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Wiggle Room

Read more about: Economy, Europe, Lisbon Treaty, NAMA     Print This Post

Brian Cowen as quoted by Irish Times

“So the sovereign, if you like, has that funding arrangement in place. We don’t have to borrow any money in respect of the sovereign issues that affect the Government . . .’’

From the FAQs for the European Financial Stability Facility

A16 – Will the EFSF bail out banks?
The EFSF provides loans to countries in financial difficulties. But it could be agreed with a Member State that receives funds to use them partially for financial support to banks in accordance with the agreed country programme.

It’s possible to read too much into an off-the-cuff statement from Brian Cowen.  But his apparent fixation with ruling out a need for the sovereign to borrow doesn’t preclude him saying that he never excluded the possibility of borrowing to “finance” the bank bondholder bailouts.

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4 Responses to “Wiggle Room”

  1. # Comment by Betty Nov 15th, 2010 21:11

    It would appear from the ministerial interviews today that they are looking for a formula of words that would allow Ire to avail of a rescue package but call it bank funding —apparantly some countries are being stroppy about appearing to accommodate moral hazard.

  2. # Comment by EddieL Nov 16th, 2010 18:11

    So things are rapidly coming to a head and the jigsaw is falling into place and it is not a pretty picture. It seems that it all began a long time ago when we were bullied into accepting the Nice treaty and the free movement of people, goods and services. That is how we lost our sovereignty. When it comes to money and politics nothing happens by chance. A good example of this folly is the Metro which seems to be unstoppable.

  3. # Comment by Veronica Nov 16th, 2010 19:11

    It’s hard to know what’s going on – it’s ‘wait and see’ time for what comes out of the Finance Ministers’ meeting that’s underway in Brussels. This afternoon’s much anticipated Dail statements on finance were a complete waste of time – the Taoiseach read out a boring speech that had no new information in it. Kenny and Gilmore, respectively, demanded an immediate general election, peddling the myth that somehow this will miraculously bring an end to the crisis – no mention from either of them about it propelling them into the top jobs, which sadly appears to be their priority concern. Then on came Arthur Morgan, who thinks a state bank would fix all our problems. God save Ireland, because none of these so-called leaders give a damn about it.

  4. # Comment by EddieL Nov 18th, 2010 11:11

    “God save Ireland, because none of these so-called leaders give a damn about it.” Not only the politicians! What about those who elected them?
    Why were we not able to read the signs of the times? I was in Tralee a good few years ago and I saw a headline in the “Kerryman” saying that Kerry was awash with money and the town was full of foreigners, none of them carrying maps and cameras. Where did all this money come from and why were these people here? No questions were asked.