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Dublin: 16 °C Tuesday 21 May, 2013

Failure on debt deal would have ‘catastrophic effect on Ireland’ – Tánaiste

Tánaiste Eamon Gilmore will address world leaders – including Angela Merkel – in Chile today as hopes for a deal on Ireland’s bank debt took a blow last night and the opposition criticised the government’s lack of openness.

Image: Barry Cronin/PA Wire/Press Association Images

TÁNAISTE EAMON GILMORE will issue a strongly-worded call for a deal on Ireland’s bank debt when he addresses world leaders at an EU-Latin America summit in Chile later today.

It comes in the wake of the European Central Bank reportedly ruling out the prospect of Ireland issuing a long-term government bond in place of the Anglo Irish Bank promissory note which will cost Ireland €3.1 billion a year every year for the next ten years.

Reuters cited ECB sources yesterday in reporting that the governing council of the bank had found that a replacement deal would be in breach of European Union treaties, a state of affairs that would be a significant blow to the Irish government.

Fianna Fáil and Sinn Féin last night expressed concern over the report with the former calling for the government to make an immediate statement on the matter.

The government maintains that no decision has been taken and Gilmore will today say that there is an urgent need for an ‘appropriate deal’ with the ECB on Ireland’s bank debt while at the summit in Santiago, Chile.

German Chancellor Angela Merkel, EU Commission President Jose Manuel Barroso and President of the European Council Herman van Rompuy are all at the summit which the Tánaiste will address this morning.

The Tánaiste will tell EU leaders that “failure to conclude negotiations on the promissory note would have a potentially catastrophic effect on Ireland”, the Department of Foreign Affairs said in a statement issued overnight.

‘Unacceptable’

Yesterday Gilmore met with Finnish Prime Minister Jyrki Katainen to hold bilateral talks where a debt deal was pushed for. Finland has previously expressed reluctance towards the idea that the eurozone’s permanent bailout fund retrospectively recapitalises banks.

Gilmore will also hold bilateral talks with the French and Austrian prime ministers later today having already had private meetings with the presidents of Chile and Colombia to discuss the improvement of trade links.

Last night, Sinn Féin’s finance spokesperson Pearse Doherty said the Reuters report was a “massive blow for taxpayers” and said that the government needed to be more open about discussions.

“It is totally unacceptable that the Irish people have to hear about these negotiations from news sources. After all it us the taxpayer who is being asked to foot the bill,” he said. “It is time for an end to dealing behind closed doors and spinning these critical talks in a dishonest way.”

His Fianna Fáil counterpart Michael McGrath said the government needed to make a statement on the matter and also called for more openness on what was being sought in negotiations.

The Cork TD said: “The Taoiseach and his Ministers need to put aside their current strategy and be open with the Irish people about what is going on. They must explain what they are asking for and what they will do if we do not get it.”

Report: ECB rules out long-term bond to replace promissory note

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Comments (99 Comments)

  • The €3BN will be paid with a statement not far of like the following…

    This is the last payment because the Irish people have faced this with courage and dignity…..We promise the Irish people that we will definitely have a deal by next March….

    You know the score folks.

    Reply
    • Ryan'O 27/01/13 #

      We know now that each and every promise FG and LAB have made were lies. There is no honesty in both their parties. A man has his word but not Enda or Gilmore, they have lies. Mice we have pretending to run the country, not men! Pathetic lying, deceitful,weak little men. FG are running the people of this country into the ground. Lab stand by a watch. Disgusting. You can’t trust a word out of their mouths.

      Reply
    • we cannot believe a single word from this goverment we need new politics in Ireland there is a way foward to achieve this , the goverment use RTE and the news papers to push their agenda ,go out and put a sign on your window balcony tree street corner cross roads saying a vote for FF FG LAB greens is a vote for bankers and bondholders and watch their support disappear do some brain washing of your own .

      Reply
    • Your being a bit hard on old Eamon.Sure are we not a special case and all that.Mike Noonan said we would be sorted by the end of Sept last, that changed to end of Oct, Then end of year, and Now its end of this March.There is no need to be so pessimistic.Honestly some people have just no faith in our politicians.

      Reply
    • No surprise here.
      Time to threaten default but parasite pensions and gravy train salaries take precedence over Irish citizens.

      EU at all costs?.. check. The euro at all costs?…check . Brussels uber alles?…check Pay offs and pensions secure? ….check.

      Reply
  • If we don’t get a bank deal then we’ll have to suffer soul destroying austerity, mass unemployment, reduced quality of life etc……
    So it’s just business as usual eh?

    Reply
  • Don’t forget to shake your fist a little bit when using them strong words…that should clinch it..

    Reply
  • But lads, this is the cheapest bail-out in history remember?

    Reply
  • Just tell them that they aren’t getting the money until the Irish people ( that ye are supposed to represent) can afford it. Your priority should be to fund out health, education & justice system NOT your buddies in Frankfurt etc. It’s a bit late to grow a backbone now Eamon. Sadly.

    Reply
    • Time to find draw a line in the sand boys. They are lucky to have our cooperation. Debt can only be paid if theres guaranteed stability. If they want instability thry are going the right way …we wont take much more. Im thinkng we should get out of the Euro currency. We will probably have too anyway if the UK goes. Merkel is creating a 2 tier Europe if creditor and debtor nation …thats not what the EU is about. Its supposed to be a Union for all.

      Reply
    • I can’t see how we are getting any favours from our loans on a 30billion loan we pay back 48billion which the majority is comming from the lower earners not anyone owing millions.
      Fg are finished thank god but the trail of destruction will take years of work to mend

      Reply
  • Thats the problem with having a primary school teacher running the country. He thinks we’ll get the fiscal equivalent of being let off homework for being the star pupil, when in reality we’ll never get the writeoff we deserve for saving their banks while we obediently pay everybodys debts for them.

    Reply
  • Mal 27/01/13 #

    Ooh, a “strongly worded call…”, that’ll learn ‘em.

    Reply
    • Yup…once a patronising school master…always a patronising school master. Gilmore is twisting in the wind with this one especially with his infamous and stupid Labours way or Frankfurts way’ comments. He knows if this goes tits up they’ ll be out the door before July.

      Reply
  • Just sort it, we are sick of listening to the same sh1t.

    Reply
  • OU812 27/01/13 #

    We should just tell them if we don’t get a deal we’ll have no option than to default.

    We’re entering a staring match here & we need someone with balls of steel to play it.

    Reply
  • The double-speak coming from that sheister makes me want to vomit

    Reply
  • Yes Jay and the Irish people will end up paying for it. These traitors have sold us out.

    Reply
  • As a tax payer that is being saddled with the gambling mistakes of others I find it a total slap in the face how the fools, and I mean FOOLS, in Govt are bending over backwards to please Europe and the Banks but have no problem in fleecing me or taking money from me that I need for my family. I am sick over the fact that there is absolutely no transparency from our Govt who have the best paying jobs in Europe but to my mind don’t seem to be doing one god damned thing to earn their bloated salaries or pensions. The same Govt that had no problem in pumping up their expense accounts while at the same time cutting frontline services. The same Govt that want to charge us for water and owning our own homes. I consider every member of the Irish Govt had betrayed me as a Citizen and had betrayed my family by selling us out to Europe. I look forward to the day when the Irish People finally say ‘enough’ and bring every one of the traitors that profited from the current economic disaster off the backs of the vulnerable and those that were not given a voice in the media, are brought to justice and are made to pay for their actions. Those that betrayed the trust of the public should be punished without mercy.

    Reply
  • Funny with this type of story the FG mouth pieces in here are noticable by their abscence. If this so called ‘deal’ does fail then hopefully it will result in the downfall of this government.

    Reply
    • The mouthpieces are busy setting up false identities on twitter and facebook to hide behind.
      Have a look at their profiles when they come online to defend this shower.
      With the exception of a few genuine government supporters (which I have a lot of respect for) the rest are spin merchants.

      Reply
    • Ryan'O 27/01/13 #

      You’re a better man than me mike I can’t stand the lackies. Trying to justify and defend the atrocities that this government put upon it people! No I hold them with the same contempt as the monikers in the dail…I have a sneaky suspicion though that maybe one or two are monikers from the dail.

      Reply
    • Ryan'O 27/01/13 #

      GRRrrr auto correct *monkeys

      Reply
    • @ Ryan’O.
      They are of course and they actually seem to enjoy making hit & run comments.
      Just look at their 5 post twitter/fb profile and treat them with the contempt they deserve.
      There are a lot of government supporters that put up a good and civil arguement .

      Reply
  • There is absolutely no way any debt forgiveness or write off will be handed to Ireland. Do you think those currently meeting in Davos would allow or even could allow that to happen? They have the opportunity to completely asset strip a country, and enslave its population to debt and taxes. The powers that be engineer this in Latin America, Africa and poor Asian countries all the time.
    Its time to play hardball.

    Reply
  • Any chance of a dig out there Europe,see us and the Greeks and others as people are having a bit of a hard time of it! We were pointed to the IMF when we needed your help,which saved the whole euro ,your euro,cut the debt or we may have to leave you and your beautiful ideals!

    Reply
  • If a deal is cut it will still favour the ECB. And our govt will still hail it as a victory.

    Reply
    • sean 27/01/13 #

      there is no deal , there never was any deal ,
      current gov are just adopting the same tactics as there fellow dail gangsters , bury head in sand and spin , spin ,spin ,
      tell the people what they think we want to hear ,
      rather than just admit the truth ,
      (the rich are safe , the rest of us of fecked )and nothing will ever change

      Reply
  • Tell us again about “it’s labours way or…. ”
    I for one am sick of their eu posturing.

    Reply
  • Fools 27/01/13 #

    Irish goverment have you any balls tell the EU go duck off. Work for your people instead of beej traitors.

    Reply
  • It appears to me that nothing will happen until people take their arguments off the internet and onto the streets. Mouse click revolutionaries rarely achieve anything.

    Reply
  • if the goverment was at least honest and open about what discussions have taken place so far we may have some idea what if anything has been going on for the last two years. Ireland saved the European banking system by flushing 36 billion down the drain to save Anglo Irish bank. Is this not against European Union treaties? What can European leaders do, after four years all that has happened is more countries have fallen into the banking crisis. Why is Gilmore even in Chile, he is not the leader of anything. Why would world leaders listen to him, His appearance in Belfast did nothing only gave people a reason to flick the channel.

    Reply
  • time to default and tell the 4th reich to f#ck off.

    Reply
  • When Simon Carswell wrote ‘Anglo Republic inside the bank that broke Ireland’ in 2011 I wonder did he realise how prophetic his title would be?

    Reply
  • sean 27/01/13 #

    90% percentage of the population knew 3 years ago there was never going to be a deal , because any deal means some rich f…k somewhere would be losing out …………………..and we can’t have that can way ,
    the gov still believe they’ll get a deal ……………irish ganagster-politicans ……………………………………….no notion , no balls , no desire , no ideas , no brains

    Reply
  • A catastrophe? ?? There’s nothing left !!!

    Reply
  • Just as well I heeded the advice of all the business “experts” and media hungry “economists” and voted Yes in the EU “stability” treaty. I mean it’s just fantastic the deals we are getting with all the good will we have got since signing up to it……. oh wait, no, we are just mugs being taken for a ride!

    Reply
  • Where is the German embassy ?

    Reply
  • Who’s for oz then so

    Reply
  • i bet it wouldnt be catastropic for you..you gimp

    Reply
  • Voting in FG/ Lab has had a catastrophic effect on Ireland Mr Gilmore.

    Reply
  • I wish sometimes Gerry Adams could be along for the ride with Gilmore in these meeting to shpw some clout as an enforcer!

    Reply
  • of course a deal is going to be done, thats obvious, but it will be a deal that enslaves the irish people

    Reply
    • I would say that deal is done,signed sealed and awaiting delivery Frank.
      I would put nothing past this sleeveen shower of eu lapdogs.
      They know full well both parties are going to be destroyed to the roots at the next election (if they last that long) so they are feathering their nests.
      The other sleeveen ahern thought he was sorted for the park and if ff were still in government he more than likely would be and this shower are posturing for eu jobs and leaving the grassroot members of the parties to try an rebuild.
      The sad thing is that the dogs on the street see this but the members can’t….!!!

      Reply
  • and by then your kids and mine will be debt slaves while your blueshirt mates insulate themselves with gold plated pensions
    you keep talking about a deal jay
    there is no deal you know it, i know it, even the dogs in the streets know it, its all spin to get them to the next election

    Reply
  • your failure on debt deal would have ‘catastrophic effect on your future career prospects in Ireland Tánaiste

    Reply
  • I have said it numerous times, they qualify for their ministerial pensions next week and the note will be paid by march or an election will be called? After Labour withdraw from Government, in the next few weeks and gilmore will ride off into the sunset with his band of cowboys!

    Reply
  • Nothing will happen until the mouse click revolutionaries start posting in the streets.

    Reply
  • Another whitewater on the promissory note issue.. it’s a sad day when the Gov bought the banks with the taxpayer money and it’s even worse when we the people will foot another bill! BOI/IL needs to be in recievership! It’s just sucking up debt for a future bailout.. This time around I hope this Gov takes the loss on the mistake of buying them… sell them to the EU and get some money back… that means no more IOU’s on the promissory notes…How legal is that! Very legal… do they have the balls to to it!! I don’t think so!

    Reply
  • I think this poem is as relevant 100 years later as it was then.

    What need you being come to sense,
    But fumble in a greasy till,
    And add the halfpence to the pence
    And prayer to shivering prayer, until
    You have dried the marrow from the bone?
    For men were born to pray and save:
    Romantic Ireland’s dead and gone,
    It’s with O’Leary in the grave.

    Yet they were of a different kind,
    The names that stilled your childish play,
    They have gone about the world like wind,
    But little time had they to pray
    For whom the hangman’s rope was spun,
    And what, God help us, could they save?
    Romantic Ireland’s dead and gone,
    It’s with O’Leary in the grave.

    Was it for this the wild geese spread
    They grey wing upon every tide;
    For this that all the blood was shed,
    For this Edward Fitzgerald died,
    And Robert Emmet and Wolfe Tone,
    All that delirium of the brave?
    Romantic Ireland’s dead and gone,
    It’s with O’Leary in the grave.

    Yet could we turn the years again,
    And call those exiles as they were
    In all their loneliness and pain,
    You’d cry, “Some woman’s yellow hair
    Has maddened every mother’s son”:
    They weighed so lightly what they gave
    But let them be they’re dead and gone,
    They’re with O’Leary in the grave.

    - W.B. Yates.

    Reply
  • Another pile of scaremongering crap from one of our homegrown traitors

    Reply
  • Welcome to another term of “Only fools and Horses”.

    Reply
  • Thank you so much for funding the collapsed ponzi money scheme that we devised. We extract your wealth without question. Some of your leaders are genuinely ignorant of the slavery system we impose, others are aware and profit from it, as sentinels of our policies, for which we reward them.
    We divide your nation and watch everyone fight for scraps. Keep in the dark. Watch TV. Drink alcohol. Read false and irrelevant economic reports in our media dispatches.
    Thank you for making us wealthy beyond our conspiracy.

    Reply
  • “Stability” “Jobs” “Growth” …………….Repeat as many times as necessary.

    Reply
  • It would have a disastrous effect on the banks sponsoring for sporting like Rugby, Sailing, Hockey, Bridge, Soccor, Football, Golf, Tennis, Equestrian Events, and other sporting events.
    God knows the politicians and bankers need the prime seats at these events so who cares if people need health services or more Garda once the elite are looked after its not so bad.

    Reply
  • And the guys who agree to these terms are at what 21%? Well never progress as a national if we’re doomed to repeat history again. FF make an arse of the country, FG and some partner clean up. Then we’re back to FF promising the same forgetful eejits the world again when the times are good.

    Reply
  • 10 years at 3.1 billion —– imagine what we could achieve with that money every year. We could double the salaries of politicians every year for 10 years. There again we will probably just increase them in increments instead.

    Reply
  • The Reuters story was not accurate and the ECB clarified that negotiations were ongoing.
    Let people do their jobs. And the bullshit notion from SF that negotiations should be done through megaphone…Pity they don’t adopt the same policy when it comes to the disappeared…

    Reply
  • A deal will be done because Germany needs a poster boy to demonstrate their stance was right. And I don’t mind being that poster boy if it gets us what we need.
    Nationalist pride won’t pay the bills… Nor will the “tell em to f*#k off” approach from the war merchants on here… People have to accept we’re not in any position to make demands…

    Reply
  • A deal will be done this i have no doubt

    Reply

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