Here They Come: Ireland Demands Renegotiation Of Its Bailout Terms To Match Spain

Tyler Durden's picture

Well that didn't take long. The ink on the #Spailout is not dry yet (well technically there is no ink, because none of the actual details of the Spanish banking system rescue are even remotely known, and likely won't be because when it comes to answering where the money comes from there simply is no answer) and we already have an answer to one of our questions. Recall that mere hours ago we asked: "We also wonder how will Ireland feel knowing that it has to suffer under backbreaking austerity in exchange for Troika generosity, while Spain gets away scott free." We now know. From the AFP: "Ireland wants to renegotiate its rescue plan to benefit from the same treatment as Spain, which looks set to win a bailout for its banks without any broader economic reforms in return, European sources said on Saturday." And with Ireland on the renegotiation train, next comes Greece. Only with Greece the wheels for a bailout overhaul are already in motion and are called a "vote of Syriza on June 17." And remember how everyone was threatening the Greeks with the 10th circle of hell if they dare to renegotiate the memorandum? Well, Spain just showed that a condition-free bailout is an option. Which means Syriza will get all the votes it needs and then some with promises of a consequence free bailout renegotiation. In other words Syriza's Tsipras should send a bottle of the finest champagne to de Guindos - he just won him the election.

But back to Ireland. From AFP:

"Ireland raised two issues: one is the need to ensure parity of the deal with Spain retroactively on its bailout from EFSF," one European government source told AFP, referring to the temporary rescue fund, the European Financial Stability Facility.

 

Another European government source confirmed the information.

 

Ireland secured an 85-billion-euro ($112 billion) rescue deal from the European Union and the International Monetary Fund in November 2010, but only after agreeing to draconian austerity measures.

 

Unlike Ireland, Spain's economy minister said a deal on financing for the country's troubled banks would not impose any conditions on the wider economy.

 

Dublin plans to raise the issue during the next meeting of eurozone finance ministers to be held June 21, the sources said.

 

Eurozone finance ministers said Saturday they were willing to give Spain up to 100 billion euros to help its troubled banks, which are suffering due to their massive exposure to the ailing property sector.

Congrats Germany: you have now opened the Pandora's box of infinite moral hazard, bailout renegotiations and unconditional rescues. Anything less than a pari passu bailout to Spain's, which the economy minister touted as having no political strings attached, will incite a revolution.

Oh, and the IMF has just been made obsolete.

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algol_dog's picture

Unbelievable !!! Can't make this stuff up ...

aleph0's picture

 

All part of the bigger Plan :

The End Game: A 100% Digital Monetary System
by J.S. Kim

http://www.larsschall.com/2012/06/09/the-end-game-a-100-digital-monetary...

Jolly.Roger's picture

The sooner the better. 

TruthInSunshine's picture

That which will be explained to many future 'sovereign people' who doth protest too much when their conditions for being 'bailed out' (i.e. being sold even further into debt indentured slavery by their 'representatives' in government) seem more harsh than that of other 'sovereign peoples':

 

"Give me control of a nation's money, and I care not how that nation's cookies crumble, bitchez."

 

-- Mayer Amschel Rothschild, whilst gluttonously feasting on chocolate covered macadamia nut cookies, on June 18th, 1815

Ancona's picture

Bwahahahhaha!!

Who could have forseen that?

Chris Jusset's picture

In addition to Ireland demanding new terms, Portugal and Greece will want to renegotiate their bailouts with favorable terms like Spain's.

 

Then, when Italy gets a bailout on terms better than Spain, Spain will demand to renegotiate to terms as favorable as Italy's ... and Ireland, Greece, and Portugal will demand the same.

 

Deeply jealous of all of this unconditional free money with no strings attached, France will suddenly find itself in need of a bailout ... and France will demand terms better than Italy's and Spain's terms ...

sablya's picture

Do you guys think the market will still fly on Monday?  Unfortunately I'm long UVXY!

 

The Big Ching-aso's picture

 

 

It's not like world wars have ever started over inequitable treatment between nations other than WWI and WWII.

Michael's picture

Ron Paul to Bernanke - Moral hazard of currency devaluation

http://www.youtube.com/watch?v=bxLXaiWmFB4

Oh regional Indian's picture

Michael, Ron+Rand = Sell Outs

Really, got flamed a couple of months ago for saying that here. Now? Pres Romney and VP Rand? Gawd help America.

And Ireland does not stand a chance of getting equitable treatment with Spain.

While spain has miles and miles of beachfront and good weather, Ireland's Boom was entirely industrial and fake. Pumped without substance.

If possible, for a nation that size, they are MUCH worse off. No real barter for the banksters, that is why the citizen "gets it", in the backside.

ori

The Celtic Tiger.....

Celtic Tiger [1][2] is a term used to describe the economy of the Republic of Ireland during a period of rapid economic growth between 1995 and 2007. The Irish economy expanded at an average rate of 9.4% between 1995 and 2000. It continued to grow at an average rate of 5.5% during the following decade until 2008, when it fell into recession. The expansion underwent a dramatic reversal from 2008,[3] with GDP contracting by 14%[4] and unemployment levels rising to 14% by 2010.[5] Moody's proceeded to downgrade Ireland's government bond ratings to junk in mid-2011.

 

The Big Ching-aso's picture

 

 

If Ireland & Spain ever go 2 war, one will be 2 drunk 2 aim & the other will be 2 asleep 2 give a shit.

Ahmeexnal's picture

Who will rescue spain? Germany? China? IMF? US taxpayer?

NO. SANCHO PONZI!

 

 

trilliontroll's picture

I still think we need a

10 000 000 000 000 € LTRO

BidnessMan's picture

Why do some people think that any country in NATO has any offensive military capability?  Oh No!  An invasion by the Duchy of Grand Fenwick ....  

The Irish spent 1,000 years fighting off the Brit colonialists, but have never invaded another country.  The Viking countries have calmed down.  Norway has a huge Sovereign wealth fund.  They are not going to trash their own assets across the rest of Europe.

The US is not going to invade Europe - Ben Bernanke will have all the US Helicopters tied up doing money drops.  

The Islamic countries are doing a slow motion invasion already, and will have Europe in a couple of generations anyway.  Why get involved in a messy, expensive war invasion now?

The Russians can just turn off the gas and let the Europeans freeze for a couple of weeks any winter they want. Especially with Germany announcing they are shutting down all their nuclear power plants - the Germans will dance to any tune the Russians want to play.

Now if the Chinese get upset about their Euro investments going to zero, that might be a different story.  But the Chinese are dumping Euros and buying gold.  Sun Tzu and avoiding a battle if at all possible....  Better to wait and scoop up European assets for minor amounts of gold.

Sure don't see Belgium or Greece invading Germany....  laughable.

Milestones's picture

"Oh, and the IMF has just became obsolete"" Nah, just the new barkers on the carnival runway. Didn't take long to get after the lowest common denominator.                

GAWD, the circus is back in town.          Milestones   

Stoploss's picture

May i suggest a Canadian flag for your avatar?

Olympia's picture

The end of the world is near.

When Barack Obama announced the US (2010) national budget for this year, we experienced unprecedented feelings. Never before had an imperialistic power moved them to pity. This is unthought-of. This year’s deficit is estimated to be $1.6 trillion and its foreign debt has gotten completely out of hand. It hits numbers that only mathematicians and astrophysicists knew existed few decades ago. There is no space for these numbers in the electronic boards so it is driven to add new elements on them.

 It all started with the big crisis of 1929. The American economy reached a deadlock because of its social "pathogenesis"; a deadlock that led it to economic crisis in a different - faster- pace than the rest of the industrial forces of that time. Important decisions had to be made - mostly social - and the Whites didn't like that, especially the Whites' rulers, the Anglo-Saxons.

 

www.eamb-ydrohoos.blogspot.com/2010/02/ten-plagues-of-pharaoh.html

Authored by Panagiotis Traianou

Astraea's picture

AlephO   Thank you for that link - it is a very clear exposition of how the banksters want really, really tight control over us all.     I shall post it far and wide.

Nozza's picture

It's a nasty racist rant. So I hit the down arrow. I thought we had moved along. That "this time is different". But the same old blame-game rears it's head.So much easier to blame others, To pass the buck. I dont undertsand all the root causes, let alone any of the solutions, but just blaming Jews is not the solution.

Noz

John Law Lives's picture

It is hard to believe.  Run massive deficits year after year and get a bailout.  Everyone gets a bailout...  (other than Lehman Brothers).

It should be patently obvious that there is an underlying reason why everyone gets a bailout... and it has something to do with the $700+ Trillion derivatives market...

Caviar Emptor's picture

There's now a built-in incentive to mismanage...If I were them I'd NEVER get the derivatives or even primary loans in order...NEVER! That would be like killing the golden goose. No. Better to be a highly paid employee at an essentially fully nationalized, government run operation where the main job functions include acting surprised. Ha!

Poetic injustice's picture

Damn, you surpised me! Do I qualify for cushy goverment job now?
If necessary I can also fake my IQ test results to be low enough to be hired.

francis_sawyer's picture

Here's my 'surprised' look... (I know it sucks, but maybe we have some better artists around here ~ Looks like I don't qualify for gov't work)...

~~~

#    #

   O

fajensen's picture

Precisely the Objective of the bailouts - If a mere fraction of that black hole of OTC derivative ... matter should go to the markit and clear it will be an extinction level event for the banksters and for governments relying on ever-cheaper loans and forever expanding credit supplied by their bankster friends. The OTC derivatives are the "asset" backing those Zero-Interest loans, so "they" have to feed the black hole to stop it from evaporating, taking out half the planet with it. 

TrillionDollarBoner's picture

The shit is going to start flowing so thick and fast onto the fan over the coming months that ZH is gonna have to recruit more Tylers.  

Sudden Debt's picture

Spread the knowledge to 1 person and you're a tyler yourself!

sessinpo's picture

Not hard to believe. You should realize by now it's a catch 22. You see, to not bail out whomever would be to admit of system and euro failure.

Lehman Brothers could be contained. Bear Stearns probably should have gone too. But we are talking about the major banks of these one soverign nations - kind of like our big 5, citigroup, goldman, jp morgan chase, bank of america, wells fargo.

John Law Lives's picture

That part that is hard to believe is that things have gotten this fvcked up.  This bailout is not going to solve Spain's unemployment problem.  There is no doubt they will need yet another bailout before too long.

Alpacanio's picture

I think we know what that reason is...

Eireann go Brach's picture

We need to see some riots at the Euros! Greece vs Germany!

CClarity's picture

I think perhaps it is Germany that must leave the Euro in order to save the Euro.  And to prevent the periphery from having to return to currencies (or create new ones) that will instantly devalue massively and force additional peripheral countries out of the Union.  Maybe better to let Euro become a weaker, though still functional, currency for many nations while Germany goes with a stronger currency.  Lots of implications, isn't easy, but still preferable? http://bit.ly/MvWGT6   

Mister Ponzi's picture

When Germany leaves the union, so will the Netherlands, Austria, Finnland, and probably Estonia. You will, in effect, create a Northern and a Southern Euro. Even if the Northern countries returned to domestic currencies, those would be pegged against each other. The Netherlands and Austria did this for decades with their curreny pegs to the Deutschmark.

jonytk's picture

That's absolutely non-sense, Germany greatly benefits for a lower euro, it boots it's exports, and since it controls the ECB, they make sure everyone is under the deficit limits, so they will have lower inflation (when the USD implodes).

BidnessMan's picture

If Germany controls the ECB, and the ECB is really in control, why did the ECB not force every country in the Eurozone (including Germany) to stay within the Eurozone deficit limits for the past 10 years?  But now France and the PIIGS are going to START complying with deficit limits?  

Is the ECB now going to stomp their feet and threaten to hold their breath until they turn blue, and that is going to work?  When it never did before?  Laughable.  

 

phungus_mungus's picture

No.. this is perfectly believable and was predicted.

Ireland will be followed by Greece, Itlay, then Spain back to the EU trough wanting more, followed by Greece, Italy and then Spain again...

Nothing has been solved here.

 

Matt's picture

Actually, I totally expected this. It was pretty much inevitable, really. As soon as someone percieves someone else is getting a better deal, they instantly demand that they deserve to get the same deal, or it isn't fair!

Bill D. Cat's picture

One big , fucking , happy family .

Non Passaran's picture

Love that line, D!
I've been telling these bitches all about you!

nmewn's picture

In the socialization of loss game, the nation with the higher unemployment rate wins.

And to think, vampires used to be a myth.

BidnessMan's picture

The quaint notion of fairness went out of fashion long ago.  Fairness is for the chumps who still eat their peas. Was it "fair" that the bankers who made million dollar bonuses on billions of NINJA loans, had Linda Green sign millions of fraudulent mortgage foreclosure, and then paid lobbyists to get Congress to pass laws that provide bankers with a permanent "get out of jail' free card?  Absolutely no consequences for all kinds of felony conduct.  So stop with the insulting comments about "fairness".  Just cheap arrogant banker cover for Heads I win, Tails you Lose.  Fairness is not remotely involved.

Ireland's problem is the political class was in the banker's pockets back 4 years ago.  Ireland should have done what Iceland did.  But Ireland can still refuse austerity like Spain and France have done.  It could hardly get worse for the Irish - dragging out death by austerity to infinity is no future.  But as Greece, Spain, Portugal, Italy and France soon go down, this will all force a reset for the Irish too.  

The Irish people were thrown under the bus by their government, and dragged through a very painful adjustment process that was far longer than it needed to be.  Too bad the Irish had to wait for Spain, Italy, Greece, et al to go down for the Irish to get out of austerity torture.  What is the fairness in that? 

If there ever was a case of Odius Debt, it is Ireland.  My hope is that future leaders will look to Iceland as the model when greedy Bankers spin out of control again - not Ireland.  

Ookspay's picture

My gut tells me that this will all be dealt with soon, in the time-tested fool proof way, W A R ! Lots of hiding, blaming and disinformation always accompany war.

"The first casualty of war is the truth." Well, the truth is dead, more and various other casualties to follow, stay tuned.

The Monkey's picture

To think the stewards of this plan have not thought of action and reaction to the nth degree is silly. You are wasting your time.

Non Passaran's picture

Nonsense.
Cretins like you always resurface on some bad news and then war doesn't happen. Where are the morons who were constantly predicting that the US will attack Iran?

Of cours, like a broken watch one day they may be right, but that makes no difference: they are cretins.

Buck Johnson's picture

No kidding, you can't make this up.  They just opened up another problem, how can they say no to Greece or Portugal or even Ireland about renegotiation if not no strings attached if they did it for Spain.  Like he said, it makes it even easier for the Greek politicians against austerity to win because they just showed you can get lent money to the BANKS and no conditions. 

fajensen's picture

Easy Peasy: The stupid-as-piss, to use a technical term, Irish electorate just voted for the European Financial Stability Pact.

Which basically outsources all financial policy to unelected overlords in Brussel. No doubt some German will soon point out the very paragraphs in pedantic detail.

The Irish are the Palestinians of Europe: Always and Forever picking The Way of Pain whenever they get a say in anything.

Tom Green Swedish's picture

Basically, the message the EFSF / Eurozone / Whatever the fuck they are is saying is that it is ok to not pay your mortgage, and they will bail you out if you are somewhat significant to them.  In Spain if you can prove hardship you do not have to pay your mortgage. You will not be foreclosed on nor have to pay any penalties.  It appears they like throwing money down the drain.  First Greece (no chance in hell of ever paying anything back / on the brink of leaving the Euro), next Spain (prostitute land / forget the mortgage beach party), next will be on the Italian mafia (10 percent of GDP).  But if you're Irish you have to work for it, you can't have free money like Southern Europe because they are the party crew.  I thought the USA government was clueless.  the EFSF / Eurozone / Whatever the fuck they are / ECB is the biggest joke I have ever seen in my life.

 

What is Ireland not buying enough BMW's and german crap? Is that how it works? What a bunch of shit.

Bogdog's picture

Maybe the IMF is not so obsolete given that 'merkins will still be contributing our ever more worthless $$'s to it that we'll never see paid back. It is in fact fully functional as a money pit. Once the Eruo crashes the IMF is it.

C-B77's picture

everyone will go back to their corner once the spanish spreads song starts playing and they realise that Spain got the same medicine with different packaging....

PC Load Letter's picture

Moral Hazard at its finest