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FINANCE MINISTER Michael Noonan will meet with his EU counterparts to discuss the Greek debt crisis today and tomorrow.
Noonan is expected to push for the extension of any Greek debt burden-sharing arrangements to Ireland and the Sunday Business Post (print edition) reports that he will call for any easing in Greek bailout conditions to be applied to Ireland.
On Friday, French and German leaders Nicolas Sarkozy and Angela Merkel climbed down from their earlier stance by agreeing that Greece needs a second bailout package. The high cost of the country’s borrowing means it can’t return to the international markets for funds. Merkel and Sarkozy said that debt restructuring should be voluntary, reducing the threat of bondholders being ‘burned’.
Yesterday, the head of the Eurozone finance ministers’ group, Luxembourg’s Jean-Claude Juncker, warned that a Greek default would have serious consequence for at least five other EU countries, including Ireland. Juncker said that contagion from the default would spread to Portugal and Ireland, as well as Belgium, Italy and Spain.
Meanwhile, An ECB source told the Sunday Times (subscription) that Noonan’s proposals to burn senior bondholders of Anglo Irish Bank and Irish Nationwide couldn’t come at a worse time. The source said that last week’s announcement was seen as a publicity stunt and wouldn’t be considered by the ECB.
Responding to questions after Noonan’s announcement, the European Commission’s spokesperson Amadeu Altafaj said that the Commission had not received any proposal from Ireland on burning those bondholders.
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Go noonan, there is only one way you can satisfy electorate, burn senior bondholders or else loose all respect from us, If you back out.
He looks like a bull dog chewing a wasp, but I think hes the only one with any guts and backbone in the Government and that he has found his place in Finance. Burn ‘em Michael, look after Ireland before the EU currency! The EU will do everything it can to keep the Euro so tell ‘em we will burn them all, close the banks and open our own new bank not linked to EU based on Irish deposits and then see what they have to say about interet rates and corporation tax – tell ‘em will cut that too if they mention it again !
Could Ireland being getting a pair of liathroidi. About time.
Merkle and sarkozi (which my iPhone autocorrects to ‘warlock’ ha!) are so reluctant to burn the bondholders because most of them are French and German. It has everything to do with protecting their own patch and trying to get re-elected, and nothing to do with the good of Europe as a whole. We need to be part of Europe, but the cowtowing and grovelling needs to be over. The bondholders should have to carry their own pain, it was a failed investment. If they could reap the benefits, which they did, they should have to take the burden as well.
It’s like a poker game out there , and Noonan has the face and the balls to get us a better deal .who else would you send ,(he’s from Limerick )
Anyone explain how a Greek default would have consequences for Ireland?
Just wondering.
Putting more debt on top of more debt in Greece is solving nothing………and very bad financial advice…………I hope the people on the streets of Greece win….
The euro is a cobbled together currency and is doomed to failure,its only function is to keep Merkin and Kermit important in their own minds.
Several of the newspaper pundits forecast [ some six months ago ?] that the real crunch would come here in June/July when the fight to pay bills got too much and when the money borrowed from family and friends to avoid the shame of not paying the mortgage dried up.I think one writer gave advice on how to stuff the building society and keep the roof over ones head by using the courts ? Will we see this happen in the next few weeks?
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