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TOURISM MINISTER Leo Varadkar has warned that it would be “foolish” to think that Ireland could retain access to European Union bailout facilities if it did not vote ‘Yes’ in the forthcoming referendum on the Fiscal Compact.
Speaking on RTÉ’s The Week in Politics last night, Varadkar said Ireland could not expect to be given access to the European Stability Mechanism – the new permanent bailout fund expected to come into effect in July – if it did not ratify the compact.
The terms of the compact mean that access to funds from the ESM is restricted to countries which ratify it – and Varadkar says Ireland should not expect to be given an exception to this.
“Nobody has a crystal ball… increasingly it looks like we won’t need a second bailout, because we’re meeting our targets,” he said, before going on to compare an Irish ‘No’ vote to a household without home insurance.
Varadkar also insisted that it was not in the government’s interest to deliberately link the ratification of the treaty to the Irish government being given a deal to restructure the Anglo Irish Bank promissory notes.
“It would be a very bad idea for us to overtly and publicly link the issue of promissory notes to the referendum,” he said, because Ireland did not have a veto on the treaty, as it comes into effect as soon as 12 eurozone members ratify it. ”If we vote No, we’re just left out.”
Seeking any special concessions from Europe as a bartering chip for the deal meant Ireland would be “rebuffed”.
“If we were given a special concession on this matter, then every other country would have to be given special concessions too,” the minister said.
Varadkar also denied that there was “fury” within the cabinet at the comments of Joan Burton, who last week had repeatedly linked a deal on the bank debt to a Yes vote.
Yesterday’s Sunday Business Post, and today’s Irish Times, both reported considerable anger within the government parties at Burton’s comments, which went against those of senior ministers including Enda Kenny, Eamon Gilmore and Michael Noonan.
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If the irish people have an aversion to debt, perhaps it is because we, the people are bearing the burden of reckless lending practices and not our banks from whom we would be borrowing otherwise.
Comment of the week Graham
Has that clown looked at debt levels in the Ireland compared to Germany or other countries, these are the kind of idiots that probably think the crash happened because “we” stopped borrowing on a whim
Fear not, I was in a cafe in Dublin yesterday sitting beside two taxi drivers looking through property listing … normal service has resumed
DA-DUM-KISH!
As funny as that is, I’ve had a few conversations with people who were thinking about rushing a house purchase through before the house prices in Dublin got any higher. Lemmings.
Its intersting that borrowings for house purchases are down year on year, yet the transactions have increased. It show that it is a mix of cash purchasers and NAMA lobbied foreign investors that are driving the spike. The number of cash purchasers are limited and NAMA is nearing the end of its existance. This is just a spike and once new developments start getting built, house prices will stabilise.
Stockbrokers, banks…were SO sorry to be such a bummer for you but you see, unlike you, the government does not come along to take all of OUR debts on and then wipe them for us in exchange for absolutely nothing in return, allowing us then to go back to reckless behavior that got us into that debt in the first place right after, and then allowing us to have the gall to lecture about free market economics after taking a giant bailout….only you get that special, corrupt little deal…us normal people have to actually PAY our own debts, a computer programme does not crunch numbers on a foreign market while were asleep to make our money, ours has to actually be earned….were so sorry to be such a bummer on your talk of ”green shoots”, are we holding you up getting drunk again on your next bubblenomics binge?
So they’d prefer if we were all up to out necks in debt ? There’s no pleasing them economists.
That’s it they want all us little worker bees up to our bollox in it so they can keep their big performance related bonuses.
With the above few commentaries it is quite clear that the average contributor has very little understanding as to how an economy actually works!
“Gold is the currency of kings. Silver the currency of gentlemen. Barter is the currency of peasants but debt is the currency of slaves.”
Knowing or not knowing how the economy works is kind of irrelevant. Maybe economists don’t know how people work? Personally, I can barely afford the things I need and want as it is. Having to pay off a loan on top of everything I already have to pay for, while possibly helping the economy, would only make things worse for me. I would imagine a lot of people are in a similar situation.
Liked that Sean…
As well as creating a new “bubble” in the housing market they are disappointed we are not taking on more debt, ……the lunatics are taking one the asylum! !
Next they’ll be telling us that living within one’s means is both reckless and unpatriotic!
How many water-rings did that comment cost you?
I don’t believe the banks, still almost impossible to access funding , they are still in shock from the level of bad debts that they are currently dealing with
Gee Ive no problem with getting a loan out, having any money at the end of the month to pay it back might be a problem. Such a ridiculous article.
Jesus wept,
lan McQuaid of Merrion Stockbrokers said “although there has been some improvement in recent months in terms of bank lending, progress continues to be very slow.
Have these tools in Dublin been living at their desks or when they do go out it’s just to Searsons or Bewleys on Grafton street. The retail and SME sector is in crisis. Banks have no interest in financing profitable expansion. ‘ McQuaid said that the main Irish banks are characterising the moribund level of borrowing as a demand rather than supply issue.’ Fcuks sake this is what they’ve been saying for 6 years now. They’ll be righ sometime . After all the sun does eventually shine on a dog’g asre
One bank wouldn’t loan the same amount we had in deposits, with clean credit and both employed. Yet they’re constantly blowing money advertising mortgage offers on the radio! Debt aversion was what they wanted, and now my generation will be minimal loans due to “Teh recession”.
Oh sorrow. I choked on my caviar reading this.
That company that owns The Journal isn’t called Daft without reason if it thinks Irish people are debt averse.
Shouldn’t this article be tagged “satire”?
Looking for a paltry €5K from BOI, need it to change my car, no other debts, mortgage with BOI, house almost paid off, state job since leaving university (25 years ago), regular saver, banked with BOI since my first pay-cheque and 6 weeks since first applying they have now come back looking for more personal data – what if I was a business needing short term “bridging” funding or if my car had actually “packed up”. If the banks don’t cop on soon we’ll see this country go down the same sorry road of the UK with Wonga.com etc preying on the population.
There is no crisis within the general population, the problem remains with the banks and they are now strangling the economy.
Evidence on the ground is that banks do not want to lend to SME’S. Just shoring up their own positions while the big boys, not needing credit, are devouring all around them. Credit , whilst needed for some, is not the panacea it was a few years ago!
The rate of lending is too low!
Does he not realise we bailed out the failed banks?
Can I have a pint of whatever he is on?
So valled economists want Debt junkies?
This aversion to debt will stick with most of us for the rest of our lives. Faith in the economic system in Ireland, and especially in the European one is too deeply bedded in. SAVE PLENTY, is my motto because it can all go toes up.
When you look at the way the ECB/EU have handled and the willingness to break half of Europe to protect Germany, how internal trade is falling for a decade since Euro came in. For most of Europe it is decline for a generation.
Debt is to be avoided if at all possible.
So we were borrowing too much money, that was bad, now we’re saving too much money, that’s bad too! Are we really gonna listen to these people anymore?!
Facts are as I see em.
# People no longer trust the system and understandably so. Will Pensions be paid in years to come or are periods of unemployment the new norm.
# Global growth in Asia, more porous borders giving endless labour supply for a lot of jobs, things can be soured cheaper in many places. Massive downward pressure on jobs and wages in Europe. Why borrow with falling wage?
#The world is becoming a multi polar one, Europe in sharp decline, global insecurity returning. 25 yr Mortgage, what will next year bring nevermind up to 2039.
# I need to meditate, seem to be on a downer.
Did the obvious truth miss this “economist”? It’s virtually impossible for anyone in the real world to borrow money!!! No one is lending unless you can prove that you absolutely do not need to borrow money in the first place AND have enough family members you can leave as hostages. Idiot
To be fair to the economist he actually said that the low rate of LENDING was disappointing – he never said that the Irish aversion to Debt was disappointing – he has been misquoted
Zeitgeist: Addendum
Perhaps a sensible well thought out insolvency scheme would help too,?……. After all the half baked scheme brought in during the crisis only benifits bankers and gives no real relief to people who were no more irresponsible rather being victims of rogue lenders, parasitic developers and cowardly politicians
Irish people are being more responsible and living within their means. Excellent
Debt is what creates money out of thin air for the bankers, so why would we want to do that?
Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal, there is no human relation between master and slave.” –Tolstoy
Debt – government, corporate and household has reached astronomical proportions.
Where does all this money come from?
How could there BE that much money to lend?
The answer is…there isn’t. Today, MONEY IS DEBT.
If there were NO DEBT there would be NO MONEY.
Read more at http://endthelie.com/documentaries-and-informative-videos/money-as-debt/#g4rPVPW2GhcVglWf.99
So people acting kind of rationally is “disappointing”? Why are we calling people uttering such nonsense “economists” instead of “madmen”?
To learn more about the monetary system, debt etc. watch this: http://www.peakprosperity.com/crashcourse
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