Ireland Mentions "R" Word, EUR Plunges

Tyler Durden's picture

Just as we scripted, the temptation to migrate from the status quo in Europe was just too high for the other peripherals and Ireland just gained first/next mover advantage after Greece by daring top mention the "R" word. As Bloomberg notes:


We would imagine that Barroso and his pals are scrambling now that another 'Referendum' is on the cards (and we are checking what 'referendum' is in Portuguese) and while fascism in perpetuity has been priced into Euro, the possibility that democracy rears its ugly head has just sent the EURUSD tumbling.

As a reminder, "Irish voters have twice rejected European referendums before eventually passing them once concessions were offered, most recently in 2010 when in return for passing the Lisbon Treaty Dublin got assurances on its military neutrality and its ability to decide its own tax rates." A little birdie tells us the "concession" this time will be that Irish debt gets the same treatment as Greek. Or else the people will actually really say what is on their minds.

Here is the full speech from Enda Kenny:

I am pleased to have this opportunity to inform the House that the
Irish people will be asked for their authorisation, in a referendum, to
ratify the European Stability Treaty.


I strongly believe that
is very much in Ireland’s national interest that this treaty be
approved, as doing so will build on the steady progress the country has
made in the past year.


That progress has seen international and
investor confidence in Ireland rising, leading to many new investments
in our country – investments that are creating new jobs for our people.


I want that flow of investment to continue and expand.


of this Treaty will be another important step in the rebuilding of both
Ireland’s economy, and our international reputation.


It gives the
Irish people the opportunity to reaffirm Ireland’s commitment to
membership of the Euro, which remains a fundamental pillar of
our economic and jobs strategy.


More binding and enforceable
fiscal rules as a result of ratification will be good for both Ireland
and the wider eurozone, and will cement growing international confidence
in Ireland’s recovery.


Long before any discussions of a new set
of fiscal rules for the eurozone, the new Government had committed
itself to legislate for equally challenging domestic deficit and debt


In this referendum, the Irish people can confirm our
commitment to responsible budgeting and, in doing so, ensure that the
reckless economic mismanagement that drove our country to the brink of
bankruptcy will not be repeated by any future Government.


in place this credible commitment to responsible budgeting will be key
to keeping interest rates low and unlocking credit availability
for investment and job creation. Lower interest rates also mean more
resources for the provision essential public services.


creation of stronger fiscal rules is an essential element of the
steps that are needed to ensure stability, confidence and growth here in
Ireland, and in the Eurozone.


Throughout the process leading to
this new Treaty, the Government has consistently said that the final
text would be referred to the Attorney General for her advice as to
whether a referendum was required to ratify it in Ireland.


At this
morning’s Cabinet meeting, the AG conveyed her advice that, as
this treaty is a unique instrument, outside the European Union
treaty architecture, on balance, a referendum is required to ratify it.


foot of this advice, the Government has decided to hold a referendum
on this issue in which the people of Ireland will be asked to give
their authorisation for the ratification of this treaty.


On Friday, along with other heads of government, I intend to sign this treaty in Brussels.


the coming weeks, the Government will finalise the arrangements
and process leading to this referendum, including the establishment of
a referendum commission to ensure adequate public information is
provided, a referendum bill which will be debated in the Oireachtas, and
draft legislation to provide for the implementation of the treaty’s
provisions will be published.


I am very confident that, when the
importance and merits of this treaty are communicated to the Irish
people, they will endorse it emphatically by voting Yes to continued
economic stability and recovery.


I look forward to that debate –
one which I believe will produce a result that will be seen in the
future as an historic milestone in Ireland’s economic comeback.

As for how representative Irishmen feel, here is a sample:

and some more:

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Racer's picture

Just says it all... that a hint of democracy causes that to happen!!!

Bill D. Cat's picture

There'e gotta be at least one ex-Goldmanite kicking around .......... just in case , you know .

trav7777's picture

Voluntary haircuts for everyone!!!!

hedgeless_horseman's picture



The City of London seems to have veto power in Ireland, for now.

What Would Wolfe Tone Do?

TruthInSunshine's picture

OT (hate to go OT, but it may be interesting):


Grand Jury Is Convened in MF Global Case

New York Times‎ - 24 minutes ago

The CME Group, the exchange operator and for-profit regulator of MF Global, disclosed in its annual report on Tuesday that it had received two subpoenas...




#Drive Off Into The Sunset With Jon Corzine's Jaguar

hedgeless_horseman's picture





 Ireland Mentions "R" Word, EUR Plunges

...just wait until Ireland mentions the ArmaLite word along with referendum.

Ghordius's picture

and the City of London loves Nigel Farage and granted him their freedom

this gives him the right to drive sheeps and cattle over the London Bridge, to carry a naked sword in public, to be hanged with a silken rope, or that if the City of London Police (a corporate police force in the medieval sense) finds him drunk and incapable, they will bundle him into a taxi and send him home rather than throw him into a cell

GeneMarchbanks's picture

To be fair, carrying naked swords in public isn't all that dangerous, maybe a little indecent, but...

Ghordius's picture

LOL, I did not realize... naked, with sheep, on a bridge, with a sword

well, if you want to join the oldest pirate's nest of Europe you have to be daring, don't you?

DCon's picture

Peter Sutherland. Man for the job. Just in case..


brooklynlou's picture

Greek Golmanites for the Greeks

Italian Goldmanites for the Italians

There has to be an Irish ex-Goldmanite for the Irish; some guy named Shaftus O'Toole that can weave stories about the fires of Hell and how they'll swallow the world whole if the Irish become 'willful'. 

redpill's picture

See this is why Goldman needs to start a diversity recruitment program, you need to have all the nationalities of unelected technocrats covered.

Ghordius's picture

Ireland - I love you. You have let me down twice. Don't screw with me and this "R" word, if you mean it bloody DO IT.


with the above I mean the two chances of not bailing out AngloIrish.

"Irish voters have twice rejected European referendums before eventually passing them..."

this is what I don't understand about this specific Tyler: Ireland, do you want this? NO. And if we do it so and so? NO. And if this is done this way? YES.

now, which one of the three questions and answers is the "valid" one? they did answer yes to the third proposal.

_underscore's picture

The Irish are fiercely independent & with what's been going on in Greece, I think it's dawning on them just what a rescue/bail-out

will actually mean. A 'fiscal compact' for them , in their situation, will mean Headmistress Merkel & her house prefects, monitoring & approving (or otherwise)

Irish tax & spend policies. Up to now, the re-traced referendum decisions were seen as good sense in the greater scheme of things - i.e. Ireland being part of an EU project - but

now the prospects of that concept look misbegotten in the extreme. Ireland subsumed its rage over the last EU austerity imposition, but not this time I think.

Ghordius's picture

though I still wonder: imagine that for some reasons we get peacefully to the Austrian School dream of some gold-related standard

this would mean an the end of the day the same: you cannot spend forever more than you earn

where is exactly the difference between the German sponsored fiscal compact and the above?

_underscore's picture

Loss of sovereignty - pure & simple. Ask the Greeks & Italians. If this goes very much further, maybe even German loss of sovereignty.

Ghordius's picture

you mean the same loss of sovereignty you have when your treasurer tells you: Mr. President, our gold hoard is empty, we cannot pay the wars and the excess imports?

or just the loss of sovereignty you get by joining a club (that has rules) but that you can also leave?

between sovereigns, it's all promises, armies, navies and gold. all the rest is bogus.

_underscore's picture

Well, we have a Queen as head of state where I live & haven't lost our sovereignty for nearly one thousand years (William 1st, Duke of Normandy) so I can't speak for how others define 'sovereignty'  - but obviously it varies from what you say, according to your history.

 Put simply - all the EZ countries (including Germany, Netherlands, Finland) have made a huge, huge mistake in the belief that sovereign nations can subsume their cultural legacies, economic context & histories beneath a Big Brother Brussels Bureaucracy (call it a club if you like..) that has & is strangling the life out of the individual member states, buy turning some into paupers & others into their masters. The sad irony, is that even the masters will garotte themselves eventually on the debts of the failed sub-prime members. 

I agree about the gold though - you can never have too much!


aleph0's picture



The EU passed "Amendment 32" with an overwhelming majority :

 Must watch … "MEPs voted against respecting the outcome of the Irish Vote."

If the above link is dead, try this one :

Cdad's picture

Blast!  I had not factored in "democracy" to my "priced in" model. what?

Zero Govt's picture

CDS it

..looks good, like you've covered your arse on your books (in theory) ..just don't ever ask Goldman or Morgan to pay out

pazmaker's picture

o the luck of the Irish!

Don Birnam's picture

"Piss off, sir. I'm going for a pint."

Per'aps the Limerick King may proffer a sampling of a "Wall Street Limerick" for our bearded financial Fenian.


pazmaker's picture

I wish I could join you Don!  Have one for me!

Don Birnam's picture

Of course -- and more than just one; but, as for the quotation -- did you happen to view the video clips of our "Representative Irishman ?"

Zero Govt's picture

Yes. The Irishmans statements would have wiped the fuking floor with anything that Trotsky tosser, the US President, has ever auto-cued to the masses in his miserable life

this Irishman is a heavyweight compared those lightweight puppets that are the political class 

when do we get a media channel with real people like this giving real opinions? 142 channels of fabricated Crone World like CNBC is wearing really bloody thin

djudy003's picture

I wonder how sensitive are the EURUSD robots to the words "Europe + referendum" in the same headline.

Zero Govt's picture

throw in "Iceland" and the bots will piss their knickers

slaughterer's picture

Barroso and Juncker sending over the EZ rent-a-cops with 2 tons of tear gas to Dublin right now, stopping Ireland's credit lines immediately until further notice.   

Nussi34's picture

All tear gas is old out or on the way to Greece!

LawsofPhysics's picture

I was thinking that the R-word was "renegotiate", as in "we would like to renegotiate our debt payments" - boy I had that wrong.

StychoKiller's picture

Let me know when the R-word becomes "Repudiate!"

Marge N. Callz's picture

Why doesn't the EU/ECB just put a puppet regime in charge like they did in Greece?  How dare the people have a voice!  Who the f#$% do they think they are?!?

Ghordius's picture

again one of those days: there are 300 greek citizens in charge of the country: the elected member of the greek parliament

they decide - if they want on a daily basis - who runs the government. It's called a parliamentary system.

now it seems that for some reasons they like to give this charge to "experts" - you and me might disagree, but it's their call - and the electorate's at the next elections.

alien-IQ's picture

it won't matter how they vote. It only takes 12 of 17 to approve the EU fiscal compact.

Now they'll put the big push behind that technicality and ramp the EUR/USD and markets as if nothing happened.

DogSlime's picture

What the hell?  Are they just going to sit there and let the general population subvert the divine authority of the Crony Kleptocracy?

No way.

Quick!  Somebody start a war in the Middle East or something!

RSDallas's picture

Kenny is a pansy and not for his people. Just look at what he said prior to getting elected and rwhat he actually did. He is merely blowing hot air in an attempt to look like he stands for his people.

slewie the pi-rat's picture

troika, meet blarneystone!

AccreditedEYE's picture

And cue the "D" word next.... ya know it's coming. C'mon you lazy institutions, sell all this shit now. Stop waiting till the writing is on the wall and do the math.. the yield ain't worth the risk. Oh, and you think that CDS is really gonna work? haha

Rynak's picture

Actually, the population already quasi-voted on it, in an unofficial referendum. In response to the first bailout, about 1% of the population marched on the gov, to tell them what they think about that bailout.

It was ignored, because it wasn't an "official" (read: ponzi-sactioned) referendum.

Esculapius's picture

"Come the day and come the hour
Come the power and the glory
We have come to answer
Our Country's call
From the four proud provinces of Ireland.


Ireland, Ireland,
Together standing tall
Shoulder to shoulder
We'll answer Ireland's call."

Mugatu's picture

R=Revolution Bitches!

Nussi34's picture

Barrosso says "puta que pariu" now!

Roni's picture


DormRoom's picture

Gah.. why would anyone vote in favor of a lost decade (or two), under the rule of the Troika! 


Nothern Europe is de facto colonializing Southern Europe. viva nEU-colonialism?

You have nothing to lose but your chains!

Zeff's picture

R = RUN! Run away!!

Stax Edwards's picture

Nice Avatar!  Very Clever!

Ghordius's picture

ugly avatar! bad idea!

stop it or I will unleash the ECB secret goons on you! ;-)

The Beam's picture

Get ready for referendo (Portuguese for referendum)