Rothchild, the squid, Allied(against the) Irish and more did a big put over here.

Agree wish Ireland had done an Iceland but remember the English occupation for 800 years meant they got in there and stole land (to hell or Connaught for the irish pushed off their land) and are embedded and many are traitors still, look at the ugly DUP lot in Northern Ireland who self indentify as English.

keep the bastards honest's picture

Yes indeed, the English parasites could over do ok by sucking the innards out of others, centuries of it, they smell of it, can smell the descendants embredded in Ireland.
They stole 60 shiploads of food per day, record amounts during the 1840's famine while millions of Irish died, now the English have no one to steal food from.
They got away with Irish money this time but England is sinking fast in its dirty ugliness and genetically challenged ugly population, just look at dopey Kate Will And their kids let alone Andrew with his Lolita Express predilections and the level of pedophillia and pig fondling and abuse of their poor and crippled. Vile people.

Xena fobe's picture

So the same as in the USA.  Socialize risk, privatize profit.

Lucky Leprachaun's picture

True but they were forced into it by Claude Trichet and the ECB. And Tim Geithner was the one who instructed the ECB that the unsecured bndholders must not lose a cent. Having said that Ireland could have done an Iceland and brazened it out. Even if all the banks closed we could still get along as we showed in the 1970's.

keep the bastards honest's picture

Yes, the greatest attack on the Irish since Thatchers time following occupation and the selling of Irish men women and
Children into slavery from the 1600's on.... Elizabeth 1 profited from the slave ships hugely.
Allied Irish really put that over, misrepresented the debt and the whole coven of banks rode in on evil, fully supported by the ECB and Obama flying in to protect Goldman from any debt haircut. Then the banks did over Cyprus, Greece... one wonders if there was any 'pressure' put on the Irish politicians

I wish the diaspora had been given the opportunity to help pay off the fkn bank bastards. Have 700 million Aust with Irish ancestry and we don't bend our backs to the English.

The banks stole the Irish Pension Fund and it went on from there, yet they somehow have been paying off and keeping going ....very good people and unbroken despite the vile English and the stinky English third rate blood lines still embedded in the country and hating the Irish.

LightTrumpsDark's picture

Exactly.  Load the public up on debt they were not responsible for and then wonder why the economy is stuffed.  Brilliant move by the elite bankers.

LightTrumpsDark's picture

Exactly.  Load the public up on debt they were not responsible for and then wonder why the economy is stuffed.  Brilliant move by the elite bankers.

homonohumanus's picture

What is that BS "effective veto on brexit etc."

Nobody has a veto on UK exit of EU... it is more EU buying time to adapt to the consequences... 

 

Pendolino's picture
"has an effective veto on whether Britain’s talks on leaving the bloc progress"

It doesn't say "effective veto on brexit" to quote your mis-quote. It says they have a veto on talks progressing.

Bloody Fkn Muppet's picture

Paddy rings his new girlfriend's door bell, holding a big bunch of flowers. She opens the door, sees the flowers, and drags him in. She lies back on the couch, pulls her skirt up, rips her knickers off and says 'This is for the flowers!'

'Don't be silly,' says Paddy, 'You must have a vase somewhere!'

northern vigor's picture

I'm not sure your point...are you mocking the Irish PM for being gay, or his best friend Trudeau for being dumb? 

Albertarocks's picture

Three friends married women from different parts of the world.  The first man married a Filipino. He told her that she was to do the dishes and house cleaning. It took a couple of days, but on the third day he came home to see a clean house and dishes washed and put away.

The second man married a Thai. He gave his wife orders that she was to do all the cleaning, dishes and the cooking. The first day he didn't see any results but the next day he saw things were looking better. By the third day he saw his house was clean, the dishes were done, and there was a huge dinner on the table.

The third man married a lovely Irish girl.  He ordered her to keep the house cleaned, dishes washed, lawn mowed, laundry washed and hot meals on the table for every meal. He said the first day he didn't see anything.  On the second day he didn't see anything either, but by the third day some of the swelling had gone down and he could see a little out of his left eye and his arm was healed enough that he could fix himself a sandwich and load the dishwasher. He still has some difficulty when he pees.

northern vigor's picture

Dats an old joke Rocko, but its still funny.

Albertarocks's picture

Sorry.  I will never tell old jokes again.

keep the bastards honest's picture

Rock on, great joke.
Reminds me of the inspirational Susan Falls a beautiful Aus woman who looks like Irish diaspora. Not a black eye, a meal of curried prawns and sleepers and a shot to the head..The wife beating dog killing child threatening mongrel ended up in a shallow grave.

BarkingCat's picture

So the third guy was a complete beta male cuck?

zer0's picture

The Irish government sell out their people and their country in a heart beat. Doesn't matter which party happens to be in power. The Republic of Banksters.

RussianSniper's picture

The Irish should bring on board either Hillary Clinton or Barack Obama.

Both would bring positive energy and would work to unify the nation.

They both have proven track records.

northern vigor's picture

Your sarcasm is too far overboard, this early in the morning. 

GreatUncle's picture

He may have been an intern under them under the Washington Ireland program for grooming future leaders.

So chances are he has their phone numbers and on first name terms, probably with Soros and his NGO's too.

DownWithYogaPants's picture

Grooming them for what?  A good butte fcuking?

nati's picture

First openly gay South Asian/mystery meat PM in Irish history...no one could have predicted this predicament.

sunshineguerilla's picture

This story cuts to the core of Irish political life. The whistle blower is sitting on a story of corruption that is more than just a threat to the current government. It is really about the mass importation of cocaine and heroin by police forces through a private airfield in Dublin a la mena, arkansas. 

Whistle blowers have come forward with evidence and were subsequently victimised/silenced. The current back and forth is about the victimisation of a particular whistle blower which is a successful attempt at distraction from the real story.

http://www.broadsheet.ie/2014/02/24/the-thin-blue-timeline/

 

the above link is the background to the story. Ironically the party that tabled the no confidence motion were the party in government when the story began and have very close links to the main actors, we have a two party dictatorship in Ireland and would sadly give the kiwis a good run for the title of land of the sheep.

Irish claims to rebellion as some kind of intrinsic heritage are incorrect, nostaglic at best and refer to a small group of men who were villafied at the time and would be so again if they acted today.

 

Dontblamethegoat's picture

Jesus ... Irish justice does not exist ...

seabass974's picture

whale oil beef hooked

GreatUncle's picture

That name is not Irish so had to go and have a look at who this individual is.

He attended this ... https://en.wikipedia.org/wiki/Washington_Ireland_Program

Fails to mention the date though and do look at the senators on the list.

Internet-is-Beast's picture

The Irish have failed to do their share in admitting ME immigrants. They need to make up that deficit as soon as possible in order to avoid the stigma of racism.

Goibhniu's picture

He's probably not a big enough fag to satisty those Irish pussies. Man up you fairy wee folk before your country sinks.

THE DORK OF CORK's picture

Actually  its  not  my  country  -  its  owned  by  someone  else  -I  just  live  inside  this  jurisdiction.

squid's picture

The PM is a faggot is he?

 

Not good. Fags live for today because they have no legacy.....

The world's most famous fag's favorite quip, "in the end, we're all dead anyway."

 

Yes, Mr.kaynes, the inventor of deficit financing. And why not screw the future, as a fag, you have nothing to do with the future. Me? I don't want to leave a mess my children will be stuck with but fags are more than happy to leave a mess for other people's kids to have to clean up.

 

Faggots need to go back to the shadows.

 

Squid

Offthebeach's picture

Socialism works until you run out of other peoples children to bugger.

HoPewGassed's picture

"Ireland's Prime minister Leo Varadkar

Something seriously wrong with that expression, and it ain't the capitalization. 

Lucky Leprachaun's picture

Shows how progressive and tolerant we are. And did you now he's also gay and a Hindu? The Island of Saints And Scholars has come a long way baby.

bh2's picture

When the UK finally rids itself of the EU, Ireland may discover the most agreeable solution to its border problem is to also dump the EU and team up in economic alliance with the UK.

Glasshopper's picture

Northern Ireland not Ireland - it's a different country

ipso_facto's picture

No border; no Peace.

Lucky Leprachaun's picture

But, we have a gay, brown, Pakistani Hindu as our leader. What more can we do?