In Ireland, Call for Election and Warning From Moody’s

[marmar]

from the NY Times:




By LANDON THOMAS Jr. and MATTHEW SALTMARSH
Published: November 22, 2010


DUBLIN — Ireland’s decision to accept a rescue package worth more than $100 billion prompted a call Monday for early elections and a warning from a major ratings agency that the bailout could prove to be a “credit negative” for the country.
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European Union officials, who had been pushing Ireland to accept help, quickly agreed to the request late Sunday, committing a significant amount of money to an ailing member for the second time in six months. The total amount was not announced, but several officials said it would be 80 billion to 90 billion euros, or $109 billion to $123 billion. Last spring, Europe disbursed 110 billion euros to Greece to save it from default.

The move, which will allow Ireland to shore up its faltering banks and operate without having to borrow money at budget-breaking rates, was welcomed by Ireland’s neighbors on Monday, although financial markets were more cautious. There were also rising worries about political stability in Ireland as a result of the bailout and the angry public backlash it engendered.

The Green Party, the junior partner in Ireland’s coalition government, announced it would pull out of government once a series of fiscal packages and budgets were in place next month — and called for early elections after that. ..........(more)

The complete piece is at: http://www.nytimes.com/2010/11/23/business/global/23euro.html?_r=1&hp