The Daily Bail
March 10, 2011
This one is shaping up pretty much the way we predicted. Ireland’s Fine Gael party enticed voters a couple of weeks ago with their tough talk about giving haircuts to bank bondholders and renegotiating Ireland’s IMF “bailout,” but before they’ve even taken power, the new Fine Gael-Labor coalition government has already capitualted to the IMF and European banksters. In spite of all the pre-election talk, the new government plans to follow the original bailout and austerity plans with hardly any modification whatsoever.
The Irish Independent is already referring to this about face as “voter betrayal” and “the most barefaced breach of election promises ever perpetrated by an incoming Government.”
For example, the government still plans to go hat in hand to the EU and IMF for a reduction in the interest rate on the 85B Euro loan from the IMF, but this will amount to nothing more than a cosmetic change in the bailout terms. As for all those threats to bank bondholders, now they’re saying that new “legislation may be necessary” before they can consider applying haircuts. If they’re showing this kind of weakness already, then they can’t expect to have much leverage with the EU and IMF when they meet later this month. From the EU/IMF standpoint, why negotiate with someone who is already willing to give you everything you want?