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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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Sat, 06/09/2012 - 23:23 | 2511519 cosmictrainwreck
cosmictrainwreck's picture

"Strange Brew II"...McKensie bro's go to Ireland - snark

Sun, 06/10/2012 - 00:28 | 2511574 q99x2
q99x2's picture

Don't they have intelligent people in the EU? Even a rat knows how to get out of a burning building.

Sun, 06/10/2012 - 00:43 | 2511585 crawl
crawl's picture

Fact is definitely stranger than fiction for the story of broke European countries.

From Spain saying 'nah we don't need anybody's stinking money' a few short days ago to easily without reservation agreeing to 100 billion euros bailout, and Merkel saying no way would she agree to fund a bail out only to flip flop a few days later, and now with the idea of Spain being given so much money almost free and clear (time will tell if the terms and conditions are truly so generous as to be without austerity requirements), it sets forth that not all European countries are to be treated equally.  So what will Italy demand if or when it needs some free money?

Ireland and Greece need to send a very clear message that equality is a neccessity of a union.  To the Irish and Greeks, you have been royally screwed by banksters.  Pay back can be a bitch.

And while I expect nothing short of a totally unbelievable way to fund Spain's bailout to surface, I look forward to reading all about it.  How to make money from nothing, how to fund a bailout from money that doesn't exist yet.  Or that can be printed in haste.  We certainly live in interesting times.

Sun, 06/10/2012 - 00:43 | 2511586 Tom Green Swedish
Tom Green Swedish's picture

"Eurozone" is fucking hilarious.  Even funnier than the too high of a compliment of the USA government is shit.  Ireland just leave the Euro now.  Iceland can give you some advise.

Sun, 06/10/2012 - 01:54 | 2511655 Gavrikon
Gavrikon's picture

When Germany finally decides to pull out, she will be attacked by her nieghbors, setting up WW3.  But this time, the jackbooted thugs will be coming from the "Gimmedat" countries. 

Sun, 06/10/2012 - 09:28 | 2511886 BidnessMan
BidnessMan's picture

Just laughable.  No country in NATO has a military with any offensive capabilities.  Was a struggle to come up with a company or two for Afghanistan.  They could not even get to the German border, and even if they did, they would run out of ammo after two weeks.  Lots of concerns in today's world, but Spain or Greece invading Germany is not one of them.  Belgium is going to invade Germany?  Ridiculous.

Sun, 06/10/2012 - 01:58 | 2511658 amadeusb4
amadeusb4's picture

Question is whether this is good for 25 or 50 points worth of short squeeze on the S&P next week! Where is the ZH crystal ball?

Sun, 06/10/2012 - 02:55 | 2511689 magpie
magpie's picture

Hm, first Spain then Ireland follows immediately ? City must be in meltdown mode already.

Sun, 06/10/2012 - 03:22 | 2511703 Olympia
Olympia's picture

We have reached the ultimate limits of shabbiness ...where “Enough is Enough”. Banking system and currencies should return to the people. There should be a discrimination of the currency nature in the two sides of the ocean ...its “security” part and its “bond” part should be separated. There should be a discrimination between what it describes the real value and that “value” that results from the addition of interest and “returns”. What does this mean in practice? There shall be an arrangement in favour of the people as far as the social security funds and the private deposits are conserned, so that currency becomes again a security. All the "rest" may be returned to the bankers and the loan sharks. This is whatever is described as debt and interest may be returned in the form of the well-known balls...

banks should be left to bankrupt so that they come under the national control for free. It is banks that should become public not their debts, as it happens today. Their owners should be led to prison for high treason and all their assets should be seized. All the bonuses, that their staff received due to their loan sharking “successes“ should be given back. Justice should be restored to face this blood-thirsty gang of beasts who made people sweat blood Courts should nail the “Markets” and put them on trial for crimes against humanity.

Sun, 06/10/2012 - 12:14 | 2512157 TNTARG
TNTARG's picture

Yeah, but ain't gonna happen without a massive popular reaction. Can you see anything like that on the horizon?

I'd said INGSOC seems to get stronger before it gets weaker. Hope they don't succeed rewriting the entire Human History for Eurasia meanwhile.

Sun, 06/10/2012 - 03:23 | 2511704 ebworthen
ebworthen's picture

I believe every non-banker, non-insurance company, non-corporation would like to renegotiate the economic rape they have been victim to.

Sun, 06/10/2012 - 03:58 | 2511720 Me_Myself_and_I
Me_Myself_and_I's picture

Does anyone remember the scorn heaped upon Britain when it refused to join the common currency?

The twittering (pre-Twitter) about Switzerland being rendered obselete?

Of the Scandanavian Swedes, being cloistered in their islets of Stockholm, unappreciative of the promising power of the Euro?

Sun, 06/10/2012 - 04:23 | 2511733 Thoresen
Thoresen's picture

The coming global choices:

1. Print to infinity: Jim Sinclair

2. New wealth taxes (not income) and enforced move to a four day week/ three day weekend to cure unemployment: Jeff Nielsen

3. Debt Jubilee as reported by Ambrose Evans Pritchard

2&3 will only come after 1 ......... at which point the 99% will have lost any savings, pensions etc etc ......... but this is the only course that governments can contemplate. Physical Gold & Silver are the only insurance policy in this scenario.

And it wil all start again unless fractional reserve banking is outlawed.


Sun, 06/10/2012 - 05:43 | 2511760 wesayukcom
wesayukcom's picture

You're right truth is there's no other way out.

Buy gold, silver, fixed assets and hoard shit (food, guns, bullets, copper, etc) now before the fuckers try to take tangible wealth items off you.

Sun, 06/10/2012 - 04:32 | 2511738 natty light
Sun, 06/10/2012 - 05:36 | 2511757 falak pema
falak pema's picture

BTW : this post contradicts the previous post on ZH where it was stated that Spain capitulated WITHOUT CONDITIONS its banking bailout to supranational Europe. It turns out its the OTHER way round, no conditions, no further austerity and the 100 B loan by EFSF is NOT to the Spanish Banks but to Spanish government. Which means "officially" Rajoy does not lose face to the rest of the world. "We are still in charge of our banking destiny", he can proudly say to his own people...

But if we go down this road, its another way of saying Germany is being pushed by EVENTS to go "joint and several" and next in line will be Ireland, Portugal, then Greece (if the xtreme left win), then Italy. They will ALL be wanting the better loan/capital reboot terms via EFSF/ESM for their banking sectors. 

I know it makes no sense as Germany and others cannot back it up. This is just can kicking, but it means to all intents and purposes, that Hollande as agent of "back door" Eurobonding has won and Merkel as hardliner "limited" bail out proponent has lost. The momentum is now to defacto "joint and several" to save the Banking Union, via State side involvement in each nation sate; for which the ultimate lender of last resort is : Germany!!!!

Sun, 06/10/2012 - 05:54 | 2511764 magpie
magpie's picture

Yes, the ad-hoc bailouts were the only realistic solution, not the eurobonds: none of the PIIGieS or the big Frog would have leased their sovereignty. Now they get their free mortgage money this way.

Sun, 06/10/2012 - 05:37 | 2511759 wesayukcom
wesayukcom's picture

When this crisis finally plays out there's gonna be a spate of book documenting the history of all this.  Get on the band wagon and be first to publish I say ! One could make a small fortune if they are first to market.

Sun, 06/10/2012 - 06:02 | 2511768 Satan
Satan's picture

" no strings attached " bitchez.

Although enough rope has been given out.

Sun, 06/10/2012 - 06:35 | 2511784 mrdenis
mrdenis's picture

ERIN ...go broke 

Sun, 06/10/2012 - 08:21 | 2511835 Ned Zeppelin
Ned Zeppelin's picture

I think we are just after the Champagne phase on Einhorn's Euro-Circle Jerk Chart.

Sun, 06/10/2012 - 09:33 | 2511890 Mesquite
Mesquite's picture


Is Spain the only 'one' with a King, or 'Royal' at the top..??

Just curious... 

Sun, 06/10/2012 - 10:00 | 2511908 Ned Zeppelin
Ned Zeppelin's picture

"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."

By the way, if you're playing at Home, I predict this is a complete lie and before long the details will be known. If it is true there are no conditions, then there is no bailout and this is just a head fake designed to borrow time.

Sun, 06/10/2012 - 10:09 | 2511919 IMA5U
IMA5U's picture

Obama just won the election

Austerity is a 4 letter world


Power to The People!


This will not end well.  Obama will leave his term with a mushrroom cloud behind him

Sun, 06/10/2012 - 13:04 | 2512263 dizzyfingers
dizzyfingers's picture

 "Obama will leave his term with a mushrroom cloud behind him"

Like Johnson, Carter, Clinton. Congress never ever did stop spending, and that's the whole problem. No such thing as a cut at any level, ever, never was, never will be until guillotines become popular.

Sun, 06/10/2012 - 10:20 | 2511931 insanelysane
insanelysane's picture

Can someone with artistic ability please design and sell a shirt that has a Government Boot kicking a Can Off a Cliff?  Of course when the market heads down again either this week or next, I think the Supreme Court is going to bail out the markets with a ruling against Obamacare.

Sun, 06/10/2012 - 10:29 | 2511945 The Count
The Count's picture

...Spanish PM Mariano Rajoy says a decision by eurozone ministers to help Spain shore up its struggling banks is a "victory for the euro"... In the bizarro world a confirmed failure is, of course, a victory!




Truly a victory, indeed. For proving the stupidity, incompetence and lies of all Euro politicians. 

Sun, 06/10/2012 - 11:07 | 2512010 boiltherich
boiltherich's picture

As a citizen of Ireland I half hope they do not get better terms because the IRS will probably consider that better loan terms are the equivalent of debt forgiveness and thus taxable income, and because I am also an American living in the USA I will probably get a bill for my share of that "income." 

Sun, 06/10/2012 - 12:29 | 2512188 exartizo
exartizo's picture

The central banks don't care how much it costs to give Ireland or Greece or Portugal or Spain or Italy all the free money they want.

Let's not forget that the Ponzi is in place to sustain fiat currency as loooooooong as possible.

What's a few extra trillion Euros/Dollars?


Sun, 06/10/2012 - 12:57 | 2512248 dizzyfingers
dizzyfingers's picture

Italy next, and who can blame them? Are they worse than any of the others?

But let's think about Robert Bonmoshe's dictat that we who bailed his company out should work until we're 80, along with the bailees in Europe (presumably -- but what jobs are there going to be, after all?)

How about calling him and explaining the problem?

American International Group Inc.
  • 70 Pine St.
  • New York NY 10270-0002
  • United States
  • Phone: (212) 770-7000
  • Fax: (212) 770-6970
Sun, 06/10/2012 - 12:57 | 2512249 dizzyfingers
dizzyfingers's picture

Italy next, and who can blame them? Are they worse than any of the others?

But let's think about Robert Bonmoshe's dictat that we who bailed his company out should work until we're 80, along with the bailees in Europe (presumably -- but what jobs are there going to be, after all?)

How about calling him and explaining the problem?

American International Group Inc.
  • 70 Pine St.
  • New York NY 10270-0002
  • United States
  • Phone: (212) 770-7000
  • Fax: (212) 770-6970
Sun, 06/10/2012 - 13:26 | 2512311 xear
xear's picture

Ireland just needs to wait for Spain and Italy to fall apart and no one will even notice them default amidst the fracus.

Sun, 06/10/2012 - 13:37 | 2512337 robertocarlos
robertocarlos's picture

Life is not fair.

Sun, 06/10/2012 - 14:47 | 2512505 americanspirit
americanspirit's picture

As I recall a few weeks ago 60%+ of the Irish voted to accept the EU's bailout terms. If they were that stupid just a short while back what makes them think that they can get any better deal now from the same people who snookered them then? Why exactly do the Irish think they can geta new deal just by demanding it? What leverage do they have? Maybe if they just asked really really nicely those mean old EU bureaucrats would have a change of heart and decide that fair is fair. Too bad they don't have any beaches or islands they can offer as collateral.

Sun, 06/10/2012 - 23:43 | 2513347 samsara
samsara's picture

Who will be the first to go Iceland?

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