Deposits are not money in a bank, they are a record of how much the bank owes to each customer. That's why they are under liabilities on a balance sheet (p.148).Even if the Irish Goverment did decide to pull out of the euro, where would they get the legal right to rob Rabobank of its Irish euro deposits and to replace them with Irish Pesos?
Bearing in mind that Rabobank's internet accounts are held by an entity with a Dutch banking licence?
I don't think I've gotten chapter and verse on where the Irish State has this power - although I've posed the question more than once.
I wonder what Rabo would do if ordered to redesignate all Euros held by Irish residents into Punts.
If Ireland were to leave the euro zone, the currency in which your savings were held would be the least of your problems. Bluntly, the State would be a basket case. Bad and all as our current situation is, one of the few saving graces is that we are part of the euro zone and can rely on the support that being part of that larger, more stable group and currency offers.
As a standalone currency, in our present parlous economic situation and with the dripfeed of reports of questionable operations at some of our largest financial institutions, we would find ourselves prey to currency speculators. Comparisons with Iceland would be more than just a bad joke; they would be very real.
Contrary view from the Torygraph:My best guess is that money in prize bonds and in any Irish- domiciled financial institution would be converted to punts or whatever the determined conversion rate was at the point of departure from the euro zone.
The situation with accounts held by institutions that would remain within the euro zone is even less clear. It is possible that these would continue to be denominated in euro, although it could operate in the same manner as Irish accounts with UK group Northern Rock.
*Of course, one could argue that leaving the EU – and with it the Social Chapter, the 48-hour week, the Common Agricultural Policy and the rest of the apparatus of Euro-corporatism – might suit some countries very well, making their exports more competitive and allowing them to price themselves into the market.
Nice moving the goal-posts there KN particularly coming 2 posts after Sondagefaux quotes from Munchau's article where he says:Funny how all p.ie's Euroluvvies were able to respond to this thread yet never dared to show their faces on the recent Intel thread (they of the six figures Yes to Lisbon campaign) on the likelihood of Intel exporting jobs from Ireland to Israel......funny that....
I also like the way in your headline you turn one man - Schäuble - into "The Eurozone". Perhaps if he drops dead the Eurosceptics will get to see "The Eurozone" die?The Schäuble proposal as it stands would require a full-blown change in the European treaties and nobody wants to go down that route right now. Some of his suggestions are unbelievably extreme, for example depriving countries with excessive deficits of their democratic voting rights, or withholding payments under the EUs cohesion fund. There will be no majority for any of this, let alone the unanimity that such a change would require.
I don't care whether he's a EU supporter or a BNP member. The man has joined the ranks of the irrational by suggesting it is possible to leave the euro. I'm still waiting for any of the 'leave-the-euro' crowd to explain how it could be done.
And you support a socialist party? If you have no issue with all your means of production being publically owned, why are you scared of taking a risk with going Punty?I run an export business. If our current accounts were converted to punt we would collapse as we could no longer trade. To avoid this, we would offshore our accounts and possibly just move the whole business abroad.
It would not be possible to return the punt and remain as a free, democratic, first world nation.
EU to present Greek aid plan - The Irish Times - Mon, Mar 15, 2010"We clarified the technical arrangements that would enable us to take coordinated action which could be swiftly put into place in the event it is necessary," Luxembourg prime minister Jean-Claude Juncker told reporters today after leading a meeting of euro-area finance ministers in Brussels.
Faced with the harshest test in the euro's 11-year history, the European Union broke its taboo against aid to cash-strapped governments while insisting that Greece will overcome its debt crisis on its own.
Loan guarantees wouldn't be part of the EU package, Mr Juncker said.
They are making things worse by talking in riddles. They want to give the markets the impression that they are prepared to come to Greece's aid but cannot overcome the fact that it will just not wash in Germany to do so. Going by the language it seems that no agreement has been reached and if the markets come after Greece they will be thrown to the wolves.
I agree that they need be be clear about their intentions but at the same time the EU is navigating through largely uncharted territory, legally and economically. We have to be careful in what we do and say here, we don't want to commit ourselves to anything we might regret later.They are making things worse by talking in riddles. They want to give the markets the impression that they are prepared to come to Greece's aid but cannot overcome the fact that it will just not wash in Germany to do so. Going by the language it seems that no agreement has been reached and if the markets come after Greece they will be thrown to the wolves.