The Irish program solves x men 3 exactly nothing it simply kicks the can down the road. A public

Via Politics.ie , an English translation by Kevin O’Rourke x men 3 at The Irish Economy blog , of Barry Eichengreen’s piece at the German language Handelsblatt (making reference to the disastrous x men 3 WWI reparations on Germany) – Ireland s Reparations Burden :
The Irish rescue package finalized over the weekend is a disaster. You can say one thing for the European Commission, the ECB and the German x men 3 government: they never miss an opportunity to make things x men 3 worse.
It pains me to say this. I m probably the most pro-euro economist on my side of the Atlantic. Not because I think the euro area is the perfect monetary union, but because I have always thought that a Europe of scores of national currencies would be even less stable. I m also a believer in the larger European project. But given this abject failure of European and German leadership, I am going to have to rethink my position.
The Irish program solves x men 3 exactly nothing it simply kicks the can down the road. A public debt that will now top out at around x men 3 130 per cent of GDP has not been reduced by a single cent. The interest payments that the Irish sovereign will have to make have not been reduced x men 3 by a single cent, given the rate of 5.8% on the international loan. After a couple of years, not just interest but also principal is supposed to begin to be repaid. Ireland will be transferring nearly 10 per cent of its national income as reparations to the bondholders, year after painful year.
This is not politically sustainable, as anyone who remembers Germany s own experience with World War I reparations should know. A populist backlash is inevitable. The Commission, the ECB and the German Government have set the stage for a situation where Ireland s new government, once formed early next year, rejects the budget negotiated by its predecessor. Do Mr. Trichet and Mrs. Merkel have a contingency plan for this?
This entry was posted in Accountability , Bankers' Bailout , Budget , Debt Default/Restructuring , ECB/IMF , Economy , Elections , EU , Euro / Sovereign Money , ireland , Leo Varadkar versus the World and tagged barry eichengreen , handlesblatt , irish economy blog , kevin o'rourke . Bookmark x men 3 the permalink .
Notify x men 3 me of new posts via email.
  Subscribe in a reader Search this site Search for: Recent Posts on Rebel-Alliance.org Pay no attention to that crisis behind the Euro Alert: x men 3 Government Attempts to Pass ESM with Minimal Public Debate 4 Reasons the ESM Treaty is illegal Last Post of Referendum: If you haven’t yet voted, please read this… What would happen if Ireland left the Euro? FINAL UPDATE: Citizen s Campaign South East Fiscal/Austerity Treaty Referendum: Public Meetings (Counties x men 3 Carlow, Kilkenny, Waterford, Wexford) Video: What will happen if we vote no? A Conservative Alternative to Austerity Economics A Federation for the Eurozone and a Confederation for the rest of the EU Euro-spawned divergent growth and inflation caused external payments imbalances A Tale of Two Treaties: Citizens’ Guide Nobody within our ranks i… The evidence suggests tha… Fiscal/Austerity Treaty online information People x men 3 s Movement Referendum Campaign Reply to Dr Gavin Barrett’s article on the Fiscal Treaty referendum in last Friday’s Irish Times Gilmore: Ireland could apply to IMF if we reject x men 3 the treaty “No Minister Noonan, I didn’t ‘misinterpret’ IMF…” Ó Cuív says “No” Morgan Kelly: Ireland’s future depends on breaking free from bailout x men 3 bizarre behaviour of NI Prison Service on Easter lily indicates forceful resonance the symbol Ghostbusters quote, with special guest, Karl Whelan Vincent Browne & Joe Costello: “Labours way or Frankfurts”, Howlin & TD Expenses, Shatter vs. Fianna Fáil Lá Féile Pádraig Shóna Duit / Happy Saint Patrick’s Day… Joke of the Day Lombard Street: “structure of the euro worsened divergences naturally arising from the differences between countries” Peter Mathews TD (FG) “It s now time for the ECB to establish fairness within the eurozone” Automatic Austerity: 10 things you need to know about the Fiscal Compact (Corporate Europe Observatory) x men 3 [Update] Guest Post with commentary: JP McKenna – x men 3 Irish Bank Resolution Corporation: Debt Explained Exceptional Liquidity x men 3 Assistance, Anglo Promissory Notes etc. UPDATE: x men 3 The “Fiscal Compact” Treaty & Irish Referendum: Pay No Attention to that Article x men 3 136 Behind the Curtain! Archives: But wait – There’s More… June 2012  (3) May 2012  (13) April 2012  (7) March 2012  (6) February 2012  (4) January 2012  (4) December 2011  (3) November 2011  (2) October 2011  (28) September 2011