Skip to main content

View Diary: Ireland ready to take the Euro hostage (256 comments)

Comment Preferences

  •  Fine Gael releases banking strategy (Feb 27) (2+ / 0-)
    Recommended by:
    Jeffersonian Democrat, erush1345
    During the campaign the right-leaning party withdrew a previous threat to unilaterally restructure bank debt if it won power.

    Here are some extracts from its banking strategy and recent announcements on the sector:

    * EUROPEAN SUPPORT FOR BANK RECAPITALISATION:

    -- The terms of reference of the European Financial Stability Fund (EFSF) and/or European Financial Stability Mechanism (EFSM) should be renegotiated to allow them to take equity and long-term debt investments in systemically important European banks such as Allied Irish Banks (AIB) (ALBK.I) and Bank of Ireland (BKIR.I).

    -- A similar option is that Ireland could buy "insurance" from the EU against the risk (small as it is) that losses in Irish banks will be significantly greater than currently projected by regulatory authorities.

    -- Either of these options would be appropriate for Bank of Ireland and AIB, and would cap the Irish state's exposure to further losses or so-called "tail risks" in the banking system, helping to restore confidence in the state's own financial health.

    http://www.reuters.com/...

    So now that they've won their campaign rhetoric has cooled off.

    Ireland will not isolate itself.  As Dauphin notes above they need trade and credit to survive - not populist threats against the EU itself.

    "The way to see by faith is to shut the eye of reason." - Thomas Paine

    by shrike on Sun Feb 27, 2011 at 05:33:18 AM PST

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site