Bankers dictate brutal cuts as part of EU-IMF bailout of Ireland

[Joanne98]

Following weeks of intense pressure from international money markets and European institutions, the Irish government has officially applied for a bailout package of up to €90 billion from the European Union and the International Monetary Fund.

Over the past three months the European Central Bank (ECB) intervened to buy up €40 billion of Irish bonds in order to prevent a collapse of the Irish banks, with catastrophic knock-on effects throughout Europe. In talks with European finance ministers last week, ECB President Jean Claude Trichet made clear that the central bank could not continue to pump in money to prop up Ireland’s essentially insolvent banks, and that it would be necessary to activate the European Financial Stability Facility (EFSF) emergency fund set up by the European Union last May.

The Irish government, led by Brian Cowen, has now conceded to the concerted international campaign. Of the €90 billion total, €15 billion is to go immediately to restock Irish banks, with the remainder earmarked to cover Ireland’s annual budget deficit of €19 billion for the next three years. Most of this will find its way into the coffers of the banks and ultimately to the international financial institutions that hold Ireland’s debts.

According to a report on the BBC web site, the deal does not require Ireland’s senior creditors to take any losses. The demand that major bondholders be required to contribute to any rescue of insolvent states and banks was recently raised by the German government and supported by France. Global banks responded with an attack on Ireland, singled out as the weakest link in the euro zone. Germany’s Angela Merkel and France’s Nicolas Sarkozy quickly dropped their proposal and caved in to the financial markets.

http://www.wsws.org/articles/2010/nov2010/irel-n23.shtml

[northoftheborder]

1. Disaster Capitalism

[whosinpower]

2. Now we know

Ireland's economic disaster WAS ENGINEERED. It had nothing to do with its low tax laws, or how much it pays to run its government. It had nothing to do with retirement age, minumum wages etc.

And more importantly - it brings to light the sheer amount of power the banksters hold....it htey can bankrupt Ireland - they can bankrupt anyone, and this economic downturn/depression is engineered - it was done on purpose.

[billlll]

3. nt

Nt

[corpseratemedia]

5. +1

[fasttense]

4. No taxes for corporations but minimum wage cuts.

"Lenihan declared, “I very much welcome the fact that President Sarkozy indicated that there is no question of Ireland’s corporation tax rates being an issue in these discussions or negotiations.” (One of the lowest tax rates in world.)

Lenihan also said that the UK and the IMF had not demanded changes to the tax rate in the course of the recent discussions. “So that issue is off the agenda now, let’s be clear about it,” he concluded.

Instead, the Irish government will impose a new round of austerity measures which are due to be announced this Wednesday. A series of proposals are already circulating in the media, including: the axing of an additional 28,000 public sector jobs, substantial increases in property taxes and water rates, a further ten percent cut in welfare benefits, and the imposition of taxes on low-wage workers who are presently exempt.

Along with penalising the lowest paid, the government is considering reducing the country’s minimum wage of €8.65 to ensure that workers are prepared to take jobs at even lower rates of pay.

In the words of the Dutch finance minister, Jan Kees de Jager, “Ireland will have to cut fast and deep.”

[appal_jack]

6. anti-Euro activists predicted this loss of sovereignty

Ten years ago or more, anti-Euro / anti-capitalist activists predicted this loss of sovereignty. They were derided as cranks and kooks.

Anyone interested in the history of such activists should look into the archives of the International Forum on Globalization:

http://www.ifg.org/analysis.htm

Smart folks there.

K&R

-app

[reggie the dog]

7. did you see this gem

"The demand that major bondholders be required to contribute to any rescue of insolvent states and banks was recently raised by the German government and supported by France."

in other words two RIGHT WING european governemnts, france and germany, want the elite to contribute to bailing out failing financial institutions. this ammounts to a tax on the elite, FROM RIGHT WING GOVERNMENTS

[bemildred]

8. Dang , and now the Irish government is toast. nt