Only coming into effect in 2014 I guess the people of Spain will be in the same boat as we are so.

this will come just in time for France and German banks to be bailed out and not go on countrys debt

Embrace the bank runs, I say.
We, in Ireland, should now realise that propping up dysfunctional banks courtesy of the taxpayer is a fools errand. We end up with an even more dysfunctional banking system, which only continues to bleed the rest of the economy dry. Yet provides no credit.
True advocates of free markets believe the commercial world is, and should be, subject to Darwin selection. The lame wilderbeest is separated from the herd and dispatched. Yet it’s carcass is recycled through the ecosystem providing sustenance to dozens of other species from lions & hyenas to the lowly dung beetle.
Central planners (governments, central bankers) wish to freeze the economy in one, carefree, point in time. When banks drove the economy forward and created abundant wealth (debt really). This is neither desirable or possible. We need to allow this failed model to pass on to the next world and apply our resources to establishing a more robust future.
http://howestreet.com/2012/05/why-bank-runs-used-to-be-your-best-friends/

Yesterday German banks were downgraded. The banking woes are starting to become evident in France as well. The threat of Spanish write off’s to these countries is immense.

The Franco – German union and people must be protected at all costs. So lets change the hard ass approach, admit that it is counter-productive and go another route.

The EU is now completely subservient to German and French political and economic needs, and France is very much the junior partner.

Even the most cynical EU skeptic must be stunned at how it has turned out.

Not for Germany and France. It suits them perfectly. By changing tack on this timetable it ensures that their banks will continue to be paid back by the PIIGS on loans that in a normal business environment would be written off of the burden shared and when the inevitable of the German and French banks having to face up to their massive losses and mistakes. Well that is what this is for. Head We win Fup U. Tails we win fup u!. P.s. – We are all in this together.

In a sense it’s kinda like these budgeting rules we just voted on.. They *were* already in existence. They *did* apply, and now will again, but *only* when it’s not Germany or France footing the bill.

If you can’t see the two tier system of the EU then perhaps it’s time to go to specsavers..

Your absolutely right Shanti they did apply, since 1992 in fact, courtesy of the Maastricht Treaty which set the the 3% of GDP deficit rule. Since then though, through inept regulation encouraged by corporately funded governing political parties, every country in the Eurozone has broken it, including Ireland. As a matter of interest Germany has broken this rule five times and France seven. Do specsavers have any deals in rose tinted glasses ATM?

Thats the plan damocles. Do with banks what they couldn’t do with tanks. In a europe crippled by austerity, whoever controls the pursestrings is King……….or should I say Queen.

dont forget germany is making lots of money on the weak euro with exports. if this crisis is sorted out then the party is over for them and merkel wont be queen of the eu either.

Yet another “ah sure won’t Europe save us anyway” comment.

And what if they don’t……

Spain is heading for the wall fast. The ECB will pile more debt on top of them, demand steeper cuts but bleeding out the patient has never worked before.

I think at this stage it is safe to say, has been for a year or two that the leadership of the EU/ECB are so overwhelmed, so obsessed with the idea of protecting the Euro at all costs that they will defy gravity and the tide to protect it. They are well on the way to finishing Europe and taking the globe in to a depression.

They are EU extreme nationalists.

Is this a p**s take ?? Now they wanna protect us ?? Quick quick shut the door the horse has bolted !!

My only problem with it is that it further demonstrates the “one rule for us and another for everyone else” at play in the EU.

I mean, we just had a vote on reestablishing already existing laws because when it didn’t suit France and Germany those laws were gotten rid of..
Now we pay off banking debt, are told to say bye bye to a better deal, but when France or Germany face the same fate they change the rules again, to suit them.. Will it do us any good? Our banking debt was already nationalised, I wonder will we be allowed to roll back on that or will we be told “tough luck, your debt is sovereign now”..