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TAOISEACH ENDA KENNY has welcomed a wide-ranging deal on the debt crisis reached by EU leaders in the early hours of this morning.
The deal, reached after hours of wrangling between politicians, EU officials and financial representatives, will see Greek debt written down by 50 per cent.
Meanwhile, the European Financial Stability Fund to help countries in need will be increased to around €1trillion, and banks will be recapitalised to improve their ability to withstand shocks. However, it’s understood Irish banks will not require further capitalisation.
Enda Kenny said the deal “allows for a much improved environment in the Eurozone, and there for a much improved environment for Ireland to do its business. This presents us with increased opportunities for jobs, job creation, and getting people back to work.”
Speaking to RTÉ News, he added that the deal had recognised the “progress” Ireland had made in coping with our own debt.
European Council president Herman Van Rompuy said: “This comprehensive package does what it takes to ensure financial stability.”
The agreement on Greece will see the country’s burden reduced,with private sector creditors taking a ‘voluntary’ 50 per cent cut on their investments – a reduction of around €100billion. In return, banks will receive around €30billion in credit enhancements, Reuters reports.
The EFSF will be increased by leveraging its remaining reserves. The Telegraph reports that the fund currently holds around €290billion after being used to help bail out Ireland, Greece and Portugal. Around €250billion of that would be leveraged four or five times to give the €1trillion figure.
Eurozone leaders welcomed the deal as they emerged from talks in Brussels in the early hours of this morning. French president Nicolas Sarkozy told reporters “The eurozone has adopted a credible and ambitious response to the debt crisis”, the BBC reports.
German chancellor Angela Merkel said: “I think we were able to meet expectations and we have done what needed doing.”
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Please Mr. EU/IMF can we have our debt written down by 50 per cent as well. pretty please.
I hope that isn’t how our case was stated when “negotiating” our loan facility, but it might explain our comparatively crappy deal if it was.
Greece are paying a bloody high price for that ‘deal’. Forced redundancies in the public sector and massive slashing of pensions. Not sure such a deal would be accepted here.
So Sinn Féin were right when they said the bondholders needed to take a hit! Slow learners are our “leaders”
Sinn Feins policy was to default and therefore somehow avoid all austerity. They had no plan for how Ireland would pay for public sector pay and social welfare with no access to borrowing except some vague talk about raiding the pension reserve.
Economic terrorists who would destroy Ireland.
The idea that Sinn Fein would have any idea on how to run the country on any sound economic basis is laughable.
@ jumpthecat
Not a SF’s but surely if is also fair to say the idea any political party in Ireland ‘would have any idea on how to run the country on any sound economic basis is laughable’? Seeing were we are currently.
@ Yup instead of using the pension reserve to pay for Irish public sector / public services / social welfare and keeping the money in Ireland we stuck into the black hole that is Anglo. Would have been better off burning it in a power station. At least then we would have got some return….
@Kerry Blake
If Ireland unilaterally default tomorrow, then what will be the impact on public sector pay and social welfare overnight?
We are not talking about now Neil we are talking about when SF made that suggestion. Now that the pension reserve is gone it’s to late and we can only speculate as to what might have happened. As we can see with ‘special’ Greece there is/was more then one option.
Default will still happen. No one doubts that. Indeed, looking at the Greek default, that is now being arranged, it is just another half step measure.
Nice to think we too would have a hefty lump slashed off our debt but that’s not going to happen, we’re the fools that will pay it all, and looks like Enda just stuck his head in for the photo.what a clown !!!
How does 250 billion become 1 trillion with the application of a lever?
Printing the money !
enda probably asked if we could actually pay the 50% of the Greek cut as the Irish people are generally stupid and will let the government do as they wish.more austerity please, please, please!
Merkel and Sarkozy are insisting the Dail be converted to a kennel block , with Enda as the dog warden and James O’Reilly as the resident vet. Nice Kennels for cute little EU lap dogs.
BTW the way the headline is all wrong , Enda is not talking , he is being talked down to by Merkel while listening like a man with stockholm syndrome.
every picture tells a story and this picture of enda and his masters says it all
Am I right in thinking that Greece made a lot of fuss and got a 50% write off of its’ debt? Will the Irish people get the same write off for being so stoic about taking on the private debt of THEIR banks?
The Greeks had no prospect of paying their debt. Ireland is judged to be able to pay ours. Maybe we can. Many years of turmoil and debate coming up.
So why is the Journal not reporting on the fact that part of this deal will involve the creation of a President of Europe; with real powers… one which wont be voted on by the general public… one which the indebted countries of the EU will be forced to accept to keep their tap of money flowing. We are witnessing the slow death of freedom and democracy in Europe.. Looks to me like the fascists are winning the war after all, all by the simple method of getting everyone into as much debt as possible.. You have to admire their tactics.. but more importantly we should try figure out who is orchestrating this coup.. so we know who are real master are… In the meantime get back to work slaves and pay off your share of the “manufactured out of thin air debt”..
Good Point.
Enda Kenny said the deal “allows for a much improved environment in the Eurozone, and there for a much improved environment for Ireland to do its business. This presents us with increased opportunities for jobs, job creation, and getting people back to work. [As for a cut for Ireland, well, we all agreed that doesn't make sense.]”
You forgot the bit at the end Mr. Kenny.
Go back to school teaching Mr Kenny!
Is that 1 trillion going to be enough if the markets go after Italy?
Is it just me, or does Merkel look like she’s asking Sarkozy “Why is this fool Kenny trying to talk to us”?
it’s just you, coz that’s actually David Cameron
Scarlet for me
: )
Kenny is thinking “what the fuck is she talking about, should have taken German instead of home economics ” any smile its on Kodak…..
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