Wednesday, September 3, 2014

3/9/2014: R.I.P. That Seismic Game-Changer...

Remember June 29, 2012? No? But you do remember this:

"Speaking as he left the European Council building, Mr Kenny described the new deal as a seismic shift in EU policy, and said it would allow Ireland to re-engineer its overall debt level, which would reduce the burden on Irish taxpayers. "What was deemed to be unachievable has now become a reality and that principle has been established, decided and agreed upon by the council and heads of government," he said."

Following in Mr Kenny's footsteps, then Tanaiste Eamon Gilmore : "described last night’s deal as a "major game changer" for Ireland that will ease its path back to financial markets. "When the details are worked out between July and the end of the year, it will have a real impact on our debt level and will greatly improve our ability to get back into the market and not to need a second bailout," he told RTE’s Morning Ireland."

And so the saga of the 'Deal' promised by the 'For Jobs, For Growth' EU 'Partners' to struggling Ireland is now no longer needed... Some 796 days after the seismic game changer rolled into town, the idea is all but abandoned to focus instead on 'early repayment of the IMF loans' or in other words, another not-restructuring of government debts.

Yes, the latter will save us some significant dosh and should be pursued. No, abandoning the former means abandoning a hope of still saving more cash, as ESM valuations mechanism is neither determined nor precludes payment of current market consideration/valuation. And no, Minister Noonan still has no solution in sight to the problem of EUR24 billion worth of Government bonds sitting in the Central Bank that will continue burning an ever widening hole in our finances as we proceed to sell them.

The seismic game changers of Europe, the come and go and jobs and growth remain the objective of the economy thrown onto the rocks, in part, with the help of Brussels and Frankfurt...

No comments: