Ireland seeks bailout by European Union

[Hannah Bell]

Ireland has begun preliminary talks with the European Union, with a view to securing a financial bailout to avert state bankruptcy. Although a formal application has yet to be made, loans could be sought as early as next month, according to reports.

The International Monetary Fund has said it can help Ireland, but has not received any request from the Dublin government.

The extent of the funds that Dublin will seek is thought to be in the region of €60-80 billion. More important than the sums involved, it signifies that attempts to prevent not just Ireland but several other European countries from sliding towards economic meltdown are unravelling. The future of the entire European Union is increasingly imperilled.

As with the bailout made available to Greece earlier this year, EU or IMF money will come with demands for intensified austerity—even though Ireland has already slashed over €14 billion from spending since 2008 and has plans for a further €15 billion of cuts over the coming four years.

http://www.wsws.org/articles/2010/nov2010/irel-n15.shtml

[aquart]

1. Well, it was lovely for a while.

And still the banks ride high while laying nations low.

[leftstreet]

2. Can we kill capitalism yet?

K&R

[apocalypsehow]

3. "In other words, the Irish State is insolvent: its liabilities far exceed any realistic means

of repaying them.”

As I understand it, a default on the part of any participating member of the EU would mean the equivalent of a U.S. state defaulting on it's debts: it would serve to discredit the "Federal" component of the government, the extent to which would depend on the "size" (GDP - actual debt) of the state in question.

What I fail to understand is why the EU simply doesn't just assume its member states debts, as happened here in fits & starts throughout the nineteenth century, culminating in the Reconstruction era repudiation of Confederate debts, while absorbing those legitimate ones hanging around from the antebellum period? It would seem the ideal solution to the EU's current "austerity" woes.

:shrug:

[muriel_volestrangler]

5. Because Ireland wants to retain some sovereignty, and the EU doesn't want to pay

Though it would probably be the Eurozone countries, rather than the whole EU, that would be expected to pay.

The other Eurozone countries, led by Germany, aren't keen on putting money into Ireland if they can avoid it. And, if they do, they're going to demand more control over Irish economic policy, which the Irish government is loath to give up.

[muriel_volestrangler]

4. Irish resisting EU bail-out pressure

The Irish Republic has insisted it does not need assistance from the European Union amid speculation it is under pressure to use the EU bail-out fund.

The country's government said it was in contact with "international colleagues", but denied it had made an application for help.

Reports suggest the Irish government may approach the European Financial Stability Fund (EFSF) for up to 80bn euros (£68bn; $110bn).

But Dublin said such reports were "fiction".

http://www.bbc.co.uk/news/business-11755197

[DCKit]

6. The IMF is willing to help? What could possibly go wrong with that? n/t

[Starry Messenger]

7. recommend.

[JVS]

8. Less than 100 years and they're already getting dicked over by the outside again.

[maryf]

9. k&r