BAILOUT DEAL A DISASTER FOR IRELAND
Posted by Alan Kelly on November 30, 2010 at 10:56 AM
This Bailout deal announced by the Government following negotiationswith the EU and IMF is 'a disaster for our country'.
I've met with the EU Economics Commissioner Ollie Rehn twice during the negotiations and I've spoken to Competition Commissioner Joaquin Almunia twice as well. The 5.8% interest rate is penal and beyond what I or any other Irish MEPs were led to believe.
The interest rate on this bailout shows that the Irish Government was rolled over by the EU and IMF. There are a number of complex interest rates involved from all those giving funds, but some of them look to be charging around 6% or 7% and the Government should have held out against these. Generations will have the burden of higher taxes and poorer public services as a result. Whats even more concerning is that we now have given away whatever investment collateral we had by effectively cleaning out the pension reserve fund and other reserves. The idea that this is going to be ploughed into the banks while people must suffer because we haven't funds to invest is dispicable. Bankers are bailed out and go on holidays, while joe citizen worries about the future of their pensions that they have worked hard for. It will be impossible for the Irish country now to achieve 1.75% growth rates while also cutting 15 Billion. It simply doesn't make any sense. Furthermore, the Government has made no effort to renegotiate with bondholders and tht has cost us dearly.
Whats confirmed above all is that the Bank Guarantee of Sept 2008, when Anglo Irish bank was bailed out, was the worst economic decision in the history of the state. I'm glad I was part of the only party that voted against it but that gives me little comfort now. This deal is going to have to be relooked at in some way by a new Government. The European Commission won't like it but I feel compelled to insist on it.