Deal done to rescue Ireland, says diplomat
Pact to be signed off before Asian money markets reopen today
BRUSSELS: The final shape of Ireland's 85-billion-euro (US$113bil) international bailout was settled yesterday, as European Union (EU) finance ministers rolled into Brussels for a show of strength aimed at markets.
A day after mass street protests in Dublin against the Irish government's austerity cutbacks, and with a poll showing a majority of Irish people think the country should default on its debts, the figures were to be signed off before Asian money markets reopen today.
Agreement was reached among international negotiators in Dublin on a package, from which 35 billion euros would go to Ireland's shattered banking sector, a diplomat close to the negotiations told AFP.
The plan is ready to be discussed and adopted today (yesterday), said the source as ministers made their way to Brussels for the symbolic meeting starting at 1200 GMT.
It is Europe's second bailout this year, after the 110-billion-euro aid granted to Greece in May, with experts predicting more to come in Portugal, Spain and elsewhere despite politicians' denials.
The emergency rescue is intended to try to prevent Ireland's debt crisis from spreading to other eurozone and neighbouring countries, hence the involvement of the International Monetary Fund (IMF) as well as bilateral loan input from non-euro nations Britain, Denmark and Sweden.
Irish Prime Minister Brian Cowen has been fighting off calls from opposition lawmakers to quit over his handling of the economy, with the country's deficit this year hitting 32% of output.
Cowen has insisted he must see through the austerity package and the budget to secure the bailout.
A four-year austerity plan revealed recently, key to securing the international bailout, comprises 10 billion euros of spending cuts and five billion euros in tax hikes.
The plan also involves cuts to 25,000 jobs, public sector pay, pensions and social welfare in a bid to slash a huge deficit and save 15 billion euros by 2014.
Those measures were met with protests in Dublin on Saturday attended by tens of thousands of demonstrators.
Some waved placards reading Eire not for sale, not to the IMF and There is a better, fairer way, denouncing the bailout and calling on Cowen to quit.
Some 57% of the Irish backed a default on debts to bondholders in the country's stricken banks, compared with 43% who opposed it.
On Friday, voters dealt Cowen's Fianna Fail party a humiliating by-election defeat, cutting the FF/Green Party coalition's parliamentary majority to just two.
Ireland's banks were left exposed by the global financial crisis and the collapse of a domestic property bubble.
Weekend media reports suggested Ireland might be charged 6.7% interest on nine-year loans, significantly more than the 5.2% rate charged to Greece on its three-year programme.
I think that figure was inaccurate and I think it was unfortunate it went out there because I'm sure it scared a hell of a lot of people, said Irish Communications Minister Eamon Ryan.
Such figures would be simply unacceptable in terms of a future for this country, warned Irish Fine Gael opposition figure Brian Hayes. - AFP
BRUSSELS: The final shape of Ireland's 85-billion-euro (US$113bil) international bailout was settled yesterday, as European Union (EU) finance ministers rolled into Brussels for a show of strength aimed at markets.
A day after mass street protests in Dublin against the Irish government's austerity cutbacks, and with a poll showing a majority of Irish people think the country should default on its debts, the figures were to be signed off before Asian money markets reopen today.
Agreement was reached among international negotiators in Dublin on a package, from which 35 billion euros would go to Ireland's shattered banking sector, a diplomat close to the negotiations told AFP.
The plan is ready to be discussed and adopted today (yesterday), said the source as ministers made their way to Brussels for the symbolic meeting starting at 1200 GMT.
It is Europe's second bailout this year, after the 110-billion-euro aid granted to Greece in May, with experts predicting more to come in Portugal, Spain and elsewhere despite politicians' denials.
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| The Irish flag flies above the General Post Office on O’Connell Street, in Dublin. Agreement was reached among international negotiators on a package, from which 35 billion euros would go to Ireland’s shattered banking sector. — Reuters |
Irish Prime Minister Brian Cowen has been fighting off calls from opposition lawmakers to quit over his handling of the economy, with the country's deficit this year hitting 32% of output.
Cowen has insisted he must see through the austerity package and the budget to secure the bailout.
A four-year austerity plan revealed recently, key to securing the international bailout, comprises 10 billion euros of spending cuts and five billion euros in tax hikes.
The plan also involves cuts to 25,000 jobs, public sector pay, pensions and social welfare in a bid to slash a huge deficit and save 15 billion euros by 2014.
Those measures were met with protests in Dublin on Saturday attended by tens of thousands of demonstrators.
Some waved placards reading Eire not for sale, not to the IMF and There is a better, fairer way, denouncing the bailout and calling on Cowen to quit.
Some 57% of the Irish backed a default on debts to bondholders in the country's stricken banks, compared with 43% who opposed it.
On Friday, voters dealt Cowen's Fianna Fail party a humiliating by-election defeat, cutting the FF/Green Party coalition's parliamentary majority to just two.
Ireland's banks were left exposed by the global financial crisis and the collapse of a domestic property bubble.
Weekend media reports suggested Ireland might be charged 6.7% interest on nine-year loans, significantly more than the 5.2% rate charged to Greece on its three-year programme.
I think that figure was inaccurate and I think it was unfortunate it went out there because I'm sure it scared a hell of a lot of people, said Irish Communications Minister Eamon Ryan.
Such figures would be simply unacceptable in terms of a future for this country, warned Irish Fine Gael opposition figure Brian Hayes. - AFP
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