NO CROCK OF GOLD FOR THE IRISH

Six  months after the dubious Greek bailout the Germans have begun a punitive assault on  Ireland demanding terms that will be difficult to swallow.

If the purpose of Trillion dollar European Central Bank rescue fund is to establish banks and put an end to the uncertainty why use the opportunity to undermine Irish sovereignty by forcing them to surrender control of their banks. A commitment from Ireland to hit specified budget targets should be enough.

The rescue of Ireland is not made any easier by all the political bickering. A bail-out package is being assembled with participation from the EU and the IMF. The question is how much blood will the German dominated EU be looking for in return.  The Irish have been saying they do need a bail-out, they have not requested one. Ireland is not on the brink of default.

Irish officials estimate the cost of rescuing the country’s banks could total as much as 50 billion euros, equivalent to about a third of gross domestic product. Irish and international banks’ loan losses in the country may total at least 85 billion euros, central bank Governor Patrick Honohan said on Nov. 11. 

The Irish Republic has a debt of more than 32% of GDP this year - more than £1,000billion - with British banks alone owed over £100billion.

A humiliating bailout from its neighbors and the I.M.F is one thing but surrendering any of it's sovereignty is another.  Agreeing to let the European Central Bank take direct responsibility for the Irish banks is surrendering sovereignty which is unpalatable and self defeating.