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FINANCE MINISTER Michael Noonan has said he will continue to lobby for a deal restructuring Ireland’s promissory notes at the margins of this evening’s Eurozone finance ministers’ summit in Luxembourg.
The finance ministers of the 17 eurozone countries are meeting this afternoon for what are likely to be crucial talks on trying to stave off the possibility of a Spanish sovereign bailout.
Chief among the talking points will be Spain’s formal request for funding to recapitalise its banking sector, though Noonan said he would take the opportunity of the meeting to discuss the promissory notes with individual ministers.
Noonan told reporters ahead of the meeting that the summit would discuss Ireland’s successful completion of the latest EU-IMF bailout review, and that he would be given an opportunity to raise the promissory note issue formally.
“I always raise the promissory note issue,” Noonan said, “but probably on the margins with the people I want to talk to.”
With regard to Spain, Noonan commented that he believed the “experience of Ireland should be learned by the European authorities”, and implied his dissatisfaction with the funding for Spain’s banks being directed through its government.
“To recapitalise their banks and to transfer their accounting of it into the Sovereign seemed to be an additional burden,” Noonan admitted.
He expressed caution, however, about the €100 billion figure being cited as the amount needed to rescue the Spanish lenders – saying similar estimates had put the cost of recapitalising Ireland’s banks at €50 billion to €60 billion, while it had ultimately turned out to be around €24 billion.
Though the initial announcement of a funding deal for Spain “hasn’t convinced the markets,” Noonan said it was too early to say a Spanish bailout “hadn’t worked” when Spain had not formally made a request for funding, nor indicated the exact amount it would need.
He further explained that Ireland would continue to advocate a policy of separating banking debt from the sovereign, saying it would make most sense for the EFSF or the ESM to lend money to the banking sector directly and not using the Spanish government as an intermediary.
Noonan conceded, however, that there were “no papers in circulation so far to show any real policy initiative” in that regard.
Both European economics commissioner Olli Rehn, and IMF managing director Christine Lagarde, are also attending – with Lagarde telling reporters she was attending simply to offer the IMF’s assistance and input in achieving whatever targets they set.
French finance minister Jutta Urpilainen said the meeting would largely focus on Spain, with ministers prepared to hear whatever suggestions their Spanish counterpart Luis de Guindos was willing to say.
Today’s talks are a prelude to tomorrow’s summit of all 27 European Union finance ministers, which will discuss the outcomes of last weekend’s G20 summit in Mexico, and proposals for a Financial Transaction Tax and an Energy Taxation Directive.
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sit noonan sit. good boy
D’ya know what Alan, that’s exactly what I was thinking. Exactly.
My mate actually has a bulldog called noonan. Priceless
http://www.empireonline.com/images/features/100greatestcharacters/photos/25.jpg
Its a shame he didn’t inherited his wisdom as well.
sorry typo
inherit
In other ESM related news, a TD has begun a High Court Case against the state in an attempt to seek an injuction on the ESM Treaty. http://shar.es/sYwN5
Noonan is as useless as Enda is spineless.
And what would you do Dec?? For me Mike Noonan is a top guy bursting his arse to try and get a better deal for Ireland… Unfortunately its a job that God himself could not handle… When i see all these comments I really do wonder…. So easy sit on the fence and do nothing..
@ Declan C bursting his arse me hole. He’s hoping that something happens so the government can take the credit. He has no say whatsoever on what happens.
Feck right off mr. Bilderberg, Bundestag, bondholder Noonan.
Self interested to the max!
he couldnt give a toss about us we are not people only an electorate to be manipulated into conforming to the elite..past remarks about us taking into account
Declan i would assume if “God” took the time could he not just make the debt disappear,or get a lucky leprechauns pot of gold and give that to the bondholders.But seriously don’t mention Noonan and God in the same sentence.Noonan is the same towrag that threatened to drag a dying woman through the courts.
@ Declan – If Mr Noonan were to bring about the necessary reductions in higher-level public sector salaries, including those of his own and his colleagues, his campaign would become far more successful and both he and his party would gain a level of trust from the people they sorely need, while opening the door for realistic renegotiation of the banking debt. It is not an unreasonable strategy, yet he has not done this. I have no interest in baiting you, and I have not done so. But I would very much like to know why there has been no movement on this issue. Many thanks.
If you remember Micheal Noonan, the argument Lenihan and Cowen had with your pals in Europe, was even though Ireland was to place the funds directly into the bank, you still had to show liability on the counties balance sheet.This will happen to Spain and Italy and will continue to drag us all down for decades. Stop looking to Europe for what to do – stop tugging at the coat tails saying ‘remember me’ – just come out with a plan of your own and tell them that’s the way it is – You had that kind of mandate right after the election and blew it. The ‘yes’ lot have pushed any negotiation yet further away still. So go do your job
Here here.
me thinks Michaels p*****g into the wind.
I hope it goes in his face!!
Campaign? Yeah, right…
Have you ever anything positive to say?
They must be trembling with fear over there “at the margins of this evening’s Eurozone finance ministers’ summit in Luxembourg”. Angela’s probably hiding under the table. And wait till Micheál shows dem his secret weapon? He brings in a snarling Pitbull Hogan on a lease. The Germans surrender. “Ve can help you Herr Noonan!”
The man is waiting to jump on someone else’s bandwagon! Hasn’t he got the courage to initiate a campaign that solely relates to the country he’s supposed to be representing? Get in there Michael! This is the perfect opportunity to come in on the blind side!!
Well said Martin they had it the people gave them the balls they needed to deal with Europe but they bottled it as individuals and now they are as disconnected from the electorate as fianna fail were hence phil hogan antics, enda hiding from any debate, nothing done on mortgage debt, they are all sitting on their hands hoping for any wind of change they can take credit for like the Greek percentage renegotiation
mr cotter you are deluded this goverment is no better than the previous one all looting
Dermot I think they are way worse as the likes of Lucinda and Noonan shocking traitors who know what they are doing. Blaming previous gov great crack but the watched the disaster unfold got power and made it much worse!!
It has been clearly communicated that Europe will be open to renegotiating the banking debt once Ireland brings its public sector salaries in line with European norms. If Noonan is sincere about wanting to renegotiate, he must enforce a pay cut in his and his colleagues earnings. This he has not done, so I’m not overly surprised that he is not being avidly listened to.
What are the European norms?
Karswell when that happens there will formation flying of pigs in the Olympics.
And so there will be renegotiation. This have been clearly stated. European norms would mean a 20-30% reduction in top-earners salaries in public sector. Hardly unreasonable.
What is a top earner? Should the difference in cost of living between EU states be factored into any cuts? Considering 70% of Public Service allegedly earn less than 30K there would not be very many top earners to cut. Not a lot of savings to be made. But a start i suppose. Though I do believe that figure may be somewhat distorted as in might include job sharers, people who may be on 60k but choose to only earn 30k .
@ Norman – maybe Noonan will not do this, but then it is our responsibility to replace him with someone who will. It is the right thing to do and is also the stumbling block that is preventing a renegotiation. It is a necessity, and sooner would be far better than later for all of us, Noonan and Kenny included.
Karswell not disagreeing with you but at presentthe CPA does more to protect the elite of the public sector including and they would rather destroy the hopes and dreams of future generations than suffer any loss of “entitlements”.
*including politicians*
@ Blah – apologies for not clarifying. When I speak about the public sector, I include politicians as they are paid by the state. I would define a top-earner as someone who receives a basic salarie of € 100k plus, although it would probably be necessary to make lighter salary cuts at a level of € 65k . Clearly anyone at a salary level of mid/low 30s and below should not have to suffer any loss of earnings or benefits. We need to cut our public spending? We need to cut away the fat, not the bone and muscle.
@ Norman. I agree. There are aspects of the CPA that are honourable, ie, protecting the lower paid public sector workers ( and they are, in my opinion, badly paid and badly treated ). But it has proved ineffective at protecting those who need protection and instead protects those who already have enough. Revoke the agreements, yes, but replace it with something more progressive rather than leaving the deserving to hang..
@ Karswell – I couldn’t agree with you more regarding cutting the fat. As someone who has worked in the Civil Service from my experience most of the fat and bloating is actually in the middle (just like real life!). Most of the incompetents are to be found at middle – senior management level, HEO and AP Grades, the 60 – 80k earners. And don’t start me on increments… it is insulting and disgusting to think that a Clerical Officer in the Civil Service starts on 20k and has to work 15 years to earn around the average industrial wage. Pay a decent liveable wage from the start, sure maybe have it incremental to begin with, but over say three increment stages, like any private sector company would. There is no reason why the higher grades pay should be incremental. The whole system needs to be torn down and rebuilt. That’s just my beliefs and my experience.
Blah: – Nothing to add, only commenting now to support your opinion. The whole public sector should not be tarred with the same brush. I have many younger friends and family who are exactly in this position, the lower pay grades. They have not been overwhelmed with luxuries. Recruitment freezes and blanket cuts are false economies, the work will still be there and needs to be done. Much as I am wary of them, some type of correctly managed productivity-based system needs to be introduced.
Complete and utter crap. The due dates on the promissory notes can by unilaterally pushed back by government as they are an agreement between the exchequer and our own central bank. Fine Gaels own TD economist Peter Matthews said so himself. So when noonan talks about going to Europe to renegotiate the terms of the promissory notes he is lying through his teeth.
So we keep pushing it back and inflict longer austerity on the current and next generation?
It would actually be LESS austerity David.
Instead of doing what noonan did which was to convert this years note to a government bond which will accrue 13 years interest and cost us our kids over 4 billion when due, you change the due date of the note itself. The government can do this. A fine gael economist has confirmed that the government can do this. The note itself does not accrue interest so it can be pushed back 100 years if we want and will still cost the exchequer 3 billion in 2112.
So one economist has suggested this, there are already 100 economists each suggesting their own ideas. If that was the case why not push it back 500 years when people will probably be carrying €4bn notes in their wallet due to inflation!
A fine gael economist, David. Oh and joking aside, technically you COULD push it back that far without causing a credit event. Now, when Fine Gaels economist guy suggests doing this, and Fine Gaels bund owning minister for finance does the opposite, it should set off alarm bells.
@TTL: With respect, I think Peter is wrong on that one. The Central Bank only has the authority to issue emergency liquidity assistance under the authority of the ECB’s Governing Council, as effectively any emergency assistance is tantamount to printing new currency which only the ECB can formally do. This is as confirmed by Karl Whelan on Twitter this morning:
https://twitter.com/WhelanKarl/status/216077143082409984
Also, the Central Bank has legal independence and any act by the government to enforce its policies would be a major breach of EU treaties, as evidenced by the threats from the European Commission earlier this year when Hungary proposed to have its Minister for Finance merely appointed a director of their central bank.
They have more than one economic adviser…
thanks for the insight true left, its easy to forget the mechanics of the thing when not an economist – if i remember right the central bank say’s “thanks lads” and burns the money.
Whatever happened to The Limerick Bootboy?
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