Italy choose to burn the citizenry and Spain the bondholders - a la carte menu in Europe? What of Irelands "Choices"?

robut

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Italy choose to burn the citizenry and Spain the bondholders - a la carte menu in Europe? What of Irelands "Choices"?

Italy In An Irish Stew | Broadsheet.ie

You see Italy has just pumped €5 billion into two banks that are not considered systemic to the Italian economy. The final bill (if any of these things can have a bill that doesn’t include the societal damage) is estimated to be in the region of €17 billion.

This burden, and it will be a heavy austere burden, will fall on the citizens of Italy and not the bondholders of Italian banks.
A couple of weeks ago the Spanish had there own bailout bonanza. Santander, the private bank, raised €7 billion in a rights issue to bailout the Banco Popular. Santander then burned Banco Popular’s bondholders to the tune of €3.3 billion and completed the purchase for the symbolic amount of €1. No taxpayers money was involved in this Bailout/Bail-in.
So tale of two Europes? Size matters?

When Spain breached the EU deficit rules the EU Commission sent them a fine of €2 billion. Spain promptly told the EU to go take a long walk on a short pier. The EU backed down and sent a symbolic fine of €0

The EU Commission knew its audience, it backed down.

Here in Ireland, we run in fear of the EU Commission and its possible fines.
Italy and Spain CHOOSE what to do themselves? Ireland arm wrestled unwillingly so to speak? Bombs going off in Dublin etc?

OR did Ireland have a choice as Spain and Italy appear to have BUT Irish politicians stuck with the line of blaming the EU for the bailouts and choices, all to cover the real blame falling on themselves and bank buddies?

And in that I include ALL politicians - Those in power and those in opposition who left the situation get to where it did .. Opposition also has a political responsibility
 
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bokuden

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Italy In An Irish Stew | Broadsheet.ie





So tale of two Europes? Size matters?



Italy and Spain CHOOSE what to do themselves? Ireland arm wrestled unwillingly so to speak? Bombs going off in Dublin etc?

OR did Ireland have a choice as Spain and Italy appear to have BUT Irish politicians stuck with the line of blaming the EU for the bailouts and choices, all to cover the real blame falling on themselves and bank buddies?
It suited FF/FG to insist on shifting the debt onto the Irish people to be repaid in full and in advance. This helped advance their ideology of selling off everything to the private sector for a song.
 

silverharp

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Britain has 6 times the national debt of Ireland yet Britain has at least 12 times the population. Maybe the joke is on the EU , this pig isn't coughing up when the sh1t hits the fan
 

HarshBuzz

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Those Mediterranean types love burning people, see The Inquisition for proof.

We Celts prefer freezing people out. :D
 

silverharp

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Those Mediterranean types love burning people, see The Inquisition for proof.

We Celts prefer freezing people out. :D
nope, we invite them in and then passively aggressive not cooperate with them :D
 

Half Nelson

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Instead of a bomb in Dublin, the Irish got a series of bombs in their schools, hospitals and almost everywhere else that relies on the public purse.
We vote for the snivelling lickspittles who helped put us here.
 

Watcher2

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I am quite surprised (maybe not surprised but curious at least) that this has not had much attention. In the space of a month, two countries in Europe have had their banks bailed out/in to the tune of over 27bn (Italy 17 and Spain 7bn capital raising and 3.3bn bond burn). Not a wrinkle on the AIB share price. I know it fell from 5.20 to 4.76 but I don't know if that had to do with the Italian bailout or not since I have seen little coverage.

Its very odd indeed. Is there more to come and that's why its being kept under wraps?
 

gerhard dengler

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Italy In An Irish Stew | Broadsheet.ie





So tale of two Europes? Size matters?



Italy and Spain CHOOSE what to do themselves? Ireland arm wrestled unwillingly so to speak? Bombs going off in Dublin etc?

OR did Ireland have a choice as Spain and Italy appear to have BUT Irish politicians stuck with the line of blaming the EU for the bailouts and choices, all to cover the real blame falling on themselves and bank buddies?

And in that I include ALL politicians - Those in power and those in opposition who left the situation get to where it did .. Opposition also has a political responsibility
As far as I'm aware the ECB ordered the bailin of the two Italian banks citing Single Resolution Mechanism Regulation.
The Single Resolution Mechanism Regulation was agreed a couple of years after the 2008 banking crash.

This is from ECB statement :roll:

ECB Banking Supervision has closely monitored the two banks since capital shortfalls were identified by the comprehensive assessment in 2014. Since then, the two banks have struggled to overcome high levels of non-performing loans and underlying challenges to their business models, which resulted in further deterioration of their financial position. In 2016, the Atlante fund invested approximately €3.5 billion in Veneto Banca and Banca Popolare di Vicenza. However, the financial position of the two banks deteriorated further in 2017. The ECB had therefore asked the banks to provide a capital plan to ensure compliance with capital requirements. Both banks presented business plans which were deemed not to be credible by the ECB.
 

robut

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European Commission recommends maintaining USC

On the tax side, it suggests a broadening of the tax base and a shift towards more sustainable sources of revenue.It says recently adopted measures may have narrowed the tax base, including the help to buy scheme.

But the commission states that measures to broaden the tax base include maintaining the USC, and increasing property tax, could meet political resistance.

However, it says the USC has provided a very substantial and stable revenue and removing it has a cost.

It also suggests Ireland may not fully comply with the EU fiscal rules this year.
 

midlander12

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For once, Fintan O'Toole hits the nail on the head this week:-

'Ireland was forgotten five years ago because we just did what we were told anyway. Supine obedience is not rewarded in the world of realpolitik – it just means that you can be taken for granted. This lesson must be learned. Europe must know that we are grateful for the support and solidarity. But it must also know we will never accept a hard Border under any circumstances. And if necessary we will be a bloody difficult country.'

It appears that even some Irish EUrophiles are waking up to the fact that if Europe really wants to strike a deal with its second largest economy (and they will), they will quite happily stampede over Ireland in their rush to do so. However, we will still have the usual chorus from the rest of 'the 27 will stick together', 'Britain are fkd', 'we'll get a United Ireland out of this' etc. Dream on......
 

toughbutfair

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Spain is even more corrupt than Ireland. Left wingers certainly wouldn't be happy if we followed Spanish worker rights , which have been severely reduced during "la crises" , teachers fired, other public sector workers fired, minimum wage reduced, while the wealth of the top 10% increased .
 


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